BILL NUMBER: AB 1825 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 26, 2000
AMENDED IN SENATE JUNE 21, 2000
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 amend, repeal, and add Sections 270 and 276 of, and to
add and repeal Section 276.5 of, the Public Utilities Code, relating
to public utilities.
LEGISLATIVE COUNSEL'S DIGEST
AB 1825, as amended, Strom-Martin. Rural telecommunications
infrastructure : grants .
(1) Existing law provides for the High-Cost Fund-B Administrative
Committee to advise the commission regarding programs to provide for
transfer payments to telephone corporations providing services in
high cost areas and to carry out the programs under the commission's
authority.
This bill would, under the Public Utilities Act, until January 1,
2006, also establish a grant program for the construction of
telecommunications infrastructure, as prescribed.
The bill would provide that the corporations receiving transfer
payments shall continue to be fully reimbursed for the costs they are
entitled to recover.
Under the bill, the funding for the grant program would be
available, upon appropriation from the existing High-Cost Fund-B
Administrative Committee Fund, up to a specified annual limit, as
prescribed. The bill would establish the Rural
Telecommunications Infrastructure Task Force, to recommend to the
commission the award of grants. This bill would require the
administrative committee to provide administrative support for the
task force and the grant program. The bill would require the
commission to establish 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.
(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. 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 276 and 276.5.
(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. 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. 3. Section 276 of the Public Utilities Code is amended to
read:
276. (a) There is hereby created the California High-Cost Fund-B
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to
telephone corporations providing local exchange services in high-cost
areas in the state to create fair and equitable local rate
structures, as provided for in Section 739.3, and the development of
a grant program for the construction of telecommunications
infrastructure as set forth in Section 276.5, and to carry out the
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 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 High-Cost Fund-B 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 High-Cost Fund-B Administrative Committee Fund.
(c) Moneys appropriated from the California High-Cost Fund-B
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) Telephone corporations receiving transfer payments for
providing local exchange services in high cost areas in the state
under the program established to create fair and equitable local rate
structures as provided for in Section 739.3 shall continue to be
fully reimbursed for the costs they are entitled to recover pursuant
to commission Decision 96-10-066.
(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. Section 276 is added to the Public Utilities Code, to
read:
276. (a) There is hereby created the California High-Cost Fund-B
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to
telephone corporations providing local exchange services in high-cost
areas in the state to create fair and equitable local rate
structures, as provided for in Section 739.3, and to carry out the
program 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 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 High-Cost Fund-B 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 High-Cost Fund-B Administrative Committee Fund.
(c) Moneys appropriated from the California High-Cost Fund-B
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. 5. Section 276.5 is added to the Public Utilities Code, to
read:
276.5. (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 High-Cost Fund-B 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 High-Cost Fund-B Administrative
Committee Fund as set forth in subdivision (k). The California
High-Cost Fund-B 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 can
provide basic telecommunications service 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. A community-based group
representing a qualifying community may alternatively apply for and
receive a grant to subsidize the cost of the telecommunications
service itself, if the group determines that this would be more
cost-effective than subsidizing the building of an original
telecommunications infrastructure. 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) Evidence that competing providers and competing technologies
have been considered and evaluated.
(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 the designated program funds in a single fiscal year.
(h) The commission shall approve and award grants, by resolution,
based upon giving consideration to the
recommendations of the task force. In evaluating grant
applications, the commission shall consider the cost-effectiveness of
the application, the number of people served, the level of local
support, and the effect on public health and safety.
(i) The California High-Cost Fund-B Administrative Committee shall
authorize advancement of 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 High-Cost Fund-B
Administrative Committee Fund, not to exceed ten million dollars
($10,000,000) per year, may fund the telecommunications
infrastructure grant program established by this section.
(l) Moneys appropriated from the California High-Cost Fund-B
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 High-Cost Fund-B 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.
(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.
(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.
(o) Grant applicants shall seek to secure federal sources of
funding in conjunction with local subsidies for the construction of
telecommunications infrastructure.
(p) 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. 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.