Existing law establishes the California Teleconnect Fund Administrative Committee Fund in the State Treasury, and provides that moneys in the fund, collected by telephone corporations in utility rates authorized by the commission and deposited into the fund, may only be expended for the purposes authorized, upon appropriation in the annual Budget Act. Existing law requires the commission to develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools, libraries, hospitals, health clinics, and community organizations. Existing law requires, for all customers eligible to receive discounts for telecommunications services under the federal Universal Service E-rate program (E-rate discounts), with the exception for certain necessary small schools, as defined, that also apply for discounts on telecommunications services provided through the California Teleconnect Fund program (teleconnect discounts), that the teleconnect discount be applied after applying the E-rate discount, as defined. Existing law requires the commission to require, as a condition of participation in the California Teleconnect Fund program, that customers eligible for the E-rate discount provide the commission with information necessary for the commission to determine the percentage of the E-rate discount to which the customer would be entitled.

This bill would amend the exception for necessary small schools to instead make it applicable to certain small school districts, as specified, and would delete the requirement that customers eligible for the E-rate discount provide the commission with information necessary for the commission to determine the percentage of the E-rate discount to which the customer would be entitled. The bill would change references to “the” E-rate discount to “an” E-rate discount, and would amend the definition of “E-rate discount” to authorize the commission to use an actual E-rate discount or a representative discount figure, as determined by the commission.