BILL ANALYSIS Ó
AB 1262
Page 1
Date of Hearing: April 29, 2015
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Jimmy Gomez, Chair
AB
1262 (Wood) - As Introduced February 27, 2015
-----------------------------------------------------------------
|Policy |Utilities and Commerce |Vote:|14 - 0 |
|Committee: | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
|-------------+-------------------------------+-----+-------------|
| | | | |
| | | | |
| | | | |
-----------------------------------------------------------------
Urgency: Yes State Mandated Local Program: NoReimbursable:
No
SUMMARY:
This bill modifies existing limits on funds allocated from the
California Advanced Services Fund (CASF) to the Rural and Urban
Regional Broadband Consortia Grant Account and the Broadband
AB 1262
Page 2
Infrastructure Revolving Loan Account. Specifically, this
bill:
1) Increases the existing limit from $10 to $15 million for
monies collected for the CASF and allocated to the Rural and
Urban Regional Broadband Consortia Grant Account.
2)Decreases the existing limit from $15 million to $10 million
for monies collected for the CASF and allocated to the
Broadband Infrastructure Revolving Loan Account.
FISCAL EFFECT:
Increased annual PUC implementation and oversight costs of
approximately $130,000 (CASF) beginning in January 2018. By
increasing the limit of the Rural and Urban Regional Broadband
Consortia Grant Account, this bill effectively extends the
program beyond 2017.
COMMENTS:
1)Purpose. According to the author, the CASF was created to
encourage the deployment of high-quality advanced
communications services to all Californians. As progress
continues in achieving greater broadband expansion, it is
imperative to continue the state's commitment to help ensure
universal access to basic telecommunications services.
The author further states, the Rural and Urban Regional
Broadband Consortia Grant Account is about to be exhausted.
AB 1262
Page 3
Therefore, if further monies are not available, many rural
consortia will no longer be able to provide the appropriate
broadband educational service nor assist in preparing
applications for CASF grants.
2)Background. SB 1193 (Padilla) Chapter 393, Statutes of 2008,
established the CASF and gave the PUC authority to assess a
surcharge on communication service ratepayers (wireline,
wireless, and voice over internet protocol customers)
receiving intrastate telecommunication services to fund the
program. Beginning in April 1, 2014, the CPUC increased the
surcharge from 0.164% to 0.464%.
As of December 31, 2014, the CASF has collected approximately
$199 million of which approximately $85 million is still
remaining in the fund. Currently, after several legislative
modifications, funding is allocated to four CASF accounts:
a) Broadband Infrastructure Grant Account $270 million
Funds the capital costs of broadband infrastructure projects in
unserved and underserved areas in California. Local government
projects are limited to unserved households or businesses.
Carriers eligible to apply for a grant award must hold a
certificate of public convenience and necessity or Wireless
Identification Registration from the PUC. CASF funding is also
available to non-telephone corporations which are facilities
based broadband service providers.
b) Broadband Infrastructure Revolving Loan Account $10
million
Supplements financing for projects also receiving CASF grant
funding. Up to 20% of total project cost is eligible for
financing. Applicant and project eligibility is the same as the
Infrastructure Grant Account.
AB 1262
Page 4
c) Rural and Urban Regional Broadband Consortia Grant
Account $10 million
Provides funding for the cost of broadband deployment
activities, other than the capital cost of facilities. Eligible
recipients include, but is not limited to local and regional
governments, public safety, K-12 education, health care, and
community-based organizations.
d) Broadband Public Housing Account $25 million
Supports projects to deploy local area networks and to
increase adoption rates in publicly supported housing
communities.
Analysis Prepared by:Jennifer Galehouse / APPR. / (916)
319-2081