SB 745, as amended, Hueso. Telecommunications: universal service: California Advanced Services 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 universal service principles include the principle that consumers in all regions of the nation, including low-income consumers and those in rural, insular, and high-cost areas, should have access to telecommunications and information services, including interexchange services and advanced telecommunications and information services, that are reasonably comparable to those services provided in urban areas and that are available at rates that are reasonably comparable to rates charged for similar services in urban areas. 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.
Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations, as defined. Existing law establishes the California Advanced Services Fund, referred to as the 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 substantial social benefits of advanced information and communications technologies, as provided in specified decisions of the commission and in the CASF
statute. Existing law establishes
begin delete 4 accounts, the Broadband Infrastructure Grant Account,end delete the Rural and Urban Regional Broadband Consortia Grant begin delete Account, the Broadband Infrastructure Revolving Loan Account, and the Broadband Public Housingend delete Account within the CASF. Existing law provides that moneys in the Rural and Urban Regional Broadband Consortia Grant Account are available for grants to eligible consortia to fund the cost of broadband deployment activities other than the capital cost of facilities, as specified by the commission, and provides that an eligible consortium may include representatives of organizations, including local and regional government, public safety, elementary and secondary education, health care, libraries, postsecondary education, community-based organizations, tourism, parks and recreation, agricultural, and
This bill would specifically include representatives of workforce organizations and air pollution control or air quality management districts amongst the persons that can be included in an eligible consortium.
begin deleteno end delete.
State-mandated local program: no.
The people of the State of California do enact as follows:
(a) The commission shall develop, implement, and
4administer the California Advanced Services Fund program to
5encourage deployment of high-quality advanced communications
6services to all Californians that will promote economic growth,
7job creation, and the substantial social benefits of advanced
8information and communications technologies, consistent with
10(b) (1) The goal of the program is, no later than December 31,
112015, to approve funding for infrastructure projects that will
12provide broadband access to no less than 98 percent of California
14(2) In approving infrastructure projects, the commission shall
15give priority to projects that provide last-mile broadband access
16to households that are unserved by an existing facilities-based
17broadband provider. The commission shall provide each applicant,
18and any party challenging an application, the opportunity to
19demonstrate actual levels of broadband service in the project area,
20which the commission shall consider in reviewing the application.
21(c) The commission shall establish the following accounts within
23(1) The Broadband Infrastructure Grant Account.
24(2) The Rural and Urban Regional Broadband Consortia Grant
26(3) The Broadband Infrastructure Revolving Loan Account.
27(4) The Broadband Public Housing Account.
28(d) (1) All moneys collected by the surcharge authorized by
29the commission pursuant to Decision 07-12-054 shall be
30transmitted to the commission pursuant to a schedule established
31by the commission. The commission shall transfer the moneys
32received to the Controller for deposit in the California Advanced
33Services Fund. Moneys collected on and after January 1, 2011,
34shall be deposited in the following amounts in the following
36(A) One hundred ninety million dollars ($190,000,000) into the
37Broadband Infrastructure Grant Account.
P4 1(B) Fifteen million dollars ($15,000,000) into the Rural and
2Urban Regional Broadband Consortia Grant Account.
3(C) Ten million dollars ($10,000,000) into the Broadband
4Infrastructure Revolving Loan Account.
5(2) All interest earned on moneys in the fund shall be deposited
6in the fund.
7(3) The commission shall not collect moneys, by imposing the
8surcharge described in paragraph (1) for deposit in the fund, in an
9amount that exceeds one hundred million dollars ($100,000,000)
10before January 1, 2011. On and after January 1, 2011, the
11commission may collect an additional sum not to exceed two
12hundred fifteen million dollars ($215,000,000), for a sum total of
13moneys collected by imposing the surcharge described in paragraph
14(1) not to exceed three hundred fifteen million dollars
15($315,000,000). The commission may collect the additional sum
16beginning with the calendar year starting on January 1, 2011, and
17continuing through the 2020 calendar year, in an amount not to
18exceed twenty-five million dollars ($25,000,000) per year, unless
19the commission determines that collecting a higher amount in any
20 year will not result in an increase in the total amount of all
21surcharges collected from telephone customers that year.
22(e) (1) All moneys in the California Advanced Services Fund
23shall be available, upon appropriation by the Legislature, to the
24commission for the program administered by the commission
25pursuant to this section, including the costs incurred by the
26commission in developing, implementing, and administering the
27program and the fund.
28(2) Notwithstanding any other law and for the sole purpose of
29providing matching funds pursuant to the federal American
30Recovery and Reinvestment Act of 2009 (Public Law 111-5), any
31entity eligible for funding pursuant to that act shall be eligible to
32apply to participate in the program administered by the commission
33pursuant to this section, if that entity otherwise satisfies the
34eligibility requirements under that program. Nothing in this section
35shall impede the ability of an incumbent local exchange carrier,
36as defined by subsection (h) of Section 251 of Title 47 of the
37United States Code, that is regulated under a rate of return
38regulatory structure, to recover, in rate base, California
39infrastructure investment not provided through federal or state
P5 1grant funds for facilities that provide broadband service and
2California intrastate voice service.
3(3) Notwithstanding subdivision (b) of Section 270, an entity
4that is not a telephone corporation shall be eligible to apply to
5participate in the program administered by the commission pursuant
6to this section to provide access to broadband to an unserved or
7underserved household, as defined in commission Decision
812-02-015, if the entity otherwise meets the eligibility requirements
9and complies with program requirements established by the
10commission. These requirements shall include all of the following:
11(A) That projects under this paragraph provide last-mile
12broadband access to households that are unserved by an existing
13facilities-based broadband provider and only receive funding to
14provide broadband access to households that are unserved or
15underserved, as defined in commission Decision 12-02-015.
16(B) That funding for a project providing broadband access to
17an underserved household shall not be approved until after any
18existing facilities-based provider has an opportunity to demonstrate
19to the commission that it will, within a reasonable timeframe,
20upgrade existing service. An existing facilities-based provider
21may, but is not required to, apply for funding under this section to
22make that upgrade.
23(C) That the commission shall provide each applicant, and any
24party challenging an application, the opportunity to demonstrate
25actual levels of broadband service in the project area, which the
26commission shall consider in reviewing the application.
27(D) That a local governmental agency may be eligible for an
28infrastructure grant only if the infrastructure project is for an
29unserved household or business, the commission has conducted
30an open application process, and no other eligible entity applied.
31(E) That the commission shall establish a service list of
32interested parties to be notified of California Advanced Services
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
39commission, representatives of organizations, including, but not
40limited to, local and regional government, public safety, elementary
P6 1and secondary education, health care, libraries, postsecondary
2education, community-based organizations, tourism, parks and
begin delete and business,end delete and is not required to have as its lead fiscal agent an entity
6with a certificate of public convenience and necessity.
7(g) Moneys in the Broadband Infrastructure Revolving Loan
8Account shall be available to finance capital costs of broadband
9facilities not funded by a grant from the Broadband Infrastructure
10Grant Account. The commission shall periodically set interest rates
11on the loans based on surveys of existing financial markets.
12(h) (1) For purposes of this subdivision, the following terms
13have the following meanings:
14(A) “Publicly subsidized” means either that the housing
15development receives financial assistance from the United States
16Department of Housing and Urban Development pursuant to an
17annual contribution contract or is financed with low-income
18housing tax credits, tax-exempt mortgage revenue bonds, general
19obligation bonds, or local, state, or federal loans or grants and the
20rents of the occupants, who are lower income households, do not
21exceed those prescribed by deed restrictions or regulatory
22agreements pursuant to the terms of the financing or financial
24(B) “Publicly supported community” means a
25subsidized multifamily housing development that is wholly owned
26by either of the following:
27(i) A public housing agency that has been chartered by the state,
28or by any city or county in the state, and has been determined to
29be an eligible public housing agency by the United States
30Department of Housing and Urban Development.
31(ii) An incorporated nonprofit organization as described in
32Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.
33501(c)(3)) that is exempt from taxation under Section 501(a) of
begin delete(16end delete U.S.C. Sec. 501(a)), and that has received public
35funding to subsidize the construction or maintenance of housing
36occupied by residents whose annual income qualifies as “low” or
37“very low” income according to federal poverty guidelines.
38(2) Notwithstanding subdivision (b) of Section 270, moneys in
39the Broadband Public Housing Account shall be available for the
40commission to award grants and loans pursuant to this subdivision
P7 1to an eligible publicly supported community if that entity otherwise
2meets eligibility requirements and complies with program
3requirements established by the commission.
4(3) Not more than twenty million dollars ($20,000,000) shall
5be available for grants and loans to a publicly supported community
6to finance a project to connect a broadband network to that publicly
7supported community. A publicly supported community may be
8an eligible applicant only if the publicly supported community can
9verify to the commission that the publicly supported community
10has not denied a right of access to any broadband provider that is
11willing to connect a broadband network to the facility for which
12the grant or loan is sought.
13(4) (A) Not more than five million dollars ($5,000,000) shall
14be available for grants and loans to a publicly supported community
15to support programs designed to increase adoption rates for
16broadband services for residents of that publicly supported
17community. A publicly supported community may be eligible for
18funding for a broadband adoption program only if the residential
19units in the facility to be served have access to broadband services
20or will have access to broadband services at the time the funding
21for adoption is implemented.
22(B) A publicly supported community may contract with other
23nonprofit or public agencies to assist in implementation of a
24broadband adoption program.
25(5) To the extent
feasible, the commission shall approve projects
26for funding from the Broadband Public Housing Account in a
27manner that reflects the statewide distribution of publicly supported
29(6) In reviewing a project application under this subdivision,
30the commission shall consider the availability of other funding
31sources for that project, any financial contribution from the
32broadband service provider to the project, the availability of any
33other public or private broadband adoption or deployment program,
34including tax credits and other incentives, and whether the applicant
35has sought funding from, or participated in, any reasonably
36available program. The commission may require an applicant to
37provide match funding, and shall not deny funding for a project
38solely because the applicant is receiving funding from another
P8 1(7) (A) To provide funding for
the purposes of this subdivision,
2the commission shall transfer to the Broadband Public Housing
3Account twenty million dollars ($20,000,000) from the Broadband
4Infrastructure Grant Account and five million dollars ($5,000,000)
5from the Broadband Revolving Loan Account. Any moneys in the
6Broadband Public Housing Account that have not been awarded
7pursuant to this subdivision by December 31, 2016, shall be
8transferred back to the Broadband Infrastructure Grant Account
9and Broadband Infrastructure Revolving Loan Account in
10proportion to the amount transferred from the respective accounts.
11(B) The commission shall transfer funds pursuant to
12subparagraph (A) only if the commission is otherwise authorized
13to collect funds for purposes of this section in excess of the total
14amount authorized pursuant to paragraph (3) of subdivision (d).
(a) By January 1 of each year, the commission shall
18provide a report to the Legislature that includes all of the following
20(1) The amount of funds expended from the California Advanced
21Services Fund in the prior year.
22(2) The recipients of funds expended from the California
23Advanced Services Fund in the prior year.
24(3) The geographic
begin delete regionsend delete of the state affected by funds expended from the
26Advanced Services Fund in the prior year.
27(4) The expected benefits to be derived from the funds expended
28from the California Advanced Services Fund in the prior year.
29(5) Actual broadband adoption levels from the funds expended
30from the California Advanced Services Fund in the prior year.
31(6) The amount of funds expended from the California Advanced
32Services Fund used to match federal funds.
36 An update on the expenditures from
37Services Fund and broadband adoption levels, and an accounting
38of remaining unserved and underserved households and areas of
P9 1 The status of the California Advanced Services Fund balance
2and the projected amount to be collected in each year through 2020
3to fund approved projects.
4(b) Pursuant to Section 10231.5 of the Government Code, this
5section is repealed on January 1, 2021.
All matter omitted in this version of the bill appears in the bill as introduced in the Senate, February 27, 2015. (JR11)