Agenda

Return

C. 45

To:	Board of Supervisors
From:	LEGISLATION COMMITTEE
Date:	June 9, 2015

Contra

Costa

County

Subject:

AB 1262 (Wood) Telecommunications: Universal Service

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/09/2015

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor

ABSENT:

Federal D. Glover, District V Supervisor

Contact:

L. DeLaney, 925-335-1097

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 9, 2015
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

ADOPT a "Support" position on AB 1262 (Wood), as introduced: Telecommunications: Universal Service, a bill that would modify existing limits on funds allocated from the California Advanced Services Fund (CASF) to the Rural and Urban Regional Broadband Consortia Grant Account and the Broadband Infrastructure Revolving Loan Account, to promote ubiquitous broadband deployment and to advance broadband adoption in unserved and underserved areas throughout the state, as recommended by the Legislation Committee.

FISCAL IMPACT:

Increased annual PUC implementation and oversight costs of approximately $130,000 (CASF) beginning in January 2018. By increasing the limit of the Rural and Urban Regional Broadband Consortia Grant Account, this bill effectively extends the program beyond 2017.

BACKGROUND:

At its May 7, 2015 meeting, the Legislation Committee considered and accepted the recommendation from the Executive Director of Contra Costa Economic Partnership to recommend a position of "Support" to the Board of Supervisors on AB 1262.

BACKGROUND: (CONT'D)

Introduced: 02/27/2015
Disposition: Pending
Location: SENATE
Status: 05/21/15 to Senate Committee on Energy, Utilities, and Communications

SUMMARY:

This bill modifies existing limits on funds allocated from the California Advanced Services Fund (CASF) to the Rural and Urban Regional Broadband Consortia Grant Account and the Broadband Infrastructure Revolving Loan Account. Specifically, this bill:

1) Increases the existing limit from $10 to $15 million for monies collected for the CASF and allocated to the Rural and Urban Regional Broadband Consortia Grant Account.

2) Decreases the existing limit from $15 million to $10 million for monies collected for the CASF and allocated to the Broadband Infrastructure Revolving Loan Account.


COMMENTS:

1) Purpose. According to the author, the CASF was created to encourage the deployment of high-quality advanced communications services to all Californians. As progress continues in achieving greater broadband expansion, it is imperative to continue the state's commitment to help ensure universal access to basic telecommunications services.

The author further states, the Rural and Urban Regional Broadband Consortia Grant Account is about to be exhausted. Therefore, if further monies are not available, many rural consortia will no longer be able to provide the appropriate broadband educational service nor assist in preparing applications for CASF grants.

2) Background. SB 1193 (Padilla) Chapter 393, Statutes of 2008, established the CASF and gave the PUC authority to assess a surcharge on communication service ratepayers (wireline, wireless, and voice over internet protocol customers) receiving intrastate telecommunication services to fund the program. Beginning in April 1, 2014, the CPUC increased the surcharge from 0.164% to 0.464%.

As of December 31, 2014, the CASF has collected approximately $199 million of which approximately $85 million is still remaining in the fund. Currently, after several legislative modifications, funding is allocated to four CASF accounts:

a) Broadband Infrastructure Grant Account $270 million

Funds the capital costs of broadband infrastructure projects in unserved and underserved areas in California. Local government projects are limited to unserved households or businesses. Carriers eligible to apply for a grant award must hold a certificate of public convenience and necessity or Wireless Identification Registration from the PUC. CASF funding is also available to non-telephone corporations which are facilities based broadband service providers.

b) Broadband Infrastructure Revolving Loan Account $10 million

Supplements financing for projects also receiving CASF grant funding. Up to 20% of total project cost is eligible for financing. Applicant and project eligibility is the same as the Infrastructure Grant Account.

c) Rural and Urban Regional Broadband Consortia Grant Account $10 million

Provides funding for the cost of broadband deployment activities, other than the capital cost of facilities. Eligible recipients include, but is not limited to local and regional governments, public safety, K-12 education, health care, and community-based organizations.

d) Broadband Public Housing Account $25 million

Supports projects to deploy local area networks and to increase adoption rates in publicly supported housing communities.

CONSEQUENCE OF NEGATIVE ACTION:

Contra Costa County would not have a position on the bill.