SB 1040 Summary

• Extends the California Advanced Services Fund (CASF) indefinitely beyond its previous January 1, 2013 expiration date to support deployment of advanced broadband and communications services throughout California.

• Increases the maximum surcharge collection limit from $100 million to $225 million, with $125 million in additional funds authorized to be collected at up to $25 million per year from 2011 through 2015.

• Establishes three accounts within the fund: Broadband Infrastructure Grant Account ($100 million), Rural and Urban Regional Broadband Consortia Grant Account ($10 million), and Broadband Infrastructure Revolving Loan Account ($15 million).

• Requires the Public Utilities Commission to conduct interim (due April 1, 2011) and final (due April 1, 2017) financial and performance audits of the fund and to provide annual reports to the Legislature through January 1, 2016.

• Allows entities eligible for federal American Recovery and Reinvestment Act funds to participate in the CASF program and enables rate-of-return regulated carriers to recover California broadband infrastructure investments in their rate base.