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