BILL NUMBER: SB 1193 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Padilla
FEBRUARY 12, 2008
An act to amend Section 270 of, and to amend, renumber, and add
Section 281 of, the Public Utilities Code, relating to
telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
SB 1193, as introduced, Padilla. Telecommunications: universal
service: California Advanced Services Fund.
The existing federal Telecommunications Act of 1996 establishes a
program for the regulation of telecommunications to attain the goal
of local competition, while implementing specific, predictable, and
sufficient federal and state mechanisms to preserve and advance
universal service, consistent with certain universal service
principles. The universal service principles include the principle
that consumers in all regions of the nation, including low-income
consumers and those in rural, insular, and high-cost areas, should
have access to telecommunications and information services, including
interexchange services and advanced telecommunications and
information services, that are reasonably comparable to those
services provided in urban areas and that are available at rates that
are reasonably comparable to rates charged for similar services in
urban areas.
Under existing law, the Public Utilities Commission has regulatory
authority over public utilities, including telephone corporations.
Existing law authorizes the commission to supervise and regulate
every public utility and to do all things necessary and convenient in
the exercise of its power and jurisdiction. Existing law establishes
the California High-Cost Fund-A Administrative Committee Fund
(CHCF-A Fund), the California High-Cost Fund-B Administrative
Committee Fund, the Universal Lifeline Telephone Service Trust
Administrative Committee Fund, the Deaf and Disabled
Telecommunications Program Administrative Committee Fund, the
Payphone Service Providers Committee Fund, and the California
Teleconnect Fund Administrative Committee Fund in the State Treasury,
and requires that moneys in the funds 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
and may be expended only to accomplish specified telecommunications
universal service programs, upon appropriation in the annual Budget
Act or upon supplemental appropriation.
In Decision 07-12-054, pursuant to its authority to do all things
necessary and convenient in the exercise of its power and
jurisdiction, the commission imposed a surcharge beginning January 1,
2008, collected through retail telecommunications customers' bills,
to fund the California Advanced Services Fund (CASF), for the purpose
of encouraging deployment of broadband facilities for use in
provisioning advanced telecommunications and voice service in
unserved and underserved areas. Decision 07-12-054 further ordered
that prior to any CASF disbursements, the commission would seek
statutory authority to add the CASF as one of the funds authorized
for handling by the State Treasury and to seek statutory authority
for specific direction to telephone corporations for remitting CASF
collections and for use of the funds by the commission.
This bill would establish the CASF in the State Treasury, subject
to the conditions and restrictions applicable to the 6 existing
universal service funds described above. The bill would require that
moneys collected by telephone corporations in the surcharge
authorized by the commission to fund the CASF, whether collected
before or after January 1, 2009, be transmitted to the Controller for
deposit in the fund. The bill would require the commission to
develop, implement, and administer the CASF to provide for transfer
payments to encourage deployment of high-quality advanced
communications services to all Californians that will promote
economic growth, job creation, and substantial social benefits of
advanced information and communications technologies, as provided in
commission Decision 07-12-054.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature finds and declares all of the
following:
(a) The emergence of advanced high capacity communication
networks, often defined as broadband, based on high-speed interactive
networks designed for voice, data, and video communications, have
opened up tremendous opportunities for communication.
(b) Broadband is essential for our state's economic growth and can
increase democratic and civic participation, improve the delivery of
health care, education, job training, public safety, and other vital
services.
(c) The gap between those people with effective access to digital
and information technology, and those without access to it, is
referred to as the "digital divide."
(d) Those who do not have access to broadband and the skills to
use it effectively will be isolated from information, services,
products, and means of entrepreneurship, ultimately weakening our
competitiveness in the global economy.
(e) Existing law provides for various universal service programs
relating to telephone corporations to be administered by the Public
Utilities Commission, and paid for through program end-user
surcharges authorized by the commission.
(f) The California Advanced Services Fund program will address the
digital divide where rural, remote, low-income, and disadvantaged
communities suffer from a lack of telecommunications and information
infrastructure with the goal of ubiquitous broadband throughout the
state.
(g) In order to assure the widespread availability of high-quality
telecommunications, emerging technologies, and information services
to all Californians, the commission shall develop, implement, and
administer a California Advanced Services Fund.
(h) The purpose of the California Advanced Services Fund program
will be to spur deployment of broadband infrastructure in unserved
and underserved areas within the state, in both rural and urban
areas, stimulate demand for services, ensure affordable access,
provide a minimum speed and reliability of broadband services, and
encourage statewide policy to promote broadband throughout the state.
SEC. 2. 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.
(7) The California Advanced Services Fund.
(b) Moneys in the funds 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. Moneys
in the funds may only be expended pursuant to this chapter and upon
appropriation in the annual Budget Act or upon supplemental
appropriation.
(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 in Sections 19325 and 19325.1 of the
Education Code.
(d) This section shall become operative on January 1, 2006.
SEC. 3. Section 281 of the Public Utilities Code is amended and
renumbered to read:
281. 282. Any revenues that are
deposited in funds created pursuant to this chapter shall not be used
by the state for any purpose other than as specified in this
chapter.
SEC. 4. Section 281 is added to the Public Utilities Code, to
read:
281. (a) The commission shall develop, implement, and administer
the California Advanced Services Fund to encourage deployment of
high-quality advanced communications services to all Californians
that will promote economic growth, job creation, and the substantial
social benefits of advanced information and communications
technologies, as provided in Decision 07-12-054.
(b) All moneys collected by telephone corporations in the
surcharge authorized by the commission pursuant to that decision,
whether collected before or after January 1, 2009, shall be
transmitted to the Controller for deposit in the California Advanced
Services Fund. All interest earned on moneys in the fund shall be
deposited in the fund.
(c) Any moneys appropriated from the California Advanced Services
Fund to the commission may only be expended for the program
administered by the commission pursuant to subdivision (a), including
the costs incurred by the commission in developing, implementing,
and administering the program and the fund.