California Legislature—2015–16 Regular Session

Assembly BillNo. 1758


Introduced by Assembly Member Mark Stone

February 2, 2016


An act to amend Section 281 of, and to add Section 281.1 to, the Public Utilities Code, relating to telecommunications.

LEGISLATIVE COUNSEL’S DIGEST

AB 1758, as introduced, Mark Stone. Telecommunications: California Advanced Services Fund.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law establishes, among other funds related to telecommunications, the California Advanced Services Fund (CASF) in the State Treasury. 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 the 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 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. Existing law establishes that 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% of California households. Existing law authorizes the commission to collect a surcharge for deposit into the CASF not to exceed $315,000,000 in total and authorizes the surcharge until 2020.

This bill would extend to December 31, 2023, the time period for meeting the program goal and would specify the threshold speeds to be met in achieving the goal. The bill would also specify as a program goal the achievement of a statewide 90% adoption rate of high-speed Internet access by December 31, 2023. The bill would require the commission to give priority to projects that provide advanced communication services at those threshold speeds to unserved and underserved households until the goal is achieved. The bill would authorize the commission, once that goal is achieved, to prioritize funding for other specified projects. The bill would require the commission and the California Broadband Council, in consultation with relevant state agencies, to develop a plan to implement these provisions in a manner that fosters public-private collaboration. The bill would authorize the commission to allocate up to $10 million from the Broadband Infrastructure Grant Account in the CASF to a specified nonprofit organization for specified purposes. The bill would make various legislative findings, including findings regarding deployment of broadband speeds of at least 25 megabits per second (Mbps) downstream and 3 Mbps upstream. The bill would establish the High-Speed Internet Access Adoption Account within the CASF and would authorize the commission to award grants to eligible community-based organizations for education and outreach to low-income households to facilitate the adoption of high-speed Internet access by these households. The bill would authorize the commission to collect an additional $350,000,000, would specify the distribution of the additional moneys among the accounts in the CASF, and would authorize the collection through 2026. By increasing the collection for deposit in the CASF, the bill would constitute a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.

Existing law requires a certain amount of moneys from the Broadband Infrastructure Grant Account and the Broadband Revolving Loan Account to be transferred to the Broadband Public Housing Account and requires the commission to award grants and loans from the Broadband Public Housing Account to eligible publicly supported communities. Existing law requires any moneys in the Broadband Public Housing Account not awarded by December 31, 2016, to be transferred back to the other 2 accounts.

This bill would repeal the requirement to transfer back the moneys in the Broadband Public Housing Account that are not awarded.

Because the provisions of this bill are within the Public Utilities Act, a violation of which is a crime, this bill would impose a state-mandated local program by extending a crime.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.

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

P3    1

SECTION 1.  

This act shall be known, and may be cited, as the
2Internet For All Now Act of 2016.

3

SEC. 2.  

(a) The Legislature finds and declares all of the
4following:

5(1) The availability of high-speed Internet access, referred to
6generically as “broadband” and including both wired and wireless
7technologies, is essential 21st century infrastructure for economic
8competitiveness and quality of life. Economic studies confirm that
9the use of broadband technologies increases economic productivity
10as a foundation for increased efficiency in organizational operations
11and enhanced profitability in business.

12(2) Broadband infrastructure is also vital to the operation and
13management of other critical infrastructure, such as energy
14generation systems and the power grid, water supply systems, and
15public safety and emergency response networks. There is a need
16for world-class broadband infrastructure throughout California to
17support these major infrastructure investments to protect lives,
18property, and the environment.

19(3) The California Advanced Services Fund (CASF) is a vital
20resource for California to be a national leader and globally
21competitive in broadband infrastructure.

22(b) It is the intent of the Legislature that the Public Utilities
23Commission, after ensuring the development of last-mile
24infrastructure to provide at least 6 megabits per second (Mbps)
25downstream and 1.5 Mbps upstream service for 98 percent of
P4    1unserved or underserved households in each region of the state,
2do all of the following:

3(1) Establish the goal for threshold broadband speeds in future
4plans and programs of not less than 25 Mbps downstream and 3
5Mbps upstream. In establishing the threshold broadband speeds,
6the commission should ensure California remains a national leader
7and globally competitive on broadband infrastructure while taking
8into account all cost-effective strategies.

9(2) Analyze and publish public data regarding the availability
10of broadband service at speeds specified in paragraph (1)
11throughout the state.

12(3) Prepare and submit to the Legislature a plan for achieving
13broadband service at speeds specified in paragraph (1) that includes
14the following:

15(A) An analysis of the availability of those threshold speeds for
16all consumers.

17(B) An assessment of the implications of the implementation
18of paragraph (1) for the CASF and the required funding needed to
19achieve that goal in unserved and underserved areas.

20(C) A delineation of the strategies and policies that would
21achieve that goal in the most cost-effective manner possible,
22including whether or not it should be the policy of the state to
23encourage fiber deployment for middle-mile projects.

24

SEC. 3.  

Section 281 of the Public Utilities Code is amended
25to read:

26

281.  

(a) begin insert(1)end insertbegin insertend insertThe commission shall develop, implement, and
27administer the California Advanced Services Fund program to
28encourage deployment of high-quality advanced communications
29services to all Californians that will promote economic growth,
30job creation, and the substantial social benefits of advanced
31information and communications technologies, consistent with
32thisbegin delete section.end deletebegin insert section and Section 281.1.end insert

begin insert

33(2) Recognizing that, in addition to residential households, there
34are other types of consumers, including anchor institutions, such
35as schools, libraries, community centers, and health and medical
36facilities, small businesses and large employers, and research
37organizations, all with a range of needs for broadband access
38threshold speeds in excess of those specified in Section 281.1, the
39commission, in administering the program, shall consider
40approving funding for last-mile infrastructure projects to reach
P5    1unserved and underserved households that exceed those threshold
2speeds, that also provide improvements to those other types of
3consumers, and that the commission deems to be in the public
4interest and a cost-effective use of the moneys in the California
5Advanced Services Fund.

end insert

6(b) (1) Thebegin delete goalend deletebegin insert goalsend insert of the programbegin delete is, no later than December
731, 2015, to approve funding for infrastructure projects that will
8provide broadband access to no less than 98 percent of California
9households.end delete
begin insert are both of the following:end insert

begin insert

10(A) No later than December 31, 2023, to approve funding for
11infrastructure projects that will provide broadband access at
12advertised speeds of 6 megabits per second (Mbps) downstream
13and 1.5 Mbps upstream to no less than 98 percent of California
14households.

end insert
begin insert

15(B) No later than December 31, 2023, to approve funding for
16education and outreach projects that would facilitate the
17achievement of a statewide 90 percent household adoption rate of
18high-speed Internet access with no significant population segment
19with less than 80 percent adoption. For purposes of this
20subparagraph, high-speed Internet access means access to the
21Internet at speeds faster than dialup.

end insert

22(2) In approving infrastructure projects, the commission shall
23give priority to projectsbegin delete that provide last-mile broadband access
24to households that are unserved by an existing facilities-based
25broadband provider.end delete
begin insert pursuant to Section 281.1.end insert The commission
26shall provide each applicant, and any party challenging an
27application, the opportunity to demonstrate actual levels of
28broadband service in the project area, which the commission shall
29consider in reviewing the application.

30(c) The commission shall establish the following accounts within
31the fund:

32(1) The Broadband Infrastructure Grant Account.

33(2) The Rural and Urban Regional Broadband Consortia Grant
34Account.

35(3) The Broadband Infrastructure Revolving Loan Account.

36(4) The Broadband Public Housing Account.

begin insert

37(5) The High-Speed Internet Access Adoption Account.

end insert

38(d) (1) All moneys collected by the surcharge authorized by
39the commission pursuant to Decision 07-12-054 shall be
40transmitted to the commission pursuant to a schedule established
P6    1by the commission. The commission shall transfer the moneys
2received to the Controller for deposit in the California Advanced
3Services Fund. Moneys collected on and after January 1, 2011,
4shall be deposited in the following amounts in the following
5accounts:

6(A) begin deleteOne hundred ninety million dollars ($190,000,000) end deletebegin insertThree
7hundred fifty million dollars ($350,000,000) end insert
into the Broadband
8Infrastructure Grant Account.

9(B) begin deleteFifteen million dollars ($15,000,000) end deletebegin insertThirty million dollars
10($30,000,000) end insert
into the Rural and Urban Regional Broadband
11Consortia Grant Account.

12(C) Ten million dollars ($10,000,000) into the Broadband
13Infrastructure Revolving Loan Account.

begin insert

14(D) In addition to the amount transferred pursuant to
15subparagraph (A) of paragraph (7) of subdivision (h), seventy-five
16million dollars ($75,000,000) into the Broadband Public Housing
17Account.

end insert
begin insert

18(E) One hundred million dollars ($100,000,000) into the
19High-Speed Internet Access Adoption Account.

end insert

20(2) All interest earned on moneys in the fund shall be deposited
21in the fund.

22(3) The commission shall not collect moneys, by imposing the
23surcharge described in paragraph (1) for deposit in the fund, in an
24amount that exceeds one hundred million dollars ($100,000,000)
25before January 1, 2011. On and after January 1, 2011, the
26commission may collect an additional sum not to exceed begin delete two
27 hundred fifteenend delete
begin insert five hundred sixty-fiveend insert million dollars
28begin delete ($215,000,000),end deletebegin insert ($565,000,000),end insert for a sum total of moneys
29collected by imposing the surcharge described in paragraph (1)
30not to exceedbegin delete three hundred fifteenend deletebegin insert six hundred sixty-fiveend insert million
31dollarsbegin delete ($315,000,000).end deletebegin insert ($665,000,000).end insert The commission may
32collect begin insertthe remaining balance of end insertthe additional sum beginning with
33the calendar year starting on January 1,begin delete 2011,end deletebegin insert 2017,end insert and continuing
34through thebegin delete 2020end deletebegin insert 2026end insert calendar year, in an amount not to exceed
35begin delete twenty-fiveend deletebegin insert fiftyend insert million dollarsbegin delete ($25,000,000)end deletebegin insert ($50,000,000)end insert per
36year, unless the commission determines that collecting a higher
37amount in any year will not result in an increase in the total amount
38of all surcharges collected from telephone customers that year.

39(e) (1) begin insert(A)end insertbegin insertend insertAll moneys in the California Advanced Services
40Fund shall be available, upon appropriation by the Legislature, to
P7    1the commission for the program administered by the commission
2pursuant to thisbegin delete section,end deletebegin insert section and Section 281.1,end insert including the
3costs incurred by the commission in developing, implementing,
4and administering the program and the fund.

begin insert

5(B) To ensure the most cost effective and timely achievement of
6the goals specified in paragraph (1) of subdivision (b), the
7commission may award contracts through an open and competitive
8process for any of the following services:

end insert
begin insert

9(i) Project oversight and management of grants awarded from
10the Broadband Infrastructure Grant Account to accelerate the
11completion of projects without cost increase or overruns.

end insert
begin insert

12(ii) Engineering review of proposals for grants from the
13Broadband Infrastructure Grant Account.

end insert
begin insert

14(iii) Overall management, distribution of funds from the
15Broadband Infrastructure Grant Account to sub-awardees, and
16verification of performance by the sub-awardees receiving funds.

end insert
begin insert

17(C) To avoid delays in cash flow, contracts entered into pursuant
18to subparagraph (B) shall include terms for reasonable and
19prudent advance payment schedules reconciled to actual
20expenditures by contractors, as verified by independent audits.

end insert

21(2) Notwithstanding any other law and for the sole purpose of
22providing matching funds pursuant to the federal American
23Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
24entity eligible for funding pursuant to that act shall be eligible to
25apply to participate in the program administered by the commission
26pursuant to thisbegin delete section,end deletebegin insert section and Section 281.1,end insert if that entity
27otherwise satisfies the eligibility requirements under that program.
28Nothing in this section shall impede the ability of an incumbent
29local exchange carrier, as defined by subsection (h) of Section 251
30of Title 47 of the United States Code, that is regulated under a rate
31of return regulatory structure, to recover, in rate base, California
32infrastructure investment not provided through federal or state
33grant funds for facilities that provide broadband service and
34California intrastate voice service.

35(3) Notwithstanding subdivision (b) of Section 270, an entity
36that is not a telephone corporation shall be eligible to apply to
37participate in the program administered by the commission pursuant
38to thisbegin delete sectionend deletebegin insert section and Section 281.1end insert to provide access to
39broadband to an unserved or underserved household, as defined
40in commission Decision 12-02-015, if the entity otherwise meets
P8    1the eligibility requirements and complies with program
2requirements established by the commission. These requirements
3shall include all of the following:

4(A) That projects under this paragraph provide last-mile
5broadband access to households that are unserved by an existing
6facilities-based broadband provider and only receive funding to
7provide broadband access to households that are unserved or
8underserved, as defined in commission Decision 12-02-015.

9(B) That funding for a project providing broadband access to
10an underserved household shall not be approved until after any
11existing facilities-based provider has an opportunity to demonstrate
12to the commission that it will, within a reasonable timeframe,
13upgrade existing service. An existing facilities-based provider
14may, but is not required to, apply for funding under this section to
15make that upgrade.

16(C) That the commission shall provide each applicant, and any
17party challenging an application, the opportunity to demonstrate
18actual levels of broadband service in the project area, which the
19commission shall consider in reviewing the application.

20(D) That a local governmental agency may be eligible for an
21infrastructure grant only if the infrastructure project is for an
22unserved household or business, the commission has conducted
23an open application process, and no other eligible entity applied.

24(E) That the commission shall establish a service list of
25interested parties to be notified of California Advanced Services
26Fund applications.

begin insert

27(4) Notwithstanding subdivision (b) of Section 270, up to ten
28million dollars ($10,000,000) from the Broadband Infrastructure
29Grant Account shall be available for allocation to the California
30Telehealth Network, a 501(c)(3) nonprofit organization, for
31purposes of leveraging that organization’s utilization of the Federal
32Communications Commission’s Healthcare Connect Fund for
33California’s medically underserved communities.

end insert

34(f) Moneys in the Rural and Urban Regional Broadband
35Consortia Grant Account shall be available for grants to eligible
36consortia to fund the cost of broadband deployment activities other
37than the capital cost of facilities, as specified by the commission.
38An eligible consortium may include, as specified by the
39 commission, representatives of organizations, including, but not
40limited to, local and regional government, public safety, elementary
P9    1and secondary education, health care, libraries, postsecondary
2education, community-based organizations, tourism, parks and
3recreation, agricultural, and business, and is not required to have
4as its lead fiscal agent an entity with a certificate of public
5convenience and necessity.

6(g) Moneys in the Broadband Infrastructure Revolving Loan
7Account shall be available to finance capital costs of broadband
8facilities not funded by a grant from the Broadband Infrastructure
9Grant Account. The commission shall periodically set interest rates
10on the loans based on surveys of existing financial markets.

11(h) (1) For purposes of this subdivision, the following terms
12have the following meanings:

13(A) “Publicly subsidized” means either that the housing
14development receives financial assistance from the United States
15Department of Housing and Urban Development pursuant to an
16annual contribution contract or is financed with low-income
17housing tax credits, tax-exempt mortgage revenue bonds, general
18obligation bonds, or local, state, or federal loans or grants and the
19rents of the occupants, who are lower income households, do not
20exceed those prescribed by deed restrictions or regulatory
21agreements pursuant to the terms of the financing or financial
22assistance.

23(B) “Publicly supported community” means a publicly
24subsidized multifamily housing development that is wholly owned
25by either of the following:

26(i) A public housing agency that has been chartered by the state,
27or by any city or county in the state, and has been determined to
28be an eligible public housing agency by the United States
29Department of Housing and Urban Development.

30(ii) An incorporated nonprofit organization as described in
31Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
32501(c)(3)) that is exempt from taxation under Section 501(a) of
33that code (16 U.S.C. Sec. 501(a)), and that has received public
34funding to subsidize the construction or maintenance of housing
35occupied by residents whose annual income qualifies as “low” or
36“very low” income according to federal poverty guidelines.

37(2) Notwithstanding subdivision (b) of Section 270, moneys in
38the Broadband Public Housing Account shall be available for the
39commission to award grants and loans pursuant to this subdivision
40to an eligible publicly supported community if that entity otherwise
P10   1meets eligibility requirements and complies with program
2requirements established by the commission.

3(3) Not more than twenty million dollars ($20,000,000) shall
4be available for grants and loans to a publicly supported community
5to finance a project to connect a broadband network to that publicly
6supported community. A publicly supported community may be
7an eligible applicant only if the publicly supported community can
8verify to the commission that the publicly supported community
9has not denied a right of access to any broadband provider that is
10willing to connect a broadband network to the facility for which
11the grant or loan is sought.

12(4) (A) Not more than five million dollars ($5,000,000) shall
13be available for grants and loans to a publicly supported community
14to support programs designed to increase adoption rates for
15broadband services for residents of that publicly supported
16community. A publicly supported community may be eligible for
17funding for a broadband adoption program only if the residential
18units in the facility to be served have access to broadband services
19or will have access to broadband services at the time the funding
20for adoption is implemented.

21(B) A publicly supported community may contract with other
22nonprofit or public agencies to assist in implementation of a
23begin delete broadbandend deletebegin insert high-speed Internet accessend insert adoption program.

24(5) To the extent feasible, the commission shall approve projects
25for funding from the Broadband Public Housing Account in a
26manner that reflects the statewide distribution of publicly supported
27communities.

28(6) In reviewing a project application under this subdivision,
29the commission shall consider the availability of other funding
30sources for that project, any financial contribution from the
31broadband service provider to the project, the availability of any
32other public or private broadband adoption or deployment program,
33including tax credits and other incentives, and whether the applicant
34has sought funding from, or participated in, any reasonably
35available program. The commission may require an applicant to
36provide match funding, and shall not deny funding for a project
37solely because the applicant is receiving funding from another
38source.

39(7) begin delete(A)end deletebegin deleteend deleteTo provide funding for the purposes of this subdivision,
40the commission shall transfer to the Broadband Public Housing
P11   1Account twenty million dollars ($20,000,000) from the Broadband
2Infrastructure Grant Account and five million dollars ($5,000,000)
3from the Broadband Revolving Loan Account. begin delete Any moneys in the
4Broadband Public Housing Account that have not been awarded
5pursuant to this subdivision by December 31, 2016, shall be
6transferred back to the Broadband Infrastructure Grant Account
7and Broadband Infrastructure Revolving Loan Account in
8proportion to the amount transferred from the respective accounts.end delete

begin delete

9(B) The commission shall transfer funds pursuant to
10subparagraph (A) only if the commission is otherwise authorized
11to collect funds for purposes of this section in excess of the total
12amount authorized pursuant to paragraph (3) of subdivision (d).

end delete
begin insert

13(i) (1) (A) Notwithstanding subdivision (b) of Section 270,
14moneys in the High-Speed Internet Access Adoption Account shall
15be available for the commission to award performance-based
16grants to eligible not-for-profit, community-based organizations,
17schools, and libraries to increase high-speed Internet adoption by
18low-income households by providing public education and outreach
19programs that are culturally appropriate and in relevant languages
20on digital literacy training, assistance with selecting a high-speed
21Internet provider, and subscription to high-speed Internet access.

end insert
begin insert

22(B) The commission shall develop criteria for awarding grants
23and determine the process and methodology for verifying
24high-speed Internet access based on new subscriptions by
25low-income households.

end insert
begin insert

26(C) The commission may award one or more contracts for the
27overall management of grants to eligible not-for-profit
28community-based organizations, schools, and libraries to increase
29high-speed Internet adoption among low-income households at a
30cost not to exceed 10 percent of the amount of grants awarded.

end insert
begin insert

31(2) To avoid delays in cash flow, contracts entered into pursuant
32to paragraph (1) shall include terms for reasonable and prudent
33advance payment schedules reconciled to actual expenditures by
34contractors, as verified by independent audits.

end insert
begin insert

35(j) (1) The commission shall conduct two interim financial
36audits and a final financial audit and two interim performance
37audits and a final performance audit of the implementation and
38effectiveness of the California Advanced Services Fund to ensure
39that funds have been expended in accordance with the approved
40terms of the grant awards and loan agreements, this section, and
P12   1Section 281.1. The commission shall report its interim findings to
2the Legislature by April 1, 2020, and April 1, 2022. The
3commission shall report its final findings to the Legislature by
4April 1, 2024. The reports shall also include an update to the maps
5 in the final report of the California Broadband Task Force and
6data on the types and numbers of jobs created as a result of the
7program administered by the commission pursuant to this section
8and Section 281.1.

end insert
begin insert

9(2) (A) The requirement for submitting a report imposed under
10paragraph (1) is inoperative on January 1, 2022, pursuant to
11Section 10231.5 of the Government Code.

end insert
begin insert

12(B) A report to be submitted pursuant to paragraph (1) shall
13be submitted in compliance with Section 9795 of the Government
14Code.

end insert
begin insert

15(k) (1)   Beginning on January 1, 2018, and annually thereafter,
16until January 1, 2027, the commission shall provide a report to
17the Legislature that includes all of the following information:

end insert
begin insert

18(A) The amount of funds expended from the California Advanced
19Services Fund in the prior year.

end insert
begin insert

20(B) The recipients of funds expended from the California
21Advanced Services Fund in the prior year.

end insert
begin insert

22(C) The geographic regions of the state affected by funds
23expended from the California Advanced Services Fund in the prior
24year.

end insert
begin insert

25(D) The expected benefits to be derived from the funds expended
26from the California Advanced Services Fund in the prior year.

end insert
begin insert

27(E) The amount of actual high-speed Internet access adoption
28due to the funds expended from the California Advanced Services
29Fund in the prior year.

end insert
begin insert

30(F) The amount of funds expended from the California Advanced
31Services Fund used to match federal funds.

end insert
begin insert

32(G) An update on the expenditures from California Advanced
33Services Fund and broadband adoption levels, and an accounting
34of remaining unserved and underserved households and areas of
35the state.

end insert
begin insert

36(H) The status of the California Advanced Services Fund
37balance and the projected amount to be collected in each year to
38fund approved projects.

end insert
begin insert

P13   1(2) A report to be submitted pursuant to paragraph (1) shall be
2submitted in compliance with Section 9795 of the Government
3Code.

end insert
4

SEC. 4.  

Section 281.1 is added to the Public Utilities Code, to
5read:

6

281.1.  

(a) For the purposes of this section, the following terms
7mean the following:

8(1) “Last-mile infrastructure” means the segment of the Internet
9infrastructure that provides Internet connectivity to end users, such
10as residential households, anchor institutions, and local businesses.

11(2) “Middle-mile backhaul infrastructure” means the segment
12of the Internet infrastructure that connects the last-mile
13infrastructure to the backbone infrastructure of the Internet.

14(3) “Program” means the California Advanced Services Fund
15program.

16(4) “Unserved households” and “underserved households” have
17the same meanings as in commission Decision 12-02-015.

18(b) (1) Until the goal specified in subparagraph (A) of paragraph
19(1) of subdivision (b) of Section 281 is achieved, the commission,
20in administering the program, shall give priority to last-mile
21infrastructure projects that provide advanced communication
22services at or above the advertised speeds required under the goal
23to unserved or underserved households. Recognizing that
24cost-effective, last-mile infrastructure projects are dependent upon
25affordable middle-mile backhaul infrastructure that may be
26deployed through underserved or unserved areas either by
27incumbents providing access to existing middle-mile backhaul
28infrastructure at reasonable prices as determined by the commission
29or by the project applicant constructing essential middle-mile
30infrastructure as part of the project, the commission shall consider
31applications for projects that provide for the development of
32last-mile infrastructure serving unserved and underserved
33households that include the development of middle-mile backhaul
34infrastructure to which the last-mile infrastructure connects.

35(2) (A) The commission shall give additional priority to
36applicants that are incumbents with existing middle-mile backhaul
37infrastructure proposing to deploy last-mile infrastructure to
38provide services to unserved and underserved households, if the
39incumbent submits an application no later than March 31, 2017,
40and the proposal is deemed cost effective by the commission

P14   1(B) The commission shall require the incumbent to complete,
2no later than December 31, 2018, the construction of the project
3given priority pursuant to this paragraph.

4(3) In applying for funding for the program, an applicant shall
5demonstrate the cost-effectiveness of the last-mile infrastructure
6at the threshold speeds specified in subparagraph (A) of paragraph
7(1) of subdivision (b) of Section 281.

8(c) Once the goal specified in subparagraph (A) of paragraph
9(1) of subdivision (b) of Section 281 is reached, the commission
10may prioritize funding pursuant to the program for any of the
11following:

12(1) Last-mile infrastructure projects providing advanced
13communication services at advertised speeds of at least 25 Mbps
14downstream and 3 Mbps upstream to unserved and underserved
15households and at appropriate speeds to anchor institutions and
16other customers in the vicinity of those households.

17(2) Upgrades to broadband connectivity for other critical
18infrastructure systems not in the vicinity of residences.

19(3) Last-mile infrastructure projects of statewide public
20significance, including projects related to public safety and
21emergency response, such as providing broadband connectivity to
22and among county fairgrounds as staging areas for emergency
23responses, wildfire fighting, and disaster evacuations.

24(d) It is the intent of the Legislature to enact legislation to
25establish a transparent public process to analyze and designate a
26project as having statewide significance for purposes of paragraph
27(3) of subdivision (c).

28(e) The commission and the California Broadband Council shall,
29in consultation with relevant state agencies, develop a plan to
30implement this section in a manner that fosters public-private
31partnership collaboration in an open and transparent process.

32

SEC. 5.  

No reimbursement is required by this act pursuant to
33Section 6 of Article XIII B of the California Constitution because
34the only costs that may be incurred by a local agency or school
35district will be incurred because this act creates a new crime or
36infraction, eliminates a crime or infraction, or changes the penalty
37for a crime or infraction, within the meaning of Section 17556 of
38the Government Code, or changes the definition of a crime within
P15   1the meaning of Section 6 of Article XIII B of the California
2Constitution.



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