Today's Law As Amended


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SB-4 Communications: California Advanced Services Fund: deaf and disabled telecommunications program: surcharges.(2021-2022)



As Amends the Law Today


SECTION 1.

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

12096.3.5.
 The office shall coordinate with other relevant state and local agencies and national organizations to explore ways to facilitate streamlining of local land use approvals and construction permit processes for projects related to broadband infrastructure deployment and connectivity.

SEC. 2.

 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, 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 Broadband Infrastructure Grant Account  program  is, no later than December 31, 2026, 2032,  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, 2022.  commission.  The commission shall be responsible for achieving the goals of the program.
(B) For purposes of the Broadband Infrastructure Grant Account, both of the  this section the  following definitions apply:
(i) “Mbps” means megabits per second.
(ii) (I) Except as provided in subclause (II), “unserved area” means an area for which there is  that has  no facility-based broadband provider offering at least one tier of broadband service at speeds of at least 25 mbps downstream, 3 mbps upstream, and a latency that is sufficiently low to allow realtime interactive applications, considering updated federal and state broadband mapping data. real-time interactive applications. 
(II) For projects funded, in whole or in part, from moneys received from the federal Rural Digital Opportunity Fund, “unserved area” means an area in 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 funded through the Broadband Infrastructure Grant Account, the  projects, the  commission shall do both of the following:
(A) Approve projects that provide last-mile broadband access to households that are unserved by an existing facility-based broadband provider, and, upon accomplishment of the goal of the program specified in paragraph (1), also approve projects pursuant to paragraph(13)  paragraph (13)  of subdivision (f).
(B) (i) Prioritize projects in unserved areas where internet connectivity is available only at speeds at or below 10 mbps downstream and 1 mbps upstream or areas with no internet connectivity. connectivity, with a goal of achieving at least 100 mbps downstream. 
(ii) This subparagraph does not prohibit the commission from approving funding for projects outside of the areas specified in clause (i).
(3) Moneys appropriated for purposes of this section may be used to match or leverage federal moneys for communications infrastructure, digital equity, and adoption, internet infrastructure and adoption  including, but not limited to, moneys from the United States Department of Commerce, Commerce  Economic Development Administration, the  United States Department of Agriculture ReConnect Loan and Grant Program, and the  Federal Communications Commission for communications infrastructure, digital equity, and adoption. internet adoption and infrastructure. 
(4) The commission shall transition California Advanced Services Fund program methodologies to provide service to serviceable locations  service “housing units”  and evaluate other program changes to align with other funding sources, sources  including, but not limited to, funding locations. “locations.” 
(5) The commission shall maximize investments in new, robust, and scalable infrastructure and use California Advanced Services Fund moneys to leverage federal and non-California Advanced Services Fund moneys by undertaking activities, activities  including, but not limited to, all of the following:
(A) Providing  Provision of  technical assistance to local governments and providers.
(B) Assisting Assistance  in developing grant applications.
(C) Assisting Assistance  in preparing definitive plans for deploying necessary infrastructure in each county, including coordination across contiguous counties. county. 
(6) Moneys appropriated for the purposes of this section may be used to fund projects that deploy broadband infrastructure to unserved nonresidential facilities used for local and state emergency response activities, including, but not limited to, fairgrounds.
(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 Federal Funding Account.
(d) (1) The commission shall transfer the moneys received by the commission from the surcharge the commission may impose pursuant to paragraph (3) to  to  fund the accounts to the Controller for deposit into the California Advanced Services Fund. Moneys collected shall be deposited in the following amounts in the following accounts: 
(A) Three hundred million dollars ($300,000,000) into the Broadband Infrastructure Grant Account.
(B) Ten million dollars ($10,000,000) into the Rural and Urban Regional Broadband Consortia Grant Account.
(C) Twenty million dollars ($20,000,000) into the Broadband Adoption Account.
(2) All interest earned on moneys in the fund shall be deposited into the fund.
(3) The commission may make recommendations to the Legislature regarding appropriations from the California Advanced Services Fund and the accounts established pursuant to subdivision (c).
(3) (4)  The commission may collect a sum not to exceed three one  hundred thirty million dollars ($330,000,000) for a sum total of moneys collected by imposing the surcharge described in paragraph (1). The commission may collect the sum beginning with the calendar year  fifty million dollars ($150,000,000) per year,  starting on January 1, 2018, 2022,  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. 2032 calendar year by imposing the surcharge pursuant to paragraph (1). 
(e) All moneys in the California Advanced Services Fund  Fund, including moneys in the accounts within the fund,  shall be available, upon appropriation by the Legislature, to the commission for the California Advanced Services Fund program administered by the commission pursuant to this section, including the costs incurred by the commission in developing, implementing, and administering the program and the fund.
(f) In administering the Broadband Infrastructure Grant Account, the commission shall do all of the following:
(f)  (1) The commission shall award grants from the Broadband Infrastructure Grant Account on a technology-neutral basis, taking into account the useful economic life of capital investments, and  including both wireline and wireless technology.
(2) The 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 broadband access goal through public workshops conducted at least annually no later than April 30 of each year.
(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) 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 shall meet all of the following requirements:
(5) (A)  Projects eligible for grant awards shall deploy  The project deploys  infrastructure capable of providing broadband access at speeds of a minimum of 100 mbps  megabits per second (mbps)  downstream and 20 mbps upstream, or the most current broadband definition speed standard set by the Federal Communications Commission from time to time, as determined appropriate by the commission,  Commission,  whichever broadband access speed is greater, to unserved areas or unserved households.
(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. 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.
(C) (i) Except as provided in clause (ii), until July 1, 2020, the project is not located in a census block where an existing facility-based broadband provider has accepted federal funds for broadband deployment from Phase II of the Connect America Fund, unless the existing facility-based broadband provider has notified the commission before July 1, 2020, that it has completed its Connect America Fund deployment in the census block.
(ii) An existing facility-based broadband provider is eligible for a grant pursuant to this subdivision to supplement a grant pursuant to Phase II of the Connect America Fund to expand broadband service within identified census blocks, as needed.
(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 shall consider limiting 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) 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 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.
(10) 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) Cost incurred by an existing facility-based broadband provider to upgrade its existing facilities to provide for interconnection.
(11) 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.
(12) 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.
(13) Upon the accomplishment of the goal of the program specified in paragraph (1) of subdivision (b), not more than thirty million dollars ($30,000,000) of the moneys remaining in the Broadband Infrastructure Grant Account shall be available for infrastructure projects that provide last-mile broadband access to households to which no facility-based broadband provider offers broadband service at speeds of at least 10 mbps downstream and one mbps upstream.
(g) (1) Moneys in the Rural and Urban Regional Broadband Consortia Grant Account shall be available for grants to eligible consortia to facilitate deployment of broadband services by assisting infrastructure applicants in the project development or grant application process. 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.
(2) 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 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 to 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, “low-income community” includes, but is not limited to, publicly supported housing developments, and other housing developments or mobilehome parks with low-income residents, as determined by the commission. 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 a low-income community that  an eligible publicly supported community if that entity  otherwise meets eligibility requirements and complies with program requirements established by the commission.
(3) Moneys (A)  Not more than twenty million dollars ($20,000,000) of the moneys  deposited into the Broadband Public Housing Accountshall  Account on or before January 1, 2018, shall  be available for grants and loans to low-income communities  a publicly supported community  to finance projects  a project  to connect a  broadband networks that offer free broadband service that meets or exceeds state standards, as determined by the commission, for residents of the low-income communities. A low-income  network to that publicly supported community. A publicly supported  community may be an eligible applicant only  if the low-income community does not have  publicly supported community can verify to the commission that the publicly supported community has not denied a right of  access to any broadband service  provider that offers free broadband service that meets or exceeds state standards, as determined by the commission, for the residents of the low-income community. is willing to connect a broadband network to the facility for which the grant or loan is sought. 
(B) 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).
(4) (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 low-income  publicly supported  communities.
(5) (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) Any moneys in the Broadband Public Housing Account that have not been awarded pursuant to this subdivision by December 31, 2020, shall be transferred back to the Broadband Infrastructure Grant Account.
(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.
(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.
(4) (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. The  In the proceeding specified in paragraph (4), the  commission shall determine how best to prioritize projects for funding pursuant to this paragraph.
(5) (6)  Moneys awarded pursuant to this subdivision shall not be used to subsidize the costs of providing broadband service to households.
(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.
(l) (1) The commission shall require each entity that receives funding or financing for a project pursuant to this section to report monthly to the commission, at minimum, all of the following information:
(A) The name and contractor’s license number of each licensed contractor and subcontractor undertaking a contract or subcontract in excess of twenty-five thousand dollars ($25,000) to perform work on a project funded or financed pursuant to this section.
(B) The location where a contractor or subcontractor described in subparagraph (A) will be performing that work.
(C) The anticipated dates when that work will be performed.
(2) The commission shall, on a monthly basis, post the information reported pursuant to this subdivision on the commission’s California Advanced Service Fund internet website.
(m) ( l)  The commission shall notify the appropriate policy committees of the Legislature on the date on which the goal specified in paragraph (1) of subdivision (b) is achieved.
(n) (1) Upon the deposit of state or federal infrastructure moneys into the Federal Funding Account, the commission shall implement a program using those moneys to expeditiously connect unserved and underserved communities by applicable federal deadlines.
(2) Projects funded pursuant to this subdivision shall be implemented consistent with Part 35 of Title 31 of the Code of Federal Regulations and any conditions or guidelines applicable to these one-time federal infrastructure moneys.
(3) Of the two billion dollars ($2,000,000,000) appropriated to the commission to fund last-mile broadband infrastructure in the Budget Act of 2021, the commission shall allocate those moneys to applicants for the construction of last-mile broadband infrastructure as follows:
(A) The commission shall initially allocate one billion dollars ($1,000,000,000) for last-mile broadband projects in urban counties as follows:
(i) The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each urban county.
(ii) The commission shall allocate the remaining moneys based on each urban county’s proportionate share of the California households without access to broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering, Monitoring and Reporting on the Market.
(B) The commission shall allocate at least one billion dollars ($1,000,000,000) for last-mile broadband projects in rural counties as follows:
(i) The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each rural county.
(ii) The commission shall allocate the remaining moneys based on each rural county’s proportionate share of the California households without broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering, Monitoring and Reporting on the Market.
(4) Until June 30, 2023, applicants may apply for and encumber moneys allocated pursuant to this subdivision for last-mile broadband projects. Any moneys allocated pursuant to this subdivision that are not encumbered on or before June 30, 2023, shall be made available to the commission to allocate for the construction of last-mile broadband infrastructure anywhere in the state.

SEC. 3.

 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 surcharges 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 surcharges 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 surcharge 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.
(e) (1) For the purposes of determining what revenues are subject to a surcharge imposed pursuant to this section, an interconnected VoIP service provider may use any of the following methodologies to identify intrastate revenues:
(A) The inverse of the interstate safe harbor percentage established by the Federal Communications Commission for interconnected VoIP service for federal universal service contribution purposes, as these percentages may be revised from time to time.
(B) A traffic study specific to the interconnected VoIP service provider allocating revenues between the federal and state jurisdictions.
(C) Another means of accurately apportioning interconnected VoIP service between federal and state jurisdictions.
(2) The methodology chosen pursuant to paragraph (1) shall be consistent with the revenue allocation methodology the provider uses to determine its federal universal service contribution obligations.
(3) It is the intent of the Legislature that a traffic study described in subparagraph (B) of paragraph (1) is excluded from public inspection pursuant to Public Utilities Commission General Order 66-C, because the disclosure of these studies would place the provider at an unfair business disadvantage.

SEC. 4.

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

912.2.
 On or before April 1, 2023, and biennially thereafter, the commission shall conduct a fiscal and performance audit of the implementation and effectiveness of the California Advanced Services Fund to ensure that funds have been expended in accordance with the approved terms of the grant awards and loan agreements pursuant to Section 281 or 281.2  281,  and shall report its findings to the Legislature. The reports 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 or 281.2 and shall include information specified in Section 914.7. 281. 

SEC. 5.

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

914.7.
 By April 1, 2019, and by April 1 of each year thereafter, until April 1, 2023,  the commission shall provide a report  to the Legislature either a report or the biennial fiscal and performance audit conducted pursuant to Section 912.2  that includes all of the following information:
(a) The remaining unserved areas in the state.
(b) The amount of funds expended from the California Advanced Services Fund in the prior year.
(c) The recipients of funds expended from the California Advanced Services Fund in the prior year.
(d) The geographic regions of the state affected by funds expended from the California Advanced Services Fund in the prior year, including information by county.
(e) The expected benefits to be derived from the funds expended from the California Advanced Services Fund in the prior year.
(f) 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.
(g) Actual broadband adoption levels from funds expended from the California Advanced Services Fund in the prior year.
(h) The cost per household for each project.
(i) The number of formerly unserved households subscribing to broadband service in areas covered by projects funded by the California Advanced Services Fund.
(j) The number of subscriptions resulting from the broadband adoption program funded by the California Advanced Services Fund.
(k) 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.
(l) The amount of funds expended from the California Advanced Services Fund to match federal funds.
(m) Addition details on efforts to leverage non-California Advanced Services Fund moneys.
(n) The status of the California Advanced Services Fund balance and the projected amount to be collected in each year through 2022  to fund approved projects.

SEC. 6.

 Section 2881 of the Public Utilities Code is amended to read:

2881.
 (a) The commission shall design and implement a program to provide a telecommunications device capable of serving the needs of individuals who are deaf or hard of hearing, together with a single party line, at no charge additional to the basic exchange rate, to a subscriber who is certified as an individual who is deaf or hard of hearing by a licensed physician and surgeon, audiologist, or a qualified state or federal agency, as determined by the commission, and to a subscriber that is an organization representing individuals who are deaf or hard of hearing, as determined and specified by the commission pursuant to subdivision (h). A licensed hearing aid dispenser may certify the need of an individual to participate in the program if that individual has been previously fitted with an amplified device by the dispenser and the dispenser has the individual’s hearing records on file before certification. In addition, a physician assistant or nurse practitioner may certify the needs of an individual who has been diagnosed by a physician and surgeon as being deaf or hard of hearing to participate in the program after reviewing the medical records or copies of the medical records containing that diagnosis.
(b) The commission shall also design and implement a program to provide a dual-party relay system, using third-party intervention to connect individuals who are deaf or hard of hearing and offices of organizations representing individuals who are deaf or hard of hearing, as determined and specified by the commission pursuant to subdivision (h), with persons of normal hearing by way of intercommunications devices for individuals who are deaf or hard of hearing and the telephone system, making available reasonable access of all phases of public telephone service to telephone subscribers who are deaf or hard of hearing. In order to make a dual-party relay system that will meet the requirements of individuals who are deaf or hard of hearing available at a reasonable cost, the commission shall initiate an investigation, conduct public hearings to determine the most cost-effective method of providing dual-party relay service to the deaf or hard of hearing when using a telecommunications device, and solicit the advice, counsel, and physical assistance of statewide nonprofit consumer organizations of the deaf, during the development and implementation of the system. The commission shall apply for certification of this program under rules adopted by the Federal Communications Commission pursuant to Section 401 of the federal Americans with Disabilities Act of 1990 (Public Law 101-336).
(c) The commission shall also design and implement a program whereby specialized or supplemental telephone communications equipment may be provided to subscribers who are certified to be disabled at no charge additional to the basic exchange rate. The certification, including a statement of visual or medical need for specialized telecommunications equipment, shall be provided by a licensed optometrist, physician and surgeon, physician assistant, or nurse practitioner, acting within the scope of practice of the applicable license, or by a qualified state or federal agency as determined by the commission. The commission shall, in this connection, study the feasibility of, and implement, if determined to be feasible, personal income criteria, in addition to the certification of disability, for determining a subscriber’s eligibility under this subdivision.
(d) (1) The commission shall also design and implement a program to provide access to a speech-generating device to any subscriber who is certified as having a speech disability at no charge additional to the basic exchange rate. The certification shall be provided by a licensed physician, licensed speech-language pathologist, nurse practitioner, or qualified state or federal agency. The commission shall provide to a certified subscriber access to a speech-generating device that is all of the following:
(A) A telecommunications device or a device that includes a telecommunications component.
(B) Appropriate to meet the subscriber’s needs for access to, and use of, the telephone network, based on the recommendation of a licensed speech-language pathologist.
(C) Consistent with the quality of speech-generating devices available for purchase in the state.
(2) The commission shall adopt rules to implement this subdivision and subdivision (e) by January 1, 2014.
(e) All of the following apply to any device or equipment described in this section that is classified as durable medical equipment under guidelines established by the United States Department of Health and Human Services:
(1) It is the intent of the Legislature that the commission be the provider of last resort and that eligible subscribers first obtain coverage from any available public or private insurance.
(2) The commission may require the subscriber to provide information about coverage for any or all of the cost of the device or equipment that is available from a public or private insurance, the cost to the subscriber of a deductible, copayment, or other relevant expense, and any related benefit cap information.
(3) The total cost of a device or equipment provided to a subscriber under this section shall not exceed the rate of reimbursement provided by Medi-Cal for that device or equipment.
(f) This section does not require the commission to provide training to a subscriber on the use of a speech-generating device.
(g) (1)  The commission shall establish a rate recovery mechanism through a surcharge not to exceed one-half of 1 percent uniformly applied to a subscriber’s intrastate telephone service, other than one-way radio paging service and universal telephone service, both within a service area and between service areas,  administer a surcharge to collect revenues, subject to annual appropriation of moneys by the Legislature,  to allow providers of the equipment and service specified in subdivisions (a) to (d), inclusive, to recover costs as they are incurred under this section. The surcharge shall be in effect until January 1, 2025. The commission shall require that the programs implemented under this section be identified on subscribers’ bills, and shall establish a fund and require separate accounting for each of the programs implemented under this section.
(2) The commission may collect a sum not to exceed one hundred million dollars ($100,000,000) per year by imposing the surcharge pursuant to paragraph (1).
(h) The commission shall determine and specify those statewide organizations representing the deaf or hard of hearing that shall receive a telecommunications device pursuant to subdivision (a), or a dual-party relay system pursuant to subdivision (b), or both, and in which offices the equipment shall be installed in the case of an organization having more than one office.
(i) The commission may direct a telephone corporation subject to its jurisdiction to comply with its determinations and specifications pursuant to this section.
(j) The commission shall annually review the surcharge level and the balances in the funds established pursuant to subdivision (g). Until January 1, 2025, the commission may make, within the limits set by subdivision (g), necessary adjustments to the surcharge to ensure that the programs supported by the surcharge are adequately funded and that the fund balances are not excessive. A fund balance that is projected to exceed six months’ worth of projected expenses at the end of the fiscal year is excessive.
(k) In order to continue to meet the access needs of individuals with functional limitations of hearing, vision, movement, manipulation, speech, and interpretation of information, the commission shall perform an ongoing assessment of, and if appropriate, expand the scope of, the program to allow for additional access capability consistent with evolving telecommunications technology.
(l) The commission shall structure the programs required by this section so that a charge imposed to promote the goals of universal service reasonably equals the value of the benefits of universal service to contributing entities and their subscribers.
SEC. 7.
 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. 8.
 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, which will promote economic growth, job creation, and the substantial social benefits of advanced information and communications technologies, including telehealth and distance learning.