270-282

PUBLIC UTILITIES CODE
SECTION 270-282




270.  (a) The following funds are hereby created in the State
Treasury:
   (1) The California High-Cost Fund-A Administrative Committee Fund.
   (2) The California High-Cost Fund-B Administrative Committee Fund.
   (3) The Universal Lifeline Telephone Service Trust Administrative
Committee Fund.
   (4) The Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
   (5) The Payphone Service Providers Committee Fund.
   (6) The California Teleconnect Fund Administrative Committee Fund.
   (7) The California Advanced Services Fund.
   (b) Moneys in the funds are the proceeds of rates and are held in
trust for the benefit of ratepayers and to compensate telephone
corporations for their costs of providing universal service. Moneys
in the funds may only be expended pursuant to this chapter and upon
appropriation in the annual Budget Act or upon supplemental
appropriation.
   (c) Moneys in each fund may not be appropriated, or in any other
manner transferred or otherwise diverted, to any other fund or
entity, except as provided in Sections 19325 and 19325.1 of the
Education Code.


270.1.  (a) Notwithstanding any other provision of law, the
commission may authorize the trustee of the California High-Cost
Fund-B Trust to transfer to the Deaf Equipment Acquisition Fund Trust
(DEAF Trust) money sufficient to cover the costs of the programs as
specified in subdivision (a) of Section 278, including, but not
limited to, all costs specified in subdivision (c) of Section 278.
The amount of any transfer of money authorized may not exceed the
cost of operating the programs for six months. The commission shall
also establish other terms of the transfer, as it determines to be
appropriate.
   (b) The commission shall reimburse the California High-Cost Fund-B
Trust for any transfer of money to the DEAF Trust authorized
pursuant to subdivision (a), with interest as determined by the
commission.
   (c) A sum equivalent to the amount of money transferred to the
Deaf Equipment Acquisition Fund Trust (DEAF Trust) pursuant to
subdivision (a) is hereby appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission, for allocation to the California High-Cost Fund-B Trust,
for purposes of subdivision (b).
   (d) Funds may not be transferred from the California High-Cost
Fund-B Trust to the DEAF Trust pursuant to subdivision (a) after
September 30, 2001.
   (e) Commencing on October 1, 2001, and until a date not later than
June 30, 2002, reimbursements made to the California High-Cost
Fund-B Trust pursuant to subdivisions (b) and (c) shall be deposited
in a separate memorandum account within the DEAF Trust, subject to
the terms specified in subdivision (b).
   (f) On July 1, 2002, any funds in the DEAF Trust deposited in the
memorandum account for purposes of reimbursing the California
High-Cost Fund-B Trust shall revert to the Controller for deposit in
the California High-Cost Fund-B Trust Committee Fund in the State
Treasury rather than the Deaf and Disabled Telecommunications Program
Administrative Committee Fund.
   (g) Commencing on July 1, 2003, any funds remaining in the DEAF
Trust, exclusive of those identified in subdivision (f), shall revert
to the Deaf and Disabled Telecommunications Program Administrative
Committee Fund in the State Treasury.



271.  For each advisory board created pursuant to this chapter all
of the following are applicable:
   (a) The commission shall establish the number of, and
qualifications for, persons to serve as members of each board, and
shall appoint the members of each board. In determining the
qualifications of persons who will serve as members of each board,
the commission shall consider the purpose of the program, and shall
attempt to achieve balanced public participation, for each board. The
membership of each board shall reflect, to the extent possible, and
consistent with existing law, the ethnic and gender diversity of the
state.
   (b) Each board shall determine, subject to approval by the
commission, the time, location, and number of monthly meetings for
each board.
   (c) A majority of the number of members of each board constitutes
a quorum.
   (d) A board cannot act at a meeting without the presence of a
quorum.
   (e) The affirmative vote of a majority of those members present at
the meeting of a board is necessary in order to pass any motion,
resolution, or measure.
   (f) The commission shall determine for each board whether the
board members shall receive expense reimbursement pursuant to Section
19820 of the Government Code and a per diem allowance, as specified
in Section 11564.5 of the Government Code, or as established by the
commission. Each member of a board who is not a commission or public
utility employee, or who is not otherwise compensated by an employer
for service on the board, shall be entitled to make a claim for and
to receive a per diem allowance, if authorized by the commission.
Each member of a board who is not a public utility employee, or who
is not otherwise reimbursed by an employer for expenses incurred when
serving on the board, shall be entitled to make a claim for and to
receive expense reimbursement, if authorized by the commission. The
commission shall allow all reasonable expense and per diem claims.
The payments in each instance shall be made only from the fund that
supports the activities of the board and shall be subject to the
availability of money in that fund. The claims shall be filed by the
board with the commission.



273.  Each advisory board created pursuant to this chapter shall do
both of the following:
   (a) Submit an annual budget to the commission. Within 90 calendar
days after receiving a board's annual budget, the commission shall
either accept, accept with conditions, or reject the submitted
budget.
   (b) Notwithstanding Section 7550.5 of the Government Code, submit,
in accordance with procedures established by the commission, a
report that shall describe the activities of the board during the
prior reporting period. The report shall be submitted on an annual or
more frequent basis, as ordered by the commission.



274.  The commission may on its own order, whenever it determines it
to be necessary, conduct financial audits of the revenues required
to be collected and submitted to the commission for each of the funds
specified in Section 270. The commission may on its own order,
whenever it determines it to be necessary, conduct compliance audits
on the compliance with commission orders with regard to each program
subject to this chapter. The commission shall conduct a financial and
compliance audit of program-related costs and activities at least
once every three years. The first three-year period for a financial
and compliance audit commences on July 1, 2002. The second and
subsequent three-year periods for financial audits commence three
years after the completion of the prior financial audit. The second
and subsequent three-year periods for compliance audits commence
three years after the completion of the prior compliance audit. The
commission may contract with the Bureau of State Audits or the
Department of Finance for all necessary auditing services. All costs
for audits shall be paid from the fund that supports the activities
of the board audited and shall be subject to the availability of
money in that fund.



275.  (a) There is hereby created the California High-Cost Fund-A
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to small
independent telephone corporations providing local exchange services
in high-cost rural and small metropolitan areas in the state to
create fair and equitable local rate structures, as provided for in
Section 739.3, the development of a grant program for the
construction of telecommunications infrastructure as set forth in
Section 276.5, and to carry out the program pursuant to the
commission's direction, control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall transfer
the moneys received to the Controller for deposit in the California
High-Cost Fund-A Administrative Committee Fund. All interest earned
by moneys in the fund shall be deposited in the fund. Any unexpended
revenues collected prior to the operative date of this section shall
be submitted to the commission, and the commission shall transfer
those moneys to the Controller for deposit in the California
High-Cost Fund-A Administrative Committee Fund.
   (c) Moneys appropriated from the California High-Cost Fund-A
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   (d) The Legislature finds and declares that, because maintenance
of universal public switched telephone network service throughout the
state and maintenance of public safety answering points in high-cost
areas of the state rely on appropriations from the California
High-Cost Fund-A Administrative Committee Fund, maintaining adequate
funding levels for the fund is critical to public health and safety.



275.6.  (a) The commission shall develop, implement, and maintain a
suitable program to establish a fair and equitable local rate
structure aided by universal service rate support to small
independent telephone corporations that serve rural areas and are
subject to rate-of-return regulation by the commission. The purpose
of the program shall be to promote the goals of universal telephone
service and to reduce any disparity in the rates charged by those
companies.
   (b) For purposes of this section, "small independent telephone
corporations" means those independent telephone corporations serving
rural areas that are subject to rate-of-return regulation by the
commission, as determined by the commission.
   (c) The commission shall structure the programs required by this
section so that any 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.
   (d) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2013, deletes or extends
that date.


276.  (a) There is hereby created the California High-Cost Fund-B
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to provide for transfer payments to
telephone corporations providing local exchange services in high-cost
areas in the state to create fair and equitable local rate
structures, as provided for in Section 739.3, the development of a
grant program for the construction of telecommunications
infrastructure as set forth in Section 276.5, and to carry out the
program pursuant to the commission's direction, control, and
approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall transfer
the moneys received to the Controller for deposit in the California
High-Cost Fund-B Administrative Committee Fund. All interest earned
by moneys in the fund shall be deposited in the fund. Any unexpended
revenues collected prior to the operative date of this section shall
be submitted to the commission, and the commission shall transfer
those moneys to the Controller for deposit in the California
High-Cost Fund-B Administrative Committee Fund.
   (c) Moneys appropriated from the California High-Cost Fund-B
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   (d) This section shall become operative on January 1, 2006.



276.5.  (a) The commission shall establish the Rural
Telecommunications Infrastructure Grant Program to aid in the
establishment of telecommunications service in areas not currently
served by existing local exchange carriers. The program shall be
funded out of either the California High-Cost Administrative
Committee Fund-A or the California High-Cost Administrative Committee
Fund-B, or both, as determined by the commission. No more than forty
million dollars ($40,000,000) shall be encumbered from the
California High-Cost Administrative Committee Fund-A or the
California High-Cost Administrative Committee Fund-B, or both, during
the four-year period ending on December 31, 2012, for the Rural
Telecommunications Infrastructure Grant Program.
   (b) On or after July 1, 2002, any community-based group
representing a qualifying community may apply for and receive grants
to build an original telecommunications infrastructure that can
provide basic telecommunications service that will serve an area that
meets the grant program's population criteria with consideration
given (1) to areas that lack access to an emergency telephone system
described in the Warren-911-Emergency Assistance Act (Article 6
(commencing with Section 53100) of Chapter 1 of Part 1 of Division 2
of Title 5 of the Government Code), and (2) to communities with
schools, hospitals, and health clinics, as set forth in Decision
96-10-066 of the commission, and that currently lacks basic
telecommunications services, as described in Decision 96-10-066. A
community-based group representing a qualifying community may
alternatively apply for and receive a grant to subsidize the cost of
the telecommunications service itself, if the group determines that
this would be more cost-effective than subsidizing the building of an
original telecommunications infrastructure. On or before June 30,
2002, the commission, shall establish eligibility criteria for
community-based groups to qualify to apply for telecommunications
infrastructure grants. The criteria shall include a requirement that
a local agency, as defined by Section 50001 of the Government Code,
or a town, as defined by Section 21 of the Government Code, shall act
as the community-based group's fiscal agent for the receipt and
distribution of funds. Qualifying communities shall have a median
household income no greater than the income level used in the
Universal Lifeline Telephone Service index for a family of four. The
commission shall require that the telecommunications carrier that
provides the service has the obligation to serve the community.
   (c) Grant proposals shall be submitted in accordance with
procedures prescribed by the commission and evaluated and awarded by
the commission using technology criteria developed by the
government-industry working group established by subdivision (g).
Grant proposals shall contain all of the following:
   (1) A letter from a local agency or town agreeing to act as a
fiscal agent for the receipt and distribution of funds.
   (2) Preliminary engineering feasibility studies conducted in
cooperation with the local service providers that include all of the
following:
   (A) Topographical maps indicating the location of all existing
residences.
   (B) Schematic maps of the proposed network facilities.
   (C) Recommendations and justifications for the preferred
technologies.
   (D) Network compatibility statements from one or more
interconnecting carriers.
   (E) Cost projections for the infrastructure facilities.
   (F) Cost projections for the interconnection and recurring service
provisions.
   (G) Projected budget for engineering feasibility studies.
   (3) Recommendations and letters of support from all of the
following:
   (A) The county board of supervisors.
   (B) Other affected local governments.
   (C) Affected school districts.
   (D) Affected emergency service providers.
   (E) Affected law enforcement agencies.
   (4) Letters of commitment from 75 percent of the unserved
population.
   (5) A project schedule, including timeline and budget.
   (6) A management plan that assures the proper utilization of grant
funds.
   (7) Evidence that competing providers and competing technologies
have been considered and evaluated.
   (d) Grant applicants that are rejected by the commission may be
reimbursed for the cost of their preliminary engineering feasibility
studies, including, but not limited to, any approved cost of a local
telecommunications carrier that contributes to the studies, from the
grant program.
   (e) The procedures developed for awarding grants shall ensure that
the grants awarded do not exceed moneys available to support the
program, that not more than one grant is awarded to a qualifying
community, and that no single grant shall exceed five million dollars
($5,000,000).
   (f) In evaluating grant applications, the commission shall
consider the cost effectiveness of the application, the number of
people served, the level of local support, the ability of the
community served to pay for the services delivered, and the effect on
public health and safety.
   (g) The commission shall establish a government and industry
working group to develop the technical criteria to be used in
evaluating grant awards. The working group shall be composed of, but
not limited to, all of the following:
   (1) Representatives of the commission.
   (2) Representatives of the incumbent local exchange carrier
industry.
   (3) Representatives of the competitive local exchange carrier
industry.
   (4) Representatives of the wireless carrier industry.
   (h) Grant applicants shall seek to secure federal sources of
funding in conjunction with local subsidies for the construction of
telecommunications infrastructure.
   (i) This section shall remain in effect only until January 1,
2013, and as of that date is repealed, unless a later enacted statute
enacted before January 1, 2013, deletes or extends that date.



277.  (a) There is hereby created the Universal Lifeline Telephone
Service Trust Administrative Committee, which is an advisory board to
advise the commission regarding the development, implementation, and
administration of a program to ensure lifeline telephone service is
available to the people of the state, as provided for in Article 8
(commencing with Section 871) of Chapter 4 of Part 1 of Division 1,
and to carry out the program pursuant to the commission's direction,
control, and approval.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on October 1,
2001, and continuing thereafter, the commission shall transfer the
moneys received, and all unexpended revenues collected prior to
October 1, 2001, to the Controller for deposit in the Universal
Lifeline Telephone Service Trust Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
   (c) Moneys appropriated from the Universal Lifeline Telephone
Service Trust Administrative Committee Fund to the commission shall
be utilized exclusively by the commission for the program specified
in subdivision (a), including all costs of the board and the
commission associated with the administration and oversight of the
program and the fund.



278.  (a) (1) Commencing on July 1, 2003, there is hereby created
the Telecommunications Access for Deaf and Disabled Administrative
Committee, formerly the Deaf and Disabled Telecommunications Program
Administrative Committee, as an advisory board to advise the
commission regarding the development, implementation, and
administration of programs to provide specified telecommunications
services and equipment to persons in this state who are deaf or
disabled, as provided for in Sections 2881, 2881.1, and 2881.2.
   (2) In addition to the membership qualifications established by
the commission pursuant to subdivision (a) of Section 271, the
commission shall establish qualifications for persons to serve as
members of the Telecommunications Access for Deaf and Disabled
Administrative Committee so that consumers of telecommunications
services for the deaf and disabled comprise not less than two-thirds
of the membership of the committee. To the extent feasible, one of
those members shall have experience in the administration of programs
similar to those provided for in Sections 2881, 2881.1, and 2881.2.
   (3) As part of its advisory role, as specified in paragraph (1),
the Telecommunications Access for Deaf and Disabled Administrative
Committee shall advise the commission regarding contracts and
agreements related to the Deaf and Disabled Telecommunications
Program as specified in subdivisions (d) and (e) of Section 2881.4.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on July 1, 2003,
and continuing thereafter, the commission shall transfer the moneys
received, and all unexpended revenue collected prior to July 1, 2003,
to the Controller for deposit in the Deaf and Disabled
Telecommunications Program Administrative Committee Fund. All
interest earned by moneys in the fund shall be deposited in the fund.
Those revenues that are collected pursuant to subdivision (d) of
Section 2881 shall be accounted for separately, as required by
subdivision (b) of Section 2881.2, and deposited in the fund created
by the commission pursuant to subdivision (b) of Section 2881.2.
   (c) Moneys appropriated from the Deaf and Disabled
Telecommunications Program Administrative Committee Fund to the
commission shall be utilized exclusively by the commission for the
programs specified in subdivision (a), including all costs of the
committee and the commission associated with the administration and
oversight of the programs and the fund.
   (d) Commencing on July 1, 2003, staffing costs incurred by the
commission for oversight and administration of the programs described
in subdivision (a) shall be funded by moneys appropriated from the
Deaf and Disabled Telecommunications Program Administrative Committee
Fund.


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



279.  (a) There is hereby created the Payphone Service Providers
Committee, which is an advisory board to advise the commission
regarding the development, implementation, and administration of
programs to educate pay phone service providers, ensure compliance
with the commission's requirements for pay phone operations, and
educate consumers on matters related to pay phones, as provided for
in commission Decision 90-06-018.
   (b) All revenues collected by telephone corporations in rates
authorized by the commission to fund the programs specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. Commencing on October 1,
2001, and continuing thereafter, the commission shall transfer the
moneys received, and all unexpended revenues collected prior to
October 1, 2001, to the Controller for deposit in the Payphone
Service Providers Committee Fund. All interest earned by moneys in
the fund shall be deposited in the fund.
   (c) Moneys appropriated from the Payphone Service Providers
Committee Fund to the commission shall be utilized exclusively by the
commission for the program specified in subdivision (a), including
all costs of the board and the commission associated with the
administration and oversight of the program and the fund.



280.  (a) The commission shall develop, implement, and administer a
program to advance universal service by providing discounted rates to
qualifying schools maintaining kindergarten or any of grades 1 to
12, inclusive, community colleges, libraries, hospitals, health
clinics, and community organizations, consistent with Chapter 278 of
the Statutes of 1994.
   (b) There is hereby created the California Teleconnect Fund
Administrative Committee, which is an advisory board to advise the
commission regarding the development, implementation, and
administration of a program to advance universal service by providing
discounted rates to qualifying schools maintaining kindergarten or
any of grades 1 to 12, inclusive, community colleges, libraries,
hospitals, health clinics, and community organizations, consistent
with Chapter 278 of the Statutes of 1994, and to carry out the
program pursuant to the commission's direction, control, and
approval.
   (c) All revenues collected by telephone corporations in rates
authorized by the commission to fund the program specified in
subdivision (a) shall be submitted to the commission pursuant to a
schedule established by the commission. The commission shall transfer
the moneys received to the Controller for deposit in the California
Teleconnect Fund Administrative Committee Fund. All interest earned
by moneys in the fund shall be deposited in the fund.
   (d) Moneys appropriated from the California Teleconnect Fund
Administrative Committee Fund to the commission shall be utilized
exclusively by the commission for the program specified in
subdivision (a), including all costs of the board and the commission
associated with the administration and oversight of the program and
the fund.
   (e) Moneys loaned from the California Teleconnect Fund
Administrative Committee Fund in the Budget Act of 2003 are subject
to Section 16320 of the Government Code. If the commission determines
a need for moneys in the California Teleconnect Fund Administrative
Committee Fund, the commission shall notify the Director of Finance
of the need, as specified in Section 16320 of the Government Code.
The commission may not increase the rates authorized by the
commission to fund the program specified in subdivision (b) while
moneys loaned from the California Teleconnect Fund Administrative
Committee Fund in the Budget Act of 2003 are outstanding unless both
of the following conditions are satisfied:
   (1) The Director of Finance, after making a determination pursuant
to subdivision (b) of Section 16320 of the Government Code, does not
order repayment of all or a portion of any loan from the California
Teleconnect Fund Administrative Committee Fund within 30 days of
notification by the commission of the need for the moneys.
   (2) The commission notifies the Director of Finance and the
Chairperson of the Joint Legislative Budget Committee in writing that
it intends to increase the rates authorized by the commission to
fund the program specified in subdivision (a). The notification
required pursuant to this paragraph shall be made 30 days in advance
of the intended rate increase.
   (f) Subdivision (e) shall become inoperative upon full repayment
or discharge of all moneys loaned from the California Teleconnect
Fund Administrative Committee Fund in the Budget Act of 2003.



280.5.  (a) Of the revenues from fees collected pursuant to Section
14666.8 of the Government Code after the operative date of this
section, except for revenues from fees from a lease agreement for
access to Department of Transportation property or a lease agreement
existing prior to the operative date of the section, 15 percent shall
be available, upon appropriation by the Legislature, for the purpose
of addressing the state's digital divide.
   (b) Revenues described in subdivision (a) shall be deposited in
the Digital Divide Account, which is hereby established in the
California Teleconnect Fund Administrative Committee Fund established
pursuant to Section 270, to be used only for digital divide pilot
projects. Not more than 5 percent of the revenues described in
subdivision (a) may be used to pay the costs incurred in connection
with the administration of digital divide pilot projects by the
commission.
   (c) (1) The Digital Divide Grant Program is hereby established
subject to the availability of funding pursuant to this section. The
commission may not implement the grant program until the commission
projects that at least five hundred thousand dollars ($500,000) will
be available in the Digital Divide Account during the calendar year
following implementation, based on money collected pursuant to
Section 14666.8 of the Government Code.
   (2) The commission shall provide grants pursuant to this
subdivision on a competitive basis subject to criteria to be
established by the commission and in a way that disburses the funds
widely, including urban and rural areas. Grants shall be awarded to
community-based nonprofit organizations that are exempt from taxation
under Section 501(c)(3) of the Internal Revenue Code for the purpose
of funding community technology programs.
   (3) Recipients of grants pursuant to this subdivision shall report
to the commission annually on the effectiveness of the grant
program.
   (4) The commission shall report to the Legislature and the
Governor annually on the effectiveness of the program administered
pursuant to this subdivision.
   (d) For purposes of this section, "community technology programs"
means a program that is engaged in diffusing technology in local
communities and training local communities in the use of technology,
especially local communities that otherwise would have no access or
limited access to the Internet and other technologies.
   (e) For purposes of this section, "digital divide projects" means
community technology programs involved in activities that include,
but are not limited to, the following:
   (1) Providing open access to and opportunities for training in
technology.
   (2) Developing content relevant to the interests and wants of the
local community.
   (3) Preparing youth for opportunities in the new economy through
multimedia training and skills.
   (4) Harnessing technology for e-government services.



281.  (a) The commission shall develop, implement, and administer
the California Advanced Services Fund 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, as provided in Decision 07-12-054 and Decision
09-07-020 and this section. 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 Infrastructure Revolving Loan Account.
   (b) (1) All moneys collected by the surcharge authorized by the
commission pursuant to Decision 07-12-054, whether collected before
or after January 1, 2009, shall be transmitted to the commission
pursuant to a schedule established by the commission. The commission
shall transfer the moneys received to the Controller for deposit in
the California Advanced Services Fund. Moneys collected after January
1, 2011, shall be deposited in the following amounts in the
following accounts:
   (A) One hundred million dollars ($100,000,000) into the Broadband
Infrastructure Grant Account.
   (B) Ten million dollars ($10,000,000) into the Rural and Urban
Regional Broadband Consortia Grant Account.
   (C) Fifteen million dollars ($15,000,000) into the Broadband
Infrastructure Revolving Loan Account.
   (2) All interest earned on moneys in the fund shall be deposited
in the fund.
   (3) The commission shall not collect moneys, by imposing the
surcharge described in paragraph (1) for deposit in the fund, in an
amount that exceeds one hundred million dollars ($100,000,000) before
January 1, 2011. After January 1, 2011, the commission may collect
an additional sum not to exceed one hundred twenty-five million
dollars ($125,000,000), for a sum total of moneys collected by
imposing the surcharge described in paragraph (1) not to exceed two
hundred twenty-five million dollars ($225,000,000). The commission
may collect the additional sum beginning with the calendar year
starting on January 1, 2011, and continuing through the 2015 calendar
year, in an amount not to exceed twenty-five million dollars
($25,000,000) 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.
   (c) (1) All 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, including the costs incurred by the commission in
developing, implementing, and administering the program and the fund.
   (2) Notwithstanding any other law and for the sole purpose of
providing matching funds pursuant to the federal American Recovery
and Reinvestment Act of 2009 (Public Law 111-5), any entity eligible
for funding pursuant to that act shall be eligible to apply to
participate in the program administered by the commission pursuant to
this section, if that entity otherwise satisfies the eligibility
requirements under that program. Nothing in this section shall impede
the ability of an incumbent local exchange carrier, as defined by
subsection (h) of Section 251 of Title 47 of the United States Code,
that is regulated under a rate of return regulatory structure, to
recover, in rate base, California infrastructure investment not
provided through federal or state grant funds for facilities that
provide broadband service and California intrastate voice service.
   (d) Moneys in the Rural and Urban Regional Broadband Consortia
Grant Account shall be available for grants to eligible consortia to
fund the cost of broadband deployment activities other than the
capital cost of facilities, as specified by the commission. An
eligible consortium may include, as specified by the commission,
representatives of organizations, including, but not limited to,
local and regional government, public safety, K-12 education, health
care, libraries, higher education, community-based organizations,
tourism, parks and recreation, agricultural, and business, and is not
required to have as its lead fiscal agent an entity with a
certificate of public convenience and necessity.
   (e) Moneys in the Broadband Infrastructure Revolving Loan Account
shall be available to finance capital costs of broadband facilities
not funded by a grant from the Broadband Infrastructure Grant
Account. The commission shall periodically set interest rates on the
loans based on surveys of existing financial markets.
   (f) (1) The commission shall conduct an interim and final
financial audit and an interim and final 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 and this
section. The commission shall report its interim findings to the
Legislature by April 1, 2011. The commission shall report its final
findings to the Legislature by April 1, 2017. The reports shall also
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 this section.
   (2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2018, pursuant to Section
10231.5 of the Government Code.
   (B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   (g) (1) Beginning on January 1, 2012, and annually thereafter, the
commission shall provide a report to the Legislature that includes
all of the following information:
   (A) The amount of funds expended from the California Advanced
Services Fund in the prior year.
   (B) The recipients of funds expended from the California Advanced
Services Fund in the prior year.
   (C) The geographic regions of the state affected by funds expended
from the California Advanced Services Fund in the prior year.
   (D) The expected benefits to be derived from the funds expended
from the California Advanced Services Fund in the prior year.
   (E) Actual broadband adoption levels from the funds expended from
the California Advanced Services Fund in the prior year.
   (F) The amount of funds expended from the California Advanced
Services Fund used to match federal funds.
   (G) An update on the expenditures from California Advanced
Services Fund and broadband adoption levels, and an accounting of
remaining unserved and underserved areas of the state.
   (2) (A) The requirement for submitting a report imposed under
paragraph (1) is inoperative on January 1, 2016, pursuant to Section
10231.5 of the Government Code.
   (B) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.



282.  Any revenues that are deposited in funds created pursuant to
this chapter shall not be used by the state for any purpose other
than as specified in this chapter. Notwithstanding any other
provision of law, the Controller may use the funds created pursuant
to this chapter for loans to the General Fund as provided in Sections
16310 and 16381 of the Government Code.