Communications: universal broadband service: California Connect Fund.

The federal Telecommunications Act of 1996 establishes a program 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. Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. Existing law, the Moore Universal Telephone Service Act, established the Universal Lifeline Telephone Service (ULTS) program to ensure lifeline telephone service is available to the people of the state. In carrying out the ULTS program, existing law requires the commission to designate annually a class of lifeline service necessary to meet minimum residential communications needs, to set the rates and charges for that service, to develop eligibility criteria for that service, and to assess the degree of achievement of universal service. Existing law requires the commission to develop, implement, and administer the California Advanced Services Fund (CASF) program to encourage deployment of high-quality advanced communications services to all Californians. Existing law provides that the goal of the CASF program is to, no later than December 31, 2022, approve funding for infrastructure projects that will provide broadband access to no less than 98% of California households, as provided. Existing law establishes, among other funds related to telecommunications, the Universal Lifeline Telephone Service Trust Administrative Committee Fund and the CASF in the State Treasury, and requires that moneys in the funds are held in trust and may be expended only to accomplish specified universal service programs, upon appropriation in the annual Budget Act or upon supplemental appropriation. This bill would establish the California Connect Fund in the State Treasury, subject to the conditions and restrictions applicable to the existing universal service funds described above. The bill would, until January 1, 2031, require the commission to develop, implement, and administer the California Connect Program to ensure that high-speed broadband service is available to every household in the state at affordable rates. The bill would require the commission, on or before January 1, 2023, to adopt rules to implement the program, including rules that establish eligibility criteria for the program and the amount of, and requirements for, subsidies under the program. The bill would require the commission to perform outreach to increase program participation, to coordinate with relevant state agencies and departments to increase program participation and increase the efficacy of enrollment, and to collect data on existing affordable internet service plans that may meet program criteria. The bill would require the commission to annually report to the Legislature on the status of the program, including its success and any recommendations for modifications to the program, as provided. Existing law, the Emergency Telephone Users Surcharge Act, imposes a surcharge on each telecommunications access line for each month or part thereof for which a service user subscribes with a service supplier in an amount determined by the Office of Emergency Services, as specified. This bill would require the commission to ensure that each service supplier remits to the commission revenues from a monthly surcharge not to exceed $0.23 per month per access line for deposit into the California Connect Fund. 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. 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 a violation of a commission action implementing this bill's requirements would be a crime, the bill would impose a state-mandated local program. 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.