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AB-570 Communications: broadband services: California Advanced Services Fund.(2019-2020)



Current Version: 08/21/20 - Amended Senate         Compare Versions information image


AB570:v94#DOCUMENT

Amended  IN  Senate  August 21, 2020
Amended  IN  Senate  August 11, 2020
Amended  IN  Senate  July 27, 2020
Amended  IN  Senate  June 29, 2020
Amended  IN  Assembly  March 25, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 570


Introduced by Assembly Members Aguiar-Curry and Muratsuchi
(Coauthors: Assembly Members Bonta, Burke, Carrillo, Eggman, Cristina Garcia, Eduardo Garcia, Irwin, Limón, Quirk, Quirk-Silva, Reyes, Robert Rivas, Blanca Rubio, Smith, Weber, Wicks, and Wood)
(Coauthors: Senators Dodd and Hueso)

February 14, 2019


An act to add Section 33314.5 to the Education Code, to amend Section 53167 of, and to add Sections 12096.3.5 and 26231 and 65040.13 to, the Government Code, and to amend Section 285 of, to amend and repeal Sections 281, 912.2, and 914.7 Section 281 of, to add Section 884.2 to, and to add and repeal Sections 281.1, 281.2, 281.3, 281.4, and 281.5 and 281.4 of, the Public Utilities Code, relating to communications, and declaring the urgency thereof, to take effect immediately.


LEGISLATIVE COUNSEL'S DIGEST


AB 570, as amended, Aguiar-Curry. Communications: broadband services: California Advanced Services Fund.
(1) Existing law establishes the State Department of Education in state government, and vests the department with specified powers and duties relating to the state’s public school system.
This bill would authorize local educational agencies to report to the department their pupils’ estimated needs for computing devices and internet connectivity adequate for at-home learning. The bill would require the department, in consultation with the Public Utilities Commission, to compile that information and to annually post that compiled information on the department’s internet website.
(2) Existing law expressly authorizes a county service area to acquire, construct, improve, maintain, and operate broadband internet access services, and requires a county service area that does so to take certain actions regarding the accessing of content on the internet by end users of that service.
This bill would similarly authorize the board of supervisors of a county to acquire, construct, improve, maintain, or operate broadband internet access service, and any other communications service necessary to obtain federal or state support for the acquisition, construction, improvement, maintenance, or operation of broadband internet access service, and would require a board that does so to take certain actions regarding the accessing of content on the internet by end users of that service.

(3)Existing law establishes the Office of Planning and Research to provide long-range planning and research and as the comprehensive state planning agency. Existing law requires the office, among other things, to assist local governments in land use planning.

(3) Existing law establishes the Governor’s Office of Business and Economic Development, known as “GO-Biz,” within the Governor’s office to serve the Governor as the lead entity for economic strategy and the marketing of California on issues relating to business development, private sector investment, and economic growth.
This bill would require the office, on or before June 30, 2021, to develop recommendations and a model for streamlined local land use approval and construction permit processes for projects related to broadband infrastructure deployment and connectivity and to adopt, and post on its internet website, the recommendations and model, as specified.
(4) Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including telephone corporations. 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 that will promote economic growth, job creation, and the substantial social benefits of advanced information and communications technologies. Under existing law, the goal of the program is to approve funding by December 31, 2022, for infrastructure projects that will provide broadband access to no less than 98% of California households in each consortia region, as identified by the commission on or before January 1, 2017. Existing law requires the commission, in approving CASF infrastructure projects, to give preference to projects in areas where only dial-up internet service is available or where no internet service is available. Existing law authorizes the commission to impose a surcharge to collect $330,000,000 for deposit into the CASF beginning January 1, 2018, and continuing through the 2022 calendar year. Existing law establishes 4 accounts, the Broadband Infrastructure Grant Account, the Rural and Urban Regional Broadband Consortia Grant Account, the Broadband Public Housing Account, and the Broadband Adoption Account within the CASF and specifies the amount of moneys to be deposited into each account, subject to appropriation by the Legislature. Existing law specifies, among other things, eligibility criteria for grants awarded from each of those accounts. Existing law requires moneys in the Broadband Public Housing Account that have not been awarded by December 31, 2020, be transferred back to the Broadband Infrastructure Grant Account.
This bill would require that the CASF program promote remote learning and telehealth, in addition to economic growth, job creation, and the substantial social benefits of advanced information and communications technologies. The bill would require the commission, in approving CASF infrastructure projects, to instead prioritize projects that reach the greatest number of unserved and underserved households, as defined, and to further prioritize projects based on other specified attributes. The bill would authorize the commission, beginning with the calendar year starting on January 1, 2023, and continuing through the 2029 calendar year to collect a surcharge in an amount between $66,000,000 and $125,000,000 each year and would require that revenues from the surcharge be deposited into the CASF, subject to appropriation by the Legislature. The bill would require the commission to ensure that the existing and new surcharges are collected through all providers of telecommunications service, as defined, regardless of the technology over which the service is delivered. The bill would revise, among other things, the eligibility criteria for grants awarded from each account in the CASF, as specified. The bill would repeal the requirement that moneys in the Broadband Public Housing Account not awarded by December 31, 2020, be transferred back to the Broadband Infrastructure Grant Account. The bill would establish the Loan-Loss Reserve Account in the CASF to support costs related to financing the deployment of broadband infrastructure by a local government agency or nonprofit organization. The bill would establish the State Agency Direct Allocation Account in the CASF for specified purposes relating to the deployment of broadband infrastructure. The bill would require the commission to improve the efficiency of the administration of the CASF program to ensure for the most cost-effective and timely achievement of the goal of the program. The bill would authorize the commission to convene a peer review panel to review grant applications submitted under the CASF program.
This bill would require the commission to engage all relevant state agencies to facilitate planning and accelerate deployment of broadband infrastructure through both projects funded pursuant to the CASF program and other infrastructure construction projects that can incorporate high-speed broadband.

Existing law requires the commission to conduct interim and final financial and performance audits of the implementation and effectiveness of the CASF for specified purposes and to report the interim findings to the Legislature by April 1, 2020, and to report the final findings by April 1, 2023. Existing law repeals this requirement on January 1, 2027.

This bill would require the commission, beginning April 1, 2023, to annually conduct a financial and performance audit of the CASF, as specified, and to report the findings to the Legislature by each April 1. The bill would repeal these requirements on January 1, 2033.

Existing law requires the commission, until April 1, 2023, to annually provide a report to the Legislature with specified information relating to the CASF, as specified.

This bill would require the commission to report that information each April 1 until April 1, 2032, and would repeal these requirements on January 1, 2033.

This bill would authorize the commission to require each internet service provider, as defined, to report specified information regarding each affordable internet service plan advertised by the provider.

(5)Exiting law requires the commission to require interconnected voice over internet protocol (VoIP) service providers to collect and remit surcharges on their California intrastate revenues in support of specified public purpose program funds, including the CASF. Existing law authorizes an interconnected VoIP service provider to use specified methodologies to identify intrastate revenues for that purpose.

This bill would delete that authorization.

(6)

(5) 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.

(7)

(6) This bill would declare that it is to take effect immediately as an urgency statute.
Vote: 2/3   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

The people of the State of California do enact as follows:


SECTION 1.

 (a) The Legislature finds and declares all of the following:
(1) Deployment of broadband infrastructure is vital to connect California’s workforce to gainful employment, harness the life-saving technology of telemedicine, democratize distance learning, enable precision agriculture, and sustain economic transactions in times of emergencies.
(2) The creation of a fiber optic network for “middle-mile” broadband service deployment and “backhaul” infrastructure for unserved households, community anchor institutions, small businesses, and employers is critical to bridge the digital divide.
(3) All state agencies and departments with pertinent authority and resources to assist and facilitate timely deployment of broadband infrastructure throughout California must be engaged and coordinated by the administration and California Broadband Council to coordinate actions to achieve the goals and purposes of the Internet for All Now Act (Chapter 851 of the Statutes of 2017).
(b) It is the intent of the Legislature to bridge the digital divide by connecting students, families, and communities with reliable internet connectivity that will remain a necessity after the COVID-19 pandemic has abated.
(c) It is the intent of the Legislature that California achieve the goal specified in the Internet for All Now Act of providing broadband access to no less than 98% of California households in each California Advanced Services Fund consortia region.
(d) It is the intent of the Legislature to reduce impacts on the environment and avoid unnecessary costs for deployment, in addition to providing “last-mile” internet connectivity to unserved households, including all other unserved and underserved households and locations along the path of deployment.

SEC. 2.

 Section 33314.5 is added to the Education Code, to read:

33314.5.
 (a) A local educational agency may report to the department the agency’s pupils’ estimated needs for computing devices and internet connectivity adequate for at-home learning.
(b) The department, in consultation with the Public Utilities Commission, shall compile the information reported pursuant to subdivision (a) and shall annually post that compiled information on the department’s internet website.

SEC. 3.

 Section 12096.3.5 is added to the Government Code, to read:

12096.3.5.
 (a) On or before June 30, 2021, the office, in consultation with the Office of Planning and Research, California Broadband Council, Public Utilities Commission, Department of Transportation, and Department of Technology, shall develop recommendations and a model for streamlined local permit processes for projects related to broadband infrastructure deployment and connectivity.
(b) For purposes of developing the recommendations and model pursuant to subdivision (a), the office may convene any relevant stakeholders, including statewide local government associations, statewide education associations, private sector companies that provide broadband services and install broadband infrastructure, and regional broadband consortia.
(c) On or before June 30, 2021, the office shall adopt and post on its internet website the recommendations and model developed pursuant to subdivision (a).
(d) The office shall provide technical assistance to local governments that adopt the recommendations and model developed pursuant to subdivision (a).
(e) The office shall update the recommendations and model developed pursuant to subdivision (a) as necessary.

SEC. 3.SEC. 4.

 Section 26231 is added to the Government Code, to read:

26231.
 (a) The board of supervisors of any county may acquire, construct, improve, maintain, or operate broadband internet access service, and any other communications service necessary to obtain federal or state support for the acquisition, construction, improvement, maintenance, or operation of broadband internet access service.
(b) A county that acquires, constructs, improves, maintains, or operates broadband internet access service shall comply with the requirements of Article 12 (commencing with Section 53167) of Chapter 1 of Part 1 of Division 2 of Title 5.
(c) For purposes of this section, “broadband internet access service” has the same meaning as defined in Section 53167.

SEC. 4.SEC. 5.

 Section 53167 of the Government Code is amended to read:

53167.
 For purposes of this article:
(a) “Broadband internet access service” means a mass-market retail service provided by a local agency in California by wire or radio that provides the capability to transmit data to and receive data from all or substantially all internet endpoints, including any capabilities that are incidental to and enable the operation of the communications service, but excluding dial-up internet access service. “Broadband internet access service” also encompasses any service provided by a local agency in California that provides a functional equivalent of that service or that is used to evade the protections set forth in this article.
(b) “Edge provider” means any individual or entity that provides any content, application, or service over the internet, and any individual or entity that provides a device used for accessing any content, application, or service over the internet to an end user.
(c) “End user” means any individual or entity in California that uses a broadband internet access service that is provided by a local agency.
(d) “Fixed broadband internet access service” means any broadband internet access service that serves end users primarily at fixed endpoints using stationary equipment. Fixed broadband internet access service includes fixed wireless services, including fixed unlicensed wireless services, and fixed satellite services.
(e) “Local agency” means any agency of local government authorized by any other law to provide broadband internet access service, including the following:
(1) A city.
(2) A county, including a county service area.
(3) A community services district.
(4) A public utility district.
(5) A municipal utility district.
(f) “Mobile broadband internet access service” means any broadband internet access service that serves end users primarily using mobile stations.
(g) “Network management practice” means a practice that has a primarily technical network management justification, but does not include other business practices.
(h) “Paid prioritization” means the management of a broadband provider’s network to directly or indirectly favor some traffic over other traffic, including through the use of techniques such as traffic shaping, prioritization, resource reservation, or other forms of preferential traffic management, that either:
(1) Is in exchange for consideration, monetary or otherwise, from a third party.
(2) Done to benefit an affiliated entity.
(i) “Reasonable network management” means a network management practice that is primarily used for and tailored to achieving a legitimate network management purpose, taking into account the particular network architecture and technology of the broadband internet access service.

SEC. 5.Section 65040.13 is added to the Government Code, to read:
65040.13.

(a)On or before June 30, 2021, the office, in consultation with the California Broadband Council, Public Utilities Commission, Department of Transportation, and Department of Technology, shall develop recommendations and a model for streamlined local land use approval and construction permit processes for projects related to broadband infrastructure deployment and connectivity.

(b)For purposes of developing the recommendations and model pursuant to subdivision (a), the office may convene any relevant stakeholders, including statewide local government associations, statewide education associations, private sector companies that provide broadband services and install broadband infrastructure, and regional broadband consortia.

(c)On or before June 30, 2021, the office shall adopt and post on its internet website the recommendations and model developed pursuant to subdivision (a).

(d)The office shall provide technical assistance to local governments that adopt the recommendations and model developed pursuant to subdivision (a).

(e)The office shall update the recommendations and model developed pursuant to subdivision (a) as necessary.

SEC. 6.

 Section 281 of the Public Utilities Code is amended to read:

281.
 (a) The commission shall develop, implement, and administer the California Advanced Services Fund program to encourage deployment of high-quality advanced communications services to all Californians that will promote economic growth, job creation, remote learning, telehealth, 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 program is is, no later than December 31, 2022, 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 on or before January 1, 2017. The commission shall be responsible for achieving the goals of the program.
(B) For purposes of this section, the following definitions apply:
(i) “Anchor institution” means schools maintaining kindergarten or any of grades 1 to 12, inclusive, community colleges, libraries, hospitals, health clinics, public safety entities, government buildings, and community organizations.
(ii) “High-poverty area” means a census tract in which at least 50 percent of the residents are designated low income according to the most recent, as of December 31, 2020, five-year data series available from the American Community Survey in the United States Census Bureau.
(iii) “Mbps” means megabits per second.
(iv) “Underserved household” means a household for which no facility-based broadband provider offers broadband service at speeds of at least 25 mbps downstream and three 3 mbps upstream.
(v) (I) Except as provided in subclause (II), for purposes of this section, “unserved household” means a household for which no facility-based broadband provider offers broadband service at speeds of at least six 6 mbps downstream and one mbps upstream.
(II) For projects funded, in whole or in part, from moneys received from the federal Rural Digital Opportunity Fund, “unserved household” means a household for 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, the commission shall do both of the following:
(A) Approve projects that provide last-mile broadband access to unserved and underserved households.
(B) (i) Prioritize projects, for purposes of achieving the goal of the program specified in subparagraph (A) of paragraph (1), that reach the greatest number of unserved and underserved households.
(ii) After prioritizing projects pursuant to clause (i), prioritize projects in the following descending order:
(I) Projects that connect households in an area where internet connectivity is available only through dial-up service, that is not served by any form of wireline or wireless facility-based broadband service, and that is a high-poverty area.
(II) Projects that connect households in an area where internet connectivity is available only through dial-up service and that is not served by any form of wireline or wireless facility-based broadband service.
(III) Projects that connect households in an unserved area that is a high-poverty area.
(IV) Projects that connect households in an unserved area.
(V) Projects that connect households in an underserved area that is a high-poverty area.
(VI) Projects that connect households in an underserved area.
(C) Upon accomplishment of the goal of the program specified in subparagraph (A) of paragraph (1), prioritize projects that deploy only middle-mile infrastructure as follows:
(i) A project that includes only middle-mile infrastructure for which the application includes an applicant that will deploy any applicable last-mile infrastructure, includes an internet exchange point in a rural county or a county without an internet exchange point, and provides open access to the project’s improved facilities. The project may include an internet exchange point in a rural county or a county without an internet exchange point.
(ii) A project for transmission of a wireless broadband signal into cultivated agricultural fields.
(D) Subparagraphs (B) and (C) do not prohibit the commission from approving funding for projects outside of the areas specified in those subparagraphs.
(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 State Agency Direct Allocation Account.

(6)The Loan-Loss Reserve Account.

(d) (1) (A)Of the moneys collected pursuant to subparagraph (A) of paragraph (3), the The commission shall transfer the moneys received by the commission from the surcharge imposed to fund the accounts to the Controller for deposit into the California Advanced Services Fund. Those collected moneys shall be deposited in the following amounts into the following accounts:
(i) Three hundred million dollars ($300,000,000) into the Broadband Infrastructure Grant Account.
(ii) Ten million dollars ($10,000,000) into the Rural and Urban Regional Broadband Consortia Grant Account.
(iii) Twenty million dollars ($20,000,000) into the Broadband Adoption Account.

(B)Of the moneys collected pursuant to subparagraph (B) of paragraph (3), the commission shall transfer the moneys received by the commission from the surcharge imposed 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) (A) The commission may collect a sum not to exceed three hundred thirty million dollars ($330,000,000) by imposing the surcharge described in subparagraph (A) of paragraph (1). The commission may collect the sum beginning with the calendar year starting on January 1, 2018, and continuing through the 2022 calendar year, in an amount not to exceed sixty-six million dollars ($66,000,000) per year, unless the commission determines that collecting a higher amount in any year will not result in an increase in the total amount of all surcharges collected from telephone customers that year.
(B) The commission may, beginning with the calendar year starting on January 1, 2023, and continuing through the 2029 calendar year, collect a sum by imposing the surcharge described in subparagraph (B) of paragraph (1) in an amount between sixty-six million dollars ($66,000,000) and one hundred twenty-five million dollars ($125,000,000) per year. shall ensure that all approved projects can be completed using existing program resources and without increasing the surcharge.

(4)(A)In administering the surcharges described in paragraph (1), the commission shall ensure that the surcharges are collected through all providers of telecommunications service, regardless of the technology over which the service is delivered.

(B)For purposes of this paragraph, “telecommunications service” has the same meaning as defined in Section 2892.1, except that it does not include voice communication services provided by a provider of satellite telephone services.

(e) Moneys in the California Advanced Services Fund shall be available, upon appropriation by the Legislature, to the commission for the program administered by the commission pursuant to this section and Sections 281.1 to 281.5, 281.4, inclusive, including the costs incurred by the commission in developing, implementing, and administering the program and the fund.
(f) (1) The commission shall award grants from the Broadband Infrastructure Grant Account on a technology-neutral basis, including both wireline and wireless technology.
(2) (A) The commission, until May 1, 2030, 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 goal specified in subparagraph (A) of paragraph (1) of subdivision (b) through public workshops conducted at least annually no later than April 30 of each year. year through the year 2022.
(B) The commission shall work with regional consortia, internet-service providers, local governments, and all other stakeholders in each region to assist in the development and submission of applications to achieve the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) and ensure adequate infrastructure is deployed to all unserved locations.
(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) (A) (i) Upon the submission of an application for funding to deploy broadband or upgrade broadband service in a delineated unserved area, the commission shall offer an existing facility-based broadband provider the opportunity to demonstrate that it will deploy broadband or upgrade broadband service available to the delineated unserved area within 90 days.
(ii) Except as provided in clause (iii) or (iv), the commission shall not approve funding for a project to deploy broadband or upgrade broadband service to a delineated unserved area if the existing facility-based broadband provider demonstrates to the commission, in response to the commission’s offer pursuant to clause (i), that it will deploy broadband or upgrade broadband service available throughout the project area.
(iii) If the existing facility-based broadband provider is unable to complete the deployment of broadband within the delineated unserved area within 90 days, the provider shall provide the commission with information to demonstrate what progress has been made or challenges faced in completing the deployment. If the commission finds that the provider is making progress towards the completion of the deployment, the commission shall extend the time to complete the project beyond the 90 days. If the commission finds that the provider is not making progress towards completing the deployment, the commission shall not extend the time to complete the project and the delineated unserved area shall be eligible for funding pursuant to this subdivision.
(iv) The commission may approve an application for funding to deploy broadband or upgrade broadband services upon making a finding that the existing facility-based broadband provider is unwilling or unable to deploy broadband throughout the project area.
(B) (i) Except for information specified in clause (ii), information submitted to the commission that includes the provider’s plans for future broadband deployment shall not be publicly disclosed.
(ii) The commission may publicly disclose information regarding the area designated for a broadband deployment, the number of households or locations to be served, and the estimated date by which the deployment will be completed.
(C) 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 pursuant to this subdivision shall meet both of the following requirements:
(A) The project deploys infrastructure capable of providing broadband access at speeds of at least 25 mbps downstream and three 3 mbps upstream with a goal of 100 mbps downstream and 100 mbps upstream.
(B) All or a significant portion of the project deploys last-mile infrastructure to provide service to unserved households. Projects that only deploy middle-mile infrastructure are not eligible for grant funding until after the commission verifies that the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) has been met. For a project that includes funding for middle-mile infrastructure, the commission shall verify that the proposed middle-mile infrastructure is indispensable for accessing the last-mile infrastructure.
(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 may prioritize, but shall not limit, 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 household, 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) (A) A local governmental agency, including a special district, or joint powers authority is eligible for a grant pursuant to this subdivision. A local government within an area of a regional consortium shall consult that regional consortium in regards to planning, application, and implementation of the project.
(B) A California tribal government is eligible for a grant pursuant to this subdivision.
(10) 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, and any request for additional funding after an initial grant, 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.
(11) 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.
(D) Costs directly related to the deployment of infrastructure to connect an anchor institution in the eligible project area if all of the following occur:
(i) The anchor institution provides a public education, public safety, public health, or other significant public benefit.
(ii) The applicant includes a reasonable cost-sharing proposal for funding the cost to connect the anchor institution.
(iii) The applicant complies with all federal universal service program requirements.
(iv) The applicant receives applicant, in good faith, applies for the maximum federal subsidies available through all federal universal service program. programs.
(12) 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.
(13) The commission may require each infrastructure grant applicant to indicate steps taken to first obtain any available funding from the Connect America Fund program or similar federal public programs that fund broadband infrastructure. This paragraph does not authorize the commission to reject a grant application on the basis that an applicant failed to seek project funding from the Connect America Fund program or another similar federal public program.
(14) The commission shall prioritize a grant application for a project that both deploys last-mile infrastructure, which includes fiber middle-mile backhaul, to provide service to unserved households and ensures adequate internet service of speeds of at least 25 mbps downstream and 3 mbps upstream with a goal of 100 mbps downstream and 100 mbps upstream to provide service to those unserved households, with the goal of providing opportunities for connection to all other unserved and underserved locations along the path of deployment.
(15) The commission shall prioritize a grant application for a project for an anchor institution that certifies that it does not otherwise have access to maximizes available federal, local, or state moneys to fund broadband infrastructure for its interconnection.
(16) The commission shall authorize the interconnection of anchor institutions on a fair cost-sharing basis along the path of deployment at sufficient bandwidths with grants from the Broadband Infrastructure Grant Account to provide internet service at speeds of at least 25 mbps downstream and 3 mbps upstream with a goal of 100 mbps downstream and 100 mbps upstream only if they maximize federal universal service subsidy programs, when applicable and where applicable.
(g) (1) Moneys in the Rural and Urban Regional Broadband Consortia Grant Account shall be available for grants to eligible consortia to do any of the following:
(A) In order to assist internet service providers to prepare cost-effective grant applications to achieve the goal specified in subparagraph (A) of paragraph (1) of subdivision (b), identify all unserved or underserved households and anchor institutions in project areas.
(B) Consult with local stakeholders, including those that represent educational institutions, public health care providers, incumbent internet service providers, builders of broadband infrastructure, and libraries in each region, to identify unserved anchor institutions.
(C) Promote adoption of available affordable home internet service offers.
(D) Facilitate deployment of broadband services by assisting infrastructure applicants in the project development or grant application process.
(2) 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.
(3) 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, which shall be posted on the commission’s internet website, 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, the following terms have the following meanings:
(A) “Publicly subsidized” means either that the housing development receives financial assistance from the United States Department of Housing and Urban Development pursuant to an annual contribution contract or is financed with low-income housing tax credits, tax-exempt mortgage revenue bonds, general obligation bonds, or local, state, or federal loans or grants and the rents of the occupants, who are lower income households, do not exceed those prescribed by deed restrictions or regulatory agreements pursuant to the terms of the financing or financial assistance.
(B) “Publicly supported community” means a publicly subsidized multifamily housing development that is wholly owned by either of the following:
(i) A public housing agency that has been chartered by the state, or by any city or county in the state, and has been determined to be an eligible public housing agency by the United States Department of Housing and Urban Development.
(ii) An incorporated nonprofit organization as described in Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec. 501(c)(3)) that is exempt from taxation under Section 501(a) of that code (26 U.S.C. Sec. 501(a)), and that has received public funding to subsidize the construction or maintenance of housing occupied by residents whose annual income qualifies as “low” or “very low” income according to federal poverty guidelines.
(2) Moneys in the Broadband Public Housing Account shall be available for the commission to award grants and loans pursuant to this subdivision to an eligible publicly supported community if that entity otherwise meets eligibility requirements and complies with program requirements established by the commission.
(3) (A) Not more than twenty million dollars ($20,000,000) of the moneys deposited into the Broadband Public Housing Account on or before January 1, 2018, shall be available for grants and loans to a publicly supported community to finance a project to connect a broadband network to that publicly supported community. A publicly supported community may be an eligible applicant only if the publicly supported community can verify to the commission that the publicly supported community has not denied a right of access to any broadband provider that is willing to connect a broadband network to the facility for which the grant or loan is sought and the publicly supported community is unserved.
(B) (i) In its review of applications received pursuant to subparagraph (A), the commission shall award grants only to unserved housing developments, regardless of when the applicant filed its application.
(ii) For purposes of this subparagraph, a housing development is unserved when at least one housing unit within the housing development is not offered broadband internet service.
(C) Only after all funds available pursuant to this paragraph in the Broadband Public Housing Account have been awarded may a publicly supported community otherwise eligible to submit an application for funding from the Broadband Public Housing Account submit an application for funding for these purposes from the Broadband Infrastructure Grant Account.
(4) (A) Not more than five million dollars ($5,000,000) of the moneys deposited into the Broadband Public Housing Account on or before January 1, 2018, shall be available for grants and loans to a publicly supported community to support programs designed to increase adoption rates for broadband services for residents of that publicly supported community. A publicly supported community may be eligible for funding for a broadband adoption program only if the residential units in the facility to be served have access to broadband services or will have access to broadband services at the time the funding for adoption is implemented.
(B) A publicly supported community may contract with other nonprofit or public agencies to assist in implementation of a broadband adoption program.
(C) Only after all funds available pursuant to this paragraph in the Broadband Public Housing Account have been awarded may a publicly supported community otherwise eligible to submit an application for funding from the Broadband Public Housing Account submit an application for funding for these purposes from the Broadband Adoption Account pursuant to subdivision (j).
(5) 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 publicly supported communities.
(6) 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.
(7) On and after January 1, 2021, moneys in the Broadband Public Housing Account shall only be available for the commission to award grants and loans for network deployment in eligible publicly supported communities in which at least 20 percent of the residents do not have internet service in their residential units because either the requisite infrastructure was not present on January 1, 2021, or the internet service available is unaffordable to those residents.
(8) In awarding grants and loans pursuant to this subdivision, the commission shall prioritize an application from a publicly subsidized organization that had submitted an application under the guidelines established by Chapter 851 of the Statutes of 2017.
(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. The commission may award grants from the Broadband Adoption Account to meet needs reported pursuant to Section 33314.5 of the Education Code.
(2) Eligible applicants are local governments, senior centers, schools, public libraries, nonprofit 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, in a new or existing proceeding, develop, by June 30, 2018, criteria for awarding grants and a process and methodology for verifying outcomes. The commission shall be prepared to accept applications for grants from the Broadband Adoption Account no later than July 1, 2018.
(5) 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. In the proceeding specified in paragraph (4), the commission shall determine how best to prioritize projects for funding pursuant to this paragraph.
(6) Moneys awarded pursuant to this subdivision shall not be used to subsidize the costs of providing broadband service to households.
(7) (A) The commission shall improve the efficiency of the administration of grants awarded from the Broadband Adoption Account in order to achieve and document actual adoptions and verify increases in adoption rates from previously approved grants.
(B) For purposes of improving the efficiency of the administration of grants awarded from the Broadband Adoption Account, the commission may do both of the following:
(i) Grant payment schedules based on performance instead of expenditure plans.
(ii) Contract through an open competitive process for administration of the grants awarded from the Broadband Adoption Account.
(C) For purposes of this paragraph, “actual adoptions” means verified new subscriptions by low-income households.
(8) The commission may award a contract for overall management of grants awarded pursuant to this subdivision. Only a not-for-profit organization experienced in managing programs to increase broadband internet adoption shall be eligible for the contract, the cost of which shall not exceed 10 percent of the amount of grants managed by the organization.
(k) The commission shall post on the homepage of the California Advanced Service Fund on its internet website a list of all pending applications, application challenge deadlines, and notices of amendments to pending applications, or any other request for funding submitted pursuant to this section.
(l) 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.
(m) A project for which an application is approved on or before August 15, 2020, shall only be required to meet the requirements of this section that were in effect on August 15, 2020.
(n) This section shall remain in effect only until January 1, 2032, 2023, and as of that date is repealed.

SEC. 7.

 Section 281.1 is added to the Public Utilities Code, to read:

281.1.
 (a) The commission shall engage all relevant state agencies to facilitate planning and accelerate deployment of broadband infrastructure through both projects funded pursuant to Section 281 and other infrastructure construction projects that can incorporate high-speed broadband.
(b) This section shall remain in effect only until January 1, 2032, 2023, and as of that date is repealed.

SEC. 8.

 Section 281.2 is added to the Public Utilities Code, to read:

281.2.
 (a) The commission shall improve the efficiency of the administration of the California Advanced Services Fund program to ensure for the most cost-effective and timely achievement of the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) of Section 281.
(b) For purposes of subdivision (a), the commission may award contracts through an open and competitive process for any of the following services:
(1) Project oversight and management of grant awards to accelerate deployment and completion of projects.
(2) Engineering review of applications.
(3) Overall monitoring of progress to verify performance by grantees.
(c) This section shall remain in effect only until January 1, 2032, 2023, and as of that date is repealed.

SEC. 9.

 Section 281.3 is added to the Public Utilities Code, to read:

281.3.
 (a) For purposes of reviewing applications submitted pursuant to Section 281, the commission may convene a peer review panel comprised of representatives with recognized expertise from institutions of higher education or non-profit public-purpose entities, as well as representatives of cooperatives, the California Broadband Council, and the State Board of Food and Agriculture.
(b) A person that has a conflict of interest, as determined by the commission, with any specific application submitted pursuant to Section 281 shall not serve on the peer review panel.
(c) This section shall remain in effect only until January 1, 2032, 2023, and as of that date is repealed.

SEC. 10.Section 281.4 is added to the Public Utilities Code, to read:
281.4.

(a)Moneys in the Loan-Loss Reserve Account, upon appropriation by the Legislature, shall be used to support costs related to financing 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 debt.

(b)The commission shall annually recommend to the Legislature an amount to be appropriated from the Loan-Loss Reserve Account for the purpose described in subdivision (a).

(c)The commission may establish minimum service requirements for broadband infrastructure deployed using financing supported in whole or in part by moneys in the Loan-Loss Reserve Account.

(d)The commission may require a local government agency or nonprofit organization applying for a grant from the Loan-Loss Reserve Account to provide information demonstrating that the local government agency or nonprofit organization is capable of reasonably financing the broadband infrastructure to be financed with securities backed by moneys in the Loan-Loss Reserve Account.

(e)This section shall remain in effect only until January 1, 2032, and as of that date is repealed.

SEC. 11.Section 281.5 is added to the Public Utilities Code, to read:
281.5.

SEC. 10.

 Section 281.4 is added to the Public Utilities Code, to read:

281.4.
 (a) The commission may, upon appropriation by the Legislature, award moneys in the State Agency Direct Allocation Account to grant applicants, in accordance with the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) of Section 281, for the following purposes:
(1) Connecting unserved fairgrounds for emergency response and preparedness.
(2) Internet connectivity for California tribal lands and California Native Americans.
(3) Internet connectivity in low-income census blocks to enable both of the following:
(A) Distance learning, with prioritization of areas where school districts, libraries, and institutions of higher education are providing devices and promoting interim free and affordable offers.
(B) Telehealth and telemedicine in medically-unserved rural and urban communities.
(b) Moneys from the State Agency Direct Allocation Account shall only be used to deploy broadband infrastructure and shall not displace moneys already awarded from the General Fund or other state funding sources for these purposes.
(c) This section shall remain in effect only until January 1, 2032, 2023, and as of that date is repealed.

SEC. 12.Section 285 of the Public Utilities Code is amended to read:
285.

(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 charges 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 charges 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 charge 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.

SEC. 13.SEC. 11.

 Section 884.2 is added to the Public Utilities Code, to read:

884.2.
 The commission may require each internet service provider, as defined in Section 3100 of the Civil Code, to report the following information regarding each affordable internet service plan advertised by the provider:
(a) The cost of the plan, including any fees and taxes.
(b) The eligibility requirements for the plan.
(c) The data limitations of the plan.
(d) The number of California residents enrolled in the plan.
(e) A description of the outreach efforts undertaken by the provider to eligible populations to increase awareness about the plan.

SEC. 14.Section 912.2 of the Public Utilities Code is amended to read:
912.2.

(a)On or before April 1, 2023, and annually thereafter, the commission shall conduct a financial audit and performance audit of the implementation and effectiveness of the California Advanced Services Fund to ensure that those funds have been expended in accordance with the approved terms of the grant awards and loan agreements pursuant to Section 281, and shall report its findings to the Legislature. Each report shall include an update to the maps in the final report of the California Broadband Task Force and data on the types and numbers of jobs created as a result of the program administered by the commission pursuant to Section 281.

(b)This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 15.Section 914.7 of the Public Utilities Code is amended to read:
914.7.

(a)By April 1, 2019, and by April 1 of each year thereafter, the commission shall provide a report to the Legislature that includes all of the following information:

(1)The remaining unserved areas in the state.

(2)The amount of funds expended from the California Advanced Services Fund in the prior year.

(3)The recipients of funds expended from the California Advanced Services Fund in the prior year.

(4)The geographic regions of the state affected by funds expended from the California Advanced Services Fund in the prior year, including information by county.

(5)The expected benefits to be derived from the funds expended from the California Advanced Services Fund in the prior year.

(6)Details on the status of each project funded through the California Advanced Services Fund and whether the project has been completed or the expected completion date of the project.

(7)Actual broadband adoption levels from funds expended from the California Advanced Services Fund in the prior year.

(8)The cost per household for each project.

(9)The number of formerly unserved households subscribing to broadband service in areas covered by projects funded by the California Advanced Services Fund.

(10)The number of subscriptions resulting from the broadband adoption program funded by the California Advanced Services Fund.

(11)An update on the expenditures from the California Advanced Services Fund, broadband adoption levels, the progress in achieving the goals of the program, and an accounting of the remaining unserved households in each region of the state as of December 31 of the immediately preceding year.

(12)The amount of funds expended from the California Advanced Services Fund to match federal funds.

(13)Addition details on efforts to leverage non-California Advanced Services Fund moneys.

(14)The status of the California Advanced Services Fund balance and the projected amount to be collected in each year to fund approved projects.

(b)This section shall remain in effect only until January 1, 2033, and as of that date is repealed.

SEC. 16.SEC. 12.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

SEC. 17.SEC. 13.

 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To expedite the deployment of broadband infrastructure and internet service to unserved rural and urban communities and establishing 21st century infrastructure essential for economic competitiveness and quality of life.