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.

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.

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.

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 A of the California Constitution, and thus would require for passage the approval of 2 3 of the membership of each house of the Legislature.