Amended in Assembly September 6, 2013

Amended in Assembly August 7, 2013

Amended in Assembly June 26, 2013

Amended in Senate May 7, 2013

Senate Bill No. 740

Introduced by Senator Padilla

February 22, 2013

An act to amend Section 281 of the Public Utilities Code, relating to telecommunications, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

SB 740, as amended, Padilla. 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 High-Cost Fund-A Administrative Committee 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, the California Teleconnect Fund Administrative Committee Fund, and the California Advanced Services Fund, referred to as the CASF, 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. 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 requires that moneys, collected by the surcharge, authorized by the commission, after January 1, 2011, are to be deposited into 3 separate accounts within the CASF. Existing law authorizes the commission to collect a sum not to exceed $125,000,000, after January 1, 2011, and requires that $100,000,000 of that amount be deposited into the Broadband Infrastructure Grant Account. Existing law authorizes the commission to collect the sum through the 2015 calendar year.

This bill would increase the amount the commission is authorized to collect to a sum not to exceed $215,000,000, after January 1, 2011, and instead would require that $190,000,000 be deposited into the Broadband Infrastructure Grant Account. The bill would authorize the commission to collect that amount until 2020.

The bill would provide that the goal of the CASF program is, no later than December 31, 2015, to approve funding for infrastructure projects that will provide broadband access to no less than 98% of California households. In approving infrastructure projects, the bill would require the commission to give priority to projects that provide last-mile broadband access to households that are unserved by an existing facilities-based broadband provider. The bill would require the commission to provide each applicant, and any party challenging an application, the opportunity to demonstrate actual levels of broadband service in the project area, as prescribed.

The bill would provide that, notwithstanding the requirement that moneys in the funds are to be used to compensate telephone corporations for their costs of providing universal service, an entity that is not a telephone corporation is eligible to apply to participate in the CASF program to provide access to broadband to an unserved or underserved household, as defined, if the entity otherwise meets the eligibility requirements and complies with program requirements established by the commission.

Existing law requires the commission to conduct an interim and final financial audit and an interim and final performance audit of the implementation and effectiveness of the CASF and to report its interim findings to the Legislature by April 1, 2011, and its final findings to the Legislature by April 1, 2017.

This bill would require the commission to conduct an additional interim financial audit and interim performance audit and to report these findings to the Legislature by April 1, 2017. The bill would instead require the commission to report its final findings to the Legislature by April 1, 2021.

Existing law requires the commission, until January 1, 2016, to provide an annual report to the Legislature that includes specified information.

This bill would extend this reporting requirement until January 1, 2021, and would require the report to include information regarding the status of the CASF balance and the projected amount to be collected in each year through 2020 to fund approved projects.

begin insert

This bill would incorporate additional changes in Section 281 of the Public Utilities Code proposed in AB 1299, that would become operative only if AB 1299 and this bill are both chaptered and become effective on or before January 1, 2014, and this bill is chaptered last.

end insert

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: ²⁄₃. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

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

SECTION 1.  

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

281.  

(a) The commission shall develop, implement, and
administer the California Advanced Services Fund program 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, consistent with
this section.

(b) (1) The goal of the program is, no later than December 31,
2015, to approve funding for infrastructure projects that will
provide broadband access to no less than 98 percent of California
households.

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

(c) The commission shall establish the following accounts within
the fund:

(1) The Broadband Infrastructure Grant Account.

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

(3) The Broadband Infrastructure Revolving Loan Account.

(d) (1) All moneys collected by the surcharge authorized by
the commission pursuant to Decision 07-12-054 shall be
transmitted to the commission pursuant to a schedule established
by the commission. The commission shall transfer the moneys
received to the Controller for deposit in the California Advanced
Services Fund. Moneys collected after January 1, 2011, shall be
deposited in the following amounts in the following accounts:

(A) One hundred ninety million dollars ($190,000,000) into the
Broadband Infrastructure Grant Account.

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

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

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

(3) The commission shall not collect moneys, by imposing the
surcharge described in paragraph (1) for deposit in the fund, in an
amount that exceeds one hundred million dollars ($100,000,000)
before January 1, 2011. After January 1, 2011, the commission
may collect an additional sum not to exceed two hundred fifteen
million dollars ($215,000,000), for a sum total of moneys collected
by imposing the surcharge described in paragraph (1) not to exceed
three hundred fifteen million dollars ($315,000,000). The
commission may collect the additional sum beginning with the
calendar year starting on January 1, 2011, and continuing through
the 2020 calendar year, in an amount not to exceed twenty-five
million dollars ($25,000,000) per year, unless the commission
determines that collecting a higher amount in any year will not
result in an increase in the total amount of all surcharges collected
from telephone customers that year.

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

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

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

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

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

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

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

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

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

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

(h) (1) The commission shall conduct two interim financial
audits and a final financial audit and two interim performance
audits and a final performance audit of the implementation and
effectiveness of the California Advanced Services Fund to ensure
that funds have been expended in accordance with the approved
terms of the grant awards and loan agreements and this section.
The commission shall report its interim findings to the Legislature
by April 1, 2011, and April 1, 2017. The commission shall report
its final findings to the Legislature by April 1, 2021. The reports
shall also include an update to the maps in the final report of the
California Broadband Task Force and data on the types and
numbers of jobs created as a result of the program administered
by the commission pursuant to this section.

(2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2022, pursuant to Section
10231.5 of the Government Code.

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

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

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

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

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

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

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

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

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

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

(2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2021, pursuant to Section
10231.5 of the Government Code.

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

begin insert

begin insert SEC. 1.5. end insert   

end insert

begin insert Section 281 of the end insert begin insert Public Utilities Code end insert begin insert is amended
to read: end insert

281.  

(a) The commission shall develop, implement, and
administer the California Advanced Services Fund begin insert program end insert 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, begin delete as provided in
Decision 07-12-054 and Decision 09-07-020 and this section. The end delete
begin insert consistent with this section. end insert

begin insert

(b) (1) The goal of the program is, no later than December 31,
2015, to approve funding for infrastructure projects that will
provide broadband access to no less than 98 percent of California
households.

end insert begin insert

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

end insert

begin insert (c) end insert begin insert   end insert begin insert The end insert commission shall establish the following accounts within
the fund:

(1) The Broadband Infrastructure Grant Account.

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

(3) The Broadband Infrastructure Revolving Loan Account.

begin insert

(4) The Broadband Public Housing Account.

end insert begin delete

(b)

end delete

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

(A) One hundred begin insert ninety end insert million dollars begin delete ($100,000,000) end delete
begin insert ($190,000,000) end insert into the Broadband Infrastructure Grant Account.

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

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

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

(3) The commission shall not collect moneys, by imposing the
surcharge described in paragraph (1) for deposit in the fund, in an
amount that exceeds one hundred million dollars ($100,000,000)
before January 1, 2011. begin delete After end delete begin insert On and after end insert January 1, 2011, the
commission may collect an additional sum not to exceed begin delete one end delete begin insert two end insert
hundred begin delete twenty-five end delete begin insert fifteen end insert million dollars begin delete ($125,000,000), end delete
begin insert ($215,000,000), end insert for a sum total of moneys collected by imposing
the surcharge described in paragraph (1) not to exceed begin delete two end delete begin insert three end insert
hundred begin delete twenty-five end delete begin insert fifteen end insert million dollars begin delete ($225,000,000). end delete
begin insert ($315,000,000). end insert The commission may collect the additional sum
beginning with the calendar year starting on January 1, 2011, and
continuing through the begin delete 2015 end delete begin insert 2020 end insert calendar year, in an amount not
to exceed twenty-five million dollars ($25,000,000) per year, unless
the commission determines that collecting a higher amount in any
year will not result in an increase in the total amount of all
surcharges collected from telephone customers that year.

begin delete

(c)

end delete

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

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

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin delete

(d)

end delete

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

begin delete

(e)

end delete

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

begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(4) (A) Not more than five million dollars ($5,000,000) shall
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. A publicly supported community may be
eligible for funding for a broadband adoption program only if the
residential units in the facility to be served have access to
broadband services or will have access to broadband services at
the time the funding for adoption is implemented.

end insert begin insert

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

end insert begin insert

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

end insert begin insert

(6) In reviewing a project application under this subdivision,
the commission shall 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 commission may require an
applicant to provide match funding, and shall not deny funding
for a project solely because the applicant is receiving funding from
another source.

end insert begin insert

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

end insert begin insert

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

end insert begin delete

(f)

end delete

begin insert (i) end insert  (1) The commission shall conduct begin delete an end delete begin insert two end insert interim begin insert financial
audits end insert and begin insert a end insert final financial audit and begin delete an end delete begin insert two end insert interim begin insert performance
audits end insert and begin insert a end insert final performance audit of the implementation and
effectiveness of the California Advanced Services Fund to ensure
that funds have been expended in accordance with the approved
terms of the grant awards and loan agreements and this section.
The commission shall report its interim findings to the Legislature
by April 1, begin delete 2011. end delete begin insert 2011, and April 1, 2017. end insert The commission shall
report its final findings to the Legislature by April 1, begin delete 2017. end delete begin insert 2021. end insert
The reports shall also include an update to the maps in the final
report of the California Broadband Task Force and data on the
types and numbers of jobs created as a result of the program
administered by the commission pursuant to this section.

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

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

begin delete

(g)

end delete

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

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

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

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

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

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

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

(G) An update on the expenditures from California Advanced
Services Fund and broadband adoption levels, and an accounting
of remaining unserved and underserved begin insert households and end insert areas of
the state.

begin insert

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

end insert

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

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

begin insert

begin insert SEC. 2. end insert   

Section 1.5 of this bill incorporates amendments to
Section 281 of the Public Utilities Code proposed by both this bill
and Assembly Bill 1299. It shall only become operative if (1) both
bills are enacted and become effective on or before January 1,
2014, but this bill becomes operative first, (2) each bill amends
Section 281 of the Public Utilities Code, and (3) this bill is enacted
after Assembly Bill 1299, in which case Section 281 of the Public
Utilities Code, as amended by Section 1 of this bill, shall remain
operative only until the operative date of Assembly Bill 1299, at
which time Section 1.5 of this bill shall become operative.

end insert

begin delete SEC. 2. end delete
begin insert SEC. 3. end insert   

This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:

In order to authorize the award of funds for the expansion of
broadband deployment to unserved and underserved households
and areas of California, to stimulate investments in infrastructure
critical to increasing the state’s productivity, and to improve the
quality of information available to all of the state’s citizens, as
needed for the health and safety of those citizens, it is necessary
that this act take effect immediately.