BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1100
                                                                  Page  1

          Date of Hearing:   May 8, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1100 (Levine) - As Amended:  April 30, 2013

          Policy Committee:                              Utilities and  
          Commerce     Vote:                            13-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill eliminates the cap on the discounts California  
          Community Colleges (CCC) may receive from the California  
          Teleconnect Fund (CTF) to provide affordable telecommunications  
          services.

           FISCAL EFFECT  

          To the extent community colleges receive additional funding from  
          the CTF program, less will be available for qualified schools,  
          libraries, hospitals, health clinics, and other community  
          organizations.   CCCs are the only entity with a cap.

           COMMENTS  

           1)Purpose.   According to the author, online education is  
            dependent on a stable telecommunications infrastructure.  In  
            order to increase access for student of all income levels,  
            community colleges should be treated as equal partners with  
            other CTF participants.
           
          2)Background.   The PUC established the CTF in 1996 to provide  
            50% discounts on communications services and broadband  
            Internet services for schools, libraries, hospitals and other  
            non-profit organizations.  The subsidy is funded through a  
            surcharge of 0.59% on intrastate charges by telephone  
            customers.  In 2008, the CTF was expanded to include community  
            colleges.  The current PUC-imposed annual limit for community  
            colleges is $10.865 million.  To date, no other entity is  
            subject to the annual limit in the program.









                                                                  AB 1100
                                                                  Page  2

           3)Support.  This bill is supported by numerous community  
            colleges that suggest recent cuts in the Technology and  
            Telecommunications Infrastructure program (a categorical  
            program within Proposition 98) have impeded progress in this  
            area.  The community colleges view the CTF cap as an  
            additional deterrent to the future expansion of distance  
            education and potential creation of a virtual campus.  
                
            4)Opposition.   The PUC opposes this bill and contends the  
            commission has not restricted the participation of community  
            colleges in the CTF program in the past and has the discretion  
            to increase the annual funding cap if the commission  
            determines the amount of funding is inadequate.  According to  
            the PUC, community colleges only claimed about 18% of total  
            funds available In FY 12/13 and claims have never exceeded 87%  
            of annual available funds. 
           
           Analysis Prepared by  :    Jennifer Galehouse / APPR. / (916)  
          319-2081