BILL ANALYSIS �
AB 876
Page 1
Date of Hearing: January 23, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 876 (Bonta) - As Amended: January 17, 2014
Policy Committee: Utilities and
Commerce Vote: 14-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill modifies the existing California Teleconnect Fund
(CTF). Specifically, this bill:
1)Requires the California Public Utilities Commission (PUC) to
open a new proceeding or amend an existing proceeding to
develop a plan on the feasibility and expense associated with
establishing and maintaining a database of communication
services purchased by CTF recipients and the prices paid for
the services.
2)Requires the PUC to report the plan findings or progress on
the plan to the Legislature no later than March 1, 2016.
3)Expands eligibility to preschools and transitional
kindergartens.
4)Requires the PUC to develop and implement an outreach plan to
eligible preschools and transitional kindergartens to increase
awareness about the CTF.
5)Requires the PUC to revise the CTF to give priority for
communication services as the PUC deems appropriate.
6)States the PUC must ensure the CTF remains technology neutral.
FISCAL EFFECT
1)Increased costs to the California Teleconnet Fund of
approximately $300,000 to expand eligibility to schools
offering pre-kindergarten and transitional kindergarten
AB 876
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classes.
Currently, over 3,000 schools participate in discount program
and receive about $30 million in subsidies. By including
pre-kindergarten and transitional kindergarten classes, it is
estimated that the number of schools receiving the discount
will increase by 1 percent.
2)Increased costs to the PUC (California Teleconnect Fund) in
the $200,000 to $250,000 range for outreach and the
development of the database plan and its associated report.
COMMENTS
1)Background and Purpose. The PUC established the CTF in 1996
to provide 50% discounts on communications services and
broadband Internet services for schools, libraries, hospitals
and other non-profit organizations. The subsidy is funded
through a surcharge of 0.59% on intrastate charges by
telephone customers.
According to the author, this bill updates the CTF which helps
subsidize communications services for schools, libraries and
community based organizations.
Prior to the January 17, 2014 amendments, this bill required
the PUC to establish a database to inform potential recipients
of the comparable services in comparable areas. The author is
concerned that smaller, more rural or less technically savvy
schools and libraries may not always have the technical
expertise required to identify the best services at the lowest
cost.
Analysis Prepared by : Jennifer Galehouse / APPR. / (916)
319-2081