Telecommunications: universal service: California Advanced Services Fund.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law establishes the California Advanced Services Fund, referred to as the CASF, in the State Treasury, with 4 accounts. Existing law requires that a surcharge imposed by the commission pursuant to a specified decision of the commission be deposited in the fund. Existing law prohibits the commission from collecting more than $100,000,000 before January 1, 2011, and authorizes the commission to collect an additional sum not to exceed $215,000,000, through the surcharge for the period beginning January 1, 2011, and continuing through the 2020 calendar year, for a total cost limitation of $315,000,000. Existing law requires the commission to develop, implement, and administer the CASF program 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. Existing law states that the goal of the California Advanced Services Fund 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 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 and requires the commission to provide each applicant, and any party challenging an application, the opportunity to demonstrate actual levels of broadband service in the project area, as prescribed. This bill would establish the Broadband Build-Out Completion Account within the CASF and would authorize the commission to collect an additional sum not to exceed $100,000,000, on or after January 1, 2017, for deposit in the Broadband Build-Out Completion Account. The bill would require that moneys in the account be disbursed pursuant to a multiple-round, fair and open competitive bidding process for infrastructure projects to provide broadband access to unserved areas of California consistent with specified requirements and objectives. Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because the program that is extended under the provisions of this bill are within the act and a decision or order of the commission implements the program requirements, a violation of these provisions would impose a state-mandated local program by expanding the definition of 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. By authorizing the charge to fund the new account, this bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature.