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	<ns0:Description>
		<ns0:Id>20250SB__071694AMD</ns0:Id>
		<ns0:VersionNum>94</ns0:VersionNum>
		<ns0:History>
			<ns0:Action>
				<ns0:ActionText>INTRODUCED</ns0:ActionText>
				<ns0:ActionDate>2025-02-21</ns0:ActionDate>
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			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-03-26</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-04-21</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-05-06</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_SENATE</ns0:ActionText>
				<ns0:ActionDate>2025-05-23</ns0:ActionDate>
			</ns0:Action>
			<ns0:Action>
				<ns0:ActionText>AMENDED_ASSEMBLY</ns0:ActionText>
				<ns0:ActionDate>2025-07-17</ns0:ActionDate>
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		<ns0:LegislativeInfo>
			<ns0:SessionYear>2025</ns0:SessionYear>
			<ns0:SessionNum>0</ns0:SessionNum>
			<ns0:MeasureType>SB</ns0:MeasureType>
			<ns0:MeasureNum>716</ns0:MeasureNum>
			<ns0:MeasureState>AMD</ns0:MeasureState>
		</ns0:LegislativeInfo>
		<ns0:AuthorText authorType="LEAD_AUTHOR">Introduced by Senator Durazo</ns0:AuthorText>
		<ns0:AuthorText authorType="PRINCIPAL_COAUTHOR_OPPOSITE">(Principal coauthor: Assembly Member Boerner)</ns0:AuthorText>
		<ns0:Authors>
			<ns0:Legislator>
				<ns0:Contribution>LEAD_AUTHOR</ns0:Contribution>
				<ns0:House>SENATE</ns0:House>
				<ns0:Name>Durazo</ns0:Name>
			</ns0:Legislator>
			<ns0:Legislator>
				<ns0:Contribution>PRINCIPAL_COAUTHOR</ns0:Contribution>
				<ns0:House>ASSEMBLY</ns0:House>
				<ns0:Name>Boerner</ns0:Name>
			</ns0:Legislator>
		</ns0:Authors>
		<ns0:Title>An act to add and repeal Sections 873.5 and 914.8 of the Public Utilities Code, relating to communications. </ns0:Title>
		<ns0:RelatingClause>communications</ns0:RelatingClause>
		<ns0:GeneralSubject>
			<ns0:Subject>Lifeline program: broadband internet access service.</ns0:Subject>
		</ns0:GeneralSubject>
		<ns0:DigestText>
			<html:p>Existing law, the Moore Universal Telephone Service Act, establishes the Universal Lifeline Telephone Service program to provide low-income households with access to affordable basic residential telephone service. Existing law requires all revenues collected by telephone corporations in rates authorized by the Public Utilities Commission to fund the Universal Lifeline Telephone Service program to be submitted to the commission pursuant to a schedule established by the commission. Existing law requires all moneys appropriated from the Universal Lifeline Telephone Service Trust Administrative Committee Fund to the commission to be used exclusively by the commission for the Universal Lifeline Telephone Service program.</html:p>
			<html:p>This bill would require the commission, as part of a new or existing proceeding, to establish a mechanism to
			 permit internet service providers to voluntarily include stand-alone broadband internet access service as a class of lifeline service. The bill would provide that an internet service provider would be eligible for a lifeline subsidy if it offers at least one internet service plan that provides broadband internet access service at a speed of at least 100 megabits per second downstream and 20 megabits per second upstream and costs $30 or less per month. The bill would authorize the commission to adjust the speed and monthly plan cost for certain areas of the state, as provided. The bill would prohibit the commission from requiring a lifeline subscriber to bundle their voice and internet service plans in order to receive a lifeline subsidy pursuant to these provisions, as
			 specified. The bill would prohibit the commission from providing a lifeline subscriber with more than one lifeline subsidy per household under the act, as provided. The bill would prohibit an internet service provider from being required to obtain an eligible telecommunications carrier designation in order to obtain a lifeline subsidy, except as provided. The bill would require the commission to prohibit internet service providers that offer lifeline service pursuant to these provisions from the inappropriate upselling of their internet service plans, as specified. The bill would require the commission, on or before December 31, 2026, to submit to the Legislature an estimate of any increase to the Universal Service Public Purpose Programs surcharge rate required for the implementation of these
			 provisions. The bill would prohibit the commission from increasing the surcharge for the lifeline program above the highest rate collected within the previous 4 years, as of January 1, 2026. The bill would require the commission, on or before July 1, 2027, to adopt rules to implement these provisions. The bill would repeal these provisions on January 1, 2032. The bill would require the commission, on or before July 1, 2028, to report to the Legislature, as part of a specified report, on the performance and fiscal impact of the lifeline program, as specified.</html:p>
			<html:p>Under existing law, a violation of the Public Utilities Act or any order, decision, rule, direction, demand, or requirement of the commission is a crime.</html:p>
			<html:p>Because the above-described provisions would be part of the act and a violation of a commission action implementing this bill’s requirements would be a crime, the bill would impose a state-mandated local program.</html:p>
			<html:p>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.</html:p>
			<html:p>This bill would provide that no reimbursement is required by this act for a specified reason.</html:p>
			<html:p>
				This bill would include a change in state statute that
			 would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII
				<html:span class="ThinSpace"/>
				A of the California Constitution, and thus would require for passage the approval of 
				<ns0:Fraction>
					<ns0:Numerator>2</ns0:Numerator>
					<ns0:Denominator>3</ns0:Denominator>
				</ns0:Fraction>
				 of the membership of each house of the Legislature.
			</html:p>
		</ns0:DigestText>
		<ns0:DigestKey>
			<ns0:VoteRequired>TWO_THIRDS</ns0:VoteRequired>
			<ns0:Appropriation>NO</ns0:Appropriation>
			<ns0:FiscalCommittee>YES</ns0:FiscalCommittee>
			<ns0:LocalProgram>YES</ns0:LocalProgram>
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		<ns0:MeasureIndicators>
			<ns0:ImmediateEffect>NO</ns0:ImmediateEffect>
			<ns0:ImmediateEffectFlags>
				<ns0:Urgency>NO</ns0:Urgency>
				<ns0:TaxLevy>NO</ns0:TaxLevy>
				<ns0:Election>NO</ns0:Election>
				<ns0:UsualCurrentExpenses>NO</ns0:UsualCurrentExpenses>
				<ns0:BudgetBill>NO</ns0:BudgetBill>
				<ns0:Prop25TrailerBill>NO</ns0:Prop25TrailerBill>
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	</ns0:Description>
	<ns0:Bill id="bill">
		<ns0:Preamble>The people of the State of California do enact as follows:</ns0:Preamble>
		<ns0:BillSection id="id_67C9F9DC-178F-4401-9AE6-BDAE316931D1">
			<ns0:Num>SECTION 1.</ns0:Num>
			<ns0:Content>
				<html:p>The Legislature finds and declares all of the following:</html:p>
				<html:p>
					(a)
					<html:span class="EnSpace"/>
					Due to the loss of federal support for broadband affordability through the federal Affordable Connectivity Program, the financial pressure of supporting broadband affordability through subsidies has fallen to the states.
				</html:p>
				<html:p>
					(b)
					<html:span class="EnSpace"/>
					At the same time, the Trump administration has made it difficult for states to mandate broadband affordability without putting at risk significant sums of infrastructure funding.
				</html:p>
				<html:p>
					(c)
					<html:span class="EnSpace"/>
					Nonetheless, California remains committed to our values and our history of supporting basic communication needs through the lifeline program.
				</html:p>
				<html:p>
					(d)
					<html:span class="EnSpace"/>
					The lifeline program must evolve to meet the advanced communication needs of modern life such as broadband access, which will introduce a new cost pressure to the Universal Lifeline Telephone Service Trust Administrative Committee Fund that current reserves may absorb.
				</html:p>
				<html:p>
					(e)
					<html:span class="EnSpace"/>
					Internet service providers who stand to benefit from this legislation do not currently contribute to the Universal Lifeline Telephone Service Trust Administrative Committee Fund and federal preemption policies are a significant barrier to requiring them to pay their fair share.
				</html:p>
				<html:p>
					(f)
					<html:span class="EnSpace"/>
					The Legislature may wish to consider future options to
				revise the funding mechanism for the lifeline program to ensure the entities and providers that benefit from the program pay their fair share to support broadband accessibility and affordability for low-income Californians.
				</html:p>
				<html:p>
					(g)
					<html:span class="EnSpace"/>
					As the current California Lifeline program allows for technology neutrality, the Legislature remains committed to ensuring a technology neutral approach for the lifeline program.
				</html:p>
			</ns0:Content>
		</ns0:BillSection>
		<ns0:BillSection id="id_9CFEE45B-B78B-4969-A8DA-E4B1B70A4769">
			<ns0:Num>SEC. 2.</ns0:Num>
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				Section 873.5 is added to the 
				<ns0:DocName>Public Utilities Code</ns0:DocName>
				, to read:
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				<ns0:LawSection id="id_01F3AF47-E084-46CE-BF0C-A14FF44AED0F">
					<ns0:Num>873.5.</ns0:Num>
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						<ns0:Content>
							<html:p>
								(a)
								<html:span class="EnSpace"/>
								For purposes of this section, all of the following definitions apply:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								“Affiliate” has the same meaning as defined in Section 153 of Title 47 of the United States Code.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								“Eligible telecommunications carrier” has the same meaning as described in Section 214 of Title 47 of the United States Code.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								“Household” has the same meaning as defined in Section 878.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								“Internet service provider” has the same meaning as defined in Section 3100 of the Civil Code.
							</html:p>
							<html:p>
								(5)
								<html:span class="EnSpace"/>
								“Small independent telephone corporation” has the same meaning as defined in Section 275.6.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								As part of a new or existing proceeding, the commission shall establish a mechanism to permit internet service providers to voluntarily include stand-alone broadband internet access service as a class of lifeline service, subject to the requirements and limitations of this section.
							</html:p>
							<html:p>
								(c)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								An internet
						service provider shall be eligible for a lifeline subsidy if it offers at least one internet service plan that provides broadband internet access service at a speed of at least 100 megabits per second downstream and 20 megabits per second upstream and costs thirty dollars ($30) or less per month.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The commission may adjust the speed and monthly cost specified in paragraph (1) for an area of the state where no participating internet service provider at that time offers broadband internet access service at that speed and cost, including an area of the state served by an internet service provider that is an affiliate of a small independent telephone corporation.
							</html:p>
							<html:p>
								(d)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								The commission shall not require a lifeline subscriber to bundle their voice and internet service plans to receive a lifeline subsidy pursuant to this section.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The commission may adopt a mechanism to ensure that a lifeline subscriber who receives a lifeline subsidy pursuant to this section has sufficient access to voice service.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								A lifeline subscriber may elect to apply a lifeline subsidy to any eligible internet service plan offered by a participating internet service provider.
							</html:p>
							<html:p>
								(4)
								<html:span class="EnSpace"/>
								The commission shall not provide a lifeline subscriber with more than one lifeline subsidy per household under this article, consistent with Section 878, except that a lifeline subscriber may also
						obtain a subsidy pursuant to a federally established program.
							</html:p>
							<html:p>
								(e)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								Except as provided in paragraph (2), an internet service provider shall not be required to obtain an eligible telecommunications carrier designation to offer lifeline service pursuant to this section.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								(A)
								<html:span class="EnSpace"/>
								The commission shall establish an expedited advice letter process for an internet service provider that is an affiliate of a small independent telephone corporation to have the option to become an eligible telecommunications carrier for the purpose of accessing federal support to provide discounted broadband internet access service to qualifying low-income customers.
							</html:p>
							<html:p>
								(B)
								<html:span class="EnSpace"/>
								An internet service provider designated as an eligible telecommunications carrier pursuant to this paragraph is not required to provide voice service to the area where the internet service provider is designated as an eligible telecommunications carrier if it has an affiliate that offers voice service to all customers located in that area.
							</html:p>
							<html:p>
								(f)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								The commission shall prohibit an internet service provider that offers lifeline service pursuant to this section from
						the inappropriate upselling of its internet service plans.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The prohibition in paragraph (1) only applies to the sale of an internet service plan to a lifeline subscriber for the purpose of applying the lifeline subsidy. It does not prohibit an internet service provider from providing a lifeline subscriber with information about other services offered
						by the internet service provider.
							</html:p>
							<html:p>
								(g)
								<html:span class="EnSpace"/>
								On or before December 31, 2026, the commission shall submit an estimate of any increase to the Universal Service Public Purpose Programs surcharge rate required for the implementation of this section in writing to the Assembly and Senate budget committees and the relevant policy committees in each house of the Legislature, in compliance with Section 9795 of the Government Code.
							</html:p>
							<html:p>
								(h)
								<html:span class="EnSpace"/>
								The commission shall not increase the surcharge for the lifeline program above the highest rate collected within the previous four years, as of January 1, 2026.
							</html:p>
							<html:p>
								(i)
								<html:span class="EnSpace"/>
								(1)
								<html:span class="EnSpace"/>
								On or before July 1, 2027, the commission shall adopt rules to implement this section.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								This section only applies to the lifeline subsidy established pursuant to this section.
							</html:p>
							<html:p>
								(j)
								<html:span class="EnSpace"/>
								This section shall remain in effect only until January 1, 2032, and as of that date is repealed.
							</html:p>
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		<ns0:BillSection id="id_F72EC100-506B-4334-8EF5-7F4021CACC29">
			<ns0:Num>SEC. 3.</ns0:Num>
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				Section 914.8 is added to the 
				<ns0:DocName>Public Utilities Code</ns0:DocName>
				, to read:
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				<ns0:LawSection id="id_6D88C945-4123-454E-98A6-2D5BB5BF810A">
					<ns0:Num>914.8.</ns0:Num>
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							<html:p>
								(a)
								<html:span class="EnSpace"/>
								On or before July 1, 2028, the commission shall, as part of an annual report prepared pursuant to Section 914.1, report to the Legislature on the performance and fiscal impact of the lifeline program, including all of the following:
							</html:p>
							<html:p>
								(1)
								<html:span class="EnSpace"/>
								The overall increase or change in program participation.
							</html:p>
							<html:p>
								(2)
								<html:span class="EnSpace"/>
								The number of participants switching from telephone to broadband service.
							</html:p>
							<html:p>
								(3)
								<html:span class="EnSpace"/>
								The number of participants that applied their subsidy to a bundled service offering.
							</html:p>
							<html:p>
								(b)
								<html:span class="EnSpace"/>
								Pursuant to Section 10231.5 of the Government Code, this section is
						repealed on January 1, 2032.
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			<ns0:Num>SEC. 4.</ns0:Num>
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				<html:p>
					No reimbursement is required by this act pursuant to Section 6 of Article XIII
					<html:span class="ThinSpace"/>
					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
					<html:span class="ThinSpace"/>
					B of the California Constitution.
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