AB 662: 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 states 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 bills 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.