US Laws, Codes, Statutes & Cases

270.  (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 Payphone Service Providers Committee Fund.
   (6) The California Teleconnect Fund Administrative Committee Fund.

   (b) 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. Moneys
in the funds may only be expended pursuant to this chapter and upon
appropriation in the annual Budget Act or upon supplemental
appropriation.
   (c) Moneys in each fund may 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.
   (d) This section shall become operative on January 1, 2006.




270.1.  (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.  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.  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.  The commission may on its own order, whenever it determines it
to be necessary, conduct financial audits 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 compliance audits
on the compliance with commission orders with regard to each program
subject to this chapter.  The commission shall conduct a financial
and compliance audit of program-related costs and activities at least
once every three years.  The first three-year period for a financial
and compliance audit commences on  July 1, 2002.  The second and
subsequent three-year periods for financial audits commence three
years after the completion of the prior financial audit.  The second
and subsequent three-year periods for compliance audits commence
three years after the completion of the prior compliance audit.  The
commission may contract with the Bureau of State Audits or the
Department of Finance for all necessary auditing services.  All costs
for audits shall be paid from the fund that supports the activities
of the board audited and shall be subject to the availability of
money in that fund.



275.  (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 739.3, the development of a grant program for the
construction of telecommunications infrastructure as set forth in
Section 276.5, 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.  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.
  Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-A Administrative Committee 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) This section shall become operative on January 1, 2006.



276.  (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 739.3, the development of a
grant program for the construction of telecommunications
infrastructure as set forth in Section 276.5, 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.  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.
  Any unexpended revenues collected prior to the operative date of
this section shall be submitted to the commission, and the commission
shall transfer those moneys to the Controller for deposit in the
California High-Cost Fund-B Administrative Committee 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.
   (d) This section shall become operative on January 1, 2006.




276.5.  (a) The commission shall establish a grant program to aid in
the establishment of telecommunications service in areas not
currently served by existing local exchange carriers.  The program
shall be funded out of either the California High-Cost Administrative
Committee Fund-A or the California High-Cost Administrative
Committee Fund-B, or both, as determined by the commission, and the
funding level may not exceed ten million dollars ($10,000,000) per
year.
   (b) On or after July 1, 2002, any community-based group
representing a qualifying community may apply for and receive grants
to build an original telecommunications infrastructure that can
provide basic telecommunications service that will serve an area that
meets the grant program's population criteria with consideration
given to communities with schools, hospitals, and health clinics, as
set forth in Decision 96-10-066, and that currently lacks basic
telecommunications services, as described in Decision 96-10-066 of
the commission.  A community-based group representing a qualifying
community may alternatively apply for and receive a grant to
subsidize the cost of the telecommunications service itself, if the
group determines that this would be more cost-effective than
subsidizing the building of an original telecommunications
infrastructure.  On or before June 30, 2002, the commission, shall
establish eligibility criteria for community-based groups to qualify
to apply for telecommunications infrastructure grants.  The criteria
shall include a requirement that a local agency, as defined by
Section 50001 of the Government Code, or a town, as defined by
Section 21 of the Government Code, shall act as the community-based
group's fiscal agent for the receipt and distribution of funds.
Qualifying communities shall have a median household income no
greater than the income level used in the Universal Lifeline
Telephone Service index for a family of four.  The commission shall
require that the telecommunications carrier that provides the service
has the obligation to serve the community.
   (c) Grant proposals shall be submitted in accordance with
procedures prescribed by the commission and evaluated and awarded by
the commission using technology criteria developed by the
government-industry working group established by subdivision (h).
Grant proposals shall contain all of the following:
   (1) A letter from a local agency or town agreeing to act as a
fiscal agent for the receipt and distribution of funds.
   (2) Preliminary engineering feasibility studies conducted in
cooperation with the local service providers that include all of the
following:
   (A) Topographical maps indicating the location of all existing
residences.
   (B) Schematic maps of the proposed network facilities.
   (C) Recommendations and justifications for the preferred
technologies.
   (D) Network compatibility statements from one or more
interconnecting carriers.
   (E) Cost projections for the infrastructure facilities.
   (F) Cost projections for the interconnection and recurring service
provisions.
   (G) Projected budget for engineering feasibility studies.
   (3) Recommendations and letters of support from all of the
following:
   (A) The county board of supervisors.
   (B) Other affected local governments.
   (C) Affected school districts.
   (D) Affected emergency service providers.
   (E) Affected law enforcement agencies.
   (4) Letters of commitment from 75 percent of the unserved
population.
   (5) A project schedule, including timeline and budget.
   (6) A management plan that assures the proper utilization of grant
funds.
   (7) Evidence that competing providers and competing technologies
have been considered and evaluated.
   (d) Grant applicants that are rejected by the commission may be
reimbursed for the cost of their preliminary engineering feasibility
studies, including, but not limited to, any approved cost of a local
telecommunications carrier that contributes to the studies, from the
grant program.
   (e) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed annual moneys available to support
the program, that not more than one grant is awarded to a qualifying
community, and that no one applicant receive more than 25 percent of
the designated program funds in a single fiscal year.
   (f) In evaluating grant applications, the commission shall
consider the cost effectiveness of the application, the number of
people served, the level of local support, the ability of the
community served to pay for the services delivered, and the effect on
public health and safety.
   (g) The commission shall establish a government-industry working
group to develop the technical criteria to be used in evaluating
grant awards.  The working group shall be composed of, but not
limited to, the following:
   (1) Representatives of the commission.
   (2) Representatives of the incumbent local exchange carrier
industry.
   (3) Representatives of the competitive local exchange carrier
industry.
   (4) Representatives of the wireless carrier industry.
   (h) Grant applicants shall seek to secure federal sources of
funding in conjunction with local subsidies for the construction of
telecommunications infrastructure.
   (i) This section shall remain in effect only until January 1,
2009, and as of that date is repealed, unless a later enacted statute
enacted before January 1, 2009, deletes or extends that date.




277.  (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.  (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 (d) 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.


278.5.  (a) It is the intent of the Legislature that existing
members of the Deaf and Disabled Telecommunications Program
Administrative Committee should serve out their current terms of
office as members of the committee, but not to exceed July 1, 2003.
   (b) The Deaf and Disabled Telecommunications Program
Administrative Committee shall develop and submit, not later than
October 1, 2002, recommendations to the commission for the
administration and governance of the programs described in Sections
2881, 2881.1, and 2881.2, including recommendations for the
establishment of a designated office and program function, within
state government, staffed in a manner designed to provide expert
oversight and governance to ensure the long-term quality and
integrity of programs and services offered through the Deaf and
Disabled Telecommunications Program.



279.  (a) There is hereby created the Payphone Service Providers
Committee, which is an advisory board to advise the commission
regarding the development, implementation, and administration of
programs to educate pay phone service providers, ensure compliance
with the commission's requirements for pay phone operations, and
educate consumers on matters related to pay phones, as provided for
in commission Decision 90-06-018.
   (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 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 Payphone
Service Providers Committee Fund.  All interest earned by moneys in
the fund shall be deposited in the fund.
   (c) Moneys appropriated from the Payphone Service Providers
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.



280.  (a) The commission shall develop, implement, and administer a
program to advance universal service by providing discounted rates to
qualifying schools, 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, 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.  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 California
Teleconnect Fund Administrative Committee Fund.  All interest earned
by moneys in the fund shall be deposited in the fund.
   (d) 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.



280.5.  (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.
   (4) The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program administered
pursuant to this subdivision.
   (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.  Any revenues 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.