Bill Text: CA AB662 | 2023-2024 | Regular Session | Amended

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Bill Title: Federal Broadband Equity, Access, and Deployment Program funds: administration.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2023-09-01 - In committee: Held under submission. [AB662 Detail]

Download: California-2023-AB662-Amended.html

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Amended  IN  Senate  July 13, 2023

Amended  IN  Senate  June 21, 2023

Amended  IN  Assembly  March 09, 2023

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 662

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Introduced by Assembly Member Boerner

February 09, 2023

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An act to add Part 5.5 (commencing with Section 3265) to Division 1 of the Public Utilities Code, relating to communications.

LEGISLATIVE COUNSEL'S DIGEST

AB 662, as amended, Boerner. Federal Broadband Equity, Access, and Deployment Program funds: administration.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities. Pursuant to its existing authority, the commission supervises administration of the state’s telecommunications universal service programs, including, among others, the California Advanced Services Fund (CASF). Existing law requires the commission to develop, implement, and administer the 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. Existing law requires the commission to establish specified accounts within the CASF, including, among other accounts, the Broadband Infrastructure Grant Account and the Federal Funding Account.

Existing federal law, the Infrastructure Investment and Jobs Act of 2021, establishes the federal Broadband Equity, Access, and Deployment Program (BEAD Program). Under that act, Congress appropriated $42,450,000,000 to the Assistant Secretary of Commerce for Communications and Information to carry out the BEAD Program, under which the Assistant Secretary makes grants to states, as provided.

This bill would require the commission, in administering federal BEAD Program funds pursuant to the federal Infrastructure Investment and Jobs Act of 2021, to follow federal guidelines, as defined. Except as provided, the bill would prohibit the commission from imposing any additional rules, processes, procedures, prohibitions, funding prioritizations, or eligibility criteria on any applicant, as defined, that are not explicitly required by the federal guidelines. The bill would require the commission, in exercising any discretion in adopting rules, processes, and procedures to administer BEAD Program funds, to adopt rules, processes, and procedures that, among other things, use the most robust, granular, and accurate broadband availability data. The bill would require the commission to follow certain timelines, including, among other timelines, by requiring the commission to post a copy of the initial proposal submitted by the commission to the National Telecommunications and Information Administration on its internet website at least 45 days before the submission of the initial proposal, as provided.

This bill would require the commission to require require, consistent with federal guidelines, each grant applicant awarded BEAD Program funds to offer at least one low-cost broadband service option by satisfying at least 5 criteria, including, among other criteria, by offering subscription plans based on nationwide pricing, as specified. The bill would require the commission to establish an extremely high cost threshold, as required by the federal guidelines. The bill would authorize the commission to use state funds to assist an applicant with meeting matching fund requirements established by the federal guidelines and would require the commission to only authorize the use of state funds for that purpose on tribal lands, for projects submitted by or in conjunction with a tribe, or in project areas that exceed the extremely high cost threshold. option, as defined. The bill would require the commission to approve or deny a completed application within 180 days after deeming an application complete and would require the commission to develop a plan for addressing the middle-class affordability of broadband services, as provided. The bill would prohibit an applicant from imposing any surcharges or recurring fees beyond those approved by the commission on a low-cost broadband service option, as specified.

This bill would require the commission, on or before January 10, 2024, to submit a written report to the Assembly Committee on Communications and Conveyance and the Senate Committee on Energy, Utilities, and Communication that contains certain information, including, among other information, an assessment of the feasibility of combining the Infrastructure Grant Account, the Federal Funding Account, and the BEAD Program into one last-mile broadband program. The bill would require the above-mentioned provisions to only be implemented to the extent that they do not conflict with federal law. The bill would also make related findings and declarations.

Under existing law, a violation of any order, decision, rule, direction, demand, or requirement of the commission is a crime. Because a violation of an order or decision of the commission 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.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

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

SECTION 1.

 (a) The Legislature finds and declares all of the following:

(1) In the federal Infrastructure Investment and Jobs Act of 2021 (Public Law 117-58), the United States Congress established the BEAD Program, a competitive broadband grant program, recognizing that access to affordable, reliable, high-speed broadband is essential to full participation in modern life. The $42,450,000,000 BEAD Program directs grants to states to support broadband deployment.

(2) Governor Gavin Newsom has designated the Public Utilities Commission as the recipient of, and administering agent for, the BEAD Program for California. As part of their responsibilities, the Public Utilities Commission is responsible for creating California’s plan for distributing BEAD Program funds. The plan must be approved by the National Telecommunications and Information Administration.

(3) The BEAD Program will reach its potential only if the Public Utilities Commission administers the program in a manner that maximizes provider participation through a fair and streamlined evaluation process using rational scoring criteria and a predictable schedule. Maximizing provider participation will help to ensure that BEAD Program funding is used to support broadband deployment as efficiently and effectively as possible.

(4) In establishing the processes and procedures that will govern the BEAD Program and BEAD Program funds in California, the Public Utilities Commission shall aim to reduce barriers to participation in order to maximize the number of applications received. The scoring criteria should establish reasonable minimum standards for eligible projects while encouraging applicants to exceed them.

(b) It is the intent of the Legislature that the requirements placed upon the Public Utilities Commission pursuant to this act are aligned with federal guidelines issued by the National Telecommunications and Information Administration in their Notice of Funding Opportunity for the BEAD Program and subsequent guidance, in order to maximize the amount of BEAD Program funds awarded to California and avoid the National Telecommunications and Information Administration denying California’s plans for the use of these funds.

(c) As used in this section, “BEAD Program” means the federal Broadband Equity, Access, and Deployment Program.

SEC. 2.

 Part 5.5 (commencing with Section 3265) is added to Division 1 of the Public Utilities Code, to read:

PART 5.5. Broadband Communications

3265.

 As used in this part, the following definitions apply:

(a) “Applicant” means a subgrantee or subrecipient of program funds.

(b) “Federal guidelines” means guidance and requirements adopted by the National Telecommunications and Information Administration in the Notice of Funding Opportunity for the Broadband Equity, Access, and Deployment Program and subsequent guidance issued to clarify the Notice of Funding Opportunity for the Broadband Equity, Access, and Employment Program for the use of program funds.

(c)“Initial proposal” means the plan submitted by the commission to the National Telecommunications and Information Administration that will, among other things, describe the competitive process the commission proposes to use to select applicants to construct broadband projects, as required and defined in the federal guidelines.

(d)

(c) “Low-cost broadband service option” means any subscription plan offered to a low-income household or middle-income household subscriber willingly chooses for their household, selected from among the criteria for a low-cost broadband service option pursuant to subdivision (a) (e) of Section 3266.5. 3265.5.

(e)

(d) “Low-income household” means any household at or below 80 percent of the area median income as determined by the Department of Housing and Community Development. For projects that span multiple counties, the area median income for the project area shall be deemed the average median income of all the counties in the project area.

(f)

(e) “Program funds” means federal Broadband Equity, Access, and Deployment Program funds.

(g)“State funds” means funds collected pursuant to Section 281 or other state funds appropriated to the commission for use in conjunction with program funds.

3265.5.

 (a) In administering program funds pursuant to the federal Infrastructure Investment and Jobs Act (Public Law 117-58), the commission shall follow federal guidelines.

(b) Except as authorized under this section, the commission shall not impose any additional rules, processes, procedures, prohibitions, funding prioritizations, or eligibility criteria on any applicant that are not explicitly required by the federal guidelines.

(c) In exercising any discretion in adopting rules, processes, and procedures to administer program funds, the commission shall adopt rules, processes, and procedures that do all of the following:

(1) Simplify the application process and minimize the levels of additional review for applications that otherwise meet the minimum financial, technological, and other requirements of the federal guidelines.

(2) Maximize the availability of federal funds available to California.

(3) Use the most robust, granular, and accurate broadband availability data.

(d) The commission shall approve or deny a completed application within 180 days after deeming an application complete.

(e) The commission shall require, consistent with the federal guidelines, each grant applicant awarded program funds to offer at least one low-cost broadband service option.

(f) Unless otherwise permitted pursuant to the federal guidelines, an applicant shall not impose any surcharges or recurring fees beyond those approved by the commission on a low-cost broadband service option offered pursuant to this section.

(g) The commission shall develop a plan, consistent with the federal guidelines, for addressing the middle-class affordability of broadband services.

(h) The commission may prioritize the selection of applicants that demonstrate a commitment to addressing the middle-class affordability of broadband services and improve affordability to ensure that networks built using taxpayer dollars are accessible to all Americans.

3266.

(a)At least 45 days before the submission of the initial proposal, the commission shall post a copy of the initial proposal on its internet website and share the initial proposal with the Assembly Committee on Communications and Conveyance and the Senate Committee on Energy, Utilities, and Communications.

(b)No later than 45 days after approval of the initial proposal from the National Telecommunications and Information Administration or after program funds are deposited in a state account, whichever occurs later, the commission shall begin accepting applications for program funds.

(c)The commission shall review and act on applications within 180 days following the application deadline or the date the grant was submitted, whichever occurs later.

3266.5.

(a)The commission shall require, consistent with the federal guidelines, each grant applicant awarded program funds to offer at least one low-cost broadband service option. An applicant shall be deemed to have satisfied this requirement if the applicant satisfies at least five of the following criteria:

(1)Participates in the federal Affordable Connectivity Program, or a successor federal program.

(2)Participates in the California Lifeline Program.

(3)Offers at least one all-inclusive subscription plan, the price of which shall include all taxes, fees, and charges with no additional nonrecurring costs or fees to the consumer. The commission shall initially set the qualifying price of the all-inclusive plan at no less than thirty dollars ($30) per month, and may annually adjust the price based on increases in the California Consumer Price Index, as calculated by the Department of Finance. The all-inclusive subscription plan shall provide either the typical download speeds of at least 100 megabits per second and typical upload speeds of at least 20 megabits per second or the performance benchmark for fixed terrestrial broadband service established by the Federal Communications Commission pursuant to Section 706(b) of the federal Communications Act of 1934 (47 U.S.C. Sec. 1302(b)), as amended. The all-inclusive subscription plan shall not be subject to data caps, surcharges, or usage-based throttling, and shall be subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the applicant must adhere.

(4)Offers subscription plans based on nationwide pricing, with choices among multiple tiers of services and prices.

(5)Offers subscription plans that require no contract or minimum subscription terms, are not subject to data caps, surcharges, or usage-based throttling, and are subject only to the same acceptable use policies to which subscribers to all other broadband internet access service plans offered to home subscribers by the applicant must adhere.

(6)Offers no-cost installation and equipment rental for setting up a home WiFi network to low-income households in the project area for a period of three years.

(7)Offers one no-cost device per household to low-income households in the project area for a period of three years.

(b)The commission may add other options for an applicant to satisfy subdivision (a), but shall not require an applicant to select from those additional options.

(c)The commission shall develop a plan, consistent with the federal guidelines and Section 3265.5, for addressing middle-class affordability.

(d)The commission may prioritize the selection of an applicant that commits to more than five of the criteria listed in subdivision (a).

(e)The commission may prioritize the selection of applicants that demonstrate a commitment to addressing middle-class affordability and improve affordability to ensure that networks built using taxpayer dollars are accessible to all Americans.

3267.

(a)The commission shall establish an extremely high cost threshold, as required by the federal guidelines, which helps ensure end-to-end fiber projects are deployed wherever feasible.

(b)The commission shall determine the extremely high cost threshold using a methodology that reflects and considers all of the following:

(1)The estimated cost to connect every unserved household to fiber technology is at least eight billion five hundred million dollars ($8,500,000,000).

(2)That end-to-end fiber projects are not feasible for every unserved household under current budgetary constraints.

(3)The number of households that would remain unserved if the commission relied only on fiber technology and awarded all the currently available last-mile broadband funding.

3267.5.

The commission may use state funds to assist an applicant with meeting matching fund requirements established by the federal guidelines for use of the program funds and shall only authorize the use of state funds for that purpose on tribal lands, for projects submitted by or in conjunction with a tribe, or in project areas that exceed the extremely high cost threshold.

3268.3266.

 (a)On or before January 10, 2024, the commission shall submit a written report to the Assembly Committee on Communications and Conveyance and the Senate Committee on Energy, Utilities, and Communications that contains all of the following information:

(1)

(a) An assessment of the feasibility of combining the Infrastructure Grant Account, the Federal Funding Account, and the Broadband Equity, Access, and Deployment Program into one last-mile broadband program. The assessment shall identify any hurdles to combining the programs and potential solutions.

(2)

(b) An assessment of the feasibility of coordinating state funds, program funds, and other available funding into a universal application and single-review process. The assessment shall identify any hurdles to coordinating program funds into a universal application and potential solutions.

(3)

(c) Recommendations for statutory changes to assist with better coordinating and integrating the commission’s various last-mile broadband programs.

3268.5.3266.5.

 This part shall only be implemented to the extent that it does not conflict with federal law.

SEC. 3.

 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.