AB 2289

AB2289:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 2289

An act to amend, repeal, and add Section 3502.2 of the Business and Professions Code, to amend, repeal, and add Section 1798.91 of the Civil Code, to amend and repeal Section 11549.52 of, to amend, repeal, and add Sections 6547.7, 11011.2, and 53112 of, to add Section 8889.1 to, and to repeal Chapter 13 (commencing with Section 8885) of Division 1 of Title 2 of, the Government Code, to amend, repeal, and add Sections 1524.7 and 1569.159 of the Health and Safety Code, to amend, repeal, and add Section 1720 of the Labor Code, to amend, repeal, and add Section 429 of the Penal Code, and to amend Sections 216, 233, and 301 270, 301, and 5830 of, and to amend and repeal Sections 278, 280, 280.5, 281, 281.2, 281.6, 912.2, 914.6, 914.7, 2881, 2881.1, 2881.2, and 2881.4 of, to amend, repeal, and add Sections 270.1, 281.1, 285, 5890, and 5900 of, to add Section Sections 710 and 1700 to, and to add Division 8 (commencing with Section 20000) to, the Public Utilities Code, relating to public utilities.

LEGISLATIVE COUNSEL'S DIGEST

AB 2289, as amended, Boerner. Public utilities: telecommunications. Public Utilities Commission: telecommunications: broadband internet access service.

The California Constitution establishes the Public Utilities Commission, Commission (PUC), which consists of 5 members appointed by the Governor and approved by the Senate. The California Constitution authorizes the commission PUC to establish its own procedures and authorizes a commissioner as designated by the commission PUC to hold a hearing or investigation or issue an order subject to commission PUC approval.

This bill would require the Governor, in appointing members of the commission, PUC, to ensure a diverse composition of commissioners by considering factors that contribute to diversity, as provided. The bill would recodify as a statutory provision the commission’s PUC’s authority to establish its own procedures and the authority of a commissioner to hold a hearing or investigation or issue an order subject to the commission PUC approval. The bill would specify that the recodification only becomes operative if ACA 9 of the 2025–26 Regular Session is approved by the voters, becomes operative, and repeals the corresponding provision in the California Constitution.

Existing law vests the commission PUC with regulatory jurisdiction over public utilities. Existing law defines “public utility” to include, among other entities, telephone corporations and telegraph corporations. Existing law defines “telephone line” to include all conduits, ducts, poles, wires, cables, instruments, and appliances, and all other real estate, fixtures, and personal property owned, controlled, operated, or managed in connection with or to facilitate communication by telephone.

This bill would specify that a corporation that is providing telecommunications service, as defined, is a public utility subject to the jurisdiction, control, and regulation of the commission and the Public Utilities Act regarding the provision of that service. The bill would revise the definition of “telephone line” to restrict those items specified above to those in connection with or to facilitate voice communication by telephone.

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

Because this bill would expand the definition of “public utility,” thereby expanding the scope of 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.

Existing law establishes the California Broadband Council for the purpose of promoting broadband deployment in unserved and underserved areas of the state and broadband adoption throughout the state for the benefits of all Californians. Existing law requires the PUC to develop, implement, and administer the California Teleconnect Fund program to advance universal service by providing discounted rates to qualifying schools, community colleges, libraries, health clinics, and community organizations, as provided. Existing law requires the PUC to develop, implement, and administer the California Advanced Services Fund to encourage the deployment of high-quality advanced communications to all Californians. Existing law requires the PUC to design and implement a program, commonly known as the Deaf and Disabled Telecommunications Program, to provide telecommunication devices capable of serving the needs of individuals who are deaf or hard of hearing, as specified, that is funded by the Deaf and Disabled Telecommunications Program Administrative Committee Fund. Existing law establishes the Broadband Loan Loss Reserve Fund in the State Treasury, and continuously appropriates moneys in the fund to the PUC to be available to fund costs related to the financing of the deployment of broadband infrastructure by a local governmental agency or nonprofit organization, as provided. Existing law requires the PUC to maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state.This bill would create the Broadband and Digital Equity Commission (Broadband Commission) with specified membership, and would, on July 1, 2028, repeal the California Broadband Council and establish the members of the council as a committee of the Broadband Commission, as specified. The bill would establish the Office of Broadband and Digital Equity for the purpose of promoting ubiquitous and universal broadband deployment in unserved and underserved areas of the state and to increase broadband adoption throughout the state for the benefit of all Californians. The bill would, on and after July 1, 2028, declare the Office of Broadband and Digital Equity to be the only centralized state department for broadband and digital equity activities within the state authorized to establish rules or regulations for broadband internet access service and internet service providers, as provided. The bill would require the Broadband Commission to appoint the executive director of the Office of Broadband and Digital Equity, who serves at the pleasure of the Broadband Commission, as specified, and would authorize the executive director to appoint, with the approval of the Broadband Commission, necessary staff, as provided. The bill would, on and after July 1, 2028, require the Office of Broadband and Digital Equity to assume the administrative functions of the California Teleconnect Fund Program, the California Advance Services Fund, Deaf and Disabled Telecommunications Program, and the Broadband Loan Loss Reserve Fund. The bill would specify that, on and after July 1, 2028, the moneys in the Broadband Loan Loss Reserve Fund, upon appropriation by the Legislature, are available to the Office of Broadband and Digital Equity for the financing of the deployment of broadband infrastructure by a local governmental agency or nonprofit organization, as provided. The bill would, on or after July 1, 2028, transfer the duties to maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state to the Office of Broadband and Digital Equity.Existing law requires the Office of Broadband and Digital Literacy to oversee the acquisition and management of contracts for the development and construction of a statewide open-access middle-mile broadband network to provide an opportunity for last-mile providers, anchor institutions, and tribal entities to connect to, and interconnect with other networks and other appropriate connections to, the statewide open-access middle-mile broadband network to facilitate high-speed broadband service.This bill would require the Office of Broadband and Digital Equity, on and after July 1, 2028, to assume the above-described duties.The Digital Infrastructure and Video Competition Act of 2006 establishes a procedure for the issuance of state franchises for the provision of video service, defined to include cable service and open-video systems, administered by the PUC. This bill would, on and after July 1, 2028, transfer the administration of that act to the Office of Broadband and Digital Equity.Existing law requires the Office of Broadband and Digital Literacy, with a third-party administrator, to develop and construct a statewide open-access middle-mile broadband network that prioritizes last-mile connections to unserved and underserved areas and locations. Existing law requires the office and third-party administrator to work directly with last-mile project grant awardees to ensure that network segments, including prioritized stand-alone Department of Transportation construction projects, support last-mile connections, and requires the Office of Broadband and Digital Literacy and the third-party administrator, to the extent feasible, to minimize disruption due to excavations, as provided.This bill would repeal the above-described provisions.This bill would make conforming changes.

Digest Key

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

Bill Text

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

SECTION 1.

Section 3502.2 of the Business and Professions Code is amended to read:

3502.2.

(a) Notwithstanding any other provision of law, a physician assistant may perform the physical examination and any other specified medical services that are required pursuant to Section 2881 of the Public Utilities Code and Sections 44336, 49406, 49423, 49455, 87408, 87408.5, and 87408.6 of the Education Code, practicing in compliance with this chapter, and may sign and attest to any certificate, card, form, or other documentation evidencing the examination or other specified medical services.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 2.

Section 3502.2 is added to the Business and Professions Code, to read:

3502.2. (a) Notwithstanding any other provision of law, a physician assistant may perform the physical examination and any other specified medical services that are required pursuant to Section 20171 of the Public Utilities Code and Sections 44336, 49406, 49423, 49455, 87408, 87408.5, and 87408.6 of the Education Code, practicing in compliance with this chapter, and may sign and attest to any certificate, card, form, or other documentation evidencing the examination or other specified medical services. (b) This section shall become operative on July 1, 2028.

SEC. 3.

Section 1798.91 of the Civil Code is amended to read:

1798.91.

(a) For purposes of this title, the following definitions shall apply:

(1) “Direct marketing purposes” means the use of personal information for marketing or advertising products, goods, or services directly to individuals. “Direct marketing purposes” does not include the use of personal information (A) by bona fide tax exempt charitable or religious organizations to solicit charitable contributions or (B) to raise funds from and communicate with individuals regarding politics and government.

(2) “Medical information” means any individually identifiable information, in electronic or physical form, regarding the individual’s medical history, or medical treatment or diagnosis by a health care professional. “Individually identifiable” means that the medical information includes or contains any element of personal identifying information sufficient to allow identification of the individual, such as the individual’s name, address, electronic mail address, telephone number, or social security number, or other information that, alone or in combination with other publicly available information, reveals the individual’s identity. For purposes of this section, “medical information” does not mean a subscription to, purchase of, or request for a periodical, book, pamphlet, video, audio, or other multimedia product or nonprofit association information.

(3) “Clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks that call attention to the language.

(4) For purposes of this section, the collection of medical information online constitutes “in writing.” For purposes of this section, “written consent” includes consent obtained online.

(b) A business may not orally request medical information directly from an individual regardless of whether the information pertains to the individual or not, and use, share, or otherwise disclose that information for direct marketing purposes, without doing both of the following prior to obtaining that information:

(1) Orally disclosing to the individual in the same conversation during which the business seeks to obtain the information, that it is obtaining the information to market or advertise products, goods, or services to the individual.

(2) Obtaining the consent of either the individual to whom the information pertains or a person legally authorized to consent for the individual, to permit his or her medical information to be used or shared to market or advertise products, goods, or services to the individual, and making and maintaining for two years after the date of the conversation, an audio recording of the entire conversation.

(c) A business may not request in writing medical information directly from an individual regardless of whether the information pertains to the individual or not, and use, share, or otherwise disclose that information for direct marketing purposes, without doing both of the following prior to obtaining that information:

(1) Disclosing in a clear and conspicuous manner that it is obtaining the information to market or advertise products, goods, or services to the individual.

(2) Obtaining the written consent of either the individual to whom the information pertains or a person legally authorized to consent for the individual, to permit his or her medical information to be used or shared to market or advertise products, goods, or services to the individual.

(d) This section does not apply to a provider of health care, health care service plan, or contractor, as defined in Section 56.05.

(e) This section shall not apply to an insurance institution, agent, or support organization, as defined in Section 791.02 of the Insurance Code, when engaged in an insurance transaction, as defined in Section 791.02 of the Insurance Code, pursuant to all the requirements of Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1 of the Insurance Code, and the regulations promulgated thereunder.

(f) This section does not apply to a telephone corporation, as defined in Section 234 of the Public Utilities Code, when that corporation is engaged in providing telephone services and products pursuant to Sections 2881, 2881.1, and 2881.2 of the Public Utilities Code, if the corporation does not share or disclose medical information obtained as a consequence of complying with those sections of the Public Utilities Code, to third parties for direct marketing purposes.

(g) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 4.

Section 1798.91 is added to the Civil Code, to read:

1798.91. (a) For purposes of this title, the following definitions shall apply:(1) “Clear and conspicuous” means in larger type than the surrounding text, or in contrasting type, font, or color to the surrounding text of the same size, or set off from the surrounding text of the same size by symbols or other marks that call attention to the language.(2) “Direct marketing purposes” means the use of personal information for marketing or advertising products, goods, or services directly to individuals. “Direct marketing purposes” does not include the use of personal information (A) by bona fide tax-exempt charitable or religious organizations to solicit charitable contributions or (B) to raise funds from and communicate with individuals regarding politics and government.(3) “Medical information” means any individually identifiable information, in electronic or physical form, regarding the individual’s medical history, or medical treatment or diagnosis by a health care professional. “Individually identifiable” means that the medical information includes or contains any element of personal identifying information sufficient to allow identification of the individual, such as the individual’s name, address, email address, telephone number, or social security number, or other information that, alone or in combination with other publicly available information, reveals the individual’s identity. For purposes of this section, “medical information” does not mean a subscription to, purchase of, or request for a periodical, book, pamphlet, video, audio, or other multimedia product or nonprofit association information.(4) For purposes of this section, the collection of medical information online constitutes “in writing.” For purposes of this section, “written consent” includes consent obtained online.(b) A business may not orally request medical information directly from an individual regardless of whether the information pertains to the individual or not, and use, share, or otherwise disclose that information for direct marketing purposes, without doing both of the following prior to obtaining that information:(1) Orally disclosing to the individual in the same conversation during which the business seeks to obtain the information, that it is obtaining the information to market or advertise products, goods, or services to the individual.(2) Obtaining the consent of either the individual to whom the information pertains or a person legally authorized to consent for the individual, to permit his or her medical information to be used or shared to market or advertise products, goods, or services to the individual, and making and maintaining for two years after the date of the conversation, an audio recording of the entire conversation.(c) A business may not request in writing medical information directly from an individual regardless of whether the information pertains to the individual or not, and use, share, or otherwise disclose that information for direct marketing purposes, without doing both of the following prior to obtaining that information:(1) Disclosing in a clear and conspicuous manner that it is obtaining the information to market or advertise products, goods, or services to the individual.(2) Obtaining the written consent of either the individual to whom the information pertains or a person legally authorized to consent for the individual, to permit his or her medical information to be used or shared to market or advertise products, goods, or services to the individual.(d) This section does not apply to a provider of health care, health care service plan, or contractor, as defined in Section 56.05.(e) This section shall not apply to an insurance institution, agent, or support organization, as defined in Section 791.02 of the Insurance Code, when engaged in an insurance transaction, as defined in Section 791.02 of the Insurance Code, pursuant to all the requirements of Article 6.6 (commencing with Section 791) of Chapter 1 of Part 2 of Division 1 of the Insurance Code, and the regulations promulgated thereunder.(f) This section does not apply to a telephone corporation, as defined in Section 234 of the Public Utilities Code, when that corporation is engaged in providing telephone services and products pursuant to Sections 20171, 20172, and 20173 of the Public Utilities Code, if the corporation does not share or disclose medical information obtained as a consequence of complying with those sections of the Public Utilities Code, to third parties for direct marketing purposes. (g) This section shall become operative on July 1, 2028.

SEC. 5.

Section 6547.7 of the Government Code is amended to read:

6547.7.

(a) A joint powers entity created pursuant to this chapter may issue mortgage revenue bonds pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, revenue bonds for the deployment of broadband infrastructure by a public entity or nonprofit organization that are supported in whole or in part by funding granted pursuant to Section 281.2 of the Public Utilities Code, and industrial development bonds pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500)).

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 6.

Section 6547.7 is added to the Government Code, to read:

6547.7. (a) A joint powers entity created pursuant to this chapter may issue mortgage revenue bonds pursuant to Part 5 (commencing with Section 52000) of Division 31 of the Health and Safety Code, revenue bonds for the deployment of broadband infrastructure by a public entity or nonprofit organization that are supported in whole or in part by funding granted pursuant to Section 20131 of the Public Utilities Code, and industrial development bonds pursuant to the California Industrial Development Financing Act (Title 10 (commencing with Section 91500)).(b) This section shall become operative on July 1, 2028.

SEC. 7.

Section 8889.1 is added to the Government Code, to read:

8889.1. This chapter shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 8.

Section 11011.2 of the Government Code is amended to read:

11011.2.

(a) (1) Notwithstanding any other law, including, but not limited to, Sections 11011 and 14670, except as provided in this section, the Department of General Services may lease real property under the jurisdiction of a state agency, department, or district agricultural association, if the Director of General Services determines that the real property is of no immediate need to the state but may have some potential future use to the program needs of the agency, department, or district agricultural association.

(2) Except as provided in paragraph (4), the Director of General Services shall not lease any of the following real property pursuant to this section:

(A) Tax-deeded land or lands under the jurisdiction of the State Lands Commission.

(B) Land that has escheated to the state or that has been distributed to the state by court decree in estates of deceased persons.

(C) Lands under the jurisdiction of the State Coastal Conservancy or another state conservancy.

(D) Lands under the jurisdiction of the Department of Transportation or the California State University system, or land owned by the Regents of the University of California.

(E) Lands under the jurisdiction of the Department of Parks and Recreation.

(F) Lands under the jurisdiction of the Department of Fish and Wildlife.

(3) Except as provided in paragraph (4), a lease entered into pursuant to this section shall be set at the amount of the lease’s fair market value, as determined by the Director of General Services.

(4) Notwithstanding paragraphs (2) and (3), the Department of General Services may lease real property under the jurisdiction of a state agency, department, or district agricultural association, with the consent of that state agency, department, or district agricultural association in support of broadband infrastructure deployment to connect unserved or underserved locations in the state, at an amount less than fair market value, if the following conditions are met:

(A) For last-mile broadband infrastructure deployment projects, the Public Utilities Commission gives consent and makes a written finding of the public benefit for each lease entered that is below fair market value.

(B) For the state middle-mile broadband network authorized by Section 11549.52, the Department of Technology gives consent and makes a written finding of the public benefit for each lease entered that is below fair market value.

(C) The lease terms enable the state to recover all direct costs for the term of the lease.

(5) The Director of General Services may determine the length of term or a use of the lease, and specify any other terms and conditions that are determined to be in the best interest of the state.

(b) The Department of General Services may enter into a long-term lease of real property pursuant to this section that has outstanding lease revenue bonds and for which the real property cannot be disencumbered from the bonds, only if the issuer and trustee for the bonds approves the lease transaction, and this approval takes into consideration, among other things, that the proposed lease transaction does not breach a covenant or obligation of the issuer or trustee.

(c) (1) All issuer- and trustee-related costs for reviewing a proposed lease transaction pursuant to this section, and all other costs of the lease transaction related to the defeasance or other retirement of any bonds, including the cost of nationally recognized bond counsel, shall be paid from the proceeds of that lease.

(2) The Department of General Services shall be reimbursed for any reasonable costs or expenses incurred in conducting a transaction pursuant to this section.

(3) Notwithstanding subdivision (g) of Section 11011, unless necessary to maintain the operating reserve referenced in that subdivision, the Department of General Services shall deposit into the General Fund the net proceeds of a lease entered into pursuant to this section, after deducting the amount of the reimbursement of costs incurred pursuant to this section or the reimbursement of adjustments to the General Fund loan made pursuant to Section 8 of Chapter 20 of the 2009–10 Statutes of 2009 Fourth Extraordinary Session from the lease.

(d) The Department of General Services shall transmit a report to each house of the Legislature on or before June 30, 2011, and on or before June 30 each year thereafter, listing every new lease that is below fair market value or exceeds a period of five years entered into under the authority of this section and the following information regarding each listed lease:

(1) Lease payments.

(2) Length of the lease.

(3) Identification of the leasing parties.

(4) Identification of the leased property.

(5) For any lease to support broadband infrastructure deployment, a description of the related broadband infrastructure project to connect unserved or underserved locations in the state.

(6) Any other information the Director of General Services determines should be included in the report to adequately describe the material provisions of the lease.

(e) For purposes of this section, “unserved” and “underserved” locations shall be as specified on the state broadband map maintained by the Public Utilities Commission or in broadband infrastructure grant programs.

(f) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 9.

Section 11011.2 is added to the Government Code, to read:

11011.2. (a) (1) Notwithstanding any other law, including, but not limited to, Sections 11011 and 14670, except as provided in this section, the Department of General Services may lease real property under the jurisdiction of a state agency, department, or district agricultural association, if the Director of General Services determines that the real property is of no immediate need to the state but may have some potential future use to the program needs of the agency, department, or district agricultural association.(2) Except as provided in paragraph (4), the Director of General Services shall not lease any of the following real property pursuant to this section:(A) Tax-deeded land or lands under the jurisdiction of the State Lands Commission.(B) Land that has escheated to the state or that has been distributed to the state by court decree in estates of deceased persons.(C) Lands under the jurisdiction of the State Coastal Conservancy or another state conservancy.(D) Lands under the jurisdiction of the Department of Transportation or the California State University system, or land owned by the Regents of the University of California.(E) Lands under the jurisdiction of the Department of Parks and Recreation.(F) Lands under the jurisdiction of the Department of Fish and Wildlife.(3) Except as provided in paragraph (4), a lease entered into pursuant to this section shall be set at the amount of the lease’s fair market value, as determined by the Director of General Services.(4) Notwithstanding paragraphs (2) and (3), the Department of General Services may lease real property under the jurisdiction of a state agency, department, or district agricultural association, with the consent of that state agency, department, or district agricultural association in support of broadband infrastructure deployment to connect unserved or underserved locations in the state, at an amount less than fair market value, if the following conditions are met:(A) For last-mile broadband infrastructure deployment projects, the Office of Broadband and Digital Equity gives consent and makes a written finding of the public benefit for each lease entered that is below fair market value.(B) For the state middle-mile broadband network authorized by Section 20130 of the Public Utilities Code, the Office of Broadband and Digital Equity gives consent and makes a written finding of the public benefit for each lease entered that is below fair market value.(C) The lease terms enable the state to recover all direct costs for the term of the lease.(5) The Director of General Services may determine the length of term or a use of the lease, and specify any other terms and conditions that are determined to be in the best interest of the state.(b) The Department of General Services may enter into a long-term lease of real property pursuant to this section that has outstanding lease revenue bonds and for which the real property cannot be disencumbered from the bonds, only if the issuer and trustee for the bonds approves the lease transaction, and this approval takes into consideration, among other things, that the proposed lease transaction does not breach a covenant or obligation of the issuer or trustee.(c) (1) All issuer- and trustee-related costs for reviewing a proposed lease transaction pursuant to this section, and all other costs of the lease transaction related to the defeasance or other retirement of any bonds, including the cost of nationally recognized bond counsel, shall be paid from the proceeds of that lease.(2) The Department of General Services shall be reimbursed for any reasonable costs or expenses incurred in conducting a transaction pursuant to this section.(3) Notwithstanding subdivision (g) of Section 11011, unless necessary to maintain the operating reserve referenced in that subdivision, the Department of General Services shall deposit into the General Fund the net proceeds of a lease entered into pursuant to this section, after deducting the amount of the reimbursement of costs incurred pursuant to this section or the reimbursement of adjustments to the General Fund loan made pursuant to Section 8 of Chapter 20 of the Statutes of 2009 Fourth Extraordinary Session from the lease.(d) The Department of General Services shall transmit a report to each house of the Legislature on or before June 30, 2011, and on or before June 30 each year thereafter, listing every new lease that is below fair market value or exceeds a period of five years entered into under the authority of this section and the following information regarding each listed lease:(1) Lease payments.(2) Length of the lease.(3) Identification of the leasing parties.(4) Identification of the leased property.(5) For any lease to support broadband infrastructure deployment, a description of the related broadband infrastructure project to connect unserved or underserved locations in the state.(6) Any other information the Director of General Services determines should be included in the report to adequately describe the material provisions of the lease.(e) For purposes of this section, “unserved” and “underserved” locations shall be as specified on the state broadband map maintained by the Office of Broadband and Digital Equity or in broadband infrastructure grant programs.(f) This section shall become operative on July 1, 2028.

SEC. 10.

Section 11549.52 of the Government Code is amended to read:

11549.52.

(a) The office shall, consistent with Item 7502-062-8506 of the Budget Act of 2021, oversee the acquisition and management of contracts for the development and construction of a statewide open-access middle-mile broadband network, and for the maintenance and operation of the statewide open-access middle-mile broadband network to provide an opportunity for last-mile providers, anchor institutions, and tribal entities to connect to, and interconnect with other networks and other appropriate connections to, the statewide open-access middle-mile broadband network to facilitate high-speed broadband service.

(b)The office shall, with the third-party administrator, develop and construct a statewide open-access middle-mile broadband network that prioritizes last-mile connections to unserved and underserved areas and locations.

(1)In prioritizing last-mile connections, the office shall prioritize a geographically diverse group of network segments in rural and urban areas of the state to achieve the greatest reductions in the number of locations that are unserved and underserved by broadband internet access service that meets federal and state standards.

(2)In prioritizing stand-alone Department of Transportation construction projects from the Department of Technology’s Middle-Mile Broadband Network Initiative, the office shall prioritize network segments necessary for connection to last-mile projects with grant awards from one or more of the following programs, including, but not limited to:

(A)The Broadband Equity, Access, and Deployment Program.

(B)The California Advanced Services Fund program, as described in Section 281 of the Public Utilities Code.

(C)The Federal Funding Account program.

(c)The office and the third-party administrator shall work directly with last-mile project grant awardees to ensure that network segments, including prioritized stand-alone Department of Transportation construction projects, support last-mile connections.

(d)The office and the third-party administrator shall, to the extent feasible, minimize disruption due to excavations. This shall not be used as a basis to exclude or deprioritize a network segment.

(e)

(b) The office has the same authority granted to the department pursuant to paragraph (1) of subdivision (e) of Section 6611 of the Public Contract Code for purposes of implementing this section.

(c) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 11.

Section 53112 of the Government Code is amended to read:

53112.

(a) All systems shall be designed to meet the specific requirements of each community and public agency served by the system. Every system, whether basic or sophisticated, shall be designed to have the capability of using at least three of the methods specified in Sections 53103 to 53106, inclusive, in response to emergency calls. The Legislature finds and declares that the most critical aspect of the design of any system is the procedure established for handling a telephone request for emergency services.

(b) To maximize efficiency and use of the system, all pay telephones within each system shall enable a caller to dial “911” for emergency services, and to reach an operator by dialing “0,” without the necessity of inserting a coin. At those “911” public safety answering points serving an area where 5 percent or more of the population, in accordance with the latest United States census information, speak a specific primary language other than English, operators who speak that other language, in addition to English, shall be on duty or available through interagency telephone conference procedures at all times for “911” emergency services.

(c) Each system shall require installation of a telecommunications device capable of servicing the needs of the deaf or severely hard of hearing at the “911” public safety answering point or points. The device shall be compatible with devices furnished by telephone corporations pursuant to Section 2881 of the Public Utilities Code.

(d) By January 1, 2021, each public safety answering point shall deploy a text to 911 service that enables an individual to text “911” for emergency services that is capable of accepting Short Message Service (SMS) messages and Real-Time Text (RTT) messages.

(e) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 12.

Section 53112 is added to the Government Code, to read:

53112. (a) All systems shall be designed to meet the specific requirements of each community and public agency served by the system. Every system, whether basic or sophisticated, shall be designed to have the capability of using at least three of the methods specified in Sections 53103 to 53106, inclusive, in response to emergency calls. The Legislature finds and declares that the most critical aspect of the design of any system is the procedure established for handling a telephone request for emergency services.(b) To maximize efficiency and use of the system, all pay telephones within each system shall enable a caller to dial “911” for emergency services, and to reach an operator by dialing “0,” without the necessity of inserting a coin. At those “911” public safety answering points serving an area where 5 percent or more of the population, in accordance with the latest United States census information, speak a specific primary language other than English, operators who speak that other language, in addition to English, shall be on duty or available through interagency telephone conference procedures at all times for “911” emergency services.(c) Each system shall require installation of a telecommunications device capable of servicing the needs of the deaf or severely hard of hearing at the “911” public safety answering point or points. The device shall be compatible with devices furnished by telephone corporations pursuant to Section 20171 of the Public Utilities Code.(d) By January 1, 2021, each public safety answering point shall deploy a text to 911 service that enables an individual to text “911” for emergency services that is capable of accepting Short Message Service (SMS) messages and Real-Time Text (RTT) messages. (e) This section shall become operative on July 1, 2028.

SEC. 13.

Section 1524.7 of the Health and Safety Code is amended to read:

1524.7.

(a) The State Department of Social Services shall provide to residential care facilities a form, which the residential care facility shall attach to each resident admission agreement, notifying the resident that he or she is they are entitled to obtain services and equipment from the telephone company. The form shall include the following information:

“Any hearing or speech impaired, or otherwise disabled resident of any residential care facility is entitled to equipment and service by the telephone company, pursuant to Section 2881 of the Public Utilities Code, to improve the quality of their telecommunications. Any resident who has a declaration from a licensed professional or a state or federal agency pursuant to Section 2881 of the Public Utilities Code that he or she is hearing or speech impaired, or otherwise disabled should contact the local telephone company and ask for assistance in obtaining this equipment and service.”

This

(b) This section shall not be construed to does not require, in any way, the licensee to provide a separate telephone line for any resident.

(c) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 14.

Section 1524.7 is added to the Health and Safety Code, to read:

1524.7. (a) The State Department of Social Services shall provide to residential care facilities a form, which the residential care facility shall attach to each resident admission agreement, notifying the resident that they are entitled to obtain services and equipment from the telephone company. The form shall include the following information:“Any hearing or speech impaired, or otherwise disabled, resident of any residential care facility is entitled to equipment and service by the telephone company, pursuant to Section 20171 of the Public Utilities Code, to improve the quality of their telecommunications. Any resident who has a declaration from a licensed professional or a state or federal agency pursuant to Section 20171 of the Public Utilities Code that they are hearing or speech impaired, or otherwise disabled, should contact the local telephone company and ask for assistance in obtaining this equipment and service.”(b) This section does not require, in any way, the licensee to provide a separate telephone line for any resident. (c) This section shall become operative on July 1, 2028.

SEC. 15.

Section 1569.159 of the Health and Safety Code is amended to read:

1569.159.

(a) The State Department of Social Services shall provide to residential care facilities for the elderly a form, which the residential care facility for the elderly shall attach to each resident admission agreement, notifying the resident that he or she is they are entitled to obtain services and equipment from the telephone company. The form shall include the following information:

“Any hearing or speech impaired, or otherwise disabled disabled, resident of any residential care facility for the elderly is entitled to equipment and service by the telephone company, pursuant to Section 2881 of the Public Utilities Code, to improve the quality of their telecommunications. Any resident who has a declaration from a licensed professional, or a state or federal agency pursuant to Section 2881 of the Public Utilities Code, that he or she is hearing or speech impaired, or otherwise disabled disabled, should contact the local telephone company and ask for assistance in obtaining this equipment and service.”

This

(b) This section shall not be construed to does not require, in any way, the licensee to provide a separate telephone line for any resident.

(c) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 16.

Section 1569.159 is added to the Health and Safety Code, to read:

1569.159. (a) The State Department of Social Services shall provide to residential care facilities for the elderly a form, which the residential care facility for the elderly shall attach to each resident admission agreement, notifying the resident that they are entitled to obtain services and equipment from the telephone company. The form shall include the following information:“Any hearing or speech impaired, or otherwise disabled, resident of any residential care facility for the elderly is entitled to equipment and service by the telephone company, pursuant to Section 20171 of the Public Utilities Code, to improve the quality of their telecommunications. Any resident who has a declaration from a licensed professional, or a state or federal agency pursuant to Section 20171 of the Public Utilities Code, that they are hearing or speech impaired, or otherwise disabled should contact the local telephone company and ask for assistance in obtaining this equipment and service.”(b) This section does not require, in any way, the licensee to provide a separate telephone line for any resident. (c) This section shall become operative on July 1, 2028.

SEC. 17.

Section 1720 of the Labor Code is amended to read:

1720.

(a) As used in this chapter, “public works” means all of the following:

(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by a public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.

(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. “Public works” does not include the operation of the irrigation or drainage system of an irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.

(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of an officer or public body of the state, or of a political subdivision or district thereof, whether the political subdivision or district operates under a freeholder’s charter or not.

(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.

(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.

(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.

(7) (A) Infrastructure project grants from the California Advanced Services Fund pursuant to Section 281 of the Public Utilities Code.

(B) For purposes of this paragraph, the Public Utilities Commission is not the awarding body or the body awarding the contract, as defined in Section 1722.

(8) Tree removal work done in the execution of a project under paragraph (1).

(b) For purposes of this section, “paid for in whole or in part out of public funds” means all of the following:

(1) The payment of money or the equivalent of money by the state or political subdivision directly to or on behalf of the public works contractor, subcontractor, or developer.

(2) Performance of construction work by the state or political subdivision in execution of the project.

(3) Transfer by the state or political subdivision of an asset of value for less than fair market price.

(4) Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations that would normally be required in the execution of the contract, that are paid, reduced, charged at less than fair market value, waived, or forgiven by the state or political subdivision.

(5) Money loaned by the state or political subdivision that is to be repaid on a contingent basis.

(6) Credits that are applied by the state or political subdivision against repayment obligations to the state or political subdivision.

(c) Notwithstanding subdivision (b), all of the following apply:

(1) Private residential projects built on private property are not subject to this chapter unless the projects are built pursuant to an agreement with a state agency, a redevelopment agency, a successor agency to a redevelopment agency when acting in that capacity, or a local public housing authority.

(2) If the state or a political subdivision requires a private developer to perform construction, alteration, demolition, installation, or repair work on a public work of improvement as a condition of regulatory approval of an otherwise private development project, and the state or political subdivision contributes no more money, or the equivalent of money, to the overall project than is required to perform this public improvement work, and the state or political subdivision maintains no proprietary interest in the overall project, then only the public improvement work shall thereby become subject to this chapter.

(3) (A) If the state or a political subdivision reimburses a private developer for costs that would normally be borne by the public, or provides directly or indirectly a public subsidy to a private development project that is de minimis in the context of the project, an otherwise private development project shall not thereby become subject to this chapter.

(B) (i) For purposes of subparagraph (A), a public subsidy is de minimis if it is both less than six hundred thousand dollars ($600,000) and less than 2 percent of the total project cost.

(ii) Notwithstanding clause (i), for purposes of subparagraph (A), a public subsidy for a project that consists entirely of single-family dwellings is de minimis if it is less than 2 percent of the total project cost.

(iii) This subparagraph shall does not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2021.

(4) The construction or rehabilitation of affordable housing units for low- or moderate-income persons pursuant to paragraph (5) or (7) of subdivision (e) of Section 33334.2 of the Health and Safety Code that are paid for solely with moneys from the Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Health and Safety Code or that are paid for by a combination of private funds and funds available pursuant to Section 33334.2 or 33334.3 of the Health and Safety Code do not constitute a project that is paid for in whole or in part out of public funds.

(5) Unless otherwise required by a public funding program, the construction or rehabilitation of privately owned residential projects is not subject to this chapter if one or more of the following conditions are met:

(A) The project is a self-help housing project in which no fewer than 500 hours of construction work associated with the homes are to be performed by the home buyers.

(B) The project consists of rehabilitation or expansion work associated with a facility operated on a not-for-profit basis as temporary or transitional housing for homeless persons with a total project cost of less than twenty-five thousand dollars ($25,000).

(C) Assistance is provided to a household as either mortgage assistance, downpayment assistance, or for the rehabilitation of a single-family home.

(D) The project consists of new construction, expansion, or rehabilitation work associated with a facility developed by a nonprofit organization to be operated on a not-for-profit basis to provide emergency or transitional shelter and ancillary services and assistance to homeless adults and children. The nonprofit organization operating the project shall provide, at no profit, not less than 50 percent of the total project cost from nonpublic sources, excluding real property that is transferred or leased. Total project cost includes the value of donated labor, materials, and architectural and engineering services.

(E) The public participation in the project that would otherwise meet the criteria of subdivision (b) is public funding in the form of below-market interest rate loans for a project in which occupancy of at least 40 percent of the units is restricted for at least 20 years, by deed or regulatory agreement, to individuals or families earning no more than 80 percent of the area median income.

(d) Notwithstanding any provision of this section to the contrary, the following projects are not, solely by reason of this section, subject to this chapter:

(1) Qualified residential rental projects, as defined by Section 142(d) of the Internal Revenue Code, financed in whole or in part through the issuance of bonds that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.

(2) Single-family residential projects financed in whole or in part through the issuance of qualified mortgage revenue bonds or qualified veterans’ mortgage bonds, as defined by Section 143 of the Internal Revenue Code, or with mortgage credit certificates under a Qualified Mortgage Credit Certificate Program, as defined by Section 25 of the Internal Revenue Code, that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.

(3) Low-income housing projects that are allocated federal or state low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code, on or before December 31, 2003.

(e) Notwithstanding paragraph (1) of subdivision (a), construction, alteration, demolition, installation, or repair work on the electric transmission system located in California constitutes a public works project for the purposes of this chapter.

(f) If a statute, other than this section, or a regulation, other than a regulation adopted pursuant to this section, or an ordinance or a contract applies this chapter to a project, the exclusions set forth in subdivision (d) do not apply to that project.

(g) For purposes of this section, references to the Internal Revenue Code mean the Internal Revenue Code of 1986, as amended, and include the corresponding predecessor sections of the Internal Revenue Code of 1954, as amended.

(h) The amendments made to this section by either Chapter 938 of the Statutes of 2001 or the act adding this subdivision shall not be construed to preempt local ordinances requiring the payment of prevailing wages on housing projects.

(i) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 18.

Section 1720 is added to the Labor Code, to read:

1720. (a) As used in this chapter, “public works” means all of the following:(1) Construction, alteration, demolition, installation, or repair work done under contract and paid for in whole or in part out of public funds, except work done directly by a public utility company pursuant to order of the Public Utilities Commission or other public authority. For purposes of this paragraph, “construction” includes work performed during the design, site assessment, feasibility study, and other preconstruction phases of construction, including, but not limited to, inspection and land surveying work, regardless of whether any further construction work is conducted, and work performed during the postconstruction phases of construction, including, but not limited to, all cleanup work at the jobsite. For purposes of this paragraph, “installation” includes, but is not limited to, the assembly and disassembly of freestanding and affixed modular office systems.(2) Work done for irrigation, utility, reclamation, and improvement districts, and other districts of this type. “Public works” does not include the operation of the irrigation or drainage system of an irrigation or reclamation district, except as used in Section 1778 relating to retaining wages.(3) Street, sewer, or other improvement work done under the direction and supervision or by the authority of an officer or public body of the state, or of a political subdivision or district thereof, whether the political subdivision or district operates under a freeholder’s charter or not.(4) The laying of carpet done under a building lease-maintenance contract and paid for out of public funds.(5) The laying of carpet in a public building done under contract and paid for in whole or in part out of public funds.(6) Public transportation demonstration projects authorized pursuant to Section 143 of the Streets and Highways Code.(7) (A) Infrastructure project grants from the California Advanced Services Fund pursuant to Section 20150 of the Public Utilities Code.(B) For purposes of this paragraph, the Office of Broadband and Digital Equity is not the awarding body or the body awarding the contract, as defined in Section 1722.(8) Tree removal work done in the execution of a project under paragraph (1).(b) For purposes of this section, “paid for in whole or in part out of public funds” means all of the following:(1) The payment of money or the equivalent of money by the state or political subdivision directly to or on behalf of the public works contractor, subcontractor, or developer.(2) Performance of construction work by the state or political subdivision in execution of the project.(3) Transfer by the state or political subdivision of an asset of value for less than fair market price.(4) Fees, costs, rents, insurance or bond premiums, loans, interest rates, or other obligations that would normally be required in the execution of the contract, that are paid, reduced, charged at less than fair market value, waived, or forgiven by the state or political subdivision.(5) Money loaned by the state or political subdivision that is to be repaid on a contingent basis.(6) Credits that are applied by the state or political subdivision against repayment obligations to the state or political subdivision.(c) Notwithstanding subdivision (b), all of the following apply:(1) Private residential projects built on private property are not subject to this chapter unless the projects are built pursuant to an agreement with a state agency, a redevelopment agency, a successor agency to a redevelopment agency when acting in that capacity, or a local public housing authority.(2) If the state or a political subdivision requires a private developer to perform construction, alteration, demolition, installation, or repair work on a public work of improvement as a condition of regulatory approval of an otherwise private development project, and the state or political subdivision contributes no more money, or the equivalent of money, to the overall project than is required to perform this public improvement work, and the state or political subdivision maintains no proprietary interest in the overall project, then only the public improvement work shall thereby become subject to this chapter.(3) (A) If the state or a political subdivision reimburses a private developer for costs that would normally be borne by the public, or provides directly or indirectly a public subsidy to a private development project that is de minimis in the context of the project, an otherwise private development project shall not thereby become subject to this chapter.(B) (i) For purposes of subparagraph (A), a public subsidy is de minimis if it is both less than six hundred thousand dollars ($600,000) and less than 2 percent of the total project cost.(ii) Notwithstanding clause (i), for purposes of subparagraph (A), a public subsidy for a project that consists entirely of single-family dwellings is de minimis if it is less than 2 percent of the total project cost.(iii) This subparagraph does not apply to a project that was advertised for bid, or a contract that was awarded, before July 1, 2021.(4) The construction or rehabilitation of affordable housing units for low- or moderate-income persons pursuant to paragraph (5) or (7) of subdivision (e) of Section 33334.2 of the Health and Safety Code that are paid for solely with moneys from the Low and Moderate Income Housing Fund established pursuant to Section 33334.3 of the Health and Safety Code or that are paid for by a combination of private funds and funds available pursuant to Section 33334.2 or 33334.3 of the Health and Safety Code do not constitute a project that is paid for in whole or in part out of public funds.(5) Unless otherwise required by a public funding program, the construction or rehabilitation of privately owned residential projects is not subject to this chapter if one or more of the following conditions are met:(A) The project is a self-help housing project in which no fewer than 500 hours of construction work associated with the homes are to be performed by the home buyers.(B) The project consists of rehabilitation or expansion work associated with a facility operated on a not-for-profit basis as temporary or transitional housing for homeless persons with a total project cost of less than twenty-five thousand dollars ($25,000).(C) Assistance is provided to a household as either mortgage assistance, downpayment assistance, or for the rehabilitation of a single-family home.(D) The project consists of new construction, expansion, or rehabilitation work associated with a facility developed by a nonprofit organization to be operated on a not-for-profit basis to provide emergency or transitional shelter and ancillary services and assistance to homeless adults and children. The nonprofit organization operating the project shall provide, at no profit, not less than 50 percent of the total project cost from nonpublic sources, excluding real property that is transferred or leased. Total project cost includes the value of donated labor, materials, and architectural and engineering services.(E) The public participation in the project that would otherwise meet the criteria of subdivision (b) is public funding in the form of below-market interest rate loans for a project in which occupancy of at least 40 percent of the units is restricted for at least 20 years, by deed or regulatory agreement, to individuals or families earning no more than 80 percent of the area median income.(d) Notwithstanding any provision of this section to the contrary, the following projects are not, solely by reason of this section, subject to this chapter:(1) Qualified residential rental projects, as defined by Section 142(d) of the Internal Revenue Code, financed in whole or in part through the issuance of bonds that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.(2) Single-family residential projects financed in whole or in part through the issuance of qualified mortgage revenue bonds or qualified veterans’ mortgage bonds, as defined by Section 143 of the Internal Revenue Code, or with mortgage credit certificates under a Qualified Mortgage Credit Certificate Program, as defined by Section 25 of the Internal Revenue Code, that receive allocation of a portion of the state ceiling pursuant to Chapter 11.8 (commencing with Section 8869.80) of Division 1 of Title 2 of the Government Code on or before December 31, 2003.(3) Low-income housing projects that are allocated federal or state low-income housing tax credits pursuant to Section 42 of the Internal Revenue Code, Chapter 3.6 (commencing with Section 50199.4) of Part 1 of Division 31 of the Health and Safety Code, or Section 12206, 17058, or 23610.5 of the Revenue and Taxation Code, on or before December 31, 2003.(e) Notwithstanding paragraph (1) of subdivision (a), construction, alteration, demolition, installation, or repair work on the electric transmission system located in California constitutes a public works project for the purposes of this chapter.(f) If a statute, other than this section, or a regulation, other than a regulation adopted pursuant to this section, or an ordinance or a contract applies this chapter to a project, the exclusions set forth in subdivision (d) do not apply to that project.(g) For purposes of this section, references to the Internal Revenue Code mean the Internal Revenue Code of 1986, as amended, and include the corresponding predecessor sections of the Internal Revenue Code of 1954, as amended.(h) The amendments made to this section by either Chapter 938 of the Statutes of 2001 or the act adding this subdivision shall not be construed to preempt local ordinances requiring the payment of prevailing wages on housing projects. (i) This section shall become operative on July 1, 2028.

SEC. 19.

Section 429 of the Penal Code is amended to read:

429.

Any (a) A provider of telecommunications services in this state that intentionally fails to collect or remit, as may be required, the annual fee imposed pursuant to Section 431 of the Public Utilities Code, the universal telephone service surcharge imposed pursuant to Section 879 or 879.5 of the Public Utilities Code, the fee for filing an application for a certificate of public convenience and necessity as provided in Section 1904 of the Public Utilities Code, or the surcharge imposed pursuant to subdivision (g) of Section 2881 of the Public Utilities Code, whether imposed on the provider or measured by the provider’s service charges, is guilty of a misdemeanor.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 20.

Section 429 is added to the Penal Code, to read:

429. (a) A provider of telecommunications services in this state that intentionally fails to collect or remit, as may be required, the annual fee imposed pursuant to Section 431 of the Public Utilities Code, the universal telephone service surcharge imposed pursuant to Section 879 or 879.5 of the Public Utilities Code, the fee for filing an application for a certificate of public convenience and necessity as provided in Section 1904 of the Public Utilities Code, or the surcharge imposed pursuant to subdivision (g) of Section 20171 of the Public Utilities Code, whether imposed on the provider or measured by the provider’s service charges, is guilty of a misdemeanor. (b) This section shall become operative on July 1, 2028.

SECTION 1.SEC. 21.

Section 216 of the Public Utilities Code is amended to read:

216.

(a) (1) “Public utility” includes every common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, and heat corporation, where the service is performed for, or the commodity is delivered to, the public or any portion thereof.

(2) A provider of last resort, as defined in Section 387, that is providing service pursuant to Article 8.5 (commencing with Section 387) of Chapter 2.3 is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part regarding providing that service.

(3)A corporation that is providing telecommunications service as defined in Section 2892.1 is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part regarding providing that service.

(b) Whenever any common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation performs a service for, or delivers a commodity to, the public or a portion of the public for which any compensation or payment whatsoever is received, that common carrier, toll bridge corporation, pipeline corporation, gas corporation, electrical corporation, telephone corporation, telegraph corporation, water corporation, sewer system corporation, or heat corporation, is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part.

(c) When any person or corporation performs any service for, or delivers any commodity to, any person, private corporation, municipality, or other political subdivision of the state, that in turn either directly or indirectly, mediately or immediately, performs that service for, or delivers that commodity to, the public or a portion of the public, that person or corporation is a public utility subject to the jurisdiction, control, and regulation of the commission and the provisions of this part.

(d) Ownership or operation of a facility that employs cogeneration technology or produces energy from other than a conventional power source or the ownership or operation of a facility that employs landfill gas technology does not make a corporation or person a public utility within the meaning of this section solely because of the ownership or operation of that facility.

(e) A corporation or person engaged directly or indirectly in developing, producing, transmitting, distributing, delivering, or selling any form of heat derived from geothermal or solar resources or from cogeneration technology to any privately owned or publicly owned public utility, or to the public or a portion of the public, is not a public utility within the meaning of this section solely by reason of engaging in any of those activities.

(f) The ownership or operation of a facility that sells compressed natural gas or hydrogen at retail to the public for use only as a motor vehicle fuel, and the selling of compressed natural gas or hydrogen at retail from that facility to the public for use only as a motor vehicle fuel, does not make the corporation or person a public utility within the meaning of this section solely because of that ownership, operation, or sale.

(g) Ownership or operation of a facility that is an exempt wholesale generator, as defined in the Public Utility Holding Company Act of 2005 (42 U.S.C. Sec. 16451(6)), does not make a corporation or person a public utility within the meaning of this section, solely due to the ownership or operation of that facility.

(h) The ownership, control, operation, or management of an electric plant used for direct transactions or participation directly or indirectly in direct transactions, as permitted by subdivision (b) of Section 365, sales into a market established and operated by the Independent System Operator or any other wholesale electricity market, or the use or sale as permitted under subdivisions (b) to (d), inclusive, of Section 218, shall not make a corporation or person a public utility within the meaning of this section solely because of that ownership, participation, or sale.

(i) The ownership, control, operation, or management of a facility that supplies electricity to the public only for use to charge light duty plug-in electric vehicles does not make the corporation or person a public utility within the meaning of this section solely because of that ownership, control, operation, or management. For purposes of this subdivision, “light duty plug-in electric vehicles” includes light duty battery electric and plug-in hybrid electric vehicles. This subdivision does not affect the commission’s authority under Section 454 or 740.2 or any other applicable statute.

SEC. 2.SEC. 22.

Section 233 of the Public Utilities Code is amended to read:

233.

“Telephone line” includes all conduits, ducts, poles, wires, cables, instruments, and appliances, and all other real estate, fixtures, and personal property owned, controlled, operated, or managed in connection with or to facilitate voice communication by telephone, whether the communication is had with or without the use of transmission wires.

SEC. 23.

Section 270 of the Public Utilities Code is amended to read:

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 California Teleconnect Fund Administrative Committee Fund.

(6) The California Advanced Services Fund.

(b) Moneys in the funds are held in trust and may only be expended pursuant to this chapter or pursuant to Chapter 2 (commencing with Section 20130) of Division 8 and upon appropriation in the annual Budget Act or upon supplemental appropriation.

(c) The commission, commission or the Office of Broadband and Digital Equity, as appropriate, in administering the universal service program funds listed in subdivision (a), and in administering state participation in federal universal service programs, is encouraged, consistent with the state’s universal service policies and goals, to maximize the amount of federal funding to California participants in the federal programs.

(d) Moneys in each fund shall 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 and as provided in Section 282.

SEC. 24.

Section 270.1 of the Public Utilities Code is amended to read:

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 into 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 into 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 into the memorandum account for purposes of reimbursing the California High-Cost Fund-B Trust shall revert to the Controller for deposit in into 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.

(h) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 25.

Section 270.1 is added to the Public Utilities Code, to read:

270.1. (a) Notwithstanding any other 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) moneys sufficient to cover the costs of the programs as specified in subdivision (a) of Section 20170, including, but not limited to, all costs specified in subdivision (c) of Section 20170. 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 moneys to the DEAF Trust authorized pursuant to subdivision (a), with interest as determined by the commission.(c) A sum equivalent to the amount of moneys 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 into 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 into 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 into the memorandum account for purposes of reimbursing the California High-Cost Fund-B Trust shall revert to the Controller for deposit into 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. (h) This section shall become operative on July 1, 2028.

SEC. 26.

Section 278 of the Public Utilities Code is amended to read:

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 before July 1, 2003, to the Controller for deposit in into the Deaf and Disabled Telecommunications Program Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in into the fund. Those revenues that are collected pursuant to subdivision (g) of Section 2881 shall be accounted for separately, as required by subdivision (b) of Section 2881.2, and deposited in into 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.

(e) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 27.

Section 280 of the Public Utilities Code is amended to read:

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 into the California Teleconnect Fund Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited in into the fund.

(d) Except as provided in subdivisions (e) and (g), subdivision (e), 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.

(g)(1)Consistent with Decision 11-09-016 (September 8, 2011) Decision Granting Authority to Provide Emergency Access to 211 Services in Counties and Localities Without Existing 211 Centers and to Appoint a 211 Lead Entity, if it determines that doing so is an appropriate use of funds collected from ratepayers, the commission may expend up to one million five hundred thousand dollars ($1,500,000) from the California Teleconnect Fund Administrative Committee Fund for one-time costs to help close 2-1-1 service gaps in counties lacking access to disaster preparedness, response, and recovery information and referral services, where technically feasible, through available 2-1-1 service. As the lead agency appointed by the commission in Decision 11-09-016, 2-1-1 California may apply to the commission for use of the funds in the counties that lack 2-1-1 service. If the commission determines that doing so is an appropriate use of funds collected from ratepayers, these costs may include local implementation of a coordinated database that is owned by a city or county to provide referrals to help with nonemergency aspects of disaster planning, recovery, and response.

(2)This subdivision shall become inoperative on January 1, 2023.

(g) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 28.

Section 280.5 of the Public Utilities Code is amended to read:

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, January 1, 2004, 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, before January 1, 2004, 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.

(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.

(f) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 29.

Section 281 of the Public Utilities Code is amended to read:

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, consistent with this section and with the statements of intent in Section 2 of the Internet for All Now Act (Chapter 851 of the Statutes of 2017).

(b) (1) (A) The goal of the Broadband Infrastructure Grant Account is, no later than December 31, 2032, to approve funding for infrastructure projects that will provide broadband access to no less than 98 percent of California households in each consortia region, as identified by the commission. The commission shall be responsible for achieving the goals of the program.

(B) For purposes of the Broadband Infrastructure Grant Account, both of the following definitions apply:

(i) “Mbps” means megabits per second.

(ii) (I) Except as provided in subclause (II), “unserved area” means an area for which there is no facility-based broadband provider offering at least one tier of broadband service at speeds of at least 25 mbps downstream, 3 mbps upstream, and a latency that is sufficiently low to allow realtime real-time interactive applications, considering updated federal and state broadband mapping data.

(II) For projects funded, in whole or in part, from moneys received from the federal Rural Digital Opportunity Fund, “unserved area” means an area in which no facility-based broadband provider offers broadband service at speeds consistent with the standards established by the Federal Communications Commission pursuant to In the Matter of Rural Digital Opportunity Fund, WC Docket No. 19-126, Report and Order, FCC 20-5 (adopted January 30, 2020, and released February 7, 2020), or as it may be later modified by the Federal Communications Commission.

(2) In approving infrastructure projects funded through the Broadband Infrastructure Grant Account, the commission shall do both of the following:

(A) Approve projects that provide last-mile broadband access to households that are unserved by an existing facility-based broadband provider.

(B) (i) Prioritize projects in unserved areas where internet connectivity is available only at speeds at or below 10 mbps downstream and 1 mbps upstream or areas with no internet connectivity.

(ii) This subparagraph does not prohibit the commission from approving funding for projects outside of the areas specified in clause (i).

(3) Moneys appropriated for purposes of this section may be used to match or leverage federal moneys for communications infrastructure, digital equity, and adoption, including, but not limited to, moneys from the United States Department of Commerce Economic Development Administration, the United States Department of Agriculture ReConnect Loan and Grant Program, and the Federal Communications Commission for communications infrastructure, digital equity, and adoption.

(4) The commission shall transition California Advanced Services Fund program methodologies to provide service to serviceable locations and evaluate other program changes to align with other funding sources, including, but not limited to, funding locations.

(5) The commission shall maximize investments in new, robust, and scalable infrastructure and use California Advanced Services Fund moneys to leverage federal and non-California Advanced Services Fund moneys by undertaking activities, including, but not limited to, all of the following:

(A) Providing technical assistance to local governments and providers.

(B) Assisting in developing grant applications.

(C) Assisting in preparing definitive plans for deploying necessary infrastructure in each county, including coordination across contiguous counties.

(6) Moneys appropriated for purposes of this section may be used to fund projects that deploy broadband infrastructure to unserved nonresidential facilities used for local and state emergency response activities, including, but not limited to, fairgrounds.

(c) 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 Public Housing Account.

(4) The Broadband Adoption Account.

(5) The Federal Funding Account.

(d) (1) The commission shall transfer the moneys received by the commission from the surcharge the commission may impose pursuant to paragraph (4) to fund the accounts to the Controller for deposit into the California Advanced Services Fund.

(2) All interest earned on moneys in the fund shall be deposited into the fund.

(3) The commission may make recommendations to the Legislature regarding appropriations from the California Advanced Services Fund and the accounts established pursuant to subdivision (c).

(4) For the period described in Section 281.1, the commission may collect a sum not to exceed one hundred fifty million dollars ($150,000,000) per year.

(e) All moneys in the California Advanced Services Fund, including moneys in the accounts within the fund, shall be available, upon appropriation by the Legislature, to the commission for the California Advanced Services Fund 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.

(f) In administering the Broadband Infrastructure Grant Account, the commission shall do all of the following:

(1) The commission shall award grants from the Broadband Infrastructure Grant Account on a technology-neutral basis, taking into account the useful economic life of capital investments, and including both wireline and wireless technology.

(2) The commission shall consult with regional consortia, stakeholders, local governments, existing facility-based broadband providers, and consumers regarding unserved areas and cost-effective strategies to achieve the broadband access goal through public workshops conducted at least annually no later than April 30 of each year.

(3) The commission shall identify unserved rural and urban areas and delineate the areas in the annual report prepared pursuant to Section 914.7.

(4) An existing facility-based broadband provider may, but is not required to, apply for funding from the Broadband Infrastructure Grant Account to make an upgrade pursuant to this subdivision.

(5) Projects eligible for grant awards shall deploy infrastructure capable of providing broadband access at speeds of a minimum of 100 mbps downstream and 20 mbps upstream, or the most current broadband definition speed standard set by the Federal Communications Commission from time to time, as determined appropriate by the commission, whichever broadband access speed is greater, to unserved areas or unserved households.

(6) (A) An individual household or property owner shall be eligible to apply for a grant to offset the costs of connecting the household or property to an existing or proposed facility-based broadband provider. Any infrastructure built to connect a household or property with funds provided under this paragraph shall become the property of, and part of, the network of the facility-based broadband provider to which it is connected.

(B) (i) In approving a project pursuant to this paragraph, the commission shall consider limiting funding to households based on income so that funds are provided only to households that would not otherwise be able to afford a line extension to the property, limiting the amount of grants on a per-household basis, and requiring a percentage of the project to be paid by the household or the owner of the property.

(ii) The aggregate amount of grants awarded pursuant to this paragraph shall not exceed five million dollars ($5,000,000).

(7) An entity that is not a telephone corporation shall be eligible to apply to participate in the program administered by the commission pursuant to this section to provide access to broadband to an unserved area if the entity otherwise meets the eligibility requirements and complies with program requirements established by the commission.

(8) The commission shall provide each applicant, and any party challenging an application, the opportunity to demonstrate actual levels of broadband service in the project area, which the commission shall consider in reviewing the application.

(9) The commission shall establish a service list of interested parties to be notified of any California Advanced Services Fund applications. Any application and any amendment to an application for project funding shall be served to those on the service list and posted on the commission’s internet website at least 30 days before publishing the corresponding draft resolution.

(10) A grant awarded pursuant to this subdivision may include funding for the following costs consistent with paragraph (5):

(A) Costs directly related to the deployment of infrastructure.

(B) Costs to lease access to property or for internet backhaul services for a period not to exceed five years.

(C) Costs incurred by an existing facility-based broadband provider to upgrade its existing facilities to provide for interconnection.

(11) The commission may award grants to fund all or a portion of the project. The commission shall determine, on a case-by-case basis, the level of funding to be provided for a project and shall consider factors that include, but are not limited to, the location and accessibility of the area, the existence of communication facilities that may be upgraded to deploy broadband, and whether the project makes a significant contribution to achievement of the program goal.

(g) (1) Moneys in the Rural and Urban Regional Broadband Consortia Grant Account shall be available for grants to eligible consortia to facilitate deployment of broadband services by assisting infrastructure applicants in the project development or grant application process. An eligible consortium may include, as specified by the commission, representatives of organizations, including, but not limited to, local and regional government, public safety, elementary and secondary education, health care, libraries, postsecondary education, community-based organizations, tourism, parks and recreation, agricultural, business, workforce organizations, and air pollution control or air quality management districts, and is not required to have as its lead fiscal agent an entity with a certificate of public convenience and necessity.

(2) Each consortium shall conduct an annual audit of its expenditures for programs funded pursuant to this subdivision and shall submit to the commission an annual report that includes both of the following:

(A) A description of activities completed during the prior year, how each activity promotes the deployment of broadband services, and the cost associated with each activity.

(B) The number of project applications assisted.

(h) (1) All remaining moneys in the Broadband Infrastructure Revolving Loan Account that are unencumbered as of January 1, 2018, shall be transferred into the Broadband Infrastructure Grant Account.

(2) All repayments of loans funded by the former Broadband Infrastructure Revolving Loan Account shall be deposited into the Broadband Infrastructure Grant Account.

(i) (1) For purposes of this subdivision, “low-income community” includes, but is not limited to, publicly supported housing developments, and other housing developments or mobilehome parks with low-income residents, as determined by the commission.

(2) Moneys in the Broadband Public Housing Account shall be available for the commission to award grants and loans pursuant to this subdivision to a low-income community that otherwise meets eligibility requirements and complies with program requirements established by the commission.

(3) Moneys deposited into the Broadband Public Housing Account shall be available for grants and loans to low-income communities to finance projects to connect broadband networks that offer free broadband service that meets or exceeds state standards, as determined by the commission, for residents of the low-income communities. A low-income community may be an eligible applicant if the low-income community does not have access to any broadband service provider that offers free broadband service that meets or exceeds state standards, as determined by the commission, for the residents of the low-income community.

(4) To the extent feasible, the commission shall approve projects for funding from the Broadband Public Housing Account in a manner that reflects the statewide distribution of low-income communities.

(5) In reviewing a project application under this subdivision, the commission shall consider the availability of other funding sources for that project, any financial contribution from the broadband service provider to the project, the availability of any other public or private broadband adoption or deployment program, including tax credits and other incentives, and whether the applicant has sought funding from, or participated in, any reasonably available program. The commission may require an applicant to provide match funding, and shall not deny funding for a project solely because the applicant is receiving funding from another source.

(6) The commission shall prioritize grants pursuant to this subdivision to those existing publicly supported housing developments that have not yet received a grant pursuant to this subdivision and do not have access to free broadband internet service onsite.

(j) (1) Moneys in the Broadband Adoption Account shall be available to the commission to award grants to increase publicly available or after school broadband access and digital inclusion, such as grants for digital literacy training programs and public education to communities with limited broadband adoption, including low-income communities, senior communities, and communities facing socioeconomic barriers to broadband adoption.

(2) Eligible applicants are local governments, senior centers, schools, public libraries, nonprofit organizations, including nonprofit religious organizations, and community-based organizations with programs to increase publicly available or after school broadband access and digital inclusion, such as digital literacy training programs.

(3) Payment pursuant to a grant for digital inclusion shall be based on digital inclusion metrics established by the commission that may include the number of residents trained, the number of residents served, or the actual verification of broadband subscriptions resulting from the program funded by the grant.

(4) The commission shall give preference to programs in communities with demonstrated low broadband access, including low-income communities, senior communities, and communities facing socioeconomic barriers to broadband adoption. The commission shall determine how best to prioritize projects for funding pursuant to this paragraph.

(5) Moneys awarded pursuant to this subdivision shall not be used to subsidize the costs of providing broadband service to households.

(k) The commission shall post on the home page of the California Advanced Services Fund on its internet website a list of all pending applications, application challenge deadlines, and notices of amendments to pending applications.

(l) (1) The commission shall require each entity that receives funding or financing for a project pursuant to this section to report monthly to the commission, at minimum, all of the following information:

(A) The name and contractor’s license number of each licensed contractor and subcontractor undertaking a contract or subcontract in excess of twenty-five thousand dollars ($25,000) to perform work on a project funded or financed pursuant to this section.

(B) The location where a contractor or subcontractor described in subparagraph (A) will be performing that work.

(C) The anticipated dates when that work will be performed.

(2) The commission shall, on a monthly basis, post the information reported pursuant to this subdivision on the commission’s California Advanced Services Fund internet website.

(m) The commission shall notify the appropriate policy committees of the Legislature on the date on which the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) is achieved.

(n) (1) Upon the deposit of state or federal infrastructure moneys into the Federal Funding Account, the commission shall implement a program using those moneys to expeditiously connect unserved and underserved communities by applicable federal deadlines.

(2) Projects funded pursuant to this subdivision shall be implemented consistent with Part 35 of Title 31 of the Code of Federal Regulations and any conditions or guidelines applicable to these one-time federal infrastructure moneys.

(3) Of the two billion dollars ($2,000,000,000) appropriated to the commission to fund last-mile broadband infrastructure in the Budget Act of 2021, the commission shall allocate those moneys to applicants for the construction of last-mile broadband infrastructure as follows:

(A) The commission shall initially allocate one billion dollars ($1,000,000,000) for last-mile broadband projects in urban counties as follows:

(i) The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each urban county.

(ii) The commission shall allocate the remaining moneys based on each urban county’s proportionate share of the California households without access to broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering, Monitoring and Reporting on the Market.

(B) The commission shall allocate at least one billion dollars ($1,000,000,000) for last-mile broadband projects in rural counties as follows:

(i) The commission shall first allocate five million dollars ($5,000,000) for last-mile broadband projects in each rural county.

(ii) The commission shall allocate the remaining moneys based on each rural county’s proportionate share of the California households without broadband internet access service with at least 100 megabits per second download speeds, as identified and validated by the commission pursuant to the most recent broadband data collection, as of July 1, 2021, as ordered in commission Decision 16-12-025 (December 1, 2016), Decision Analyzing the California Telecommunications Market and Directing Staff to Continue Data Gathering, Monitoring and Reporting on the Market.

(4) Until September 30, 2024, applicants may apply for and encumber moneys allocated pursuant to this subdivision for last-mile broadband projects. Any moneys allocated pursuant to this subdivision that are not encumbered on or before September 30, 2024, shall be made available to the commission to allocate for the construction of last-mile broadband infrastructure anywhere in the state.

(o) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 30.

Section 281.1 of the Public Utilities Code is amended to read:

281.1.

(a) Beginning January 1, 2022, the commission may impose the surcharge pursuant to paragraph (4) of subdivision (d) of Section 281 to fund the California Advanced Services Fund pursuant to Section 281 until December 31, 2032.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 31.

Section 281.1 is added to the Public Utilities Code, to read:

281.1. (a) Beginning January 1, 2022, the commission may impose the surcharge pursuant to paragraph (4) of subdivision (d) of Section 20150 to fund the California Advanced Services Fund pursuant to Section 20150 until December 31, 2032. (b) This section shall become operative on July 1, 2028.

SEC. 32.

Section 281.2 of the Public Utilities Code is amended to read:

281.2.

(a) (1) The Broadband Loan Loss Reserve Fund is hereby established in the State Treasury. Notwithstanding Section 13340 of the Government Code, moneys in the fund are hereby continuously appropriated, without regard to fiscal years, to the commission and shall be available to fund costs related to the financing of the deployment of broadband infrastructure by a local government governmental agency or nonprofit organization, including, but not limited to, payment of costs of debt issuance, obtaining credit enhancement, and establishment and funding of reserves for the payment of principal and interest on the debt.

(2) In the 2021–22 fiscal year, the commission may make cashflow loans to the Broadband Loan Loss Reserve Fund from accounts established pursuant to subdivision (c) of Section 281.

(b) The commission may establish, among other things, eligibility requirements, financing terms and conditions, and allocation criteria, for infrastructure projects deployed using financing supported in whole or in part by funds allocated pursuant to this section.

(c) The commission may require a local government governmental agency or nonprofit organization to provide information demonstrating the agency’s or nonprofit organization’s ability to reasonably finance and implement the infrastructure project deployed using financing supported in whole or in part by funds allocated pursuant to this section.

(d) The commission shall require each local government governmental agency or nonprofit organization receiving funds under this section to file both of the following reports in the form and manner specified by the commission:

(1) Biannual progress reports identifying project milestones and percent completions to date, and including other information as the commission may prescribe.

(2) A completion report, including a full description of the completed project, comparison of approved versus actual costs of construction, speed test data for all areas served by the project, and other information as the commission may prescribe.

(e) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 33.

Section 281.6 of the Public Utilities Code is amended to read:

281.6.

(a) The commission, in collaboration with relevant state agencies and stakeholders, shall maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state, including, but not limited to, information identifying the percentage of each census block that has broadband service meeting federal and state standards. The map shall identify, for each address in the state, each provider of broadband services that offers service at the address and the maximum speed of broadband services offered by each provider of broadband services at the address.

(b) The map required pursuant to subdivision (a) shall also include all of the following features to receive self-reported data:

(1) A feature for users to disclose how much they pay for stand-alone or bundled broadband service.

(2) A feature for users to identify the internet service provider to which they subscribe for broadband service.

(3) A feature for users to disclose the maximum speed for broadband service to which they subscribe.

(4) A feature that allows individuals to refute the broadband speed or technology, or both, that an internet service provider claims to offer at an address.

(5) A feature that allows individuals to identify barriers to broadband access.

(c) The features and self-reported data required pursuant to subdivisions (b) and (h) shall be made publicly available and expressed at the address for which the data was submitted. The commission shall obtain consent from an individual before publicly disclosing information that the individual submits pursuant to subdivision (b) or (h).

(d) The commission may collect from providers of broadband services information necessary to establish and update the map required pursuant to this section.

(e) The commission shall also create a notification feature on the map for individuals. Using this feature, an individual may sign up to be notified when updates are made to the map.

(f) The commission may collect information from providers of broadband services at the address level.

(g) The commission shall not, pursuant to subdivision (a), (d), or (e), disclose residential subscriber information protected by Section 2891.

(h) The map required pursuant to subdivision (a) shall include a feature for users to submit a verified speed test at their location.

(i) The commission shall not accept information collected by the commission pursuant to subdivisions (b) and (c) as evidence in a commission proceeding unless the commission validates the accuracy of the self-reported information.

(j) For purposes of this section, both of the following definitions apply:

(1) “Broadband” has the same meaning as defined in Section 5830.

(2) “Verified speed test” means a broadband speed performance test result that was measured and verified using a reputable application specified by the commission for that purpose.

(k) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 34.

Section 285 of the Public Utilities Code is amended to read:

285.

(a) As used in this section, “interconnected Voice over Internet Protocol (VoIP) service” has the same meaning as in Section 9.3 of Title 47 of the Code of Federal Regulations.

(b) The Legislature finds and declares that the sole purpose of this section is to require the commission to impose the surcharges pursuant to this section to ensure that end-use customers of interconnected VoIP service providers contribute to the funds enumerated in this section, and, therefore, this section does not indicate the intent of the Legislature with respect to any other purpose.

(c) The commission shall require interconnected VoIP service providers to collect and remit surcharges on their California intrastate revenues in support of the following public purpose program funds:

(1) California High-Cost Fund-A Administrative Committee Fund under Section 275.

(2) California High-Cost Fund-B Administrative Committee Fund under Section 276.

(3) Universal Lifeline Telephone Service Trust Administrative Committee Fund under Section 277.

(4) Deaf and Disabled Telecommunications Program Administrative Committee Fund under Section 278.

(5) California Teleconnect Fund Administrative Committee Fund under Section 280.

(6) California Advanced Services Fund under Section 281.

(d) The authority to impose a surcharge pursuant to this section applies only to a surcharge imposed on end-use customers for interconnected VoIP service provided to an end-use customer’s place of primary use that is located within California. As used in this subdivision, “place of primary use” means the street address where the end-use customer’s use of interconnected VoIP service primarily occurs, or a reasonable proxy as determined by the interconnected VoIP service provider, such as the customer’s registered location for 911 purposes.

(e) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 35.

Section 285 is added to the Public Utilities Code, to read:

285. (a) As used in this section, “interconnected Voice over Internet Protocol (VoIP) service” has the same meaning as in Section 9.3 of Title 47 of the Code of Federal Regulations.(b) The Legislature finds and declares that the sole purpose of this section is to require the commission to impose the surcharges pursuant to this section to ensure that end-use customers of interconnected VoIP service providers contribute to the funds enumerated in this section, and, therefore, this section does not indicate the intent of the Legislature with respect to any other purpose.(c) The commission shall require interconnected VoIP service providers to collect and remit surcharges on their California intrastate revenues in support of the following public purpose program funds:(1) California High-Cost Fund-A Administrative Committee Fund under Section 275.(2) California High-Cost Fund-B Administrative Committee Fund under Section 276.(3) Universal Lifeline Telephone Service Trust Administrative Committee Fund under Section 277.(4) Deaf and Disabled Telecommunications Program Administrative Committee Fund under Section 20170.(5) California Teleconnect Fund Administrative Committee Fund under Section 20140.(6) California Advanced Services Fund under Section 20150.(d) The authority to impose a surcharge pursuant to this section applies only to a surcharge imposed on end-use customers for interconnected VoIP service provided to an end-use customer’s place of primary use that is located within California. As used in this subdivision, “place of primary use” means the street address where the end-use customer’s use of interconnected VoIP service primarily occurs, or a reasonable proxy as determined by the interconnected VoIP service provider, such as the customer’s registered location for 911 purposes. (e) This section shall become operative on July 1, 2028.

SEC. 3.SEC. 36.

Section 301 of the Public Utilities Code is amended to read:

301.

(a) The membership of the Public Utilities Commission, and the qualifications and tenure of the members of the commission are as provided in Section 1 of Article XII of the Constitution of this state.

(b) In appointing members of the Public Utilities Commission, the Governor shall ensure a diverse composition of commissioners by considering factors that contribute to diversity, including, but not limited to, all of the following:

(1) Geographic diversity, including rural and urban residents.

(2) Gender.

(3) Professional experience in energy, telecommunications, and transportation.

(4) Community and labor activism.

SEC. 37.

Section 710 is added to the Public Utilities Code, to read:

710. (a) (1) For purposes of this section, “broadband internet access service” means a mass market retail service by wire or radio provided to customers in California that provides the capability to transmit data to, and receive data from, all or substantially all internet endpoints, including capabilities that are incidental to and enable the operation of the communication service.(2) “Broadband internet access service” does not include dial-up internet access service.(b) A provider of broadband internet access service, with respect to the provision of that service, is not a public utility within the meaning of this division or the California Constitution.(c) Except as provided in subdivision (d), the commission shall not regulate the rates, terms, conditions, characteristics, entry, or exit of broadband internet access service.(d) Subdivisions (c) does not apply to any of the following:(1) Authority over broadband internet access service expressly granted or delegated to the commission by federal or state law. The commission shall not interpret or exercise that authority beyond the scope of the express grant or delegation by federal or state law.(2) (A) The administration of, or the establishment of conditions and terms for grants or for participation in, funding programs under any of the following:(i) The grants and programs funded by the Broadband Equity, Access, and Deployment Program established pursuant to the federal Infrastructure Investment and Jobs Act (Public Law 117-58), to the extent required by federal law.(ii) The California Teleconnect Fund Administrative Committee Fund.(iii) The California Advanced Services Fund.(B) Clauses (ii) and (iii) of subparagraph (A) shall become inoperative on July 1, 2028.(e) This section does not prohibit the commission from informally providing information to consumers about available options under state or federal law for addressing issues with their broadband internet access service if the provision of that information does not impose, except as authorized by this section, obligations on providers of broadband internet access service or affect the rates, terms, conditions, characteristics, entry, or exit of broadband internet access service.(f) This section does not restrict, limit, or affect the commission’s authority over services that are not broadband internet access services under this code or any other law.

SEC. 38.

Section 912.2 of the Public Utilities Code is amended to read:

912.2.

(a) On or before April 1, 2023, and biennially thereafter, the commission shall conduct a fiscal and 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 pursuant to Section 281 or 281.2 and shall report its findings to the Legislature. The reports shall 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 Section 281 or 281.2 and shall include information specified in Section 914.7.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 39.

Section 914.6 of the Public Utilities Code is amended to read:

914.6.

(a) The commission shall report to the Legislature and the Governor annually on the effectiveness of the program administered pursuant to subdivision (c) of Section 280.5.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 40.

Section 914.7 of the Public Utilities Code is amended to read:

914.7.

(a) By April 1, 2019, and by April 1 of each year thereafter, the commission shall provide to the Legislature either a report or the biennial fiscal and performance audit conducted pursuant to Section 912.2 that includes all of the following information:

(a)

(1) The remaining unserved areas in the state.

(b)

(2) The amount of funds expended from the California Advanced Services Fund in the prior year.

(c)

(3) The recipients of funds expended from the California Advanced Services Fund in the prior year.

(d)

(4) The geographic regions of the state affected by funds expended from the California Advanced Services Fund in the prior year, including information by county.

(e)

(5) The expected benefits to be derived from the funds expended from the California Advanced Services Fund in the prior year.

(f)

(6) Details on the status of each project funded through the California Advanced Services Fund and whether the project has been completed or the expected completion date of the project.

(g)

(7) Actual broadband adoption levels from funds expended from the California Advanced Services Fund in the prior year.

(h)

(8) The cost per household for each project.

(i)

(9) The number of formerly unserved households subscribing to broadband service in areas covered by projects funded by the California Advanced Services Fund.

(j)

(10) The number of subscriptions resulting from the broadband adoption program funded by the California Advanced Services Fund.

(k)

(11) An update on the expenditures from the California Advanced Services Fund, broadband adoption levels, the progress in achieving the goals of the program, and an accounting of the remaining unserved households in each region of the state as of December 31 of the immediately preceding year.

(l)

(12) The amount of funds expended from the California Advanced Services Fund to match federal funds.

(m)

(13) Additional details on efforts to leverage non-California Advanced Services Fund moneys.

(n)

(14) The status of the California Advanced Services Fund balance and the projected amount to be collected in each year to fund approved projects.

(b) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 4.SEC. 41.

Section 1700 is added to the Public Utilities Code, immediately preceding Section 1701, to read:

1700.

(a) Subject to statute and due process, the commission may establish its own procedures. A commissioner as designated by the commission may hold a hearing or investigation or issue an order subject to commission approval.

(b) This section shall only become operative if Assembly Constitutional Amendment 9 of the 2025–26 Regular Session is approved by the voters, becomes operative, and repeals Section 2 of Article XII of the California Constitution.

SEC. 5.

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.

SEC. 42.

Section 2881 of the Public Utilities Code is amended to read:

2881.

(a) The commission shall design and implement a program to provide a telecommunications device capable of serving the needs of individuals who are deaf or hard of hearing, together with a single party line, at no charge additional to the basic exchange rate, to a subscriber who is certified as an individual who is deaf or hard of hearing by a licensed physician and surgeon, audiologist, or a qualified state or federal agency, as determined by the commission, and to a subscriber that is an organization representing individuals who are deaf or hard of hearing, as determined and specified by the commission pursuant to subdivision (h). A licensed hearing aid dispenser may certify the need of an individual to participate in the program if that individual has been previously fitted with an amplified device by the dispenser and the dispenser has the individual’s hearing records on file before certification. In addition, a physician assistant or nurse practitioner may certify the needs of an individual who has been diagnosed by a physician and surgeon as being deaf or hard of hearing to participate in the program after reviewing the medical records or copies of the medical records containing that diagnosis.

(b) The commission shall also design and implement a program to provide a dual-party relay system, using third-party intervention to connect individuals who are deaf or hard of hearing and offices of organizations representing individuals who are deaf or hard of hearing, as determined and specified by the commission pursuant to subdivision (h), with persons of normal hearing by way of intercommunications devices for individuals who are deaf or hard of hearing and the telephone system, making available reasonable access of all phases of public telephone service to telephone subscribers who are deaf or hard of hearing. In order to make a dual-party relay system that will meet the requirements of individuals who are deaf or hard of hearing available at a reasonable cost, the commission shall initiate an investigation, conduct public hearings to determine the most cost-effective method of providing dual-party relay service to the deaf or hard of hearing when using a telecommunications device, and solicit the advice, counsel, and physical assistance of statewide nonprofit consumer organizations of the deaf, during the development and implementation of the system. The commission shall apply for certification of this program under rules adopted by the Federal Communications Commission pursuant to Section 401 of the federal Americans with Disabilities Act of 1990 (Public Law 101-336).

(c) The commission shall also design and implement a program whereby specialized or supplemental telephone communications equipment may be provided to subscribers who are certified to be disabled at no charge additional to the basic exchange rate. The certification, including a statement of visual or medical need for specialized telecommunications equipment, shall be provided by a licensed optometrist, physician and surgeon, physician assistant, or nurse practitioner, acting within the scope of practice of the applicable license, or by a qualified state or federal agency as determined by the commission. The commission shall, in this connection, study the feasibility of, and implement, if determined to be feasible, personal income criteria, in addition to the certification of disability, for determining a subscriber’s eligibility under this subdivision.

(d) (1) The commission shall also design and implement a program to provide access to a speech-generating device to any subscriber who is certified as having a speech disability at no charge additional to the basic exchange rate. The certification shall be provided by a licensed physician, licensed speech-language pathologist, nurse practitioner, or qualified state or federal agency. The commission shall provide to a certified subscriber access to a speech-generating device that is all of the following:

(A) A telecommunications device or a device that includes a telecommunications component.

(B) Appropriate to meet the subscriber’s needs for access to, and use of, the telephone network, based on the recommendation of a licensed speech-language pathologist.

(C) Consistent with the quality of speech-generating devices available for purchase in the state.

(2) The commission shall adopt rules to implement this subdivision and subdivision (e) by January 1, 2014.

(e) All of the following apply to any device or equipment described in this section that is classified as durable medical equipment under guidelines established by the United States Department of Health and Human Services:

(1) It is the intent of the Legislature that the commission be the provider of last resort and that eligible subscribers first obtain coverage from any available public or private insurance.

(2) The commission may require the subscriber to provide information about coverage for any or all of the cost of the device or equipment that is available from a public or private insurance, the cost to the subscriber of a deductible, copayment, or other relevant expense, and any related benefit cap information.

(3) The total cost of a device or equipment provided to a subscriber under this section shall not exceed the rate of reimbursement provided by Medi-Cal for that device or equipment.

(f) This section does not require the commission to provide training to a subscriber on the use of a speech-generating device.

(g) (1) The commission shall administer a surcharge to collect revenues, subject to an annual appropriation of moneys by the Legislature, to allow providers of the equipment and service specified in subdivisions (a) to (d), inclusive, to recover costs as they are incurred under this section. The surcharge shall be in effect until December 31, 2034. The commission shall require that the programs implemented under this section be identified on subscribers’ bills, and shall transfer moneys collected by the commission from the surcharge to the Controller for deposit into the Deaf and Disabled Telecommunications Program Administrative Committee Fund.

(2) The commission may collect a sum not to exceed one hundred million dollars ($100,000,000) per year by imposing the surcharge pursuant to paragraph (1).

(h) The commission shall determine and specify those statewide organizations representing the deaf or hard of hearing that shall receive a telecommunications device pursuant to subdivision (a), or a dual-party relay system pursuant to subdivision (b), or both, and in which offices the equipment shall be installed in the case of an organization having more than one office.

(i) The commission may direct a telephone corporation subject to its jurisdiction to comply with its determinations and specifications pursuant to this section.

(j) The commission may make recommendations to the Legislature regarding appropriations from the Deaf and Disabled Telecommunications Program Administrative Committee Fund.

(k) In order to continue to meet the access needs of individuals with functional limitations of hearing, vision, movement, manipulation, speech, and interpretation of information, the commission shall perform an ongoing assessment of, and if appropriate, expand the scope of, the program to allow for additional access capability consistent with evolving telecommunications technology.

(l) The commission shall structure the programs required by this section so that a 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.

(m) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 43.

Section 2881.1 of the Public Utilities Code is amended to read:

2881.1.

(a) In addition to the requirements of Section 2881, the commission shall design and implement a program to provide a telecommunications device capable of servicing the needs of the deaf or severely hard of hearing, together with a single party line, at no charge additional to the basic exchange rate, to any subscriber that is an agency of state government and that the commission determines serves a significant portion of the deaf or severely hard-of-hearing population, and to an office located in the State Capitol and selected by the Joint Rules Committee, for purposes of access by the deaf or severely hard of hearing to Members of the Legislature.

(b) The commission shall permit providers of equipment and service specified in subdivision (a) to recover costs as they are incurred under this section pursuant to subdivision (g) of Section 2881.

(c) The commission may direct any telephone corporation subject to its jurisdiction to comply with its determinations pursuant to this section.

(d) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 44.

Section 2881.2 of the Public Utilities Code is amended to read:

2881.2.

(a) In addition to the requirements of Section 2881, the commission shall design and implement a program that shall provide for publicly available telecommunications devices capable of servicing the needs of the deaf or hard of hearing in existing buildings, structures, facilities, and public accommodations of the type specified in Section 4450 of the Government Code and Sections 19955.5 and 19956 of the Health and Safety Code, making available reasonable access of all phases of public telephone service to individuals who are deaf or hard of hearing. The commission shall direct the appropriate committee under its control to determine and specify locations within existing buildings, structures, facilities, and public accommodations in need of a telecommunications device and to contract for the procurement, installation, and maintenance of these devices. In the letting of the contract, the commission shall direct the committee to ensure consideration of for-profit and nonprofit corporations, including nonprofit corporations with demonstrated service to individuals who are deaf or hard of hearing and whose boards of directors and staff are made up of a majority of those individuals. The commission shall also direct the committee to seek the cooperation of the owners, managers, and tenants of the existing buildings, structures, facilities, and public accommodations that have been determined to be in need of a telecommunications device with regard to its installation and maintenance. The commission shall phase in this program over a reasonable period of time, beginning no later than January 1, 1998, giving priority to those existing buildings, structures, facilities, and public accommodations determined by the commission, with the advice and counsel of statewide nonprofit consumer organizations for the deaf, to be of most importance and usefulness to the deaf or hard of hearing.

(b) The commission shall ensure that costs are recovered as they are incurred under this section, including any costs incurred by the owners, managers, or tenants of existing buildings, structures, facilities, and public accommodations, and shall use for this purpose the rate recovery mechanism established pursuant to subdivision (g) of Section 2881. The commission shall also establish a fund and require separate accounting for the program implemented under this section and, in addition, shall require that the surcharge used to fund the program not exceed two-hundredths of 1 percent, that it be combined with the surcharge required by subdivision (g) of Section 2881, and that it count toward the limits set by that subdivision. This surcharge shall be in effect until January 1, 2006.

(c) “Existing buildings, structures, facilities, and public accommodations,” for purposes of this section, means those buildings, structures, facilities, and public accommodations or parts thereof that were constructed or altered before January 26, 1993, or are otherwise not required by Section 303 of the federal Americans with Disabilities Act of 1990 (P.L. 101-336; 42 U.S.C. Sec. 12183) or any other section of that act and its implementing regulations and guidelines, to have a publicly available telecommunications device capable of serving the needs of the deaf or hard of hearing.

(d) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 45.

Section 2881.4 of the Public Utilities Code is amended to read:

2881.4.

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

(1) Section 278 requires the commission to transfer to the Controller for deposit in the Deaf and Disabled Telecommunications Program Administrative Committee Fund all revenues collected by telephone corporations to fund programs to provide specified telecommunications services and equipment to deaf, disabled, and hard-of-hearing persons, as specified in Sections 2881, 2881.1, and 2881.2.

(2) The commission issued a report to the Legislature in May 2001, addressing compliance issues pertaining to the programs specified in Sections 2881, 2881.1, and 2881.2, including a recommendation to secure legislative authorization for the commission to contract with outside entities for the provision of services and equipment mandated by Sections 2881, 2881.1, and 2881.2.

(3) The telecommunications services and equipment provided to deaf, disabled, and hard-of-hearing individuals and their families, as specified in Sections 2881, 2881.1, and 2881.2, are of such a highly specialized and technical nature that the necessary expert knowledge, ability, and experience are not available within the current state civil service system.

(4) It is the intent of the Legislature, in enacting this section, to do all of the following:

(A) Maintain the availability of the state’s current statewide infrastructure of telecommunications services and equipment to deaf, disabled, and hard-of-hearing persons, as provided for in Sections 2881, 2881.1, and 2881.2, as essential to maintaining public health and safety.

(B) Authorize the commission to enter into contracts for the provision of telecommunications services and equipment for deaf, disabled, and hard-of-hearing persons in a manner that protects and enhances the current statewide infrastructure and coordinated delivery of those services and equipment and includes a priority for maintaining long-term continuity of program administration and maximum involvement of the deaf and disabled community in program governance.

(C) Strengthen program priorities for expanded outreach through continuing consultation with, and participation by, the deaf, disabled, and hard-of-hearing community in order to ensure the state’s network of services reach hard-to-serve populations, including rural, inner-city, and urban areas.

(D) Develop a mechanism to achieve cost-effective and timely deployment of new and emerging telecommunications technologies, to the extent fiscally and economically feasible.

(b) In order for the commission to ensure continued provision of telecommunications services and equipment for deaf, disabled, and hard-of-hearing persons, the commission, subject to annual appropriation of funds by the Legislature and consistent with state contracting requirements, may contract with entities, including nonprofit entities, or persons that have the necessary expert knowledge, ability, and experience to provide, manage, or operate the programs described in Sections 2881, 2881.1, and 2881.2.

(c) The commission may enter into contracts pursuant to subdivision (b) of Section 19130 of the Government Code for the services and equipment contemplated by the programs described in Sections 2881, 2881.1, and 2881.2.

(d) The commission may include provisions that accomplish any of the following in contracts authorized by this section:

(1) Establish standards and procedures, including prior commission approval, for subcontracting.

(2) Establish standards and procedures regarding personnel and accounting practices.

(3) Require budget approval.

(4) Require periodic audits.

(5) Monitor performance and establish performance standards and the method of evaluating performance, including remedies for unsatisfactory performance.

(6) Establish standards and procedures to investigate and resolve complaints.

(7) Provide for any other terms or restrictions as the commission finds necessary to ensure that the public funds are used in accordance with the goals of the Legislature and the commission.

(e) Notwithstanding any other law, a contract entered into pursuant to this section may provide for periodic advance payments for telecommunications services to be performed or telecommunications equipment to be provided. An advance payment made pursuant to this section shall not exceed 25 percent of the total annual contract amount.

(f) Any contractor the commission selects shall demonstrate knowledge of and the capacity to provide specialized telecommunications services and equipment to deaf, disabled, and hard-of-hearing persons, and shall be required to consult with the Telecommunications Access for Deaf and Disabled Administrative Committee regarding the specialized needs of individuals using program services and equipment, as specified in Sections 2881, 2881.1, and 2881.2.

(g) The commission shall, to the extent feasible and consistent with state civil service requirements, employ staff overseeing the programs described in Sections 2881, 2881.1, and 2881.2 who are members of the deaf, disabled, and hard-of-hearing community.

(h) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 46.

Section 5830 of the Public Utilities Code is amended to read:

5830.

For purposes of this division, the following words have the following meanings:

(a) “Broadband” means any service defined as broadband in the most recent Federal Communications Commission inquiry pursuant to Section 706 of the Telecommunications Act of 1996 (P.L. 104-104).

(b) “Cable operator” means any person or group of persons that either provides cable service over a cable system and directly, or through one or more affiliates, owns a significant interest in a cable system; or that otherwise controls or is responsible for, through any arrangement, the management and operation of a cable system, as set forth in Section 522(5) of Title 47 of the United States Code.

(c) “Cable service” is defined as the one-way transmission to subscribers of either video programming, or other programming service, and subscriber interaction, if any, that is required for the selection or use of video programming or other programming service, as set forth in Section 522(6) of Title 47 of the United States Code.

(d) “Cable system” is defined as set forth in Section 522(7) of Title 47 of the United States Code.

(e) “Commission” (1) Except as provided in paragraph (2), “commission” means the Public Utilities Commission.

(2) On and after July 1, 2028, “commission” means the office.

(f) “Franchise” means an initial authorization, or renewal of an authorization, issued by a franchising entity, regardless of whether the authorization is designated as a franchise, permit, license, resolution, contract, certificate, agreement, or otherwise, that authorizes the construction and operation of any network in the right-of-way capable of providing video service to subscribers.

(g) “Franchise fee” means the fee adopted pursuant to Section 5840.

(h) “Holder” or “holder of a state franchise” means a person or group of persons that has been issued a state franchise from the commission pursuant to this division.

(i) “Incumbent cable operator” means a cable operator or OVS serving subscribers under a franchise in a particular city, county, or city and county franchise area on January 1, 2007.

(j) “Local entity” means any city, county, city and county, or joint powers authority within the state within whose jurisdiction a holder of a state franchise under this division may provide cable service or video service.

(k) “Local franchising entity” means the city, county, city and county, or joint powers authority entitled to require franchises and impose fees on cable operators, as set forth in Section 53066 of the Government Code.

(l) “Network” means a component of a facility that is wholly or partly physically located within a public right-of-way and that is used to provide video service, cable service, voice, or data services.

(m) “Office” means the Office of Broadband and Digital Equity established pursuant to Section 20100.

(m)

(n) “Open-video system” or “OVS” means those services set forth in Section 573 of Title 47 of the United States Code.

(n)

(o) “OVS operator” means any person or group of persons that either provides cable service over an open-video system directly, or through one or more affiliates, owns a significant interest in an open-video system, or that otherwise controls or is responsible for, through any arrangement, the management of an open-video system.

(o)

(p) “Public rights-of-way” means the area along and upon any public road or highway, or along or across any of the waters or lands within the state.

(p)

(q) “State franchise” means a franchise that is issued pursuant to this division.

(q)

(r) “Subscriber” means a person who lawfully receives video service from the holder of a state franchise for a fee.

(r)

(s) “Video programming” means programming provided by, or generally considered comparable to programming provided by, a television broadcast station, as set forth in Section 522(20) of Title 47 of the United States Code.

(s)

(t) “Video service” means video programming services, cable service, or OVS service provided through facilities located at least in part in public rights-of-way without regard to delivery technology, including Internet protocol or other technology. This definition does not include (1) any video programming provided by a commercial mobile service provider defined in Section 332(d) of Title 47 of the United States Code, or (2) video programming provided as part of, and via, a service that enables users to access content, information, electronic mail, or other services offered over the public Internet.

(t)

(u) “Video service provider” means an entity providing video service.

SEC. 47.

Section 5890 of the Public Utilities Code is amended to read:

5890.

(a) A cable operator or video service provider that has been granted a state franchise under this division may not discriminate against or deny access to service to any group of potential residential subscribers because of the income of the residents in the local area in which the group resides.

(b) Holders or their affiliates with more than 1,000,000 telephone customers in California satisfy subdivision (a) if all of the following conditions are met:

(1) Within three years after it begins providing video service under this division, at least 25 percent of households with access to the holder’s video service are low-income households.

(2) Within five years after it begins providing video service under this division and continuing thereafter, at least 30 percent of the households with access to the holder’s video service are low-income households.

(3) Holders provide service to community centers in underserved areas, as determined by the holder, without charge, at a ratio of one community center for every 10,000 video subscribers. The holder shall not be required to take its facilities beyond the appropriate demarcation point outside the community center building or perform any inside wiring. The community center may not receive service from more than one state franchise holder at a time under this section. For purposes of this section, “community center” means any facility operated by an organization that has qualified for the California Teleconnect Fund, as established in Section 280 and that will make the holder’s service available to the community.

(c) Holders or their affiliates with fewer than 1,000,000 telephone customers in California satisfy this section if they offer video service to all customers within their telephone service area within a reasonable time, as determined by the commission. However, the commission shall not require the holder to offer video service if the cost to provide video service is substantially above the average cost of providing video service in that telephone service area.

(d) When a holder provides video service outside of its telephone service area, is not a telephone corporation, or offers video service in an area where no other video service is being offered, other than direct-to-home satellite service, there is a rebuttable presumption that discrimination in providing service has not occurred within those areas. The commission may review the holder’s proposed video service area to ensure that the area is not drawn in a discriminatory manner.

(e) For holders or their affiliates with more than 1,000,000 telephone customers in California, either of the following shall apply:

(1) If the holder is predominantly deploying fiber optic facilities to the customer’s premise, the holder shall provide access to its video service to a number of households at least equal to 25 percent of the customer households in the holder’s telephone service area within two years after it begins providing video service under this division, and to a number at least equal to 40 percent of those households within five years.

(2) If the holder is not predominantly deploying fiber optic facilities to the customer’s premises, the holder shall provide access to its video service to a number of households at least equal to 35 percent of the households in the holder’s telephone service area within three years after it begins providing video service under this division, and to a number at least equal to 50 percent of these households within five years.

(3) A holder shall not be required to meet the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until two years after at least 30 percent of the households with access to the holder’s video service subscribe to it for six consecutive months.

(4) If 30 percent of the households with access to the holder’s video service have not subscribed to the holder’s video service for six consecutive months within three years after it begins providing video service, the holder may submit validating documentation to the commission. If the commission finds that the documentation validates the holder’s claim, then the commission shall permit a delay in meeting the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until the time that the holder does provide service to 30 percent of the households for six consecutive months.

(f) (1) After two years of providing service under this division, the holder may apply to the state franchising authority for an extension to meet the requirements of subdivision (b), (c), or (e). Notice of this application shall also be provided to the telephone customers of the holder, the Secretary of the Senate, and the Chief Clerk of the Assembly.

(2) Upon application, the franchising authority shall hold public hearings in the telephone service area of the applicant.

(3) In reviewing the failure to satisfy the obligations contained in subdivision (b), (c), or (e), the franchising authority shall consider factors that are beyond the control of the holder, including, but not limited to, the following:

(A) The ability of the holder to obtain access to rights-of-way under reasonable terms and conditions.

(B) The degree to which developments or buildings are not subject to competition because of existing exclusive arrangements.

(C) The degree to which developments or buildings are inaccessible using reasonable technical solutions under commercially reasonable terms and conditions.

(D) Natural disasters.

(4) The franchising authority may grant the extension only if the holder has made substantial and continuous effort to meet the requirements of subdivision (b), (c), or (e). If an extension is granted the franchising authority shall establish a new compliance deadline.

(g) Local governments may bring complaints to the state franchising authority that a holder is not offering video service as required by this section, or the state franchising authority may open an investigation on its own motion. The state franchising authority shall hold public hearings before issuing a decision. The commission may suspend or revoke the franchise if the holder fails to comply with the provisions of this division.

(h) If the state franchising authority finds that the holder is in violation of this section, it may, in addition to any other remedies provided by law, impose a fine not to exceed 1 percent of the holder’s total monthly gross revenue received from provision of video service in the state each month from the date of the decision until the date that compliance is achieved.

(i) If a court finds that the holder of the state franchise is in violation of this section, the court may immediately terminate the holder’s state franchise, and the court shall, in addition to any other remedies provided by law, impose a fine not to exceed 1 percent of the holder’s total gross revenue of its entire cable and service footprint in the state in the full calendar month immediately prior to the decision.

(j) As used in this section, the following definitions shall apply:

(1) “Access” means that the holder is capable of providing video service at the household address using any technology, other than direct-to-home satellite service, providing two-way broadband Internet capability and video programming, content, and functionality, regardless of whether any customer has ordered service or whether the owner or landlord or other responsible person has granted access to the household. If more than one technology is utilized, the technologies shall provide similar two-way broadband Internet accessibility and similar video programming.

(2) “Customer’s household” means those residential households located within the holder’s existing telephone service area that are customers of the service by which that telephone service area is defined.

(3) “Household” means, consistent with the United States Census Bureau, a house, an apartment, a mobilehome, a group of rooms, or a single room that is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and which have direct access from the outside of the building or through a common hall.

(4) “Low-income household” means those residential households located within the holder’s existing telephone service area where the average annual household income is less than thirty-five thousand dollars ($35,000) based on the United States Census Bureau estimates adjusted annually to reflect rates of change and distribution through January 1, 2007.

(k) Nothing in this section shall be construed to This section does not require a holder to provide video service outside its wireline footprint or to match the existing service area of any cable operator.

(l) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 48.

Section 5890 is added to the Public Utilities Code, to read:

5890. (a) A cable operator or video service provider that has been granted a state franchise under this division may not discriminate against or deny access to service to any group of potential residential subscribers because of the income of the residents in the local area in which the group resides.(b) Holders or their affiliates with more than 1,000,000 telephone customers in California satisfy subdivision (a) if all of the following conditions are met:(1) Within three years after it begins providing video service under this division, at least 25 percent of households with access to the holder’s video service are low-income households.(2) Within five years after it begins providing video service under this division and continuing thereafter, at least 30 percent of the households with access to the holder’s video service are low-income households.(3) Holders provide service to community centers in underserved areas, as determined by the holder, without charge, at a ratio of one community center for every 10,000 video subscribers. The holder shall not be required to take its facilities beyond the appropriate demarcation point outside the community center building or perform any inside wiring. The community center may not receive service from more than one state franchise holder at a time under this section. For purposes of this section, “community center” means any facility operated by an organization that has qualified for the California Teleconnect Fund, as established in Section 20140, and that will make the holder’s service available to the community.(c) Holders or their affiliates with fewer than 1,000,000 telephone customers in California satisfy this section if they offer video service to all customers within their telephone service area within a reasonable time, as determined by the commission. However, the commission shall not require the holder to offer video service if the cost to provide video service is substantially above the average cost of providing video service in that telephone service area.(d) When a holder provides video service outside of its telephone service area, is not a telephone corporation, or offers video service in an area where no other video service is being offered, other than direct-to-home satellite service, there is a rebuttable presumption that discrimination in providing service has not occurred within those areas. The commission may review the holder’s proposed video service area to ensure that the area is not drawn in a discriminatory manner.(e) For holders or their affiliates with more than 1,000,000 telephone customers in California, either of the following shall apply:(1) If the holder is predominantly deploying fiber optic facilities to the customer’s premise, the holder shall provide access to its video service to a number of households at least equal to 25 percent of the customer households in the holder’s telephone service area within two years after it begins providing video service under this division, and to a number at least equal to 40 percent of those households within five years.(2) If the holder is not predominantly deploying fiber optic facilities to the customer’s premises, the holder shall provide access to its video service to a number of households at least equal to 35 percent of the households in the holder’s telephone service area within three years after it begins providing video service under this division, and to a number at least equal to 50 percent of these households within five years.(3) A holder shall not be required to meet the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until two years after at least 30 percent of the households with access to the holder’s video service subscribe to it for six consecutive months.(4) If 30 percent of the households with access to the holder’s video service have not subscribed to the holder’s video service for six consecutive months within three years after it begins providing video service, the holder may submit validating documentation to the commission. If the commission finds that the documentation validates the holder’s claim, then the commission shall permit a delay in meeting the 40-percent requirement in paragraph (1) or the 50-percent requirement in paragraph (2) until the time that the holder does provide service to 30 percent of the households for six consecutive months.(f) (1) After two years of providing service under this division, the holder may apply to the state franchising authority for an extension to meet the requirements of subdivision (b), (c), or (e). Notice of this application shall also be provided to the telephone customers of the holder, the Secretary of the Senate, and the Chief Clerk of the Assembly.(2) Upon application, the franchising authority shall hold public hearings in the telephone service area of the applicant.(3) In reviewing the failure to satisfy the obligations contained in subdivision (b), (c), or (e), the franchising authority shall consider factors that are beyond the control of the holder, including, but not limited to, the following:(A) The ability of the holder to obtain access to rights-of-way under reasonable terms and conditions.(B) The degree to which developments or buildings are not subject to competition because of existing exclusive arrangements.(C) The degree to which developments or buildings are inaccessible using reasonable technical solutions under commercially reasonable terms and conditions.(D) Natural disasters.(4) The franchising authority may grant the extension only if the holder has made substantial and continuous effort to meet the requirements of subdivision (b), (c), or (e). If an extension is granted the franchising authority shall establish a new compliance deadline.(g) Local governments may bring complaints to the state franchising authority that a holder is not offering video service as required by this section, or the state franchising authority may open an investigation on its own motion. The state franchising authority shall hold public hearings before issuing a decision. The commission may suspend or revoke the franchise if the holder fails to comply with the provisions of this division.(h) If the state franchising authority finds that the holder is in violation of this section, it may, in addition to any other remedies provided by law, impose a fine not to exceed 1 percent of the holder’s total monthly gross revenue received from provision of video service in the state each month from the date of the decision until the date that compliance is achieved.(i) If a court finds that the holder of the state franchise is in violation of this section, the court may immediately terminate the holder’s state franchise, and the court shall, in addition to any other remedies provided by law, impose a fine not to exceed 1 percent of the holder’s total gross revenue of its entire cable and service footprint in the state in the full calendar month immediately prior to the decision.(j) As used in this section, the following definitions shall apply:(1) “Access” means that the holder is capable of providing video service at the household address using any technology, other than direct-to-home satellite service, providing two-way broadband Internet capability and video programming, content, and functionality, regardless of whether any customer has ordered service or whether the owner or landlord or other responsible person has granted access to the household. If more than one technology is utilized, the technologies shall provide similar two-way broadband Internet accessibility and similar video programming.(2) “Customer’s household” means those residential households located within the holder’s existing telephone service area that are customers of the service by which that telephone service area is defined.(3) “Household” means, consistent with the United States Census Bureau, a house, an apartment, a mobilehome, a group of rooms, or a single room that is intended for occupancy as separate living quarters. Separate living quarters are those in which the occupants live and eat separately from any other persons in the building and which have direct access from the outside of the building or through a common hall.(4) “Low-income household” means those residential households located within the holder’s existing telephone service area where the average annual household income is less than thirty-five thousand dollars ($35,000) based on the United States Census Bureau estimates adjusted annually to reflect rates of change and distribution through January 1, 2007.(k) This section does not require a holder to provide video service outside its wireline footprint or to match the existing service area of any cable operator. (l) This section shall become operative on July 1, 2028.

SEC. 49.

Section 5900 of the Public Utilities Code is amended to read:

5900.

(a) The holder of a state franchise shall comply with Sections 53055, 53055.1, 53055.2, and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the Legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards.

(b) The holder of a state franchise shall comply with Section 637.5 of the Penal Code and the privacy standards contained in Section 551 and following of Title 47 of the United States Code.

(c) The local entity shall enforce all of the customer service and protection standards of this section with respect to complaints received from residents within the local entity’s jurisdiction, but it may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055.3 or subdivision (q), (r), or (s) of Section 53088.2 of the Government Code, or any other law.

(d) The local entity shall, by ordinance or resolution, provide a schedule of penalties for any material breach by a holder of a state franchise of this section. A monetary penalty shall not be assessed for a material breach if it is out of the reasonable control of the holder. Further, a monetary penalty shall not be imposed before January 1, 2007. Any schedule of monetary penalties adopted pursuant to this section shall not exceed five hundred dollars ($500) for each day of each material breach, not to exceed one thousand five hundred dollars ($1,500) for each occurrence of a material breach. However, if a material breach of this section has occurred, and the local entity has provided notice and a fine or penalty has been assessed, and if a subsequent material breach of the same nature occurs within 12 months, the penalties may be increased by the local entity to a maximum of one thousand dollars ($1,000) for each day of each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the material breach. If a third or further material breach of the same nature occurs within those same 12 months, and the local entity has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximum of two thousand five hundred dollars ($2,500) for each day of each material breach, not to exceed seven thousand five hundred dollars ($7,500) for each occurrence of the material breach. With respect to video providers subject to a franchise or license, any monetary penalties assessed under this section shall be reduced dollar-for-dollar to the extent any liquidated damage or penalty provision of a current cable television ordinance, franchise contract, or license agreement imposes a monetary obligation upon a video provider for the same customer service failures, and no other monetary damages may be assessed.

(e) The local entity shall give the video service provider written notice of any alleged material breach of the customer service standards of this division and allow the video provider at least 30 days from receipt of the notice to remedy the specified material breach.

(f) A material breach for purposes of assessing penalties shall be deemed to have occurred for each day within the jurisdiction of each local entity, following the expiration of the period specified in subdivision (e), that any material breach has not been remedied by the video service provider, irrespective of the number of customers or subscribers affected.

(g) Any penalty assessed pursuant to this section shall be remitted to the local entity, which shall submit one-half of the penalty to the Digital Divide Account established in Section 280.5.

(h) Any interested person may seek judicial review of a decision of the local entity in a court of appropriate jurisdiction. For this purpose, a court of law shall conduct a de novo review of any issues presented.

(i) This section shall not preclude a party affected by this section from using any judicial remedy available to that party without regard to this section. Actions taken by a local legislative body, including a local franchising entity, pursuant to this section shall not be binding on a court of law. For this purpose, a court of law shall conduct de novo review of any issues presented.

(j) For purposes of this section, “material breach” means any substantial and repeated failure of a video service provider to comply with service quality and other standards specified in subdivision (a).

(k) The Public Advocate’s Office of the Public Utilities Commission may advocate on behalf of video subscribers regarding renewal of a state-issued franchise and enforcement of this section, and Sections 5890 and 5950. For this purpose, the office shall have access to any information in the possession of the commission subject to all restrictions on disclosure of that information that are applicable to the commission.

(l) This section shall become inoperative on July 1, 2028, and, as of January 1, 2029, is repealed.

SEC. 50.

Section 5900 is added to the Public Utilities Code, to read:

5900. (a) The holder of a state franchise shall comply with Sections 53055, 53055.1, 53055.2, and 53088.2 of the Government Code, and any other customer service standards pertaining to the provision of video service established by federal law or regulation or adopted by subsequent enactment of the Legislature. All customer service and consumer protection standards under this section shall be interpreted and applied to accommodate newer or different technologies while meeting or exceeding the goals of the standards.(b) The holder of a state franchise shall comply with Section 637.5 of the Penal Code and the privacy standards contained in Section 551 and following of Title 47 of the United States Code.(c) The local entity shall enforce all of the customer service and protection standards of this section with respect to complaints received from residents within the local entity’s jurisdiction, but it may not adopt or seek to enforce any additional or different customer service or other performance standards under Section 53055.3 or subdivision (q), (r), or (s) of Section 53088.2 of the Government Code, or any other law.(d) The local entity shall, by ordinance or resolution, provide a schedule of penalties for any material breach by a holder of a state franchise of this section. A monetary penalty shall not be assessed for a material breach if it is out of the reasonable control of the holder. Further, a monetary penalty shall not be imposed before January 1, 2007. Any schedule of monetary penalties adopted pursuant to this section shall not exceed five hundred dollars ($500) for each day of each material breach, not to exceed one thousand five hundred dollars ($1,500) for each occurrence of a material breach. However, if a material breach of this section has occurred, and the local entity has provided notice and a fine or penalty has been assessed, and if a subsequent material breach of the same nature occurs within 12 months, the penalties may be increased by the local entity to a maximum of one thousand dollars ($1,000) for each day of each material breach, not to exceed three thousand dollars ($3,000) for each occurrence of the material breach. If a third or further material breach of the same nature occurs within those same 12 months, and the local entity has provided notice and a fine or penalty has been assessed, the penalties may be increased to a maximum of two thousand five hundred dollars ($2,500) for each day of each material breach, not to exceed seven thousand five hundred dollars ($7,500) for each occurrence of the material breach. With respect to video providers subject to a franchise or license, any monetary penalties assessed under this section shall be reduced dollar-for-dollar to the extent any liquidated damage or penalty provision of a current cable television ordinance, franchise contract, or license agreement imposes a monetary obligation upon a video provider for the same customer service failures, and no other monetary damages may be assessed.(e) The local entity shall give the video service provider written notice of any alleged material breach of the customer service standards of this division and allow the video provider at least 30 days from receipt of the notice to remedy the specified material breach.(f) A material breach for purposes of assessing penalties shall be deemed to have occurred for each day within the jurisdiction of each local entity, following the expiration of the period specified in subdivision (e), that any material breach has not been remedied by the video service provider, irrespective of the number of customers or subscribers affected.(g) Any penalty assessed pursuant to this section shall be remitted to the local entity, which shall submit one-half of the penalty to the Digital Divide Account established in Section 20133.(h) Any interested person may seek judicial review of a decision of the local entity in a court of appropriate jurisdiction. For this purpose, a court of law shall conduct a de novo review of any issues presented.(i) This section shall not preclude a party affected by this section from using any judicial remedy available to that party without regard to this section. Actions taken by a local legislative body, including a local franchising entity, pursuant to this section shall not be binding on a court of law. For this purpose, a court of law shall conduct de novo review of any issues presented.(j) For purposes of this section, “material breach” means any substantial and repeated failure of a video service provider to comply with service quality and other standards specified in subdivision (a).(k) The Public Advocate’s Office of the Public Utilities Commission may advocate on behalf of video subscribers regarding renewal of a state-issued franchise and enforcement of this section, and Sections 5890 and 5950. For this purpose, the office shall have access to any information in the possession of the commission subject to all restrictions on disclosure of that information that are applicable to the commission. (l) This section shall become operative on July 1, 2028.

SEC. 51.

Division 8 (commencing with Section 20000) is added to the Public Utilities Code, to read:

DIVISION 8. TelecommunicationsPART 1. General Provisions20000. Unless context otherwise requires, the definitions set forth in this part govern the construction of this division.20001. (a) “Broadband internet access service” means a mass market retail service by wire or radio provided to customers in California that provides the capability to transmit data to, and receive data from, all or substantially all internet endpoints, including capabilities that are incidental to, and enable the operation of, the communication service.(b) “Broadband internet access service” does not include dialup internet access service.20005. “Broadband Commission” means the Broadband and Digital Equity Commission established pursuant to Section 20101.20007. “Commission” means the Public Utilities Commission.20020. “Office” means the Office of Broadband and Digital Equity established pursuant to Section 20100.PART 2. Broadband and Digital Equity Commission and Office of Broadband and Digital Equity CHAPTER 1. Organization20100. (a) There is hereby established the Office of Broadband and Digital Equity within the state government for purposes of promoting ubiquitous and universal broadband deployment in unserved and underserved areas of the state, increasing broadband adoption throughout the state for the benefit of all Californians, and promoting a competitive broadband market to advance technological innovation.(b) On and after July 1, 2028, the office is the centralized state entity for broadband and digital equity activities within the state and the state entity with jurisdiction to establish rules or regulations for broadband internet access service and internet service providers, including, but not limited to, the administration of any of the following:(1) The grants and programs funded by the Broadband Equity, Access, and Deployment Program established pursuant to the federal Infrastructure Investment and Jobs Act (Public Law 117-58), to the extent authorized by federal law.(2) The California Teleconnect Fund Administrative Committee Fund pursuant to Sections 280 and 20140.(3) The California Advanced Services Fund pursuant to Section 20150.20101. (a) There is hereby established the Broadband and Digital Equity Commission consisting of 11 voting members and 2 ex officio, nonvoting members as follows:(1) (A) Seven members appointed by the Governor with the advice and consent of the Senate.(B) Two members appointed by the Speaker of the Assembly and two members appointed by the Senate Committee on Rules, not subject to confirmation by the Senate.(C) A member appointed pursuant to this paragraph shall not simultaneously hold an elected public office, or serve on any local or regional public board or commission with business before the Broadband Commission.(D) A member appointed pursuant to this paragraph shall hold office for a term of six years, and until their successor is appointed, except as otherwise provided in this section.(2) One Member of the Senate appointed by the Senate Committee on Rules and one Member of the Assembly appointed by the Speaker of the Assembly shall be ex officio, nonvoting members and shall participate in the activities of the Broadband Commission to the extent that their participation is not incompatible with their positions as Members of the Legislature.(3) A vacancy shall be filled by the appointing authority for the unexpired portion of the term.(b) (1) In making an appointment to the Broadband Commission, the Governor shall make every effort to ensure there is a geographic balance to the membership of the Broadband Commission, including that the Broadband Commission as a whole includes members from the northern and the southern areas of the state and from the urban and the rural areas of the state.(2) Of the members of the Broadband Commission appointed by the Governor pursuant to subdivision (a), the appointments shall include each of the following:(A) One member with a background in consumer advocacy in telecommunications or the broadband sector.(B) One member with extensive experience working with, or serving on, nonprofit boards focused on digital equity, closing the digital divide, or broadband-related activities.(C) One member from a private internet service provider with more than 1,000,000 customers in California.(D) One member from a private internet service provider with fewer than 1,000,000 customers in California.(E) One member with a background in labor union advocacy.(F) One member from a California Native American tribe.(3) Each member of the Broadband Commission shall represent the state at large.20102. (a) The Broadband Commission shall elect one of its members as a chairperson who shall preside at all meetings, and a vice chairperson, who shall preside in the chairperson’s absence. The chairperson shall serve a term of two years as the chairperson. A member shall not serve as chairperson for more than two successive terms.(b) (1) Except as provided in Section 20103, after consulting with members of the Broadband Commission, the chairperson of the Broadband Commission may appoint the members to committees of the Broadband Commission.(2) Each committee shall elect one of its members, other than the chairperson of the Broadband Commission, to serve as the committee chairperson, who shall preside at all committee meetings.(3) The chairperson of the Broadband Commission shall maintain the committee of the Broadband Commission created pursuant to Section 20103 until at least December 31, 2028, and after that date may terminate that committee.(4) The commission shall not form a committee for the purpose of considering budgetary or fiscal matters.20103. On July 1, 2028, upon the dissolution of the California Broadband Council pursuant to Section 8889.1 of the Government Code, the members of the California Broadband Council shall collectively become a committee of the Broadband Commission.20104. Other than the ex officio, nonvoting members, each member of the Broadband Commission shall receive compensation of one hundred dollars ($100) per day, but not to exceed four hundred dollars ($400) per month, for any Broadband Commission business authorized by the Broadband Commission, if a majority of the Broadband Commission approves the compensation by a recorded vote, and for the necessary expenses incurred by the member in the performance of the member’s duties.20105. (a) (1) The Broadband Commission shall appoint an executive director of the office, who shall serve at the pleasure of the Broadband Commission.(2) The executive director of the office shall receive the salary established by the Director of Finance for exempt officials.(b) (1) The executive director of the office shall administer the affairs of the Broadband Commission and the office, and shall direct the staff of the office.(2) The executive director may appoint, with the approval of the Broadband Commission, staff necessary to carry out this division.(c) The office may perform work, at the request of the Broadband Commission, that the Broadband Commission deems necessary to carry out its duties and responsibilities.(d) For purposes of this section, the Broadband Commission shall consider the expertise and resources available to the office, and is not prohibited from using the services of other public or private entities.20106. (a) The Broadband Commission shall advise and assist the office and the Legislature in formulating and evaluating state policies and plans for broadband and digital equity programs in the state.(b) The Broadband Commission may participate in relevant federal government rulemaking to advocate on behalf of the office and the state’s interests.(c) The Broadband Commission may request and review reports of the office and other state entities that pertain to issues of broadband or digital equity that the Broadband Commission determines needs special study.20107. (a) Notwithstanding Section 10231.5 of the Government Code, on or before July 1, 2029, and at least annually thereafter, the office shall report to the Legislature on the activities of the office and actions taken by the Broadband Commission.(b) The report shall include, but not be limited to, all of the following:(1) Information the office deems is relevant to broadband or digital equity that was previously required to be reported to the Legislature by previous or preceding state entities with jurisdiction over broadband or digital equity issues.(2) The number of unserved and underserved households in the state, and progress toward increasing connectivity.(3) Changes in broadband adoption rates within the state.(c) A report to be submitted pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code. CHAPTER 2. Programs Under the Jurisdiction of the Office of Broadband and Digital Equity Article 1. Generally20130. (a) The office shall, consistent with Item 7502-062-8506 of the Budget Act of 2021, oversee the acquisition and management of contracts for the development and construction of a statewide open-access middle-mile broadband network, and for the maintenance and operation of the statewide open-access middle-mile broadband network to provide an opportunity for last-mile providers, anchor institutions, and tribal entities to connect to, and interconnect with other networks and other appropriate connections to, the statewide open-access middle-mile broadband network to facilitate high-speed broadband service.(b) The office has the same authority granted to the Department of General Services pursuant to paragraph (1) of subdivision (e) of Section 6611 of the Public Contract Code for purposes of implementing this section. (c) This section shall become operative on July 1, 2028.20131. (a) (1) The Broadband Loan Loss Reserve Fund is hereby established in the State Treasury. Upon appropriation by the Legislature, moneys in the fund shall be available to the office to fund costs related to the financing of the deployment of broadband infrastructure by a local governmental agency or nonprofit organization, including, but not limited to, payment of costs of debt issuance, obtaining credit enhancement, and establishment and funding of reserves for the payment of principal and interest on the debt.(2) The office may establish, among other things, eligibility requirements, financing terms and conditions, and allocation criteria, for infrastructure projects deployed using financing supported in whole or in part by funds allocated pursuant to this section.(3) The office may require a local governmental agency or nonprofit organization to provide information demonstrating the agency’s or nonprofit organization’s ability to reasonably finance and implement the infrastructure project deployed using financing supported in whole or in part by funds allocated pursuant to this section.(4) The office shall require each local governmental agency or nonprofit organization receiving funds under this section to file both of the following reports in the form and manner specified by the office:(A) Biannual progress reports identifying project milestones and percent completions to date, and including other information as the commission may prescribe.(B) A completion report, including a full description of the completed project, comparison of approved versus actual costs of construction, speed test data for all areas served by the project, and other information as the office may prescribe. (b) This section shall become operative on July 1, 2028.20132. (a) The office, in collaboration with relevant state agencies and stakeholders, shall maintain and update a statewide, publicly accessible, and interactive map showing the accessibility of broadband service in the state, including, but not limited to, information identifying the percentage of each census block that has broadband service meeting federal and state standards. The map shall identify, for each address in the state, each provider of broadband services that offers service at the address and the maximum speed of broadband services offered by each provider of broadband services at the address.(b) The map required pursuant to subdivision (a) shall also include all of the following features to receive self-reported data:(1) A feature for users to disclose how much they pay for stand-alone or bundled broadband service.(2) A feature for users to identify the internet service provider to which they subscribe for broadband service.(3) A feature for users to disclose the maximum speed for broadband service to which they subscribe.(4) A feature that allows individuals to refute the broadband speed or technology, or both, that an internet service provider claims to offer at an address.(5) A feature that allows individuals to identify barriers to broadband access.(c) The features and self-reported data required pursuant to subdivisions (b) and (h) shall be made publicly available and expressed at the address for which the data was submitted. The commission shall obtain consent from an individual before publicly disclosing information that the individual submits pursuant to subdivision (b) or (h).(d) The office may collect from providers of broadband services information necessary to establish and update the map required pursuant to this section.(e) The office shall also create a notification feature on the map for individuals. Using this feature, an individual may sign up to be notified when updates are made to the map.(f) The office may collect information from providers of broadband services at the address level.(g) The office shall not, pursuant to subdivision (a), (d), or (e), disclose residential subscriber information protected by Section 2891.(h) The map required pursuant to subdivision (a) shall include a feature for users to submit a verified speed test at their location.(i) For purposes of this section, both of the following definitions apply:(1) “Broadband” has the same meaning as defined in Section 5830.(2) “Verified speed test” means a broadband speed performance test result that was measured and verified using a reputable application specified by the commission for that purpose. (j) This section shall become operative on July 1, 2028.20133. (a) Of the revenues from fees collected pursuant to Section 14666.8 of the Government Code, except for revenues from fees from a lease agreement for access to Department of Transportation property or a lease agreement existing before January 1, 2004, 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 into 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 office.(c) (1) The Digital Divide Grant Program is hereby established subject to the availability of funding pursuant to this section. The office shall not implement the grant program until the office 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 moneys collected pursuant to Section 14666.8 of the Government Code.(2) The office shall provide grants pursuant to this subdivision on a competitive basis subject to criteria to be established by the office 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 office annually on the effectiveness of the grant program.(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, all of 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. (f) Notwithstanding Section 10231.5 of the Government Code, the office shall annually report to the Legislature and the Government on the effectiveness of the program administered pursuant to subdivision (c). The report submitted to the Legislature shall be submitted in accordance with Section 9795 of the Government Code.(g) This section shall become operative on July 1, 2028.20134. (a) The office shall establish the number of, and qualifications for, persons to serve as members of an advisory board established pursuant to this chapter, and shall appoint the members of the advisory board. In determining the qualifications of persons who will serve as members of the advisory board, the office shall consider the purpose of the program, and shall attempt to achieve balanced public participation, for the advisory board. The membership of the advisory board shall reflect, to the extent possible, and consistent with existing law, the ethnic and gender diversity of the state.(b) The advisory board shall determine, subject to approval by the office, the time, location, and number of monthly meetings for the advisory board.(c) A majority of the number of members of the advisory board constitutes a quorum.(d) The advisory board shall not 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 the advisory board is necessary in order to pass any motion, resolution, or measure.(f) The office shall determine for the advisory 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 office. Each member of the advisory board who is not an employee of the office or a public utility, or who is not otherwise compensated by an employer for service on the committee, shall be entitled to make a claim for and to receive a per diem allowance, if authorized by the office. Each member of the board who is not a public utility employee, or who is not otherwise reimbursed by an employer for expenses incurred when serving on the advisory board, shall be entitled to make a claim for and to receive expense reimbursement, if authorized by the office. The office 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 advisory board and shall be subject to the availability of moneys in that fund. The claims shall be filed by the advisory board with the office. 20135. An advisory board establish pursuant to this chapter shall do both of the following:(a) Submit an annual budget to the office. Within 90 calendar days after receiving the advisory board’s annual budget, the office shall either accept, accept with conditions, or reject the submitted budget.(b) Submit, in accordance with procedures established by the office, a report that shall describe the activities of the advisory board during the prior reporting period. The report shall be submitted on an annual or more frequent basis, as ordered by the office. Article 2. California Teleconnect Fund Program20140. (a) The office 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 office 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 office’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 into the California Teleconnect Fund Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited into the fund.(d) Except as provided in subdivision (e), moneys appropriated from the California Teleconnect Fund Administrative Committee Fund to the office shall be used exclusively by the office for the program specified in subdivision (a), including all costs of the advisory board and office 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 office determines a need for moneys in the California Teleconnect Fund Administrative Committee Fund, the office shall notify the Director of Finance of the need, as specified in Section 16320 of the Government Code. The commission shall 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 office 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.(g) This section shall become operative on July 1, 2028. Article 3. California Advanced Services Fund20150. (a) On and after July 1, 2028, the office shall assume the administration of the California Advanced Services Fund, which is hereby continued in the State Treasury, 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, consistent with this section and with the statements of intent in Section 2 of the Internet for All Now Act (Chapter 851 of the Statutes of 2017).(b) (1) (A) The goal of the Broadband Infrastructure Grant Account is, no later than December 31, 2032, to approve funding for infrastructure projects that will provide broadband access to no less than 98 percent of California households in each consortia region, as identified by the office. The office shall be responsible for achieving the goals of the program.(B) For purposes of the Broadband Infrastructure Grant Account, both of the following definitions apply:(i) “Mbps” means megabits per second.(ii) (I) Except as provided in subclause (II), “unserved area” means an area for which there is no facility-based broadband provider offering at least one tier of broadband service at speeds of at least 25 mbps downstream, 3 mbps upstream, and a latency that is sufficiently low to allow real-time interactive applications, considering updated federal and state broadband mapping data.(II) For projects funded, in whole or in part, from moneys received from the federal Rural Digital Opportunity Fund, “unserved area” means an area in which no facility-based broadband provider offers broadband service at speeds consistent with the standards established by the Federal Communications Commission pursuant to In the Matter of Rural Digital Opportunity Fund, WC Docket No. 19-126, Report and Order, FCC 20-5 (adopted January 30, 2020, and released February 7, 2020), or as it may be later modified by the Federal Communications Commission.(2) In approving infrastructure projects funded through the Broadband Infrastructure Grant Account, the office shall do both of the following:(A) Approve projects that provide last-mile broadband access to households that are unserved by an existing facility-based broadband provider.(B) (i) Prioritize projects in unserved areas where internet connectivity is available only at speeds at or below 10 mbps downstream and 1 mbps upstream or areas with no internet connectivity.(ii) This subparagraph does not prohibit the office from approving funding for projects outside of the areas specified in clause (i).(3) Moneys appropriated for purposes of this section may be used to match or leverage federal moneys for communications infrastructure, digital equity, and adoption, including, but not limited to, moneys from the United States Department of Commerce Economic Development Administration, the United States Department of Agriculture ReConnect Loan and Grant Program, and the Federal Communications Commission for communications infrastructure, digital equity, and adoption.(4) The office shall transition California Advanced Services Fund program methodologies to provide service to serviceable locations and evaluate other program changes to align with other funding sources, including, but not limited to, funding locations.(5) The office shall maximize investments in new, robust, and scalable infrastructure and use California Advanced Services Fund moneys to leverage federal and non-California Advanced Services Fund moneys by undertaking activities, including, but not limited to, all of the following:(A) Providing technical assistance to local governments and providers.(B) Assisting in developing grant applications.(C) Assisting in preparing definitive plans for deploying necessary infrastructure in each county, including coordination across contiguous counties.(6) Moneys appropriated for purposes of this section may be used to fund projects that deploy broadband infrastructure to unserved nonresidential facilities used for local and state emergency response activities, including, but not limited to, fairgrounds.(c) The office 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 Public Housing Account.(4) The Broadband Adoption Account.(5) The Federal Funding Account.(d) (1) The commission shall transfer the moneys it receives from the surcharge it is authorized to impose pursuant to paragraph (4) to fund the accounts to the Controller for deposit into the California Advanced Services Fund.(2) All interest earned on moneys in the California Advanced Services Fund shall be deposited into the California Advanced Services Fund.(3) The office may make recommendations to the Legislature regarding appropriations from the California Advanced Services Fund and the accounts established pursuant to subdivision (c).(4) For the period described in Section 281.1, the commission may collect a sum not to exceed one hundred fifty million dollars ($150,000,000) per year.(e) All moneys in the California Advanced Services Fund, including moneys in the accounts within the California Advanced Services Fund, shall be available, upon appropriation by the Legislature, to the office for the California Advanced Services Fund program administered by the office pursuant to this section, including the costs incurred by the office in developing, implementing, and administering the program and the California Advanced Services Fund.(f) In administering the Broadband Infrastructure Grant Account, the commission shall do all of the following:(1) The office shall award grants from the Broadband Infrastructure Grant Account on a technology-neutral basis, taking into account the useful economic life of capital investments, and including both wireline and wireless technology.(2) The office shall consult with regional consortia, stakeholders, local governments, existing facility-based broadband providers, and consumers regarding unserved areas and cost-effective strategies to achieve the broadband access goal through public workshops conducted at least annually no later than April 30 of each year.(3) The office shall identify unserved rural and urban areas and delineate the areas in the annual report prepared pursuant to Section 914.7.(4) An existing facility-based broadband provider may, but is not required to, apply for funding from the Broadband Infrastructure Grant Account to make an upgrade pursuant to this subdivision.(5) Projects eligible for grant awards shall deploy infrastructure capable of providing broadband access at speeds of a minimum of 100 mbps downstream and 20 mbps upstream, or the most current broadband definition speed standard set by the Federal Communications Commission from time to time, as determined appropriate by the office, whichever broadband access speed is greater, to unserved areas or unserved households.(6) (A) An individual household or property owner shall be eligible to apply for a grant to offset the costs of connecting the household or property to an existing or proposed facility-based broadband provider. Any infrastructure built to connect a household or property with funds provided under this paragraph shall become the property of, and part of, the network of the facility-based broadband provider to which it is connected.(B) (i) In approving a project pursuant to this paragraph, the office shall consider limiting funding to households based on income so that funds are provided only to households that would not otherwise be able to afford a line extension to the property, limiting the amount of grants on a per-household basis, and requiring a percentage of the project to be paid by the household or the owner of the property.(ii) The aggregate amount of grants awarded pursuant to this paragraph shall not exceed five million dollars ($5,000,000).(7) An entity that is not a telephone corporation, as defined in Section 234, shall be eligible to apply to participate in the program administered by the office pursuant to this section to provide access to broadband to an unserved area if the entity otherwise meets the eligibility requirements and complies with program requirements established by the office.(8) The office shall provide each applicant, and any party challenging an application, the opportunity to demonstrate actual levels of broadband service in the project area, which the office shall consider in reviewing the application.(9) The office shall establish a service list of interested parties to be notified of any California Advanced Services Fund applications. Any application and any amendment to an application for project funding shall be served to those on the service list and posted on the office’s internet website at least 30 days before publishing the corresponding draft resolution.(10) A grant awarded pursuant to this subdivision may include funding for the following costs, consistent with paragraph (5):(A) Costs directly related to the deployment of infrastructure.(B) Costs to lease access to property or for internet backhaul services for a period not to exceed five years.(C) Costs incurred by an existing facility-based broadband provider to upgrade its existing facilities to provide for interconnection.(11) The office may award grants to fund all or a portion of the project. The office shall determine, on a case-by-case basis, the level of funding to be provided for a project and shall consider factors that include, but are not limited to, the location and accessibility of the area, the existence of communication facilities that may be upgraded to deploy broadband, and whether the project makes a significant contribution to achievement of the program goal.(g) (1) Moneys in the Rural and Urban Regional Broadband Consortia Grant Account shall be available for grants to eligible consortia to facilitate deployment of broadband services by assisting infrastructure applicants in the project development or grant application process. An eligible consortium may include, as specified by the office, representatives of organizations, including, but not limited to, local and regional government, public safety, elementary and secondary education, health care, libraries, postsecondary education, community-based organizations, tourism, parks and recreation, agricultural, business, workforce organizations, and air pollution control or air quality management districts, and is not required to have as its lead fiscal agent an entity with a certificate of public convenience and necessity.(2) Each consortium shall conduct an annual audit of its expenditures for programs funded pursuant to this subdivision and shall submit to the office an annual report that includes both of the following:(A) A description of activities completed during the prior year, how each activity promotes the deployment of broadband services, and the cost associated with each activity.(B) The number of project applications assisted.(h) (1) All remaining moneys in the Broadband Infrastructure Revolving Loan Account that are unencumbered as of January 1, 2018, shall be transferred into the Broadband Infrastructure Grant Account.(2) All repayments of loans funded by the former Broadband Infrastructure Revolving Loan Account shall be deposited into the Broadband Infrastructure Grant Account.(i) (1) For purposes of this subdivision, “low-income community” includes, but is not limited to, publicly supported housing developments, and other housing developments or mobilehome parks with low-income residents, as determined by the office.(2) Moneys in the Broadband Public Housing Account shall be available for the office to award grants and loans pursuant to this subdivision to a low-income community that otherwise meets eligibility requirements and complies with program requirements established by the office.(3) Moneys deposited into the Broadband Public Housing Account shall be available for grants and loans to low-income communities to finance projects to connect broadband networks that offer free broadband service that meets or exceeds state standards, as determined by the office, for residents of the low-income communities. A low-income community may be an eligible applicant if the low-income community does not have access to any broadband service provider that offers free broadband service that meets or exceeds state standards, as determined by the office, for the residents of the low-income community.(4) To the extent feasible, the office shall approve projects for funding from the Broadband Public Housing Account in a manner that reflects the statewide distribution of low-income communities.(5) In reviewing a project application under this subdivision, the office shall consider the availability of other funding sources for that project, any financial contribution from the broadband service provider to the project, the availability of any other public or private broadband adoption or deployment program, including tax credits and other incentives, and whether the applicant has sought funding from, or participated in, any reasonably available program. The office may require an applicant to provide match funding, and shall not deny funding for a project solely because the applicant is receiving funding from another source.(6) The office shall prioritize grants pursuant to this subdivision to those existing publicly supported housing developments that have not yet received a grant pursuant to this subdivision and do not have access to free broadband internet service onsite.(j) (1) Moneys in the Broadband Adoption Account shall be available to the office to award grants to increase publicly available or after school broadband access and digital inclusion, such as grants for digital literacy training programs and public education to communities with limited broadband adoption, including low-income communities, senior communities, and communities facing socioeconomic barriers to broadband adoption.(2) Eligible applicants are local governments, senior centers, schools, public libraries, nonprofit organizations, including nonprofit religious organizations, and community-based organizations with programs to increase publicly available or after school broadband access and digital inclusion, such as digital literacy training programs.(3) Payment pursuant to a grant for digital inclusion shall be based on digital inclusion metrics established by the office that may include the number of residents trained, the number of residents served, or the actual verification of broadband subscriptions resulting from the program funded by the grant.(4) The office shall give preference to programs in communities with demonstrated low broadband access, including low-income communities, senior communities, and communities facing socioeconomic barriers to broadband adoption. The office shall determine how best to prioritize projects for funding pursuant to this paragraph.(5) Moneys awarded pursuant to this subdivision shall not be used to subsidize the costs of providing broadband service to households.(k) The office shall post on the home page of the California Advanced Services Fund on its internet website a list of all pending applications, application challenge deadlines, and notices of amendments to pending applications.(l) (1) The office shall require each entity that receives funding or financing for a project pursuant to this section to report monthly to the office, at minimum, all of the following information:(A) The name and contractor’s license number of each licensed contractor and subcontractor undertaking a contract or subcontract in excess of twenty-five thousand dollars ($25,000) to perform work on a project funded or financed pursuant to this section.(B) The location where a contractor or subcontractor described in subparagraph (A) will be performing that work.(C) The anticipated dates when that work will be performed.(2) The office shall, on a monthly basis, post the information reported pursuant to this subdivision on the office’s California Advanced Services Fund internet website.(m) The office shall notify the appropriate policy committees of the Legislature on the date on which the goal specified in subparagraph (A) of paragraph (1) of subdivision (b) is achieved.(n) (1) Upon the deposit of state or federal infrastructure moneys into the Federal Funding Account, the office shall implement a program using those moneys to expeditiously connect unserved and underserved communities by applicable federal deadlines.(2) Projects funded pursuant to this subdivision shall be implemented consistent with Part 35 of Title 31 of the Code of Federal Regulations and any conditions or guidelines applicable to these one-time federal infrastructure moneys.20151. (a) Notwithstanding Section 10231.5 of the Government Code, on or before April 1, 2029, and biennially thereafter, the office shall conduct a fiscal and 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 pursuant to Section 20131 or 20150 and shall report its findings to the Legislature. The reports shall 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 office pursuant to Section 20131 or 20150 and shall include information specified in Section 20152. (b) The report submitted to the Legislature pursuant to subdivision (a) shall be submitted in accordance with Section 9795 of the Government Code.20152. (a) Notwithstanding Section 10231.5 of the Government Code, on or before April 1, 2029, and annually thereafter, the office shall provide to the Legislature either a report, or include in the biennial fiscal and performance audit conducted pursuant to Section 20151 information, on all of the following:(1) The remaining unserved areas in the state.(2) The amount of funds expended from the California Advanced Services Fund in the prior year.(3) The recipients of funds expended from the California Advanced Services Fund in the prior year.(4) The geographic regions of the state affected by funds expended from the California Advanced Services Fund in the prior year, including information by county.(5) The expected benefits to be derived from the funds expended from the California Advanced Services Fund in the prior year.(6) Details on the status of each project funded through the California Advanced Services Fund and whether the project has been completed or the expected completion date of the project.(7) Actual broadband adoption levels from funds expended from the California Advanced Services Fund in the prior year.(8) The cost per household for each project.(9) The number of formerly unserved households subscribing to broadband service in areas covered by projects funded by the California Advanced Services Fund.(10) The number of subscriptions resulting from the broadband adoption program funded by the California Advanced Services Fund.(11) An update on the expenditures from the California Advanced Services Fund, broadband adoption levels, the progress in achieving the goals of the program, and an accounting of the remaining unserved households in each region of the state as of December 31 of the immediately preceding year.(12) The amount of funds expended from the California Advanced Services Fund to match federal funds.(13) Additional details on efforts to leverage non-California Advanced Services Fund moneys.(14) The status of the California Advanced Services Fund balance and the projected amount to be collected in each year to fund approved projects. (b) The report required pursuant to subdivision (a) shall be submitted in accordance with Section 9795 of the Government Code. Article 4. Telecommunications Access for the Deaf and Disabled20170. (a) (1) Commencing on July 1, 2003, there is hereby created the Telecommunications Access for Deaf and Disabled Administrative Committee as an advisory board to advise the office 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 in this article.(2) In addition to the membership qualifications established by the office pursuant to subdivision (a) of Section 20134, the office 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 this article.(3) As part of its advisory role, as specified in paragraph (1), the Telecommunications Access for Deaf and Disabled Administrative Committee shall advise the office regarding contracts and agreements related to the Deaf and Disabled Telecommunications Program as specified in subdivisions (d) and (e) of Section 20174.(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. All interest earned by moneys in the fund shall be deposited into the fund. Those revenues that are collected pursuant to subdivision (g) of Section 20171 shall be accounted for separately, as required by subdivision (b) of Section 20173, and deposited into the fund created by the office pursuant to subdivision (b) of Section 20173.(c) Moneys appropriated from the Deaf and Disabled Telecommunications Program Administrative Committee Fund to the office shall be utilized exclusively by the office for the programs specified in subdivision (a), including all costs of the advisory board and the office associated with the administration and oversight of the programs and the fund.(d) Staffing costs incurred by the office 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. 20171. (a) On and after July 1, 2028, the office shall design and implement a program to provide a telecommunications device capable of serving the needs of individuals who are deaf or hard of hearing, together with a single party line, at no charge additional to the basic exchange rate, to a subscriber who is certified as an individual who is deaf or hard of hearing by a licensed physician and surgeon, audiologist, or a qualified state or federal agency, as determined by the office, and to a subscriber that is an organization representing individuals who are deaf or hard of hearing, as determined and specified by the office pursuant to subdivision (h). A licensed hearing aid dispenser may certify the need of an individual to participate in the program if that individual has been previously fitted with an amplified device by the dispenser and the dispenser has the individual’s hearing records on file before certification. In addition, a physician assistant or nurse practitioner may certify the needs of an individual who has been diagnosed by a physician and surgeon as being deaf or hard of hearing to participate in the program after reviewing the medical records or copies of the medical records containing that diagnosis.(b) The office shall also design and implement a program to provide a dual-party relay system, using third-party intervention to connect individuals who are deaf or hard of hearing and offices of organizations representing individuals who are deaf or hard of hearing, as determined and specified by the office pursuant to subdivision (h), with persons of normal hearing by way of intercommunications devices for individuals who are deaf or hard of hearing and the telephone system, making available reasonable access of all phases of public telephone service to telephone subscribers who are deaf or hard of hearing. In order to make a dual-party relay system that will meet the requirements of individuals who are deaf or hard of hearing available at a reasonable cost, the office shall initiate an investigation, conduct public hearings to determine the most cost-effective method of providing dual-party relay service to the deaf or hard of hearing when using a telecommunications device, and solicit the advice, counsel, and physical assistance of statewide nonprofit consumer organizations of the deaf, during the development and implementation of the system. The office shall apply for certification of this program under rules adopted by the Federal Communications Commission pursuant to Section 401 of the federal Americans with Disabilities Act of 1990 (Public Law 101-336).(c) The office shall also design and implement a program whereby specialized or supplemental telephone communications equipment may be provided to subscribers who are certified to be disabled at no charge additional to the basic exchange rate. The certification, including a statement of visual or medical need for specialized telecommunications equipment, shall be provided by a licensed optometrist, physician and surgeon, physician assistant, or nurse practitioner, acting within the scope of practice of the applicable license, or by a qualified state or federal agency as determined by the office. The office shall, in this connection, study the feasibility of, and implement, if determined to be feasible, personal income criteria, in addition to the certification of disability, for determining a subscriber’s eligibility under this subdivision.(d) (1) The office shall also design and implement a program to provide access to a speech-generating device to any subscriber who is certified as having a speech disability at no charge additional to the basic exchange rate. The certification shall be provided by a licensed physician, licensed speech-language pathologist, nurse practitioner, or qualified state or federal agency. The office shall provide to a certified subscriber access to a speech-generating device that is all of the following:(A) A telecommunications device or a device that includes a telecommunications component.(B) Appropriate to meet the subscriber’s needs for access to, and use of, the telephone network, based on the recommendation of a licensed speech-language pathologist.(C) Consistent with the quality of speech-generating devices available for purchase in the state.(2) The office shall adopt rules to implement this subdivision and subdivision (e).(e) All of the following apply to any device or equipment described in this section that is classified as durable medical equipment under guidelines established by the United States Department of Health and Human Services:(1) It is the intent of the Legislature that the office be the provider of last resort and that eligible subscribers first obtain coverage from any available public or private insurance.(2) The office may require the subscriber to provide information about coverage for any or all of the cost of the device or equipment that is available from a public or private insurance, the cost to the subscriber of a deductible, copayment, or other relevant expense, and any related benefit cap information.(3) The total cost of a device or equipment provided to a subscriber under this section shall not exceed the rate of reimbursement provided by Medi-Cal for that device or equipment.(f) This section does not require the office to provide training to a subscriber on the use of a speech-generating device.(g) (1) The commission shall administer a surcharge to collect revenues, subject to an annual appropriation of moneys by the Legislature, to allow providers of the equipment and service specified in subdivisions (a) to (d), inclusive, to recover costs as they are incurred under this section. The surcharge shall be in effect until December 31, 2034. The commission shall require that the programs implemented under this section be identified on subscribers’ bills, and shall transfer moneys collected by the commission from the surcharge to the Controller for deposit into the Deaf and Disabled Telecommunications Program Administrative Committee Fund.(2) The commission may collect a sum not to exceed one hundred million dollars ($100,000,000) per year by imposing the surcharge pursuant to paragraph (1).(h) The office shall determine and specify those statewide organizations representing the deaf or hard of hearing that shall receive a telecommunications device pursuant to subdivision (a), or a dual-party relay system pursuant to subdivision (b), or both, and in which offices the equipment shall be installed in the case of an organization having more than one office.(i) The commission may direct a telephone corporation subject to its jurisdiction to comply with the office’s determinations and specifications pursuant to this section.(j) The office may make recommendations to the Legislature regarding appropriations from the Deaf and Disabled Telecommunications Program Administrative Committee Fund.(k) To continue to meet the access needs of individuals with functional limitations of hearing, vision, movement, manipulation, speech, and interpretation of information, the office shall perform an ongoing assessment of, and, if appropriate, expand the scope of, the program to allow for additional access capability consistent with evolving telecommunications technology.(l) The office shall structure the programs required by this section so that a 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. 20172. (a) In addition to the requirements of Section 20171, on and after July 1, 2028, the office shall design and implement a program to provide a telecommunications device capable of servicing the needs of the deaf or severely hard of hearing, together with a single party line, at no charge additional to the basic exchange rate, to any subscriber that is an agency of the state government and that the office determines serves a significant portion of the deaf or severely hard-of-hearing population, and to an office located in the State Capitol and selected by the Joint Rules Committee, for purposes of access by the deaf or severely hard of hearing to Members of the Legislature.(b) The commission shall permit providers of equipment and service specified in subdivision (a) to recover costs as they are incurred under this section pursuant to subdivision (g) of Section 20171.(c) The commission may direct any telephone corporation subject to its jurisdiction to comply with the office’s determinations pursuant to this section. 20173. (a) In addition to the requirements of Section 20171, on and after July 1, 2028, the office shall design and implement a program that shall provide for publicly available telecommunication devices capable of servicing the needs of the deaf or hard of hearing in existing buildings, structures, facilities, and public accommodations of the type specified in Section 4450 of the Government Code and Sections 19955.5 and 19956 of the Health and Safety Code, making available reasonable access of all phases of public telephone service to individuals who are deaf or hard of hearing. The office shall direct the appropriate advisory board under its control to determine and specify locations within existing buildings, structures, facilities, and public accommodations in need of a telecommunications device and to contract for the procurement, installation, and maintenance of these devices. In the letting of the contract, the office shall direct the advisory board to ensure consideration of for-profit and nonprofit corporations, including nonprofit corporations with demonstrated service to individuals who are deaf or hard of hearing and whose boards of directors and staff are made up of a majority of those individuals. The office shall also direct the advisory board to seek the cooperation of the owners, managers, and tenants of the existing buildings, structures, facilities, and public accommodations that have been determined to be in need of a telecommunications device with regard to its installation and maintenance. The office shall phase in this program over a reasonable period of time, giving priority to those existing buildings, structures, facilities, and public accommodations determined by the office, with the advice and counsel of statewide nonprofit consumer organizations for the deaf, to be of most importance and usefulness to the deaf or hard of hearing.(b) The commission shall ensure that costs are recovered as they are incurred under this section, including any costs incurred by the owners, managers, or tenants of existing buildings, structures, facilities, and public accommodations, and shall use for this purpose the rate recovery mechanism established pursuant to subdivision (g) of Section 20171. The office shall establish a fund and require separate accounting for the program implemented under this section and the commission shall require that the surcharge used to fund the program not exceed two-hundredths of 1 percent, that it be combined with the surcharge required by subdivision (g) of Section 20171, and that it count toward the limits set by that subdivision. This surcharge shall be in effect until January 1, 2006.(c) “Existing buildings, structures, facilities, and public accommodations,” for purposes of this section, means those buildings, structures, facilities, and public accommodations or parts thereof that were constructed or altered before January 26, 1993, or are otherwise not required by Section 303 of the federal Americans with Disabilities Act of 1990 (Public Law 101-336; 42 U.S.C. Sec. 12183) or any other section of that act and its implementing regulations and guidelines, to have a publicly available telecommunications device capable of serving the needs of the deaf or hard of hearing. 20174. (a) It is the intent of the Legislature, in enacting this section, to do all of the following:(1) Maintain the availability of the state’s current statewide infrastructure of telecommunications services and equipment to deaf, disabled, and hard-of-hearing persons, as provided for in Sections 20171, 20172, and 20173, as essential to maintaining public health and safety.(2) Authorize the office, on and after July 1, 2028, to enter into contracts for the provision of telecommunications services and equipment for deaf, disabled, and hard-of-hearing persons in a manner that protects and enhances the current statewide infrastructure and coordinated delivery of those services and equipment and includes a priority for maintaining long-term continuity of program administration and maximum involvement of the deaf and disabled community in program governance.(3) Strengthen program priorities for expanded outreach through continuing consultation with, and participation by, the deaf, disabled, and hard-of-hearing community in order to ensure the state’s network of services reach hard-to-serve populations, including rural, inner-city, and urban areas.(4) Develop a mechanism to achieve cost-effective and timely deployment of new and emerging telecommunications technologies, to the extent fiscally and economically feasible.(b) In order for the office to ensure continued provision of telecommunications services and equipment for deaf, disabled, and hard-of-hearing persons, the office, subject to annual appropriation of funds by the Legislature and consistent with state contracting requirements, may contract with entities, including nonprofit entities, or persons that have the necessary expert knowledge, ability, and experience to provide, manage, or operate the programs described in Sections 20171, 20172, and 20173.(c) The office may enter into contracts pursuant to subdivision (b) of Section 19130 of the Government Code for the services and equipment contemplated by the programs described in Sections 20171, 20172, and 20173.(d) The office may include provisions that accomplish any of the following in contracts authorized by this section:(1) Establish standards and procedures, including prior office approval, for subcontracting.(2) Establish standards and procedures regarding personnel and accounting practices.(3) Require budget approval.(4) Require periodic audits.(5) Monitor performance and establish performance standards and the method of evaluating performance, including remedies for unsatisfactory performance.(6) Establish standards and procedures to investigate and resolve complaints.(7) Provide for any other terms or restrictions as the office finds necessary to ensure that the public funds are used in accordance with the goals of the Legislature and the office.(e) Notwithstanding any other law, a contract entered into pursuant to this section may provide for periodic advance payments for telecommunications services to be performed or telecommunications equipment to be provided. An advance payment made pursuant to this section shall not exceed 25 percent of the total annual contract amount.(f) Any contractor the office selects shall demonstrate knowledge of and the capacity to provide specialized telecommunications services and equipment to deaf, disabled, and hard-of-hearing persons, and shall be required to consult with the Telecommunications Access for Deaf and Disabled Administrative Committee regarding the specialized needs of individuals using program services and equipment, as specified in Sections 20171, 20172, and 20173.(g) The office shall, to the extent feasible and consistent with state civil service requirements, employ staff overseeing the programs described in Sections 20171, 20172, and 20173 who are members of the deaf, disabled, and hard-of-hearing community.