BILL NUMBER: AB 1825 ENROLLED
BILL TEXT
PASSED THE ASSEMBLY AUGUST 29, 2000
PASSED THE SENATE AUGUST 28, 2000
AMENDED IN SENATE AUGUST 8, 2000
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, 275, 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, Strom-Martin. Rural telecommunications infrastructure:
grants.
(1) Existing law creates the High-Cost Fund-A Administration
Committee and the High-Cost Fund-B Administrative Committee to advise
the Public Utilities 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 from
the existing California High-Cost Fund-A Administrative Committee
Fund or the High-Cost Fund-B Administrative Committee Fund, or both,
up to a specified annual limit, as determined by the commission. The
bill would require the commission to award grants, as specified.
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.
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 275 of the Public Utilities Code is amended to
read:
275. (a) There is hereby created the California High-Cost Fund-A
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 small
independent telephone corporations providing local exchange services
in high-cost rural and small metropolitan areas in the state to
create fair and equitable local rate structures, as provided for in
Section 739.3, 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-A 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-A Administrative Committee Fund.
(c) Moneys appropriated from the California High-Cost Fund-A
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 program 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 275 is added to the Public Utilities Code, to
read:
275. (a) There is hereby created the California High-Cost Fund-A
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 small
independent telephone corporations providing local exchange services
in high-cost rural and small metropolitan 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-A 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-A Administrative Committee Fund.
(c) Moneys appropriated from the California High-Cost Fund-A
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 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. 6. 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. 7. Section 276.5 is added to the Public Utilities Code, to
read:
276.5. (a) The commission shall establish a grant program to aid
in the establishment of telecommunications service in areas not
currently served by existing local exchange carriers. The program
shall be funded out of either the California High-Cost Administrative
Committee Fund-A or the California High-Cost Administrative
Committee Fund-B, or both, as determined by the commission, and the
funding level may not exceed ten million dollars ($10,000,000) per
year.
(b) 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 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.
(c) Grant proposals shall be submitted in accordance with
procedures prescribed by the commission and evaluated and awarded by
the commission using technology criteria developed by the
government-industry working group established by subdivision (h).
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.
(d) Grant applicants that are rejected by the commission shall be
reimbursed for the cost of their preliminary engineering feasibility
studies from the grant program.
(e) 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 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.
(f) In evaluating grant applications, the commission shall
consider the cost effectiveness of the application, the number of
people served, the level of local support, the ability of the
community served to pay for the services delivered, and the effect on
public health and safety.
(g) 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.
(h) 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.
(i) Grant applicants shall seek to secure federal sources of
funding in conjunction with local subsidies for the construction of
telecommunications infrastructure.
(j) 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. 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.