Chapter 1.5 - Advisory Boards

California Public Utilities Code — §§ 270-285

Sections (19)

§ 270

Amended by Stats. 2021, Ch. 115, Sec. 74. (AB 148) Effective July 22, 2021.

(a)The following funds are hereby created in the State Treasury:

(1)The California High-Cost Fund-A Administrative Committee Fund.

(2)The California High-Cost Fund-B Administrative Committee Fund.

(3)The Universal Lifeline Telephone Service Trust Administrative Committee Fund.

(4)The Deaf and Disabled Telecommunications Program Administrative Committee Fund.

(5)The California Teleconnect Fund Administrative Committee Fund.

(6)The California Advanced Services Fund.

(b)Moneys in the funds are held in trust and may only be expended pursuant to this chapter and upon appropriation in the annual Budget Act or upon supplemental appropriation.

(c)The commission, in administering the universal service program funds listed in subdivision (a), and in administering state participation in federal universal service programs, is encouraged, consistent with the state’s universal service policies and goals, to maximize the amount of federal funding to California participants in the federal programs.

(d)Moneys in each fund shall not be appropriated, or in any other manner transferred or

otherwise diverted, to any other fund or entity, except as provided in Sections 19325 and 19325.1 of the Education Code and as provided in Section 282.

§ 270.1

Amended by Stats. 2002, Ch. 61, Sec. 1. Effective June 21, 2002.

(a)Notwithstanding any other provision of law, the commission may authorize the trustee of the California High-Cost Fund-B Trust to transfer to the Deaf Equipment Acquisition Fund Trust (DEAF Trust) money sufficient to cover the costs of the programs as specified in subdivision (a) of Section 278, including, but not limited to, all costs specified in subdivision (c) of Section 278. The amount of any transfer of money authorized may not exceed the cost of operating the programs for six months. The commission shall also establish other terms of the transfer, as it determines to be appropriate.

(b)The commission shall reimburse the California High-Cost Fund-B Trust for any transfer of money to the DEAF Trust authorized pursuant to subdivision (a), with interest as determined by the commission.

(c)A sum equivalent to the amount of money transferred to the Deaf Equipment Acquisition Fund Trust (DEAF Trust) pursuant to subdivision (a) is hereby appropriated from the Deaf and Disabled Telecommunications Program Administrative Committee Fund to the commission, for allocation to the California High-Cost Fund-B Trust, for purposes of subdivision (b).

(d)Funds may not be transferred from the California High-Cost Fund-B Trust to the DEAF Trust pursuant to subdivision (a) after September 30, 2001.

(e)Commencing on October 1, 2001, and until a date not later than June 30, 2002, reimbursements made to the California High-Cost Fund-B Trust pursuant to subdivisions (b) and (c) shall be deposited in a separate memorandum account within the DEAF Trust, subject to the terms specified in subdivision (b).

(f)On July 1, 2002, any funds in the DEAF Trust deposited in the memorandum account for purposes of reimbursing the California High-Cost Fund-B Trust shall revert to the Controller for deposit in the California High-Cost Fund-B Trust Committee Fund in the State Treasury rather than the Deaf and Disabled Telecommunications Program Administrative Committee Fund.

(g)Commencing on July 1, 2003, any funds remaining in the DEAF Trust, exclusive of those identified in subdivision (f), shall revert to the Deaf and Disabled Telecommunications Program Administrative Committee Fund in the State Treasury.

§ 271

Added by Stats. 1999, Ch. 677, Sec. 2. Effective January 1, 2000.

For each advisory board created pursuant to this chapter all of the following are applicable:

(a)The commission shall establish the number of, and qualifications for, persons to serve as members of each board, and shall appoint the members of each board. In determining the qualifications of persons who will serve as members of each board, the commission shall consider the purpose of the program, and shall attempt to achieve balanced public participation, for each board. The membership of each board shall reflect, to the extent possible, and consistent with existing law, the ethnic and gender diversity of the state.

(b)Each board shall determine, subject to approval by the commission, the time, location, and number of monthly meetings for each board.

(c)A majority of the number of members of each board constitutes a quorum.

(d)A board cannot act at a meeting without the presence of a quorum.

(e)The affirmative vote of a majority of those members present at the meeting of a board is necessary in order to pass any motion, resolution, or measure.

(f)The commission shall determine for each board whether the board members shall receive expense reimbursement pursuant to Section 19820 of the Government Code and a per diem allowance, as specified in Section 11564.5 of the Government Code, or as established by the commission. Each member of a board who is not a commission or public utility employee, or who is not otherwise compensated by an employer for service on the board, shall be entitled to make a claim for and to receive a per diem allowance, if authorized by the commission. Each member of a board who is not a public utility employee, or who is not otherwise reimbursed by an employer for expenses incurred when serving on the board, shall be entitled to make a claim for and to receive expense reimbursement, if authorized by the commission. The commission shall allow all reasonable expense and per diem claims. The payments in each instance shall be made only from the fund that supports the activities of the board and shall be subject to the availability of money in that fund. The claims shall be filed by the board with the commission.

§ 273

Added by Stats. 1999, Ch. 677, Sec. 2. Effective January 1, 2000.

Each advisory board created pursuant to this chapter shall do both of the following:

(a)Submit an annual budget to the commission. Within 90 calendar days after receiving a board’s annual budget, the commission shall either accept, accept with conditions, or reject the submitted budget.

(b)Notwithstanding Section 7550.5 of the Government Code, submit, in accordance with procedures established by the commission, a report that shall describe the activities of the board during the prior reporting period. The report shall be submitted on an annual or more frequent basis, as ordered by the commission.

§ 274

Amended by Stats. 2022, Ch. 251, Sec. 22. (AB 209) Effective September 6, 2022.

The commission may on its own order, whenever it determines it to be necessary, conduct audits or reviews of the revenues required to be collected and submitted to the commission for each of the funds specified in Section 270. The commission may on its own order, whenever it determines it to be necessary, conduct audits or reviews on the compliance with commission orders with regard to each program subject to this chapter. The commission shall

apply a risk-based methodology to conduct

audits or reviews of program-related costs and activities. This section does not limit the commission’s authority to initiate an audit or review when circumstances warrant doing so. The commission may contract with the California State Auditor’s Office, the Department of Finance, or another qualified audit or consulting firm for

any necessary auditing

or review services if the commission’s own auditing services are not available. All costs for audits or reviews shall be paid from the fund that supports the activities of the board audited or reviewed and shall be subject to the availability of money in that fund.

§ 275

Amended by Stats. 2014, Ch. 520, Sec. 3. (SB 1364) Effective September 20, 2014.

(a)There is hereby created the California High-Cost Fund-A Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to provide for transfer payments to small independent telephone corporations providing local exchange services in high-cost rural and small metropolitan areas in the state to create fair and equitable local rate structures, as provided for in Section 275.6, and to carry out the program pursuant to the commission’s direction, control, and approval.

(b)All revenues collected through surcharges 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 High-Cost Fund-A Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund.

(c)Moneys appropriated from the California High-Cost Fund-A 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.

(d)The Legislature finds and declares that, because maintenance of universal public switched telephone network service throughout the state and maintenance of public safety answering points in high-cost areas of the state rely on appropriations from the

California High-Cost Fund-A Administrative Committee Fund, maintaining adequate funding levels for the fund is critical to public health and safety.

§ 275.6

Amended by Stats. 2022, Ch. 706, Sec. 1. (SB 857) Effective September 28, 2022. Repealed as of January 1, 2028, by its own provisions.

(a)The commission shall exercise its regulatory authority to maintain the California High-Cost Fund-A Administrative Committee Fund program (CHCF-A program) to provide universal service rate support to small independent telephone corporations in amounts sufficient to meet the revenue requirements established by the commission through rate-of-return regulation in furtherance of the state’s universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.

(b)For purposes of this section, the following terms have the following meanings:

(1)“Carrier of last resort” means a telephone corporation

that is required to fulfill all reasonable requests for service within its service territory.

(2)“Rate base” means the value of a telephone corporation’s plant and equipment that is reasonably necessary to provide regulated voice services and access to advanced services, and upon which the telephone corporation is entitled to a fair opportunity to earn a reasonable rate of return.

(3)“Rate design” means the mix of end user rates, high-cost support, and other revenue sources that are targeted to provide a fair opportunity to meet the revenue requirement of the telephone corporation.

(4)“Rate-of-return regulation” means a regulatory structure whereby the commission establishes a telephone corporation’s revenue requirement, and then fashions a rate design to provide the company a fair opportunity to meet the revenue

requirement.

(5)“Revenue requirement” means the amount that is necessary for a telephone corporation to recover its reasonable expenses and tax liabilities and earn a reasonable rate of return on its rate base.

(6)“Small independent telephone corporations” are rural incumbent local exchange carriers subject to commission regulation.

(c)In administering the CHCF-A program the commission shall do all of the following:

(1)Continue to set rates to be charged by the small independent telephone corporations in accordance with Sections 451, 454, 455, and 728.

(2)Employ rate-of-return regulation to determine a small independent telephone corporation’s revenue requirement in a manner that

provides revenues and earnings sufficient to allow the telephone corporation to deliver safe, reliable, high-quality voice communication service and fulfill its obligations as a carrier of last resort in its service territory, and to afford the telephone corporation a fair opportunity to earn a reasonable return on its investments, attract capital for investment on reasonable terms, and ensure the financial integrity of the telephone corporation.

(3)Ensure that rates charged to customers of small independent telephone corporations are just and reasonable and are reasonably comparable to rates charged to customers of urban telephone corporations.

(4)Provide universal service rate support from the CHCF-A program to small independent telephone corporations in an amount sufficient to supply the portion of the revenue requirement that cannot reasonably be provided by the customers of

each small independent telephone corporation after receipt of federal universal service rate support.

(5)Promote customer access to advanced services and deployment of broadband-capable facilities in rural areas that is reasonably comparable to that in urban areas, consistent with national communications policy.

(6)Include all reasonable investments necessary to provide for the delivery of high-quality voice communication services and the deployment of broadband-capable facilities in the rate base of small independent telephone corporations.

(7)Ensure that support is not excessive so that the burden on all contributors to the CHCF-A program is limited.

(d)In order to participate in the CHCF-A program, a small independent telephone corporation shall

meet all of the following requirements:

(1)Be subject to rate-of-return regulation.

(2)Be subject to the commission’s regulation of telephone corporations pursuant to this division.

(3)Be a carrier of last resort in their service territory.

(4)Qualify as a rural telephone company under federal law (47 U.S.C. Sec. 153(44)).

(e)Upon request from the commission, a small independent telephone corporation that receives support from the CHCF-A program shall provide information regarding revenues derived from the provision of unregulated internet access service by that corporation or its affiliate within that corporation’s telephone service territory. The commission shall treat as

confidential any information provided pursuant to this subdivision.

(f)The commission shall structure the CHCF-A program so that any 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.

(g)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

§ 276

Amended by Stats. 2014, Ch. 520, Sec. 5. (SB 1364) Effective September 20, 2014.

(a)There is hereby created the California High-Cost Fund-B Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to provide for transfer payments to telephone corporations providing local exchange services in high-cost areas in the state to create fair and equitable local rate structures, as provided for in Section 276.5, and to carry out the program pursuant to the commission’s direction, control, and approval.

(b)All revenues collected through surcharges 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 High-Cost Fund-B Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund.

(c)Moneys appropriated from the California High-Cost Fund-B 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.

§ 276.5

Amended by Stats. 2022, Ch. 706, Sec. 2. (SB 857) Effective September 28, 2022. Repealed as of January 1, 2028, by its own provisions.

(a)The commission shall develop, implement, and maintain a suitable, competitively neutral, and broad-based program to establish a fair and equitable local rate support structure aided by universal service rate support to telephone corporations serving areas where the cost of providing services exceeds rates charged by providers, as determined by the commission. The program shall be known, and may be cited, as the California High-Cost Fund-B Administrative Committee Fund program or CHCF-B program. The purpose of the program shall be to promote the goals of universal telephone service and to reduce any disparity in the rates charged by those companies. Except as otherwise explicitly provided, this subdivision does not limit the manner in which the commission collects and disburses funds, and does not limit the manner in which it

may include or exclude the revenue of contributing entities in structuring the program.

(b)The commission shall structure the CHCF-B program so that any 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.

(c)The commission shall investigate reducing the level of universal service rate support, or elimination of universal service rate support in service areas with demonstrated competition.

(d)This section shall remain in effect only until January 1, 2028, and as of that date is repealed.

§ 277

Amended by Stats. 2001, Ch. 118, Sec. 21. Effective July 30, 2001.

(a)There is hereby created the Universal Lifeline Telephone Service Trust Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to ensure lifeline telephone service is available to the people of the state, as provided for in Article 8 (commencing with Section 871) of Chapter 4 of Part 1 of Division 1, and to carry out the program pursuant to the commission’s direction, control, and approval.

(b)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. Commencing on October 1, 2001, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenues collected prior to October 1, 2001, to the Controller for deposit in the Universal Lifeline Telephone Service Trust Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund.

(c)Moneys appropriated from the Universal Lifeline Telephone Service Trust 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.

§ 278

Amended by Stats. 2012, Ch. 162, Sec. 153. (SB 1171) Effective January 1, 2013.

(a)(1) Commencing on July 1, 2003, there is hereby created the Telecommunications Access for Deaf and Disabled Administrative Committee, formerly the Deaf and Disabled Telecommunications Program Administrative Committee, as an advisory board to advise the commission regarding the development, implementation, and administration of programs to provide specified telecommunications services and equipment to persons in this state who are deaf or disabled, as provided for in Sections 2881, 2881.1, and 2881.2.

(2)In addition to the membership qualifications established by the commission pursuant to subdivision (a) of Section 271, the commission shall establish qualifications for persons to serve as members of

the Telecommunications Access for Deaf and Disabled Administrative Committee so that consumers of telecommunications services for the deaf and disabled comprise not less than two-thirds of the membership of the committee. To the extent feasible, one of those members shall have experience in the administration of programs similar to those provided for in Sections 2881, 2881.1, and 2881.2.

(3)As part of its advisory role, as specified in paragraph (1), the Telecommunications Access for Deaf and Disabled Administrative Committee shall advise the commission regarding contracts and agreements related to the Deaf and Disabled Telecommunications Program as specified in subdivisions (d) and (e) of Section 2881.4.

(b)All revenues collected by telephone corporations in rates authorized by the commission to fund the programs specified in subdivision (a) shall be submitted to the commission

pursuant to a schedule established by the commission. Commencing on July 1, 2003, and continuing thereafter, the commission shall transfer the moneys received, and all unexpended revenue collected prior to July 1, 2003, to the Controller for deposit in the Deaf and Disabled Telecommunications Program Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in the fund. Those revenues that are collected pursuant to subdivision (g) of Section 2881 shall be accounted for separately, as required by subdivision (b) of Section 2881.2, and deposited in the fund created by the commission pursuant to subdivision (b) of Section 2881.2.

(c)Moneys appropriated from the Deaf and Disabled Telecommunications Program Administrative Committee Fund to the commission shall be utilized exclusively by the commission for the programs specified in subdivision (a), including all costs of the committee and the commission associated

with the administration and oversight of the programs and the fund.

(d)Commencing on July 1, 2003, staffing costs incurred by the commission for oversight and administration of the programs described in subdivision (a) shall be funded by moneys appropriated from the Deaf and Disabled Telecommunications Program Administrative Committee Fund.

§ 280

Amended by Stats. 2016, Ch. 841, Sec. 2. (SB 1212) Effective January 1, 2017.

(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, and community organizations, 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, and community organizations, 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)Except as provided in subdivisions (e) and (g), 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 may 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)(1) Consistent with Decision 11-09-016 (September 8, 2011) Decision Granting Authority to Provide Emergency Access to 211 Services in Counties and Localities Without Existing 211 Centers and to Appoint a 211 Lead Entity, if it determines that doing so is an appropriate use of funds collected from ratepayers, the commission may expend up to one million five hundred thousand dollars ($1,500,000) from the California Teleconnect Fund Administrative Committee Fund for one-time

costs to help close 2-1-1 service gaps in counties lacking access to disaster preparedness, response, and recovery information and referral services, where technically feasible, through available 2-1-1 service.

As the lead agency appointed by the commission in Decision 11-09-016, 2-1-1 California may apply to the commission for use of the funds in the counties that lack 2-1-1 service. If the commission determines that doing so is an appropriate use of funds collected from ratepayers, these costs may include local implementation of a coordinated database that is owned by a city or county to provide referrals to help with nonemergency aspects of disaster planning, recovery, and response.

(2)This subdivision shall become inoperative on January 1, 2023.

§ 280.5

Amended by Stats. 2015, Ch. 612, Sec. 2. (SB 697) Effective January 1, 2016.

(a)Of the revenues from fees collected pursuant to Section 14666.8 of the Government Code after the operative date of this section, except for revenues from fees from a lease agreement for access to Department of Transportation property or a lease agreement existing prior to the operative date of the section, 15 percent shall be available, upon appropriation by the Legislature, for the purpose of addressing the state’s digital divide.

(b)Revenues described in subdivision (a) shall be deposited in the Digital Divide Account, which is hereby established in the California Teleconnect Fund Administrative Committee Fund established pursuant to Section 270, to be used only for digital

divide pilot projects. Not more than 5 percent of the revenues described in subdivision (a) may be used to pay the costs incurred in connection with the administration of digital divide pilot projects by the commission.

(c)(1) The Digital Divide Grant Program is hereby established subject to the availability of funding pursuant to this section. The commission may not implement the grant program until the commission projects that at least five hundred thousand dollars ($500,000) will be available in the Digital Divide Account during the calendar year following implementation, based on money collected pursuant to Section 14666.8 of the Government Code.

(2)The commission shall provide grants pursuant to this subdivision on a competitive basis subject to criteria to be established by the commission and in a way that disburses the funds widely, including urban

and rural areas. Grants shall be awarded to community-based nonprofit organizations that are exempt from taxation under Section 501(c)(3) of the Internal Revenue Code for the purpose of funding community technology programs.

(3)Recipients of grants pursuant to this subdivision shall report to the commission annually on the effectiveness of the grant program.

(d)For purposes of this section, “community technology programs” means a program that is engaged in diffusing technology in local communities and training local communities in the use of technology, especially local communities that otherwise would have no access or limited access to the Internet and other technologies.

(e)For purposes of this section, “digital divide projects” means community technology programs involved in activities that include, but are

not limited to, the following:

(1)Providing open access to and opportunities for training in technology.

(2)Developing content relevant to the interests and wants of the local community.

(3)Preparing youth for opportunities in the new economy through multimedia training and skills.

(4)Harnessing technology for e-government services.

§ 281

Amended by Stats. 2023, Ch. 45, Sec. 47. (AB 127) Effective July 10, 2023.

(a)The commission shall develop, implement, and administer the California Advanced Services Fund 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, consistent with this section and with the statements of intent in Section 2 of the Internet for All Now Act (Chapter 851 of the Statutes of 2017).

(b)(1) (A) The goal of the Broadband Infrastructure Grant Account is, no later than December 31, 2032, to approve funding for infrastructure projects that will provide broadband access to no less than 98 percent of California households in each

consortia region, as identified by the commission. The commission shall be responsible for achieving the goals of the program.

(B) For purposes of the Broadband Infrastructure Grant Account, both of the following definitions apply:

(i)“Mbps” means megabits per second.

(ii) (I) Except as provided in subclause (II), “unserved area” means an area for which there is no facility-based broadband provider offering at least one tier of broadband service at speeds of at least 25 mbps downstream, 3 mbps upstream, and a latency that is sufficiently low to allow realtime interactive applications, considering updated federal and state broadband mapping data.

(II) For projects funded, in whole or in part, from moneys received from the federal

Rural Digital Opportunity Fund, “unserved area” means an area in which no facility-based broadband provider offers broadband service at speeds consistent with the standards established by the Federal Communications Commission pursuant to In the Matter of Rural Digital Opportunity Fund, WC Docket No. 19-126, Report and Order, FCC 20-5 (adopted January 30, 2020, and released February 7, 2020), or as it may be later modified by the Federal Communications Commission.

(2)In approving infrastructure projects funded through the Broadband Infrastructure Grant Account, the commission shall do both of the following:

(A)Approve projects that provide last-mile broadband access to households that are unserved by an existing facility-based broadband provider.

(B)(i) Prioritize projects in unserved areas

where internet connectivity is available only at speeds at or below 10 mbps downstream and 1 mbps upstream or areas with no internet connectivity.

(ii) This subparagraph does not prohibit the commission from approving funding for projects outside of the areas specified in clause (i).

(3)Moneys appropriated for purposes of this section may be used to match or leverage federal moneys for communications infrastructure, digital equity, and adoption, including, but not limited to, moneys from the United States Department of Commerce Economic Development Administration, the United States Department of Agriculture ReConnect Loan and Grant Program, and the Federal Communications Commission for communications infrastructure, digital equity, and adoption.

(4)The commission shall transition California Advanced Services Fund

program methodologies to provide service to serviceable locations and evaluate other program changes to align with other funding sources, including, but not limited to, funding locations.

(5)The commission shall maximize investments in new, robust, and scalable infrastructure and use California Advanced Services Fund moneys to leverage federal and non-California Advanced Services Fund moneys by undertaking activities, including, but not limited to, all of the following:

(A)Providing technical assistance to local governments and providers.

(B)Assisting in developing grant applications.

(C)Assisting in preparing definitive plans for deploying necessary infrastructure in each county, including coordination across contiguous counties.

(6)Moneys appropriated for purposes of this section may be used to fund projects that deploy broadband infrastructure to unserved nonresidential facilities used for local and state emergency response activities, including, but not limited to, fairgrounds.

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

(1)The Broadband Infrastructure Grant Account.

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

(3)The Broadband Public Housing Account.

(4)The Broadband Adoption Account.

(5)The Federal Funding Account.

(d)(1) The commission shall transfer the moneys received by the commission from the surcharge the commission may impose pursuant to paragraph (4) to fund the accounts to the Controller for deposit into the California Advanced Services Fund.

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

(3)The commission may make recommendations to the Legislature regarding appropriations from the California Advanced Services Fund and the accounts established pursuant to subdivision (c).

(4)For the period described in Section 281.1, the commission may collect a sum not to exceed one hundred fifty million dollars ($150,000,000) per year.

(e)All moneys

in the California Advanced Services Fund, including moneys in the accounts within the fund, shall be available, upon appropriation by the Legislature, to the commission for the California Advanced Services Fund program administered by the commission pursuant to this section, including the costs incurred by the commission in developing, implementing, and administering the program and the fund.

(f)In administering the Broadband Infrastructure Grant Account, the commission shall do all of the following:

(1)The commission shall award grants from the Broadband Infrastructure Grant Account on a technology-neutral basis, taking into account the useful economic life of capital investments, and including both wireline and wireless technology.

(2)The commission shall consult with regional consortia, stakeholders, local

governments, existing facility-based broadband providers, and consumers regarding unserved areas and cost-effective strategies to achieve the broadband access goal through public workshops conducted at least annually no later than April 30 of each year.

(3)The commission shall identify unserved rural and urban areas and delineate the areas in the annual report prepared pursuant to Section 914.7.

(4)An existing facility-based broadband provider may, but is not required to, apply for funding from the Broadband Infrastructure Grant Account to make an upgrade pursuant to this subdivision.

(5)Projects eligible for grant awards shall deploy infrastructure capable of providing broadband access at speeds of a minimum of 100 mbps downstream and 20 mbps upstream, or the most current broadband definition speed standard set

by the Federal Communications Commission from time to time, as determined appropriate by the commission, whichever broadband access speed is greater, to unserved areas or unserved households.

(6)(A) An individual household or property owner shall be eligible to apply for a grant to offset the costs of connecting the household or property to an existing or proposed facility-based broadband provider. Any infrastructure built to connect a household or property with funds provided under this paragraph shall become the property of, and part of, the network of the facility-based broadband provider to which it is connected.

(B)(i) In approving a project pursuant to this paragraph, the commission shall consider limiting funding to households based on income so that funds are provided only to households that would not otherwise be able to

afford a line extension to the property, limiting the amount of grants on a per-household basis, and requiring a percentage of the project to be paid by the household or the owner of the property.

(ii) The aggregate amount of grants awarded pursuant to this paragraph shall not exceed five million dollars ($5,000,000).

(7)An entity that is not a telephone corporation shall be eligible to apply to participate in the program administered by the commission pursuant to this section to provide access to broadband to an unserved area if the entity otherwise meets the eligibility requirements and complies with program requirements established by the commission.

(8)The commission shall provide each applicant, and any party challenging an application, the opportunity to demonstrate actual levels of broadband service in the

project area, which the commission shall consider in reviewing the application.

(9)The commission shall establish a service list of interested parties to be notified of any California Advanced Services Fund applications. Any application and any amendment to an application for project funding shall be served to those on the service list and posted on the commission’s internet website at least 30 days before publishing the corresponding draft resolution.

(10)A grant awarded pursuant to this subdivision may include funding for the following costs consistent with paragraph (5):

(A)Costs directly related to the deployment of infrastructure.

(B)Costs to lease access to property or for internet backhaul services for a period not to exceed five years.

(C)Costs incurred by an existing facility-based broadband provider to upgrade its existing facilities to provide for interconnection.

(11)The commission may award grants to fund all or a portion of the project. The commission shall determine, on a case-by-case basis, the level of funding to be provided for a project and shall consider factors that include, but are not limited to, the location and accessibility of the area, the existence of communication facilities that may be upgraded to deploy broadband, and whether the project makes a significant contribution to achievement of the program goal.

(g)(1) Moneys in the Rural and Urban Regional Broadband Consortia Grant Account shall be available for grants to eligible consortia to facilitate deployment of broadband services by assisting

infrastructure applicants in the project development or grant application process. An eligible consortium may include, as specified by the commission, representatives of organizations, including, but not limited to, local and regional government, public safety, elementary and secondary education, health care, libraries, postsecondary education, community-based organizations, tourism, parks and recreation, agricultural, business, workforce organizations, and air pollution control or air quality management districts, and is not required to have as its lead fiscal agent an entity with a certificate of public convenience and necessity.

(2)Each consortium shall conduct an annual audit of its expenditures for programs funded pursuant to this subdivision and shall submit to the commission an annual report that includes both of the following:

(A)A description of activities completed

during the prior year, how each activity promotes the deployment of broadband services, and the cost associated with each activity.

(B)The number of project applications assisted.

(h)(1) All remaining moneys in the Broadband Infrastructure Revolving Loan Account that are unencumbered as of January 1, 2018, shall be transferred into the Broadband Infrastructure Grant Account.

(2)All repayments of loans funded by the former Broadband Infrastructure Revolving Loan Account shall be deposited into the Broadband Infrastructure Grant Account.

(i)(1) For purposes of this subdivision, “low-income community” includes, but is not limited to, publicly supported housing developments, and other housing developments or

mobilehome parks with low-income residents, as determined by the commission.

(2)Moneys in the Broadband Public Housing Account shall be available for the commission to award grants and loans pursuant to this subdivision to a low-income community that otherwise meets eligibility requirements and complies with program requirements established by the commission.

(3)Moneys deposited into the Broadband Public Housing Account shall be available for grants and loans to low-income communities to finance projects to connect broadband networks that offer free broadband service that meets or exceeds state standards, as determined by the commission, for residents of the low-income communities. A low-income community may be an eligible applicant if the low-income community does not have access to any broadband service provider that offers free broadband service that meets or exceeds state

standards, as determined by the commission, for the residents of the low-income community.

(4)To the extent feasible, the commission shall approve projects for funding from the Broadband Public Housing Account in a manner that reflects the statewide distribution of low-income communities.

(5)In reviewing a project application under this subdivision, the commission shall consider the availability of other funding sources for that project, any financial contribution from the broadband service provider to the project, the availability of any other public or private broadband adoption or deployment program, including tax credits and other incentives, and whether the applicant has sought funding from, or participated in, any reasonably available program. The commission may require an applicant to provide match funding, and shall not deny funding for a project solely because the

applicant is receiving funding from another source.

(6)The commission shall prioritize grants pursuant to this subdivision to those existing publicly supported housing developments that have not yet received a grant pursuant to this subdivision and do not have access to free broadband internet service onsite.

(j)(1) Moneys in the Broadband Adoption Account shall be available to the commission to award grants to increase publicly available or after school broadband access and digital inclusion, such as grants for digital literacy training programs and public education to communities with limited broadband adoption, including low-income communities, senior communities, and communities facing socioeconomic barriers to broadband adoption.

(2)Eligible applicants are local governments, senior centers, schools, public libraries, nonprofit organizations, including nonprofit religious organizations, and community-based organizations with programs to increase publicly available or after school broadband access and digital inclusion, such as digital literacy training programs.

(3)Payment pursuant to a grant for digital inclusion shall be based on digital inclusion metrics established by the commission that may include the number of residents trained, the number of residents served, or the actual verification of broadband subscriptions resulting from the program funded by the grant.

(4)The commission shall give preference to programs in communities with demonstrated low broadband access, including low-income communities, senior communities, and communities

facing socioeconomic barriers to broadband adoption. The commission shall determine how best to prioritize projects for funding pursuant to this paragraph.

(5)Moneys awarded pursuant to this subdivision shall not be used to subsidize the costs of providing broadband service to households.

(k)The commission shall post on the home page of the California Advanced Services Fund on its internet website a list of all pending applications, application challenge deadlines, and notices of amendments to pending applications.

(l)(1) The commission shall require each entity that receives funding or financing for a project pursuant to this section to report monthly to the commission, at minimum, all of the following information:

(A) The name and contractor’s license number of each licensed contractor and subcontractor undertaking a contract or subcontract in excess of twenty-five thousand dollars ($25,000) to perform work on a project funded or financed pursuant to this section.

(B) The location where a contractor or subcontractor described in subparagraph (A) will be performing that work.

(2)The commission shall, on a monthly basis, post the information reported pursuant to this subdivision on the commission’s California Advanced Services Fund internet website.

(m)The commission shall notify the appropriate policy committees of the Legislature on the date on which the goal specified in subparagraph (A)

of paragraph (1) of subdivision (b) is achieved.

(n)(1) Upon the deposit of state or federal infrastructure moneys into the Federal Funding Account, the commission shall implement a program using those moneys to expeditiously connect unserved and underserved communities by applicable federal deadlines.

(2)Projects funded pursuant to this subdivision shall be implemented consistent with Part 35 of Title 31 of the Code of Federal Regulations and any conditions or guidelines applicable to these one-time federal infrastructure moneys.

(3)Of the two billion dollars ($2,000,000,000) appropriated to the commission to fund last-mile broadband infrastructure in the Budget Act of 2021, the commission shall allocate those moneys to applicants for the construction of last-mile broadband infrastructure as

follows:

(A)The commission shall initially allocate one billion dollars ($1,000,000,000) for last-mile broadband projects in urban counties as follows:

(i)The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each urban county.

(ii) The commission shall allocate the remaining moneys based on each urban county’s proportionate share of the California households without access to broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering, Monitoring

and Reporting on the Market.

(B) The commission shall allocate at least one billion dollars ($1,000,000,000) for last-mile broadband projects in rural counties as follows:

(i)The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each rural county.

(ii) The commission shall allocate the remaining moneys based on each rural county’s proportionate share of the California households without broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering,

Monitoring and Reporting on the Market.

(4)Until

September 30, 2024, applicants may apply for and encumber moneys allocated pursuant to this subdivision for last-mile broadband projects. Any moneys allocated pursuant to this subdivision that are not encumbered on or before September 30, 2024, shall be made available to the commission to allocate for the construction of last-mile broadband infrastructure anywhere in the state.

§ 281.1

Added by Stats. 2021, Ch. 658, Sec. 2. (AB 14) Effective October 8, 2021.

Beginning January 1, 2022, the commission may impose the surcharge pursuant to paragraph (4) of subdivision (d) of Section 281 to fund the California Advanced Services Fund pursuant to Section 281 until December 31, 2032.

§ 281.2

Added by Stats. 2021, Ch. 112, Sec. 8. (SB 156) Effective July 20, 2021.

(a)(1) The Broadband Loan Loss Reserve Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, moneys in the fund are hereby continuously appropriated, without regard to fiscal years, to the commission and shall be available to fund costs related to the financing of the deployment of broadband infrastructure by a local government agency or nonprofit organization, including, but not limited to, payment of costs of debt issuance, obtaining credit enhancement, and establishment and funding of reserves for the payment of principal and interest on the debt.

(2)In the 2021–22 fiscal year, the commission may make cashflow loans to the Broadband Loan Loss Reserve Fund from accounts

established pursuant to subdivision (c) of Section 281.

(b)The commission may establish, among other things, eligibility requirements, financing terms and conditions, and allocation criteria, for infrastructure projects deployed using financing supported in whole or in part by funds allocated pursuant to this section.

(c)The commission may require a local government agency or nonprofit organization to provide information demonstrating the agency’s or nonprofit organization’s ability to reasonably finance and implement the infrastructure project deployed using financing supported in whole or in part by funds allocated pursuant to this section.

(d)The commission shall require each local government agency or nonprofit organization receiving funds under this section to file both of the following reports in the form

and manner specified by the commission:

(1)Biannual progress reports identifying project milestones and percent completions to date, and including other information as the commission may prescribe.

(2)A completion report, including a full description of the completed project, comparison of approved versus actual costs of construction, speed test data for all areas served by the project, and other information as the commission may prescribe.

§ 281.6

Amended by Stats. 2023, Ch. 645, Sec. 1. (AB 286) Effective January 1, 2024.

(a)The commission, in collaboration with relevant state agencies and stakeholders, shall maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state, including, but not limited to, information identifying the percentage of each census block that has broadband service meeting federal and state standards. The map shall identify, for each address in the state, each provider of broadband services that offers service at the address and the maximum speed of broadband services offered by each provider of broadband services at the address.

(b)The map required pursuant to subdivision (a) shall also include all of the

following features to receive self-reported data:

(1)A feature for users to disclose how much they pay for stand-alone or bundled broadband service.

(2)A feature for users to identify the internet service provider to which they subscribe for broadband service.

(3)A feature for users to disclose the maximum speed for broadband service to which they

subscribe.

(4)A feature that allows individuals to refute the broadband speed or technology, or both, that an internet service provider claims to offer at an address.

(5)A feature that allows individuals to identify barriers to broadband access.

(c)The features and self-reported data required pursuant to

subdivisions (b)

and (h) shall be made publicly available and expressed at the address for which the data was submitted. The commission shall obtain consent from an individual before publicly disclosing information that the individual submits pursuant to subdivision (b) or (h).

(d)The commission may collect from providers of broadband services information necessary to

establish and update the map required pursuant to this section.

(e)The commission shall also create a notification feature on the map for individuals. Using this feature, an individual may sign up to be notified when updates are made to the map.

(f)The commission may collect information from providers of broadband services at the address level.

(g)The commission shall not, pursuant to subdivision (a), (d), or (e), disclose residential subscriber information protected by Section 2891.

(h)The map

required pursuant to subdivision (a) shall include a feature for users to submit a verified speed test at their location.

(i)The commission shall not accept information collected by the commission pursuant to subdivisions (b) and (c) as evidence in a commission proceeding unless the commission validates the accuracy of the self-reported information.

(j)For purposes of this section, the following definitions apply:

(1)“Broadband” has the same meaning as defined in Section 5830.

(2)“Verified speed test” means a broadband speed performance test result that was measured and verified using a reputable application specified by the commission

for that purpose.

§ 282

Amended by Stats. 2021, Ch. 115, Sec. 75. (AB 148) Effective July 22, 2021.

Any moneys that are deposited in funds created pursuant to this chapter shall not be used by the state for any purpose other than as specified in this chapter. Notwithstanding any other provision of law, the Controller may use the funds created pursuant to this chapter for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code and, upon approval of the Director of Finance, moneys deposited in funds created pursuant to this chapter may be used to make transfers as loans to other funds created pursuant to this chapter.

§ 285

Amended by Stats. 2021, Ch. 658, Sec. 3. (AB 14) Effective October 8, 2021.

(a)As used in this section, “interconnected Voice over Internet Protocol (VoIP) service” has the same meaning as in Section 9.3 of Title 47 of the Code of Federal Regulations.

(b)The Legislature finds and declares that the sole purpose of this section is to require the commission to impose the surcharges pursuant to this section to ensure that end-use customers of interconnected VoIP service providers contribute to the funds enumerated in this section, and, therefore, this section does not indicate the intent of the Legislature with respect to any other purpose.

(c)The commission shall require interconnected VoIP service providers to collect and remit surcharges on their California intrastate revenues

in support of the following public purpose program funds:

(1)California High-Cost Fund-A Administrative Committee Fund under Section 275.

(2)California High-Cost Fund-B Administrative Committee Fund under Section 276.

(3)Universal Lifeline Telephone Service Trust Administrative Committee Fund under Section 277.

(4)Deaf and Disabled Telecommunications Program Administrative Committee Fund under Section 278.

(5)California Teleconnect Fund Administrative Committee Fund under Section 280.

(6)California Advanced Services Fund under Section 281.

(d)The

authority to impose a surcharge pursuant to this section applies only to a surcharge imposed on end-use customers for interconnected VoIP service provided to an end-use customer’s place of primary use that is located within California. As used in this subdivision, “place of primary use” means the street address where the end-use customer’s use of interconnected VoIP service primarily occurs, or a reasonable proxy as determined by the interconnected VoIP service provider, such as the customer’s registered location for 911 purposes.