BILL NUMBER: AB 326	CHAPTERED  09/07/06

	CHAPTER  212
	FILED WITH SECRETARY OF STATE  SEPTEMBER 7, 2006
	APPROVED BY GOVERNOR  SEPTEMBER 7, 2006
	PASSED THE ASSEMBLY  AUGUST 14, 2006
	PASSED THE SENATE  AUGUST 10, 2006
	AMENDED IN SENATE  JUNE 29, 2006
	AMENDED IN SENATE  MARCH 21, 2006
	AMENDED IN ASSEMBLY  JANUARY 24, 2006
	AMENDED IN ASSEMBLY  JANUARY 11, 2006
	AMENDED IN ASSEMBLY  JANUARY 4, 2006
	AMENDED IN ASSEMBLY  APRIL 7, 2005

INTRODUCED BY   Assembly Member Blakeslee

                        FEBRUARY 10, 2005

   An act to amend Section 275 of the Public Utilities Code, relating
to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 326, Blakeslee  Telephone corporations: universal service.
   Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
Existing law authorizes the commission to fix just and reasonable
rates and charges. Existing law establishes the California High-Cost
Fund-A Administrative Committee Fund in the State Treasury and
requires that the moneys in the fund be expended, upon appropriation,
only to accomplish a specified telecommunications universal service
program. Existing law provides that moneys in the fund are the
proceeds of rates and are held in trust for the benefit of ratepayers
and to compensate telephone corporations for their costs of
providing universal service.
    This bill would make legislative findings and declarations that,
because maintenance of universal public switched telephone network
service throughout the state and maintenance of public safety
answering points in high-cost areas of the state rely on
appropriations from the fund, maintaining adequate funding levels for
the fund is critical to public health and safety.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 275 of the Public Utilities Code, as amended by
Section 1 of Chapter 767 of the Statutes of 2004, 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 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) The Legislature finds and declares that, because maintenance
of universal public switched telephone network service throughout the
state and maintenance of public safety answering points in high-cost
areas of the state rely on appropriations from the California
High-Cost Fund-A Administrative Committee Fund, maintaining adequate
funding levels for the fund is critical to public health and safety.