BILL NUMBER: AB 1825 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 17, 2000
AMENDED IN ASSEMBLY MAY 1, 2000
AMENDED IN ASSEMBLY APRIL 24, 2000
AMENDED IN ASSEMBLY APRIL 6, 2000
INTRODUCED BY Assembly Member Strom-Martin
FEBRUARY 3, 2000
An act to repeal, add, and repeal Article 3 (commencing
with Section 15399.48) of Part 6.7 of Division 3 of Title 2 of the
Government Code, to amend, repeal, and add Sections 270 and
280 of, and to add and repeal Section 280.5 of, the Public Utilities
Code, relating to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1825, as amended, Strom-Martin. Rural telecommunications
infrastructure.
(1) Existing law establishes the California Rural Policy
Task Force within the Office of Planning and Research in the Governor'
s office. The task force is composed of state officers and oversees
the mobilization and effective delivery of resources to rural
California provides for the California Teleconnect
Fund Administrative Committee Fund to provide discounted rates for
qualifying schools, libraries, health clinics, and community
organizations and paid for in the utility rates authorized by the
commission. Existing law also provides for an advisory board that
advises the commission regarding this program, and creates a fund for
each advisory board in the State Treasury in which funds generated
by each of these programs are deposited. Existing law limits the
expenditure of the moneys in this fund to the specified program and
upon appropriation in the annual Budget Act .
This bill would, under the Public Utilities Act, until
January 1, 2006, establish the Rural Telecommunications
Infrastructure Task Force within the California Teleconnect
Fund Administrative Committee . The Rural
Telecommunications Infrastructure Task Force would develop resources
and programs to facilitate community efforts to deploy
telecommunications infrastructure in areas not currently served.
This task force with 3 members appointed by the executive
director of the Public Utilities Commission would administer a
grant program to provide community-based groups with resources to
build telecommunications infrastructure, as prescribed. The
California Teleconnect Fund Administrative Committee would provide
administrative support, and the Public Utilities Commission would
provide technical assistance, as prescribed.
(2) Existing law provides for the California Teleconnect Fund
Administrative Committee Fund to provide discounted rates for
qualifying schools, libraries, health clinics, and community
organizations and paid for in the utility rates authorized by the
commission. Existing law also provides for an advisory board that
advises the commission regarding this program, and creates a fund for
each advisory board in the State Treasury in which funds generated
by each of these programs are deposited. Existing law limits the
expenditure of the moneys in this fund to the specified program and
upon appropriation in the annual Budget Act.
This bill would also , under the Public Utilities Act,
until January 1, 2006, expand this program to include funding a grant
program to build telecommunications infrastructure in rural areas,
as prescribed. Upon appropriation, the funding would be derived from
the fund up to a specified annual limit, as prescribed, and would be
transferred to the Rural Telecommunications Infrastructure Task
Force, as prescribed. The bill would require the commission to form
a working group to develop technical criteria for evaluating the
grants. Because, under the act, a violation of these provisions
would be a crime, this bill would impose a state-mandated local
program by creating new crimes.
(3)
(2) The California Constitution requires the state to
reimburse local agencies and school districts for certain costs
mandated by the state. Statutory provisions establish procedures for
making that reimbursement.
This bill would provide that no reimbursement is required by this
act for a specified reason.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Article 3 (commencing with Section 15399.48)
of Part 6.7 of Division 3 of Title 2 of the Government Code is
repealed.
SEC. 2. Article 3 (commencing with Section 15399.48) is added to
Part 6.7 of Division 3 of Title 2 of the Government Code, to read:
Article 3. Rural Telecommunications Infrastructure Task Force
15399.48. (a) The Rural Telecommunications Infrastructure Task
Force is hereby created in the California Teleconnect Fund
Administrative Committee to be composed of members appointed by the
California Teleconnect Fund Administrative Committee.
(b) The purpose of the task force is to develop programs and
resources that facilitate community efforts to deploy
telecommunications infrastructure in areas not currently served by
existing local exchange carriers.
(c) The task force shall administer a needs-based grant program
funded by a portion of the California Teleconnect Fund as set forth
in Sections 280 and 280.5 of the Public Utilities Code. The
California Teleconnect Fund Administrative Committee shall provide
administrative support for the task force and the grant program.
(d) On or after July 1, 2001, any community-based group
representing a qualifying community may apply for and receive grants
to build an original telecommunications infrastructure that will
serve an area that meets the grant program's population criteria with
consideration given to communities with schools, hospitals, and
health clinics, as set forth in Decision 96-10-066, and that
currently lacks basic telecommunications services, as described in
Decision 96-10-066 of the Public Utilities Commission. The task
force, in conjunction with the Public Utilities Commission, shall
establish eligibility criteria for community-based groups to qualify
to apply for telecommunications infrastructure grants. Qualifying
communities shall have a median income no greater than the top income
level used in the Universal Lifeline Telephone Service index.
(e) Grant proposals shall be submitted to the task force in
accordance with procedures prescribed by the task force and evaluated
and awarded by the task force using technology criteria developed by
the government-industry working group established by Section 280.5
of the Public Utilities Code. Grant proposals shall contain all of
the following:
(1) Preliminary engineering feasibility studies conducted in
cooperation with the local exchange carrier that include all of the
following:
(A) Topographical maps indicating the location of all existing
residences.
(B) Schematic maps of the proposed network facilities.
(C) Recommendations and justifications for the preferred
technologies.
(D) Network compatibility statements from one or more
interconnecting carriers.
(E) Cost projections for the infrastructure facilities.
(F) Cost projections for the interconnection and recurring service
provisions.
(G) Projected budget for engineering feasibility studies.
(2) Recommendations and letters of support from all of the
following:
(A) The county board of supervisors.
(B) Other affected local governments.
(C) Affected school districts.
(D) Affected emergency service providers.
(E) Affected law enforcement agencies.
(3) Letters of commitment from 75 percent of the unserved
population.
(4) A project schedule, including timeline and budget.
(f) Grant applicants that are rejected by the task force shall be
reimbursed for the cost of their preliminary engineering feasibility
studies from the grant program.
(g) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed annual moneys available to support
the program, that not more than five grants are awarded per year,
that not more than one grant is awarded to a qualifying community,
and that no one applicant receive more than 25 percent of amounts
transferred to the task force in a single fiscal year.
(h) The Public Utilities Commission shall approve and award
grants, by resolution, based upon the recommendations of the task
force.
(i) The California Teleconnect Fund Administrative Committee shall
advance grant awards directly to the local exchange carrier upon the
adoption of a resolution of the Public Utilities Commission.
(j) This chapter shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2006, deletes or extends that
date.
SEC. 3. Section 270 of the Public Utilities Code is
amended to read:
270. (a) The following funds are hereby created in the State
Treasury:
(1) The California High-Cost Fund-A Administrative Committee Fund.
(2) The California High-Cost Fund-B Administrative Committee Fund.
(3) The Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
(4) The Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
(5) The Payphone Service Providers Committee Fund.
(6) The California Teleconnect Fund Administrative Committee Fund.
(b) Moneys in the funds may only be expended pursuant to this
chapter and upon appropriation in the annual Budget Act.
(c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity, except as provided for in Sections 280 and 280.5.
(d) Notwithstanding Section 7550.5 of the Government Code, on or
before July 1, 2000, the Public Utilities Commission, in consultation
with the Department of Finance, shall report to the Governor and the
Legislature regarding a transition plan for programs associated with
funds to be established within the State Treasury, as specified in
subdivision (a). The transition plan report shall include
information regarding the annual revenue to be deposited in, and the
annual estimated expenditure for, each fund specified in subdivision
(a). Advisory committees created by Sections 275, 276, 277, 278,
279, and 280 shall provide information and input to the commission in
development of the specified transition plan.
(e) This section shall remain in effect only until January 1, 2006,
and as of that date is repealed, unless a later enacted statute,
that is enacted before January 1, 2006, deletes or extends that date.
SEC. 4.
SEC. 2. Section 270 is added to the Public Utilities Code,
to read:
270. (a) The following funds are hereby created in the State
Treasury:
(1) The California High-Cost Fund-A Administrative Committee Fund.
(2) The California High-Cost Fund-B Administrative Committee Fund.
(3) The Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
(4) The Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
(5) The Payphone Service Providers Committee Fund.
(6) The California Teleconnect Fund Administrative Committee Fund.
(b) Moneys in the funds may only be expended pursuant to this
chapter and upon appropriation in the annual Budget Act.
(c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity.
(d) Notwithstanding Section 7550.5 of the Government Code, on or
before July 1, 2000, the Public Utilities Commission, in consultation
with the Department of Finance, shall report to the Governor and the
Legislature regarding a transition plan for programs associated with
funds to be established within the State Treasury, as specified in
subdivision (a). The transition plan report shall include
information regarding the annual revenue to be deposited in, and the
annual estimated expenditure for, each fund specified in subdivision
(a). Advisory committees created by Sections 275, 276, 277, 278,
279, and 280 shall provide information and input to the commission in
development of the specified transition plan.
(e) This section shall become operative on January 1, 2006.
SEC. 5.
SEC. 3. Section 280 of the Public Utilities Code is amended
to read:
280. (a) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of programs to advance universal service. Consistent
with Chapter 278 of the Statutes of 1994, the programs provide
discounted rates to qualifying schools, libraries, hospitals, health
clinics, and community organizations, and funds for the development
of a grant program for the construction of telecommunications
infrastructure as set forth in Section 15399.48 of the
Government Code 280.5 . The California
Teleconnect Fund Administrative Committee shall carry out these
programs pursuant to the commission's direction, control, and
approval.
(b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall
transfer the moneys received to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund.
(c) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the programs specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the programs and
the fund.
(d) This section shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2006, deletes or extends
that date.
SEC. 6.
SEC. 4. Section 280 is added to the Public Utilities Code,
to read:
280. (a) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to advance universal service by providing
discounted rates to qualifying schools, libraries, hospitals, health
clinics, and community organizations, consistent with Chapter 278 of
the Statutes of 1994, and to carry out the program pursuant to the
commission's direction, control, and approval.
(b) All revenues collected by telephone corporations from rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall
transfer the moneys received to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California Teleconnect Fund Administrative Committee Fund.
(c) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
(d) This section shall become operative on January 1, 2006.
SEC. 7.
SEC. 5. Section 280.5 is added to the Public Utilities Code,
to read:
280.5. (a) The Rural Telecommunications Infrastructure Task
Force is hereby established as a working group to develop programs
and resources that facilitate community efforts to deploy
telecommunications infrastructure in areas not currently served by
existing local exchange carriers.
(b) The executive director of the commission shall appoint the
members of the Rural Telecommunications Infrastructure Task Force.
The task force shall be composed of one member from each of the
following:
(1) The California Teleconnect Fund Administrative Committee.
(2) The Rural Development Council.
(3) The telecommunications industry.
(c) The task force shall administer a needs-based grant program
funded by a portion of the California Teleconnect Fund administrative
committee fund as set forth in subdivision (k). The California
Teleconnect Fund Administrative Committee shall provide
administrative support for the task force and the grant program.
(d) On or after July 1, 2001, any community-based group
representing a qualifying community may apply for and receive grants
to build an original telecommunications infrastructure that will
serve an area that meets the grant program's population criteria with
consideration given to communities with schools, hospitals, and
health clinics, as set forth in Decision 96-10-066, and that
currently lacks basic telecommunications services, as described in
Decision 96-10-066 of the commission. On or before June 30, 2001,
the task force, in conjunction with the commission, shall establish
eligibility criteria for community-based groups to qualify to apply
for telecommunications infrastructure grants. Qualifying communities
shall have a median income no greater than the top income level used
in the Universal Lifeline Telephone Service index.
(e) Grant proposals shall be submitted to the task force in
accordance with procedures prescribed by the task force and evaluated
and awarded by the task force using technology criteria developed by
the government-industry working group established by subdivision
(n). Grant proposals shall contain all of the following:
(1) Preliminary engineering feasibility studies conducted in
cooperation with the local service providers that include all of the
following:
(A) Topographical maps indicating the location of all existing
residences.
(B) Schematic maps of the proposed network facilities.
(C) Recommendations and justifications for the preferred
technologies.
(D) Network compatibility statements from one or more
interconnecting carriers.
(E) Cost projections for the infrastructure facilities.
(F) Cost projections for the interconnection and recurring service
provisions.
(G) Projected budget for engineering feasibility studies.
(2) Recommendations and letters of support from all of the
following:
(A) The county board of supervisors.
(B) Other affected local governments.
(C) Affected school districts.
(D) Affected emergency service providers.
(E) Affected law enforcement agencies.
(3) Letters of commitment from 75 percent of the unserved
population.
(4) A project schedule, including timeline and budget.
(5) A management plan that assures the proper utilization of grant
funds.
(6) Organizational documents, including incorporation documents,
evidencing the formation of a locally controlled entity able to own
property, contract for services, and conduct other functions
necessary to insure the delivery of telecommunications services to
the affected community.
(f) Grant applicants that are rejected by the task force shall be
reimbursed for the cost of their preliminary engineering feasibility
studies from the grant program.
(g) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed annual moneys available to support
the program, that not more than five grants are awarded per year,
that not more than one grant is awarded to a qualifying community,
and that no one applicant receive more than 25 percent of amounts
transferred to the task force in a single fiscal year.
(h) The commission shall approve and award grants, by resolution,
based upon the recommendations of the task force.
(i) The California Teleconnect Fund Administrative Committee shall
advance grant awards directly to the grant recipient upon the
adoption of a resolution of the commission.
(j) This chapter shall remain in effect only until January 1,
2006, and as of that date is repealed, unless a later enacted statute
that is enacted before January 1, 2006, deletes or extends that
date.
(k) The Rural Telecommunications Infrastructure Task Force,
upon appropriation of funds from the California Teleconnect Fund
Administrative Committee Fund, not to exceed ten million dollars
($10,000,000) per year, may fund the telecommunications
infrastructure grant program established by Section 15399.48 of the
Government Code.
(b)
(l) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund for use by the telecommunications
infrastructure grant program shall be capped at 0.06 percent against
the billing base, and may not be added to the current surcharge, but
shall be appropriated from existing moneys within the fund. The
California Teleconnect Fund Administrative Committee may use that
portion of moneys appropriated pursuant to subdivision (a) the
committee determines to be necessary for the administration of the
fund.
(c)
(m) The commission shall establish a procedure that allows
any telecommunications provider subject to commission jurisdiction
that is capable of providing telephone service to the grant funded
service area an opportunity to provide the interconnection to the
public switched network.
(d)
(n) The commission shall establish a government-industry
working group to develop the technical criteria to be used in
evaluating grant awards. The working group shall be composed of, but
not limited to, the following:
(1) Representatives of the commission.
(2) Representatives of the incumbent local exchange carrier
industry.
(3) Representatives of the competitive local exchange carrier
industry.
(4) Representatives of the wireless carrier industry.
(e)
(o) This section shall remain in effect only until January
1, 2006, and as of that date is repealed, unless a later enacted
statute enacted before January 1, 2006, deletes or extends that date.
SEC. 8.
SEC. 6. No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of the
Government Code, or changes the definition of a crime within the
meaning of Section 6 of Article XIIIB of the California Constitution.