California Legislature—2015–16 Regular Session

Assembly BillNo. 1503


Introduced by Assembly Member Perea

February 27, 2015


An act to amend Section 280 of the Public Utilities Code, relating to communications.

LEGISLATIVE COUNSEL’S DIGEST

AB 1503, as introduced, Perea. Telecommunications universal service programs: teleconnect 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 federal universal service principles include the principle that elementary and secondary schools and classrooms, health care providers, and libraries should have access to advanced telecommunications services. 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.

Existing law requires the Public Utilities Commission to develop and implement a program funded by the California Teleconnect Fund Administrative Committee Fund to advance universal service by providing discounted rates to qualifying schools maintaining kindergarten or any of grades 1 to 12, inclusive, community colleges, libraries, hospitals, health clinics, and community organizations.

This bill would require the commission to include auxiliary organizations of the California State University in the program funded by the California Teleconnect Fund Administrative Committee Fund.

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

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

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SECTION 1.  

Section 280 of the Public Utilities Code is
2amended to read:

3

280.  

(a) The commission shall develop, implement, and
4administer a program to advance universal service by providing
5discounted rates to qualifying schools maintaining kindergarten
6or any of grades 1 to 12, inclusive, community colleges, libraries,
7hospitals, health clinics,begin delete andend delete community organizations,begin insert and
8auxiliary organizations of the California State University,end insert

9 consistent with Chapter 278 of the Statutes of 1994.

10(b) There is hereby created the California Teleconnect Fund
11Administrative Committee, which is an advisory board to advise
12the commission regarding the development, implementation, and
13administration of a program to advance universal service by
14providing discounted rates to qualifying schools maintaining
15kindergarten or any of grades 1 to 12, inclusive, community
16colleges, libraries, hospitals, health clinics,begin delete andend delete community
17organizations,begin insert and auxiliary organizations of the California State
18University,end insert
consistent with Chapter 278 of the Statutes of 1994,
19and to carry out the program pursuant to the commission’s
20direction, control, and approval.

21(c) All revenues collected by telephone corporations in rates
22authorized by the commission to fund the program specified in
23subdivision (a) shall be submitted to the commission pursuant to
24a schedule established by the commission. The commission shall
25transfer the moneys received to the Controller for deposit in the
26California Teleconnect Fund Administrative Committee Fund. All
27interest earned by moneys in the fund shall be deposited in the
28fund.

29(d) Moneys appropriated from the California Teleconnect Fund
30Administrative Committee Fund to the commission shall be utilized
P3    1exclusively by the commission for the program specified in
2subdivision (a), including all costs of the board and the commission
3associated with the administration and oversight of the program
4and the fund.

5(e) Moneys loaned from the California Teleconnect Fund
6Administrative Committee Fund in the Budget Act of 2003 are
7subject to Section 16320 of the Government Code. If the
8commission determines a need for moneys in the California
9Teleconnect Fund Administrative Committee Fund, the commission
10shall notify the Director of Finance of the need, as specified in
11Section 16320 of the Government Code. The commissionbegin delete mayend delete
12begin insert shallend insert not increase the rates authorized by the commission to fund
13the program specified in subdivision (b) while moneys loaned from
14the California Teleconnect Fund Administrative Committee Fund
15in the Budget Act of 2003 are outstanding unless both of the
16following conditions are satisfied:

17(1) The Director of Finance, after making a determination
18pursuant to subdivision (b) of Section 16320 of the Government
19Code, does not order repayment of all or a portion of any loan
20from the California Teleconnect Fund Administrative Committee
21Fund within 30 days of notification by the commission of the need
22for the moneys.

23(2) The commission notifies the Director of Finance and the
24Chairperson of the Joint Legislative Budget Committee in writing
25that it intends to increase the rates authorized by the commission
26to fund the program specified in subdivision (a). The notification
27required pursuant to this paragraph shall be made 30 days in
28advance of the intended rate increase.

29(f) Subdivision (e) shall become inoperative upon full repayment
30or discharge of all moneys loaned from the California Teleconnect
31Fund Administrative Committee Fund in the Budget Act of 2003.



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