Amended in Assembly April 23, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1100


Introduced by Assembly Member Levine

February 22, 2013


An act to amend Section 280 of the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL’S DIGEST

AB 1100, as amended, Levine. Telecommunications: California Teleconnect Fund Administrative Committee Fund.

Existing law, the federal Telecommunications Act of 1996, establishes a program of cooperative federalism 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 elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications service. The act authorizes states to adopt regulations not inconsistent with Federal Communications Commission rules to preserve and advance universal service. The act requires that every telecommunications carrier that provides intrastate telecommunications services contribute, on an equitable and nondiscriminatory basis, in a manner determined by the state, to the preservation and advancement of universal service in that state. The act authorizes each state to adopt regulations to provide for additional definitions and standards to preserve and advance universal service within the state, only to the extent that they adopt additional specific, predictable, and sufficient mechanisms that do not rely on or burden federal universal service support mechanisms.

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 for public utilities. Existing law requires that the commission develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools, community colleges, libraries, hospitals, health clinics, and community organizations (teleconnect program). Existing law establishes the California Teleconnect Fund Administrative Committee Fund in the State Treasury and requires the moneys in the fund, upon appropriation, be expended only for the teleconnect program. A commission decision establishes an annual limit on the reimbursement provided to the California Community Colleges as part of the teleconnect program.

This bill would prohibit an annual limit for the reimbursement provided to the California Community Colleges as part of the teleconnect program.begin insert The bill would prohibit the commission, for a reimbursement limit adopted as part of the teleconnect program, from discriminating among program participants by imposing a limitend insertbegin insert on a single class of participants.end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 280 of the Public Utilities Code is
2amended to read:

3

280.  

(a) The commission shall develop, implement, and
4administer a program to advance universal service by providing
5discounted rates to qualifying schools maintaining kindergarten
6or any of grades 1 to 12, inclusive, community colleges, libraries,
7hospitals, health clinics, and community organizations, consistent
8with Chapter 278 of the Statutes of 1994.

9(b) There is hereby created the California Teleconnect Fund
10Administrative Committee, which is an advisory board to advise
11the commission regarding the development, implementation, and
12administration of a program to advance universal service by
13providing discounted rates to qualifying schools maintaining
14kindergarten or any of grades 1 to 12, inclusive, community
P3    1colleges, libraries, hospitals, health clinics, and community
2organizations, consistent with Chapter 278 of the Statutes of 1994,
3and to carry out the program pursuant to the commission’s
4direction, control, and approval.

5(c) All revenues collected by telephone corporations in rates
6authorized by the commission to fund the program specified in
7subdivision (a) shall be submitted to the commission pursuant to
8a schedule established by the commission. The commission shall
9transfer the moneys received to the Controller for deposit in the
10California Teleconnect Fund Administrative Committee Fund. All
11interest earned by moneys in the fund shall be deposited in the
12fund.

13(d) Moneys appropriated from the California Teleconnect Fund
14Administrative Committee Fund to the commission shall be utilized
15exclusively by the commission for the program specified in
16subdivision (a), including all costs of the board and the commission
17associated with the administration and oversight of the program
18and the fund.

19(e) Moneys loaned from the California Teleconnect Fund
20Administrative Committee Fund in the Budget Act of 2003 are
21subject to Section 16320 of the Government Code. If the
22commission determines a need for moneys in the California
23Teleconnect Fund Administrative Committee Fund, the commission
24shall notify the Director of Finance of the need, as specified in
25Section 16320 of the Government Code. The commission may not
26increase the rates authorized by the commission to fund the
27program specified in subdivision (b) while moneys loaned from
28the California Teleconnect Fund Administrative Committee Fund
29in the Budget Act of 2003 are outstanding unless both of the
30following conditions are satisfied:

31(1) The Director of Finance, after making a determination
32pursuant to subdivision (b) of Section 16320 of the Government
33Code, does not order repayment of all or a portion of any loan
34from the California Teleconnect Fund Administrative Committee
35Fund within 30 days of notification by the commission of the need
36for the moneys.

37(2) The commission notifies the Director of Finance and the
38Chairperson of the Joint Legislative Budget Committee in writing
39that it intends to increase the rates authorized by the commission
40to fund the program specified in subdivision (a). The notification
P4    1required pursuant to this paragraph shall be made 30 days in
2advance of the intended rate increase.

3(f) Subdivision (e) shall become inoperative upon full repayment
4or discharge of all moneys loaned from the California Teleconnect
5Fund Administrative Committee Fund in the Budget Act of 2003.

6(g) The reimbursement for the California Community Colleges
7shall not have an annual limit, as established pursuant to
8commission Decision 08-06-020.begin insert A reimbursement limit adopted
9by the commission to achieve the goals of the program specified
10in subdivision (a) shall not discriminate among program
11participants by imposing a limit on a single class of participants.end insert



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