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Bill

AB 2790

California Teleconnect Fund Administrative Committee Fund.

2025-2026 Regular Session

Expands who qualifies for discounted telecommunication rates and requires E-rate discounts to be applied first, funding governance for the California Teleconnect Fund.

Read third time. Passed. Ordered to the Senate.
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Bill Summary · AB 2790

Summary of AB 2790 (California Teleconnect Fund Administrative Committee Fund)

Purpose and intent

  • AB 2790 aims to modify and clarify provisions related to California’s Teleconnect Fund (CTF) and its Administrative Committee Fund. The bill expands the scope of discounted telecommunications rates to additional public education and library entities and adjusts how E-rate discounts are applied in relation to the California Teleconnect Fund.
  • It also codifies governance and funding rules for the California Teleconnect Fund Administrative Committee Fund, including how revenues are collected, deposited, and used for program administration and related activities.

Key provisions and changes

  • Section 280 (Public Utilities Code)

    • Expands eligibility for discounted rates through the program:
    • Qualifying schools maintaining kindergarten or any grades 1–12, school districts, and county offices of education serving preschool, transitional kindergarten, kindergarten, or grades 1–12.
    • Community colleges, public libraries, and public library systems.
    • Noninstructional facilities operated or contracted by qualifying schools, districts, county offices of education, community colleges, public libraries, and public library systems (including their data centers or administrative offices).
    • Establishes the California Teleconnect Fund Administrative Committee as an advisory body to assist the Public Utilities Commission (PUC) in developing and administering the program.
    • Revenues collected by telephone corporations to fund the program must be submitted to the PUC, which then transfers them to the Controller for deposit into the California Teleconnect Fund Administrative Committee Fund. Interest on fund balances also goes to the fund.
    • Generally, funds appropriated to the PUC from the fund are to be used exclusively for the program and its administration, with exceptions for certain loan arrangements from the Budget Act of 2003 (subject to Government Code procedures) and related rate adjustment restrictions.
    • Allows up to $1,500,000 in one-time costs from the fund for 2-1-1 service gap reduction in counties lacking access to disaster preparedness, response, and recovery information and referral services, per prior decisions. This use becomes inoperative on January 1, 2023.

  • Section 884.5 (Public Utilities Code)

    • Applies to customers eligible for federal E-rate discounts who also apply for discounts under the California Teleconnect Fund.
    • Reaffirms that a teleconnect discount shall be applied after (i.e., only after) an E-rate discount is applied, but: if the customer meets E-rate eligibility, the service provider must first apply the E-rate discount (replacing the prior directive that the commission apply it).
    • Provides an exception for school districts meeting compensation conditions under California Education Code, where the teleconnect discount may be applied without regard to the E-rate discount unless the district has been approved for E-rate.
    • Emphasizes priority of teleconnect discounts toward reducing the digital divide, focusing on rural, inner-city, low-income, and disabled Californians.
    • Defines key terms: “E-rate discount,” “E-rate program,” and “teleconnect discount.”

Affected entities

  • Public Utilities Commission (PUC): Regulatory authority over public utilities and administration of the universal service program, including administering the discounted telecommunication rates and overseeing the California Teleconnect Fund Administrative Committee Fund.
  • California Teleconnect Fund Administrative Committee: An advisory board to assist the PUC with program development, implementation, and administration.
  • Eligible customers: Qualifying schools, school districts, county offices of education, preschools, transitional kindergarten through 12th grade institutions, community colleges, public libraries and library systems, and associated noninstructional facilities and data centers.
  • Service providers: Telecommunications providers administering discount programs (subject to E-rate application sequencing).

Procedural and timeline aspects

  • Funding and administration:
    • Revenues collected for the program are deposited into the California Teleconnect Fund Administrative Committee Fund; interest accrues to the same fund.
    • Original Budget Act of 2003 loan provisions remain in effect but subject to Government Code 16320 procedures; any rate increases to fund the program while loans are outstanding require Director of Finance approvals and prior notice to the Joint Legislative Budget Committee (JLBC).
  • 2-1-1 service provisions:
    • A one-time authorization for up to $1.5 million from the fund to close 2-1-1 service gaps in certain counties; this is linked to prior Decision 11-09-016 and is time-limited (operative as specified and becomes inoperative on January 1, 2023).
  • Anticipated effective date and operation:
    • The bill text indicates amendments to existing law and codifies procedures; the legislative action history shows committee considerations in 2026, with readings and referrals typical for amendments during the 2025-2026 session.
  • Reimbursement:
    • The bill states no local reimbursement is required, citing the constitutional provisions related to costs mandated by the state.

Practical impact

  • Expanded eligibility means more schools, districts, libraries, and related facilities can receive discounted telecommunications services through the California Teleconnect Fund.
  • The sequencing of discounts (E-rate first, then teleconnect) is clarified and slightly shifted to the service provider’s responsibility to apply E-rate discounts first when eligible.
  • Administrative and governance framework for the fund is reinforced, including revenue deposit, fund usage for program administration, and loan-related rate adjustment safeguards.
  • The bill emphasizes digital divide reduction, prioritizing access to advanced technologies for underserved populations.

Note: Some provisions reference prior decisions and sunset/operative dates (e.g., the 2-1-1 funding provision expiring January 1, 2023). If enacted, readers should verify current status and any subsequent amendments or extensions in final legislative actions.

Compiled from official sources — confirm details with the bill’s official record.

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