Amended in Senate September 6, 2013

Amended in Senate September 4, 2013

Amended in Senate July 10, 2013

Amended in Assembly April 25, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1299


Introduced by Assembly Member Bradford

February 22, 2013


An act to amend Section 281 of the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL’S DIGEST

AB 1299, as amended, Bradford. Telecommunications: universal service programs: California Advanced Services 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 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. 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, as defined. Existing law establishes the California Advanced Services Fund (CASF) in the State Treasury and requires that moneys in those 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. Existing law requires the commission to develop, implement, and administer the CASF 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 specified decisions of the commission and in the CASF statute. Existing law establishes 3 accounts, the Broadband Infrastructure Grant Account, the Rural and Urban Regional Broadband Consortia Grant Account, and the Broadband Infrastructure Revolving Loan Account within the CASF.

Existing law prohibits the commission from collecting, before January 1, 2011, more than $100,000,000, for deposit into the CASF through the surcharge authorized by the commission. Existing law authorizes the commission to collect an additional sum not to exceed $125,000,000, after January 1, 2011, for a sum total of moneys collected through the surcharge not to exceed $225,000,000. Existing law authorizes the commission to collect the additional sum through the 2015 calendar year. Existing law requires that of the moneys collected after January 1, 2011, $100,000,000 is to be deposited into the Broadband Infrastructure Grant Account, $10,000,000 is to be deposited into the Rural and Urban Regional Broadband Consortia Grant Account and used for specified purposes, and $15,000,000 is to be deposited into the Broadband Infrastructure Revolving Loan Account and used for specified purposes.

This bill would establish the Broadband Public Housing Account within the CASF and would authorize the commission to transfer $20,000,000 from the Broadband Infrastructure Grant Account and $5,000,000 from the Broadband Revolving Loan Account to the Broadband Public Housing Account if the commission is otherwise authorized to collect funds for purposes of the CASF in excess of the $225,000,000 the commission is authorized to collect through December 31, 2015, under existing law. The bill would authorize not more than $20,000,000 from the Broadband Public Housing Account be available for grants and loans to a publicly supported community, as defined, to finance a project to connect a broadband network to that publicly supported community. The bill would authorize not more than $5,000,000 from the Broadband Public Housing Account be available for grants and loans to a publicly supported community to support programs designed to increase adoption rates for broadband services for residents of that publicly supported community. The bill would require the commission, in reviewing a project application to consider the availability of other funding sources for that project, any financial contribution from the broadband service provider to the project, the availability of any other public or private broadband adoption or deployment program, including tax credits and other incentives, and whether the applicant has sought funding from, or participated in, any reasonably available program. The bill would authorize the commission to require an applicant to provide match funding, and prohibit the commission from denying funding for a project solely because the applicant is receiving funding from another source.

begin insertThis bill would incorporate additional changes in Section 281 of the Public Utilities Code proposed in SB 740, that would become operative only if SB 740 and this bill are both chaptered and become effective on or before January 1, 2014, and this bill is chaptered last.end insert

The provisions of the bill would become operative only if this bill and SB 740 of the 2013-14 Regular Session are both enacted and become effective on or before January 1, 2014.

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

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

P3    1

SECTION 1.  

Section 281 of the Public Utilities Code is
2amended to read:

P4    1

281.  

(a) The commission shall develop, implement, and
2administer the California Advanced Services Fund to encourage
3deployment of high-quality advanced communications services to
4all Californians that will promote economic growth, job creation,
5and the substantial social benefits of advanced information and
6communications technologies, as provided in Decision 07-12-054
7and Decision 09-07-020 and this section. The commission shall
8establish the following accounts within the fund:

9(1) The Broadband Infrastructure Grant Account.

10(2) The Rural and Urban Regional Broadband Consortia Grant
11Account.

12(3) The Broadband Infrastructure Revolving Loan Account.

13(4) The Broadband Public Housing Account.

14(b) (1) All moneys collected by the surcharge authorized by
15the commission pursuant to Decision 07-12-054, whether collected
16before or after January 1, 2009, shall be transmitted to the
17commission pursuant to a schedule established by the commission.
18The commission shall transfer the moneys received to the
19Controller for deposit in the California Advanced Services Fund.
20Moneys collected on and after January 1, 2011, shall be deposited
21in the following amounts in the following accounts:

22(A) One hundred million dollars ($100,000,000) into the
23Broadband Infrastructure Grant Account.

24(B) Ten million dollars ($10,000,000) into the Rural and Urban
25Regional Broadband Consortia Grant Account.

26(C) Fifteen million dollars ($15,000,000) into the Broadband
27Infrastructure Revolving Loan Account.

28(2) All interest earned on moneys in the fund shall be deposited
29in the fund.

30(3) The commission shall not collect moneys, by imposing the
31surcharge described in paragraph (1) for deposit in the fund, in an
32amount that exceeds one hundred million dollars ($100,000,000)
33before January 1, 2011. On and after January 1, 2011, the
34commission may collect an additional sum not to exceed one
35hundred twenty-five million dollars ($125,000,000), for a sum
36total of moneys collected by imposing the surcharge described in
37paragraph (1) not to exceed two hundred twenty-five million dollars
38($225,000,000). The commission may collect the additional sum
39beginning with the calendar year starting on January 1, 2011, and
40 continuing through the 2015 calendar year, in an amount not to
P5    1exceed twenty-five million dollars ($25,000,000) per year, unless
2the commission determines that collecting a higher amount in any
3year will not result in an increase in the total amount of all
4surcharges collected from telephone customers that year.

5(c) (1) All moneys in the California Advanced Services Fund
6shall be available, upon appropriation by the Legislature, to the
7commission for the program administered by the commission
8pursuant to this section, including the costs incurred by the
9commission in developing, implementing, and administering the
10program and the fund.

11(2) Notwithstanding any other law and for the sole purpose of
12providing matching funds pursuant to the federal American
13Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
14entity eligible for funding pursuant to that act shall be eligible to
15apply to participate in the program administered by the commission
16pursuant to this section, if that entity otherwise satisfies the
17eligibility requirements under that program. Nothing in this section
18shall impede the ability of an incumbent local exchange carrier,
19as defined by subsection (h) of Section 251 of Title 47 of the
20United States Code, that is regulated under a rate of return
21regulatory structure, to recover, in rate base, California
22infrastructure investment not provided through federal or state
23grant funds for facilities that provide broadband service and
24California intrastate voice service.

25(d) Moneys in the Rural and Urban Regional Broadband
26Consortia Grant Account shall be available for grants to eligible
27consortia to fund the cost of broadband deployment activities other
28than the capital cost of facilities, as specified by the commission.
29An eligible consortium may include, as specified by the
30 commission, representatives of organizations, including, but not
31limited to, local and regional government, public safety, elementary
32and secondary education, health care, libraries, postsecondary
33education, community-based organizations, tourism, parks and
34recreation, agricultural, and business, and is not required to have
35as its lead fiscal agent an entity with a certificate of public
36convenience and necessity.

37(e) Moneys in the Broadband Infrastructure Revolving Loan
38Account shall be available to finance capital costs of broadband
39facilities not funded by a grant from the Broadband Infrastructure
P6    1Grant Account. The commission shall periodically set interest rates
2on the loans based on surveys of existing financial markets.

3(f) (1) For purposes of this subdivision, the following terms
4have the following meanings:

5(A) “Publicly subsidized” means either that the housing
6development receives financial assistance from the United States
7Department of Housing and Urban Development pursuant to an
8annual contribution contract or is financed with low-income
9housing tax credits, tax-exempt mortgage revenue bonds, general
10obligation bonds, or local, state, or federal loans or grants and the
11rents of the occupants, who are lower income households, do not
12exceed those prescribed by deed restrictions or regulatory
13agreements pursuant to the terms of the financing or financial
14assistance.

15(B) “Publicly supported community” means a publicly
16subsidized multifamily housing development that is wholly owned
17by either of the following:

18(i) A public housing agency that has been chartered by the state,
19or by any city or county in the state, and has been determined an
20eligible public housing agency by the United States Department
21of Housing and Urban Development.

22(ii) An incorporated nonprofit organization as described in
23Section 501 (c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
24501(c)(3)) that is exempt from taxation under Section 501 (a) of
25that code (16 U.S.C. Sec. 501(a)), and that has received public
26funding to subsidize the construction or maintenance of housing
27occupied by residents whose annual income qualifies as “low-” or
28“very low” income according to federal poverty guidelines.

29(2) Notwithstanding subdivision (b) of Section 270, moneys in
30the Broadband Public Housing Account shall be available for the
31commission to award grants and loans pursuant to this subdivision
32to an eligible publicly supported community if that entity otherwise
33meets eligibility requirements and complies with program
34requirements established by the commission.

35(3) Not more than twenty million dollars ($20,000,000) shall
36be available for grants and loans to a publicly supported community
37to finance a project to connect a broadband network to that publicly
38supported community. A publicly supported community may be
39an eligible applicant only if the publicly supported community can
40verify to the commission that the publicly supported community
P7    1has not denied a right of access to any broadband provider that is
2willing to connect a broadband network to the facility for which
3the grant or loan is sought.

4(4) (A) Not more than five million dollars ($5,000,000) shall
5be available for grants and loans to a publicly supported community
6to support programs designed to increase adoption rates for
7broadband services for residents of that publicly supported
8community. A publicly supported community may be eligible for
9funding for a broadband adoption program only if the residential
10units in the facility to be served have access to broadband services
11or will have access to broadband services at the time the funding
12for adoption is implemented.

13(B) A publicly supported community may contract with other
14nonprofit or public agencies to assist in implementation of a
15broadband adoption program.

16(5) To the extent feasible, the commission shall approve projects
17for funding from the Broadband Public Housing Account in a
18manner that reflects the statewide distribution of publicly supported
19communities.

20(6) In reviewing a project application under this subdivision,
21the commission shall consider the availability of other funding
22sources for that project, any financial contribution from the
23broadband service provider to the project, the availability of any
24other public or private broadband adoption or deployment program,
25including tax credits and other incentives, and whether the applicant
26has sought funding from, or participated in, any reasonably
27available program. The commission may require an applicant to
28provide match funding, and shall not deny funding for a project
29solely because the applicant is receiving funding from another
30source.

31(7) (A) To provide funding for the purposes of this subdivision,
32the commission shall transfer to the Broadband Public Housing
33Account twenty million dollars ($20,000,000) from the Broadband
34Infrastructure Grant Account and five million dollars ($5,000,000)
35from the Broadband Revolving Loan Account. Any moneys in the
36Broadband Public Housing Account that have not been awarded
37pursuant to this subdivision by December 31, 2016, shall be
38transferred back to the Broadband Infrastructure Grant Account
39and Broadband Infrastructure Revolving Loan Account in
40proportion to the amount transferred from the respective accounts.

P8    1(B) The commission shall transfer funds pursuant to
2subparagraph (A) only if the commission is otherwise authorized
3to collect funds for purposes of this section in excess of the total
4amount authorized pursuant to paragraph (3) of subdivision (b).

5(g) (1)  The commission shall conduct an interim and final
6financial audit and an interim and final performance audit of the
7implementation and effectiveness of the California Advanced
8Services Fund to ensure that funds have been expended in
9accordance with the approved terms of the grant awards and loan
10agreements and this section. The commission shall report its interim
11findings to the Legislature by April 1, 2011. The commission shall
12report its final findings to the Legislature by April 1, 2017. The
13reports shall also include an update to the maps in the final report
14of the California Broadband Task Force and data on the types and
15numbers of jobs created as a result of the program administered
16by the commission pursuant to this section.

17(2) (A) The requirement for submitting a report imposed under
18paragraph (1) is inoperative on January 1, 2018, pursuant to Section
1910231.5 of the Government Code.

20(B) A report to be submitted pursuant to paragraph (1) shall be
21submitted in compliance with Section 9795 of the Government
22Code.

23(h) (1)  Beginning on January 1, 2012, and annually thereafter,
24the commission shall provide a report to the Legislature that
25includes all of the following information:

26(A) The amount of funds expended from the California
27Advanced Services Fund in the prior year.

28(B) The recipients of funds expended from the California
29Advanced Services Fund in the prior year.

30(C) The geographic regions of the state affected by funds
31expended from the California Advanced Services Fund in the prior
32year.

33(D) The expected benefits to be derived from the funds expended
34from the California Advanced Services Fund in the prior year.

35(E) Actual broadband adoption levels from the funds expended
36from the California Advanced Services Fund in the prior year.

37(F) The amount of funds expended from the California
38Advanced Services Fund used to match federal funds.

P9    1(G) An update on the expenditures from California Advanced
2Services Fund and broadband adoption levels, and an accounting
3of remaining unserved and underserved areas of the state.

4(2) (A) The requirement for submitting a report imposed under
5paragraph (1) is inoperative on January 1, 2016, pursuant to Section
610231.5 of the Government Code.

7(B) A report to be submitted pursuant to paragraph (1) shall be
8submitted in compliance with Section 9795 of the Government
9Code.

10begin insert

begin insertSEC.end insertbegin insert 1.5.end insert  

end insert

begin insertSection 281 of the end insertbegin insertPublic Utilities Codeend insertbegin insert is amended
11to read:end insert

12

281.  

(a) The commission shall develop, implement, and
13administer the California Advanced Services Fundbegin insert programend insert to
14encourage deployment of high-quality advanced communications
15services to all Californians that will promote economic growth,
16job creation, and the substantial social benefits of advanced
17information and communications technologies,begin delete as provided in
18Decision 07-12-054 and Decision 09-07-020 and this section. Theend delete

19begin insert consistent with this section.end insert

begin insert

20(b) (1) The goal of the program is, no later than December 31,
212015, to approve funding for infrastructure projects that will
22provide broadband access to no less than 98 percent of California
23households.

end insert
begin insert

24(2) In approving infrastructure projects, the commission shall
25give priority to projects that provide last-mile broadband access
26to households that are unserved by an existing facilities-based
27broadband provider. The commission shall provide each applicant,
28and any party challenging an application, the opportunity to
29demonstrate actual levels of broadband service in the project area,
30which the commission shall consider in reviewing the application.

end insert

31begin insert(c)end insertbegin insertend insertbegin insertTheend insert commission shall establish the following accounts within
32the fund:

33(1) The Broadband Infrastructure Grant Account.

34(2) The Rural and Urban Regional Broadband Consortia Grant
35Account.

36(3) The Broadband Infrastructure Revolving Loan Account.

begin insert

37(4) The Broadband Public Housing Account.

end insert
begin delete

38(b)

end delete

39begin insert(d)end insert (1) All moneys collected by the surcharge authorized by
40the commission pursuant to Decisionbegin delete 07-12-054, whether collected
P10   1before or after January 1, 2009,end delete
begin insert 07-12-054end insert shall be transmitted to
2the commission pursuant to a schedule established by the
3commission. The commission shall transfer the moneys received
4to the Controller for deposit in the California Advanced Services
5Fund. Moneys collectedbegin insert on andend insert after January 1, 2011, shall be
6deposited in the following amounts in the following accounts:

7(A) One hundredbegin insert ninetyend insert million dollarsbegin delete ($100,000,000)end delete
8begin insert ($190,000,000)end insert into the Broadband Infrastructure Grant Account.

9(B) Ten million dollars ($10,000,000) into the Rural and Urban
10Regional Broadband Consortia Grant Account.

11(C) Fifteen million dollars ($15,000,000) into the Broadband
12Infrastructure Revolving Loan Account.

13(2) All interest earned on moneys in the fund shall be deposited
14in the fund.

15(3) The commission shall not collect moneys, by imposing the
16surcharge described in paragraph (1) for deposit in the fund, in an
17amount that exceeds one hundred million dollars ($100,000,000)
18before January 1, 2011.begin delete Afterend deletebegin insert On and afterend insert January 1, 2011, the
19commission may collect an additional sum not to exceedbegin delete oneend deletebegin insert twoend insert
20 hundredbegin delete twenty-fiveend deletebegin insert fifteenend insert million dollarsbegin delete ($125,000,000),end delete
21begin insert ($215,000,000),end insert for a sum total of moneys collected by imposing
22the surcharge described in paragraph (1) not to exceedbegin delete twoend deletebegin insert threeend insert
23 hundredbegin delete twenty-fiveend deletebegin insert fifteenend insert million dollarsbegin delete ($225,000,000).end delete
24begin insert ($315,000,000).end insert The commission may collect the additional sum
25beginning with the calendar year starting on January 1, 2011, and
26continuing through thebegin delete 2015end deletebegin insert 2020end insert calendar year, in an amount not
27to exceed twenty-five million dollars ($25,000,000) per year, unless
28the commission determines that collecting a higher amount in any
29year will not result in an increase in the total amount of all
30surcharges collected from telephone customers that year.

begin delete

31(c)

end delete

32begin insert(e)end insert (1) All moneys in the California Advanced Services Fund
33shall be available, upon appropriation by the Legislature, to the
34commission for the program administered by the commission
35pursuant to this section, including the costs incurred by the
36commission in developing, implementing, and administering the
37program and the fund.

38(2) Notwithstanding any other law and for the sole purpose of
39providing matching funds pursuant to the federal American
40Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
P11   1entity eligible for funding pursuant to that act shall be eligible to
2apply to participate in the program administered by the commission
3pursuant to this section, if that entity otherwise satisfies the
4eligibility requirements under that program. Nothing in this section
5shall impede the ability of an incumbent local exchange carrier,
6as defined by subsection (h) of Section 251 of Title 47 of the
7United States Code, that is regulated under a rate of return
8regulatory structure, to recover, in rate base, California
9infrastructure investment not provided through federal or state
10grant funds for facilities that provide broadband service and
11California intrastate voice service.

begin insert

12(3) Notwithstanding subdivision (b) of Section 270, an entity
13that is not a telephone corporation shall be eligible to apply to
14participate in the program administered by the commission
15pursuant to this section to provide access to broadband to an
16unserved or underserved household, as defined in commission
17Decision 12-02-015, if the entity otherwise meets the eligibility
18requirements and complies with program requirements established
19by the commission. These requirements shall include all of the
20following:

end insert
begin insert

21(A) That projects under this paragraph provide last-mile
22broadband access to households that are unserved by an existing
23facilities-based broadband provider and only receive funding to
24provide broadband access to households that are unserved or
25underserved, as defined in commission Decision 12-02-015.

end insert
begin insert

26(B) That funding for a project providing broadband access to
27an underserved household shall not be approved until after any
28existing facilities-based provider has an opportunity to demonstrate
29to the commission that it will, within a reasonable timeframe,
30upgrade existing service. An existing facilities-based provider
31may, but is not required to, apply for funding under this section
32to make that upgrade.

end insert
begin insert

33(C) That the commission shall provide each applicant, and any
34party challenging an application, the opportunity to demonstrate
35actual levels of broadband service in the project area, which the
36commission shall consider in reviewing the application.

end insert
begin insert

37(D) That a local governmental agency may be eligible for an
38infrastructure grant only if the infrastructure project is for an
39unserved household or business, the commission has conducted
40an open application process, and no other eligible entity applied.

end insert
begin insert

P12   1(E) That the commission shall establish a service list of
2interested parties to be notified of California Advanced Services
3Fund applications.

end insert
begin delete

4(d)

end delete

5begin insert(f)end insert Moneys in the Rural and Urban Regional Broadband
6Consortia Grant Account shall be available for grants to eligible
7 consortia to fund the cost of broadband deployment activities other
8than the capital cost of facilities, as specified by the commission.
9An eligible consortium may include, as specified by the
10commission, representatives of organizations, including, but not
11limited to, local and regional government, public safety,begin delete K-12end delete
12begin insert elementary and secondaryend insert education, health care, libraries,begin delete higherend delete
13begin insert postsecondaryend insert education, community-based organizations, tourism,
14parks and recreation, agricultural, and business, and is not required
15to have as its lead fiscal agent an entity with a certificate of public
16convenience and necessity.

begin delete

17(e)

end delete

18begin insert(g)end insert Moneys in the Broadband Infrastructure Revolving Loan
19Account shall be available to finance capital costs of broadband
20facilities not funded by a grant from the Broadband Infrastructure
21Grant Account. The commission shall periodically set interest rates
22on the loans based on surveys of existing financial markets.

begin insert

23(h) (1) For purposes of this subdivision, the following terms
24have the following meanings:

end insert
begin insert

25(A) “Publicly subsidized” means either that the housing
26development receives financial assistance from the United States
27Department of Housing and Urban Development pursuant to an
28annual contribution contract or is financed with low-income
29housing tax credits, tax-exempt mortgage revenue bonds, general
30obligation bonds, or local, state, or federal loans or grants and
31the rents of the occupants, who are lower income households, do
32not exceed those prescribed by deed restrictions or regulatory
33agreements pursuant to the terms of the financing or financial
34assistance.

end insert
begin insert

35(B) “Publicly supported community” means a publicly
36subsidized multifamily housing development that is wholly owned
37by either of the following:

end insert
begin insert

38(i) A public housing agency that has been chartered by the state,
39or by any city or county in the state, and has been determined to
P13   1be an eligible public housing agency by the United States
2Department of Housing and Urban Development.

end insert
begin insert

3(ii) An incorporated nonprofit organization as described in
4Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
5501(c)(3)) that is exempt from taxation under Section 501(a) of
6that code (16 U.S.C. Sec. 501(a)), and that has received public
7funding to subsidize the construction or maintenance of housing
8occupied by residents whose annual income qualifies as “low-”
9or “very low” income according to federal poverty guidelines.

end insert
begin insert

10(2) Notwithstanding subdivision (b) of Section 270, moneys in
11the Broadband Public Housing Account shall be available for the
12commission to award grants and loans pursuant to this subdivision
13to an eligible publicly supported community if that entity otherwise
14meets eligibility requirements and complies with program
15requirements established by the commission.

end insert
begin insert

16(3) Not more than twenty million dollars ($20,000,000) shall
17be available for grants and loans to a publicly supported
18community to finance a project to connect a broadband network
19to that publicly supported community. A publicly supported
20community may be an eligible applicant only if the publicly
21supported community can verify to the commission that the publicly
22supported community has not denied a right of access to any
23broadband provider that is willing to connect a broadband network
24to the facility for which the grant or loan is sought.

end insert
begin insert

25(4) (A) Not more than five million dollars ($5,000,000) shall
26be available for grants and loans to a publicly supported
27community to support programs designed to increase adoption
28rates for broadband services for residents of that publicly
29supported community. A publicly supported community may be
30eligible for funding for a broadband adoption program only if the
31residential units in the facility to be served have access to
32broadband services or will have access to broadband services at
33the time the funding for adoption is implemented.

end insert
begin insert

34(B) A publicly supported community may contract with other
35nonprofit or public agencies to assist in implementation of a
36broadband adoption program.

end insert
begin insert

37(5) To the extent feasible, the commission shall approve projects
38for funding from the Broadband Public Housing Account in a
39manner that reflects the statewide distribution of publicly supported
40communities.

end insert
begin insert

P14   1(6) In reviewing a project application under this subdivision,
2the commission shall consider the availability of other funding
3sources for that project, any financial contribution from the
4broadband service provider to the project, the availability of any
5other public or private broadband adoption or deployment
6program, including tax credits and other incentives, and whether
7the applicant has sought funding from, or participated in, any
8reasonably available program. The commission may require an
9applicant to provide match funding, and shall not deny funding
10for a project solely because the applicant is receiving funding from
11another source.

end insert
begin insert

12(7) (A) To provide funding for the purposes of this subdivision,
13the commission shall transfer to the Broadband Public Housing
14Account twenty million dollars ($20,000,000) from the Broadband
15Infrastructure Grant Account and five million dollars ($5,000,000)
16from the Broadband Revolving Loan Account. Any moneys in the
17Broadband Public Housing Account that have not been awarded
18pursuant to this subdivision by December 31, 2016, shall be
19transferred back to the Broadband Infrastructure Grant Account
20and Broadband Infrastructure Revolving Loan Account in
21proportion to the amount transferred from the respective accounts.

end insert
begin insert

22(B) The commission shall transfer funds pursuant to
23subparagraph (A) only if the commission is otherwise authorized
24to collect funds for purposes of this section in excess of the total
25amount authorized pursuant to paragraph (3) of subdivision (d).

end insert
begin delete

26(f)

end delete

27begin insert(i)end insert (1) The commission shall conductbegin delete anend deletebegin insert twoend insert interimbegin insert financial
28auditsend insert
andbegin insert aend insert final financial audit andbegin delete anend deletebegin insert twoend insert interimbegin insert performance
29auditsend insert
andbegin insert aend insert final performance audit of the implementation and
30effectiveness of the California Advanced Services Fund to ensure
31that funds have been expended in accordance with the approved
32terms of the grant awards and loan agreements and this section.
33The commission shall report its interim findings to the Legislature
34by April 1,begin delete 2011.end deletebegin insert 2011, and April 1, 2017.end insert The commission shall
35report its final findings to the Legislature by April 1,begin delete 2017.end deletebegin insert 2021.end insert
36 The reports shall also include an update to the maps in the final
37report of the California Broadband Task Force and data on the
38types and numbers of jobs created as a result of the program
39administered by the commission pursuant to this section.

P15   1(2) (A) The requirement for submitting a report imposed under
2paragraph (1) is inoperative on January 1,begin delete 2018,end deletebegin insert 2022,end insert pursuant
3to Section 10231.5 of the Government Code.

4(B) A report to be submitted pursuant to paragraph (1) shall be
5submitted in compliance with Section 9795 of the Government
6Code.

begin delete

7(g)

end delete

8begin insert(j)end insert (1) Beginning on January 1, 2012, and annually thereafter,
9the commission shall provide a report to the Legislature that
10includes all of the following information:

11(A) The amount of funds expended from the California
12Advanced Services Fund in the prior year.

13(B) The recipients of funds expended from the California
14Advanced Services Fund in the prior year.

15(C) The geographic regions of the state affected by funds
16expended from the California Advanced Services Fund in the prior
17year.

18(D) The expected benefits to be derived from the funds expended
19from the California Advanced Services Fund in the prior year.

20(E) Actual broadband adoption levels from the funds expended
21from the California Advanced Services Fund in the prior year.

22(F) The amount of funds expended from the California
23Advanced Services Fund used to match federal funds.

24(G) An update on the expenditures from California Advanced
25Services Fund and broadband adoption levels, and an accounting
26of remaining unserved and underservedbegin insert households andend insert areas of
27the state.

begin insert

28(H) The status of the California Advanced Services Fund
29balance and the projected amount to be collected in each year
30through 2020 to fund approved projects.

end insert

31(2) (A) The requirement for submitting a report imposed under
32paragraph (1) is inoperative on January 1,begin delete 2016,end deletebegin insert 2021,end insert pursuant
33to Section 10231.5 of the Government Code.

34(B) A report to be submitted pursuant to paragraph (1) shall be
35submitted in compliance with Section 9795 of the Government
36Code.

37begin insert

begin insertSEC. end insertbegin insert2.end insert  

end insert
begin insert

Section 1.5 of this bill incorporates amendments to
38Section 281 of the Public Utilities Code proposed by this bill and
39Senate Bill 740. It shall only become operative if (1) both bills are
40enacted and become effective on or before January 1, 2014, (2)
P16   1each bill amends Section 281 of the Public Utilities Code, and (3)
2this bill is enacted after Senate Bill 740, in which case Section 281
3of the Public Utilities Code, as amended by Senate Bill 740, shall
4remain operative only until the operative date of this bill, at which
5time Section 1.5 of this bill shall become operative, and Section 1
6of this bill shall not become operative.

end insert
7

begin deleteSEC. 2.end delete
8begin insertSEC. 3.end insert  

This bill shall become operative only if this bill and
9Senate Bill 740 are both enacted and become effective on or before
10January 1, 2014.



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