BILL NUMBER: SB 905	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Wolk

                        FEBRUARY 18, 2011

   An act to amend Section 275.6 of the Public Utilities Code,
relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 905, as introduced, Wolk. Telecommunications: universal
service.
   Existing law authorizes the Public Utilities Commission to
supervise and regulate every public utility in the state, including
telephone corporations, and to fix just and reasonable rates and
charges for the public utility. Existing law establishes the
California High-Cost Fund-A Administrative Committee Fund and the
California High-Cost Fund-B Administrative Committee Fund in the
State Treasury, and requires that moneys in the funds are the
proceeds of rates and are held in trust for the benefit of
ratepayers, and to compensate telephone corporations for their costs
of providing universal service and may be expended only to accomplish
specified telecommunications universal service programs, upon
appropriation in the annual Budget Act or upon supplemental
appropriation.
   Existing law also requires the commission, until January 1, 2013,
to develop, implement, and maintain a suitable program to establish a
fair and equitable local rate structure aided by universal service
rate support to small independent telephone corporations that serve
rural areas and are subject to a rate of return regulation by the
commission.
   This bill would make technical, nonsubstantive changes to that
requirement.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 275.6 of the Public Utilities Code is amended
to read:
   275.6.  (a) The commission shall develop, implement, and maintain
a suitable program to establish a fair and equitable local rate
structure aided by universal service rate support to small
independent telephone corporations that serve rural areas and are
subject to rate-of-return regulation by the commission. The purpose
of the program shall be to promote the goals of universal telephone
service and to reduce  any disparity  
disparities  in the rates charged by those companies.
   (b) For purposes of this section, "small independent telephone
corporations" means those independent telephone corporations serving
rural areas that are subject to rate-of-return regulation by the
commission, as determined by the commission.
   (c) The commission shall structure the programs required by this
section so that  any   a  charge imposed to
promote the goals of universal service reasonably equals the value
of the benefits of universal service to contributing entities and
their subscribers.
   (d) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.