BILL NUMBER: AB 1503	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 30, 2015

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 amended, 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 
 University, as defined,  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:

  SECTION 1.  Section 280 of the Public Utilities Code is amended to
read:
   280.  (a) The commission shall develop, implement, and administer
a program 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, community organizations, and auxiliary organizations of the
California State University, consistent with Chapter 278 of the
Statutes of 1994.
   (b) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program 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, community organizations, and auxiliary
organizations of the California State University, consistent with
Chapter 278 of the Statutes of 1994, and to carry out the program
pursuant to the commission's direction, control, and approval.
   (c) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted 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
Teleconnect Fund Administrative Committee Fund. All interest earned
by moneys in the fund shall be deposited in the fund.
   (d) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   (e) Moneys loaned from the California Teleconnect Fund
Administrative Committee Fund in the Budget Act of 2003 are subject
to Section 16320 of the Government Code. If the commission determines
a need for moneys in the California Teleconnect Fund Administrative
Committee Fund, the commission shall notify the Director of Finance
of the need, as specified in Section 16320 of the Government Code.
The commission shall not increase the rates authorized by the
commission to fund the program specified in subdivision (b) while
moneys loaned from the California Teleconnect Fund Administrative
Committee Fund in the Budget Act of 2003 are outstanding unless both
of the following conditions are satisfied:
   (1) The Director of Finance, after making a determination pursuant
to subdivision (b) of Section 16320 of the Government Code, does not
order repayment of all or a portion of any loan from the California
Teleconnect Fund Administrative Committee Fund within 30 days of
notification by the commission of the need for the moneys.
   (2) The commission notifies the Director of Finance and the
Chairperson of the Joint Legislative Budget Committee in writing that
it intends to increase the rates authorized by the commission to
fund the program specified in subdivision (a). The notification
required pursuant to this paragraph shall be made 30 days in advance
of the intended rate increase.
   (f) Subdivision (e) shall become inoperative upon full repayment
or discharge of all moneys loaned from the California Teleconnect
Fund Administrative Committee Fund in the Budget Act of 2003. 
   (g) For purposes of this section, an "auxiliary organization of
the California State University" means a nonprofit organization
physically located on a California State University campus that
administers bookstores, housing, or dining.