SB 754: Communications: California High-Cost Fund-A Administrative Committee Fund program.

Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law authorizes the commission to fix just and reasonable rates and charges for public utilities. Existing law requires the commission to maintain the California High-Cost Fund-A Administrative Committee Fund (CHCF-A) program until January 1, 2028, to provide universal service rate support to small independent telephone corporations, as defined, in certain amounts in furtherance of the states universal service commitment to the continued affordability and widespread availability of safe, reliable, high-quality communications services in rural areas of the state.

This bill would, among other things, modify the definition of rate design for purposes of the CHCF-A program to specify that it does not include certain revenues, including internet access services, and would require the commission to ensure that each small independent telephone corporations rate design equals its revenue requirement. The bill would also require the commission, on or before February 1, 2024, to adjust each small independent telephone corporations rate design to remove any broadband or internet access revenues and implement corresponding increases to the distribution of CHCF-A program for funds to each small independent telephone corporation to ensure that its rate design equals its revenue requirement.

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

Because the CHCF-A program is within the act and a decision or order of the violation of a commission implements the programs requirements, action implementing this bills requirements would be a crime, the bill would impose a state-mandated local program by expanding the definition of a crime. 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.