BILL ANALYSIS Ó
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UNFINISHED BUSINESS
Bill No: SB 740
Author: Padilla (D)
Amended: 9/6/13
Vote: 27 - Urgency
SENATE ENERGY, UTILITIES & COMMUNIC.S COMM. : 10-0, 4/30/13
AYES: Padilla, Cannella, Corbett, De León, DeSaulnier, Hill,
Knight, Pavley, Wolk, Wright
NO VOTE RECORDED: Fuller
SENATE APPROPRIATIONS COMMITTEE : 5-0, 5/23/13
AYES: De León, Hill, Lara, Padilla, Steinberg
NO VOTE RECORDED: Walters, Gaines
SENATE FLOOR : 36-1, 5/28/13
AYES: Beall, Berryhill, Block, Calderon, Cannella, Corbett,
Correa, De León, DeSaulnier, Emmerson, Evans, Galgiani,
Hancock, Hernandez, Hill, Hueso, Huff, Jackson, Knight, Lara,
Leno, Lieu, Liu, Monning, Nielsen, Padilla, Pavley, Price,
Roth, Steinberg, Torres, Walters, Wolk, Wright, Wyland, Yee
NOES: Anderson
NO VOTE RECORDED: Fuller, Gaines, Vacancy
ASSEMBLY FLOOR : Not available
SUBJECT : Telecommunications: universal service programs:
California Advance Services Fund
SOURCE : Author
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DIGEST : This bill expands eligibility in the California
Advanced Services Fund (CASF), establishes a program goal, and
increases the program funding.
Assembly Amendments (1) prioritize and target funding for
households that have no broadband service; (2) guarantee
existing providers the option to upgrade service before a new
entity gets funding for underserved households; (3) authorize
local government agencies to be eligible for infrastructure
grants, as specified; and (4) increase the amount the Public
Utilities Commission (PUC) is authorized to collect and the
requirement to be deposited into the Broadband Infrastructure
Grant Account as specified.
ANALYSIS :
Existing law:
1. Establishes the CASF, administered by the PUC, to help fund
deployment of broadband infrastructure and bring high-speed
Internet access to all areas of the state.
2. Authorizes the PUC to use ratepayer funds collected for
universal service programs, including the CASF, to compensate
regulated telephone corporations for their costs of providing
universal service.
3. Authorizes collection of a customer surcharge on intrastate
communications services of up to $225 million for the CASF
through 2015 with no more than $25 million per year.
This bill:
1. Specifies the goal of CASF program is to approve funding for
infrastructure projects that will provide broadband access to
no less than 98% of California households no later than
December 31, 2015.
2. Requires PUC to give priority to projects that provide
last-mile broadband access to households that are unserved by
an existing facilities-based broadband provider.
3. Requires PUC to provide each applicant and any party
challenging an application the opportunity to demonstrate
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actual levels of broadband service in the project area, as
prescribed.
4. Allows an entity that is not a telephone corporation to
apply to participate in CASF program to provide access to
broadband to an unserved or underserved household, as
defined, if the entity meets the eligibility requirements and
complies with program requirements established by PUC.
5. Requires PUC to conduct an additional interim financial
audit and interim performance audit and to report findings to
the Legislature by April 1, 2017. Final findings are due to
the Legislature by April 1, 2021.
6. Extends CASF annual reporting requirement until January 1,
2021, and requires additional program information.
7. Increases the amount PUC is authorized to collect to an
amount not to exceed $215 million, and requires that $190
million be deposited into the Broadband Infrastructure Grant
Account.
8. Contains an urgency clause allowing this bill to take effect
immediately upon enactment.
9. Provides language that double-joints this bill with AB 1299
(Bradford) of the current legislative session.
Background
The CASF, administered by the PUC, was established to help fund
deployment of broadband infrastructure and bring high-speed
Internet access to all areas of the state. The PUC is
authorized until 2015 to collect a surcharge on intrastate
communication services, not to exceed $25 million a year or a
total of $225 million over the life of the program.
Prior Legislation
AB 1555 (Perez, Chapter 24, Statutes of 2009) expanded CASF
eligibility to other entities only for the purpose of providing
matching funds made available through the American Reinvestment
and Recovery Act of 2009.
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SB 1040 (Padilla, Chapter 317, Statutes of 2010) authorized
collection of an additional $125 million through 2015 (for a
total of $225 million).
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to the Senate Appropriations Committee, there will be
unknown cost pressures, possibly in the hundreds of thousands of
dollars from the CASF (special fund) for expanded grantee
eligibility.
SUPPORT : (Verified 9/11/13)
AT&T
California Broadband Cooperative
California Center for Rural Policy
California Emerging Technology Fund
California Professional Firefighters
California State Sheriff's Association
California Wireless Association
Central Coast Broadband Consortium
Central Sierra Connect Broadband Consortium
City of San Francisco Mayor, Edwin Lee
Connect Joy Road
Connected Capital Area Broadband Consortium
Contra Costa Council
Corporation for Education Network Initiatives in California
Counties of Humboldt and Trinity
Del Norte County Board of Supervisors
East Bay Broadband Consortium
Eastern Sierra Connect Regional Broadband Consortium
Fresno State Office of Community and Economic Development
Frontier Communications
Golden Bear Broadband, LLC
Inland Empire Regional Broadband Consortium
Interbahn
Lake County Board of Supervisors
Los Angeles County Regional Broadband Consortium
Member of Congress, Jared Huffman
Mendocino Coast Broadband Alliance
Mendocino County Board of Supervisors
Mendocino County Office of Education
Modoc County Office of Education
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Mono County Board of Supervisors
Mono County Supervisor, District 2, Fred Stump
Northeastern California Connect Consortium
Public Utilities Commission
Redwood Coast Connect
Russian River Fire Protection District
Russian River Rotary Club
San Diego Imperial Regional Broadband Consortium
San Joaquin Valley Regional Broadband Consortium
Shasta County Health and Human Services Agency
Sierra Economic Development Corporation
Sonoma Connect
Sonoma County Sheriff's Office
Spiral Internet
Tehama County Board of Supervisors
The Wireless Infrastructure Association
Tuolumne County Economic Development Authority
Upstate California Connect Consortium
West Sonoma County Union High School District
Youth Policy Institute
ARGUMENTS IN SUPPORT : California Broadband Cooperative
writes:
As a result of these funds, our company is in the process of
completing a 583 mile fiber optic network (Digital 395) which
will service the Eastern Sierra region of California. The
digital network service area encompasses 36 communities, six
California Indian reservations, two military bases, four major
area hospitals plus more than forty schools and other
educational related facilities.
The Digital 395 Network will:
Serve more than 237 committed community anchor
institutions, including 35 public safety entities, 47 K-12
schools, 13 libraries, 2 community colleges, and 2
universities, the Sierra Nevada Aquatic Research
Laboratory, Caltech's Owens Valley Radio Observatory, and
White Mountain Research Station, 15 healthcare faculties
and 104 government offices.
Spur affordable broadband access for local consumers and
businesses, including approximately 26,000 households and
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2,500 businesses by enabling local Internet service
providers to utilize the project's open network. At least
five existing broadband providers have signed to utilize
the middle mile network to expand their services.
Enable access to educational, medical and commercial
applications for isolated populations on six California
Indian reservations; Big pine Paiute Tribe of the Owens
Valley; Lone Pine Paiute-Shoshone Reservation; Fort
Independence Reservation; Benton Paiute Tribe; Bishop
Paiute Tribe and Bridgeport Indian Colony.
For the first time, high-capacity fiber will be made available
to the region's last mile providers to expand or enhance
service to households and businesses; as well as to government
agencies and carriers seeking local or long-haul transport.
JG:k 9/11/13 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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