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SECURED COPY AMENDMENTS TO SENATE BILL NO. 460 Amendment 1 In the heading, in line 1, strike out “Hueso” and insert: De León Amendment 2 In the title, in line 1, strike out “amend Section 281 of” and insert: add Division 2.6 (commencing with Section 5980) to Amendment 3 In the title, strike out line 2 and insert: the Internet, and declaring the urgency thereof, to take effect immediately. Amendment 4 On page 2, before line 1, insert: SECTION 1. Division 2.6 (commencing with Section 5980) is added to the Public Utilities Code, to read: DIVISION 2.6. CALIFORNIA INTERNET CONSUMER PROTECTION AND NET NEUTRALITY 5980. (a) The Legislature finds and declares that the Federal Communications Commission has repealed net neutrality rules intended to protect consumers and to ensure fair and reasonable access to the Internet. (b) It is the intent of this division to ensure that corporations do not impede competition or engage in deceptive consumer practices, and that they offer service to residential broadband Internet customers on a nondiscriminatory basis. (c) This act shall be known, and may be cited, as the California Internet Consumer Protection and Net Neutrality Act of 2018. (d) It is the intent of the Legislature to ensure that all of the following principles, as established in Section 709, are met: (1) The development and deployment of new technologies and the equitable provision of services in a way that efficiently meets consumer need and encourages the ubiquitous availability of a wide choice of state-of-the-art services. (2) The promotion of lower prices, broader consumer choice, and avoidance of anticompetitive conduct. 01/03/18 10:38 AM RN 18 01621 PAGE 1 Substantive RN1801621

01/03/18 10:38 AM RN 18 01621 PAGE 1 Substantivesd24.senate.ca.gov/sites/sd24.senate.ca.gov/files/pdf/sb... · 2018-01-04 · California that pro vides a de vice used for accessing

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AMENDMENTS TO SENATE BILL NO. 460

Amendment 1In the heading, in line 1, strike out “Hueso” and insert:

De León

Amendment 2

In the title, in line 1, strike out “amend Section 281 of” and insert: add Division 2.6 (commencing with Section 5980) to

Amendment 3

In the title, strike out line 2 and insert: the Internet, and declaring the urgency thereof, to take effect immediately.

Amendment 4

On page 2, before line 1, insert:

SECTION 1. Division 2.6 (commencing with Section 5980) is added to thePublic Utilities Code, to read:

DIVISION 2.6. CALIFORNIA INTERNET CONSUMER PROTECTION AND NETNEUTRALITY

5980. (a) The Legislature finds and declares that the Federal CommunicationsCommission has repealed net neutrality rules intended to protect consumers and toensure fair and reasonable access to the Internet.

(b) It is the intent of this division to ensure that corporations do not impedecompetition or engage in deceptive consumer practices, and that they offer service toresidential broadband Internet customers on a nondiscriminatory basis.

(c) This act shall be known, and may be cited, as the California Internet ConsumerProtection and Net Neutrality Act of 2018.

(d) It is the intent of the Legislature to ensure that all of the following principles,as established in Section 709, are met:

(1) The development and deployment of new technologies and the equitableprovision of services in a way that efficiently meets consumer need and encouragesthe ubiquitous availability of a wide choice of state-of-the-art services.

(2) The promotion of lower prices, broader consumer choice, and avoidance ofanticompetitive conduct.

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(3) The removal of the barriers to open and competitive markets and thepromotion of fair product and price competition in a way that encourages greaterefficiency, lower prices, and more consumer choice.

5981. For purposes of this division, the following definitions apply:(a) “Broadband Internet access service” means a mass-market retail service by

wire or radio in California that provides the capability to transmit data to and receivedata from all or substantially all Internet endpoints, including any capabilities that areincidental to and enable the operation of the communications service, but excludingdial-up Internet access service. “Broadband Internet access service” also encompassesany service in California that provides a functional equivalent of that service or that isused to evade the protections set forth in this division, as determined by the commission.

(b) “Edge provider” means any individual or entity in California that providesany content, application, or service over the Internet, and any individual or entity inCalifornia that provides a device used for accessing any content, application, or serviceover the Internet.

(c) “Internet service provider” means a business that provides broadband Internetaccess service to an individual, corporation, government, or other customer in California.

(d) “Paid prioritization” means the management of an Internet service provider’snetwork to directly or indirectly favor some traffic over other traffic, including throughthe use of techniques such as traffic shaping, prioritization, resource reservation, orother forms of preferential traffic management, either (1) in exchange for consideration,monetary or otherwise, from a third party, or (2) to benefit an affiliated entity.

5982. An Internet service provider shall not engage in any of the followingactivities:

(a) Blocking lawful content, applications, services, or nonharmful devices, subjectto reasonable network management practices as determined by the commission.

(b) Impairing or degrading lawful Internet traffic on the basis of Internet content,application, or service, or use of a nonharmful device, subject to reasonable networkmanagement practices as determined by the commission.

(c) Engaging in paid prioritization, or providing preferential treatment of someInternet traffic to any Internet customer.

(d) Unreasonably interfering with, or unreasonably disadvantaging, either acustomer’s ability to select, access, and use broadband Internet access service or lawfulInternet content, applications, services, or devices of the customer’s choice, or an edgeprovider’s ability to make lawful content, applications, services, or devices availableto a customer.

(e) Engaging in deceptive or misleading marketing practices that misrepresentthe treatment of Internet traffic or content to its customers.

5982.5. In addition to the authority granted herein, any violation of this divisionmay be enforced by the Attorney General, a district attorney, or a city attorney pursuantto Chapter 5 (commencing with Section 17200) of Part 2 of, and Chapter 1 (commencingwith Section 17500) of Part 3 of, Division 7 of the Business and Professions Code.

5983. On or before July 1, 2018, the commission shall adopt an order that doesall of the following:

(a) Establishes rules implementing Section 5982, and by which the commissionshall enforce this division. Nothing in this subdivision shall affect the authority of the

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Attorney General, a district attorney, or a city attorney to enforce this division pursuantto the authority described in Section 5982.5.

(b) Identifies and specifies this state government’s role as an Internet customer,uses that customer power to ensure implementation of this division, and establishessample master contracts for public entities to be used as an incentive for Californiacompanies to comply with net neutrality principles.

(c) Establishes statewide consumer protection rules and guidelines that can beeasily accessed by the public and that include “ground truth” testing for broadbandInternet speeds to create a single objective statewide Internet speed test, which permitscustomers to test their own broadband Internet speed and submit its results to thecommission to determine what Internet speeds consumers are receiving and whereInternet service providers may be blocking, impairing, or degrading Internet traffic orcontent.

(d) Ensures that public purpose program funding, such as funding under thelifeline service program, California Advanced Services Fund program, CaliforniaTeleconnect Fund program, or other similar publicly funded programs, is expended ina manner that will maximize Internet neutrality and ensure the fair distribution ofservices to low-income individuals and communities.

(e) Amends or modifies commission rules pertaining to eligibletelecommunications carrier status, which is necessary to participate as a provider inthe lifeline service program and to receive other federal funding, to ensure compliancewith consumer protection and Internet neutrality standards provided under this division.

(f) Establishes a process whereby an Internet service provider shall certify to thecommission that it is providing broadband Internet access service in accordance withthe requirements set forth in this division.

5989. The provisions of this division are severable. If any provision of thisdivision or its application is held invalid, that invalidity shall not affect other provisionsor applications that can be given effect without the invalid provision or application.

SEC. 2. No reimbursement is required by this act pursuant to Section 6 ofArticle XIII B of the California Constitution because the only costs that may be incurredby a local agency or school district will be incurred because this act creates a newcrime or infraction, eliminates a crime or infraction, or changes the penalty for a crimeor infraction, within the meaning of Section 17556 of the Government Code, or changesthe definition of a crime within the meaning of Section 6 of Article XIII B of theCalifornia Constitution.

SEC. 3. This act is an urgency statute necessary for the immediate preservationof the public peace, health, or safety within the meaning of Article IV of the CaliforniaConstitution and shall go into immediate effect. The facts constituting the necessityare:

The Federal Communications Commission has vacated an earlier orderestablishing consumer protections and network neutrality. It is necessary for this billto take effect immediately to ensure those protections are continued.

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Amendment 5

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PROPOSED AMENDMENTS TO SENATE BILL NO. 460

SENATE BILL No. 460

Introduced by Senator Hueso De León

February 16, 2017

An act to amend Section 281 of add Division 2.6 (commencing withSection 5980) to the Public Utilities Code, relating totelecommunications. the Internet, and declaring the urgency thereof,to take effect immediately.

legislative counsel’s digest

SB 460, as introduced, Hueso De León. California Advanced ServicesFund. Guidelines: Broadband Internet access service.

(1)  Under existing law, the Public Utilities Commission hasregulatory authority over public utilities, including telephonecorporations. Pursuant to its existing authority, the commissionsupervises administration of the state’s telecommunications universalservice programs. The Digital Infrastructure and Video CompetitionAct of 2006 establishes a procedure for the issuance of state franchisesfor the provision of video service, defined to include cable service andopen-video systems, administered by the commission.

This bill would, except as provided, prohibit Internet service providersin the state from taking certain actions regarding the accessing ofcontent on the Internet by customers. The bill would require thecommission to adopt an order that, among other things, identifies andspecifies this state government’s role as an Internet customer and usesthat customer power to ensure implementation of the bill’s provisions,establishes statewide consumer protection rules, ensures that publicpurpose program funding is expended in a manner that will maximizeInternet neutrality and ensure the fair distribution of services to

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low-income individuals and communities, and establishes a processwhereby an Internet service provider in California is required to certifyto the commission that it is providing broadband Internet access servicein accordance with the provisions of the bill.

(2)  Under existing law, a violation of the Public Utilities Act or anyorder, decision, rule, direction, demand, or requirement of thecommission is a crime.

Because a violation of an order or decision of the commissionimplementing this act’s requirements would be a crime, this bill wouldimpose a state-mandated local program by creating a new crime.

The California Constitution requires the state to reimburse localagencies and school districts for certain costs mandated by the state.Statutory provisions establish procedures for making thatreimbursement.

This bill would provide that no reimbursement is required by this actfor a specified reason.

(3)  This bill would declare that it is to take effect immediately as anurgency statute.

Under existing law, the Public Utilities Commission has regulatoryauthority over public utilities, including telephone corporations. Existinglaw establishes, among other funds related to telecommunications, theCalifornia Advanced Services Fund (CASF) in the State Treasury.Existing law requires the commission to develop, implement, andadminister the CASF to encourage the deployment of high-qualityadvanced communications services to all Californians that will promoteeconomic growth, job creation, and the substantial social benefits ofadvanced information and communications technologies, as providedin specified decisions of the commission and in the CASF statute.Existing law requires the commission to give priority to projects thatprovide last-mile broadband access to households that are unserved byan existing facilities-based broadband provider. Existing law authorizesthe commission to collect a surcharge for deposit into the CASF not toexceed $315,000,000 in total and authorizes the surcharge through 2020.Existing law establishes that the goal of the program is, no later thanDecember 31, 2015, to approve funding for infrastructure projects thatwill provide broadband access to no less than 98% of Californiahouseholds.

This bill would postpone the deadline for meeting that goal untilDecember 31, 2020.

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Vote: majority 2⁄3. Appropriation: no. Fiscal committee: no yes.

State-mandated local program: no yes.

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

SECTION 1. Division 2.6 (commencing with Section 5980) isadded to the  Public Utilities Code , to read:

DIVISION 2.6. CALIFORNIA INTERNET CONSUMERPROTECTION AND NET NEUTRALITY

5980. (a)  The Legislature finds and declares that the FederalCommunications Commission has repealed net neutrality rulesintended to protect consumers and to ensure fair and reasonableaccess to the Internet.

(b)  It is the intent of this division to ensure that corporationsdo not impede competition or engage in deceptive consumerpractices, and that they offer service to residential broadbandInternet customers on a nondiscriminatory basis.

(c)  This act shall be known, and may be cited, as the CaliforniaInternet Consumer Protection and Net Neutrality Act of 2018.

(d)  It is the intent of the Legislature to ensure that all of thefollowing principles, as established in Section 709, are met:

(1)  The development and deployment of new technologies andthe equitable provision of services in a way that efficiently meetsconsumer need and encourages the ubiquitous availability of awide choice of state-of-the-art services.

(2)  The promotion of lower prices, broader consumer choice,and avoidance of anticompetitive conduct.

(3)  The removal of the barriers to open and competitive marketsand the promotion of fair product and price competition in a waythat encourages greater efficiency, lower prices, and moreconsumer choice.

5981. For purposes of this division, the following definitionsapply:

(a)  “Broadband Internet access service” means a mass-marketretail service by wire or radio in California that provides thecapability to transmit data to and receive data from all orsubstantially all Internet endpoints, including any capabilities thatare incidental to and enable the operation of the communications

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service, but excluding dial-up Internet access service. “BroadbandInternet access service” also encompasses any service in Californiathat provides a functional equivalent of that service or that is usedto evade the protections set forth in this division, as determinedby the commission.

(b)  “Edge provider” means any individual or entity in Californiathat provides any content, application, or service over the Internet,and any individual or entity in California that provides a deviceused for accessing any content, application, or service over theInternet.

(c)  “Internet service provider” means a business that providesbroadband Internet access service to an individual, corporation,government, or other customer in California.

(d)  “Paid prioritization” means the management of an Internetservice provider’s network to directly or indirectly favor sometraffic over other traffic, including through the use of techniquessuch as traffic shaping, prioritization, resource reservation, orother forms of preferential traffic management, either (1) inexchange for consideration, monetary or otherwise, from a thirdparty, or (2) to benefit an affiliated entity.

5982. An Internet service provider shall not engage in any ofthe following activities:

(a)  Blocking lawful content, applications, services, ornonharmful devices, subject to reasonable network managementpractices as determined by the commission.

(b)  Impairing or degrading lawful Internet traffic on the basisof Internet content, application, or service, or use of a nonharmfuldevice, subject to reasonable network management practices asdetermined by the commission.

(c)  Engaging in paid prioritization, or providing preferentialtreatment of some Internet traffic to any Internet customer.

(d)  Unreasonably interfering with, or unreasonablydisadvantaging, either a customer’s ability to select, access, anduse broadband Internet access service or lawful Internet content,applications, services, or devices of the customer’s choice, or anedge provider’s ability to make lawful content, applications,services, or devices available to a customer.

(e)  Engaging in deceptive or misleading marketing practicesthat misrepresent the treatment of Internet traffic or content to itscustomers.

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5982.5. In addition to the authority granted herein, anyviolation of this division may be enforced by the Attorney General,a district attorney, or a city attorney pursuant to Chapter 5(commencing with Section 17200) of Part 2 of, and Chapter 1(commencing with Section 17500) of Part 3 of, Division 7 of theBusiness and Professions Code.

5983. On or before July 1, 2018, the commission shall adoptan order that does all of the following:

(a)  Establishes rules implementing Section 5982, and by whichthe commission shall enforce this division. Nothing in thissubdivision shall affect the authority of the Attorney General, adistrict attorney, or a city attorney to enforce this division pursuantto the authority described in Section 5982.5.

(b)  Identifies and specifies this state government’s role as anInternet customer, uses that customer power to ensureimplementation of this division, and establishes sample mastercontracts for public entities to be used as an incentive forCalifornia companies to comply with net neutrality principles.

(c)  Establishes statewide consumer protection rules andguidelines that can be easily accessed by the public and thatinclude “ground truth” testing for broadband Internet speeds tocreate a single objective statewide Internet speed test, whichpermits customers to test their own broadband Internet speed andsubmit its results to the commission to determine what Internetspeeds consumers are receiving and where Internet serviceproviders may be blocking, impairing, or degrading Internet trafficor content.

(d)  Ensures that public purpose program funding, such asfunding under the lifeline service program, California AdvancedServices Fund program, California Teleconnect Fund program,or other similar publicly funded programs, is expended in a mannerthat will maximize Internet neutrality and ensure the fairdistribution of services to low-income individuals and communities.

(e)  Amends or modifies commission rules pertaining to eligibletelecommunications carrier status, which is necessary toparticipate as a provider in the lifeline service program and toreceive other federal funding, to ensure compliance with consumerprotection and Internet neutrality standards provided under thisdivision.

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(f)  Establishes a process whereby an Internet service providershall certify to the commission that it is providing broadbandInternet access service in accordance with the requirements setforth in this division.

5989. The provisions of this division are severable. If anyprovision of this division or its application is held invalid, thatinvalidity shall not affect other provisions or applications that canbe given effect without the invalid provision or application.

 SEC. 2. No reimbursement is required by this act pursuant toSection 6 of Article XIII B of the California Constitution becausethe only costs that may be incurred by a local agency or schooldistrict will be incurred because this act creates a new crime orinfraction, eliminates a crime or infraction, or changes the penaltyfor a crime or infraction, within the meaning of Section 17556 ofthe Government Code, or changes the definition of a crime withinthe meaning of Section 6 of Article XIII B of the CaliforniaConstitution.

 SEC. 3. This act is an urgency statute necessary for theimmediate preservation of the public peace, health, or safety withinthe meaning of Article IV of the California Constitution and shallgo into immediate effect. The facts constituting the necessity are:

 The Federal Communications Commission has vacated an earlierorder establishing consumer protections and network neutrality.It is necessary for this bill to take effect immediately to ensurethose protections are continued.

SECTION 1. Section 281 of the Public Utilities Code isamended to read:

281. (a)  The commission shall develop, implement, andadminister the California Advanced Services Fund program toencourage deployment of high-quality advanced communicationsservices to all Californians that will promote economic growth,job creation, and the substantial social benefits of advancedinformation and communications technologies, consistent withthis section.

(b)  (1)  The goal of the program is, no later than December 31,2020, to approve funding for infrastructure projects that willprovide broadband access to no less than 98 percent of Californiahouseholds.

(2)  In approving infrastructure projects, the commission shallgive priority to projects that provide last-mile broadband access

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to households that are unserved by an existing facilities-basedbroadband provider. The commission shall provide each applicant,and any party challenging an application, the opportunity todemonstrate actual levels of broadband service in the project area,which the commission shall consider in reviewing the application.

(c)  The commission shall establish the following accounts withinthe fund:

(1)  The Broadband Infrastructure Grant Account.(2)  The Rural and Urban Regional Broadband Consortia Grant

Account.(3)  The Broadband Infrastructure Revolving Loan Account.(4)  The Broadband Public Housing Account.(d)  (1)  All moneys collected by the surcharge authorized by

the commission pursuant to Decision 07-12-054 shall betransmitted to the commission pursuant to a schedule establishedby the commission. The commission shall transfer the moneysreceived to the Controller for deposit in the California AdvancedServices Fund. Moneys collected on and after January 1, 2011,shall be deposited in the following amounts in the followingaccounts:

(A)  One hundred ninety million dollars ($190,000,000) into theBroadband Infrastructure Grant Account.

(B)  Fifteen million dollars ($15,000,000) into the Rural andUrban Regional Broadband Consortia Grant Account.

(C)  Ten million dollars ($10,000,000) into the BroadbandInfrastructure Revolving Loan Account.

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

(3)  The commission shall not collect moneys, by imposing thesurcharge described in paragraph (1) for deposit in the fund, in anamount that exceeds one hundred million dollars ($100,000,000)before January 1, 2011. On and after January 1, 2011, thecommission may collect an additional sum not to exceed twohundred fifteen million dollars ($215,000,000), for a sum total ofmoneys collected by imposing the surcharge described in paragraph(1) not to exceed three hundred fifteen million dollars($315,000,000). The commission may collect the additional sumbeginning with the calendar year starting on January 1, 2011, andcontinuing through the 2020 calendar year, in an amount not toexceed twenty-five million dollars ($25,000,000) per year, unless

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the commission determines that collecting a higher amount in anyyear will not result in an increase in the total amount of allsurcharges collected from telephone customers that year.

(e)  (1)  All moneys in the California Advanced Services Fundshall be available, upon appropriation by the Legislature, to thecommission for the program administered by the commissionpursuant to this section, including the costs incurred by thecommission in developing, implementing, and administering theprogram and the fund.

(2)  Notwithstanding any other law and for the sole purpose ofproviding matching funds pursuant to the federal AmericanRecovery and Reinvestment Act of 2009 (Public Law 111-5), anyentity eligible for funding pursuant to that act shall be eligible toapply to participate in the program administered by the commissionpursuant to this section, if that entity otherwise satisfies theeligibility requirements under that program. Nothing in this sectionshall impede the ability of an incumbent local exchange carrier,as defined by subsection (h) of Section 251 of Title 47 of theUnited States Code, that is regulated under a rate of returnregulatory structure, to recover, in rate base, Californiainfrastructure investment not provided through federal or stategrant funds for facilities that provide broadband service andCalifornia intrastate voice service.

(3)  Notwithstanding subdivision (b) of Section 270, an entitythat is not a telephone corporation shall be eligible to apply toparticipate in the program administered by the commission pursuantto this section to provide access to broadband service to anunserved or underserved household, as defined in commissionDecision 12-02-015, if the entity otherwise meets the eligibilityrequirements and complies with program requirements establishedby the commission. These requirements shall include all of thefollowing:

(A)  That projects under this paragraph provide last-milebroadband access to households that are unserved by an existingfacilities-based broadband provider and only receive funding toprovide broadband access to households that are unserved orunderserved, as defined in commission Decision 12-02-015.

(B)  That funding for a project providing broadband access toan underserved household shall not be approved until after anyexisting facilities-based provider has an opportunity to demonstrate

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to the commission that it will, within a reasonable timeframe,upgrade existing service. An existing facilities-based providermay, but is not required to, apply for funding under this section tomake that upgrade.

(C)  That the commission shall provide each applicant, and anyparty challenging an application, the opportunity to demonstrateactual levels of broadband service in the project area, which thecommission shall consider in reviewing the application.

(D)  That a local governmental agency may be eligible for aninfrastructure grant only if the infrastructure project is for anunserved household or business, the commission has conductedan open application process, and no other eligible entity applied.

(E)  That the commission shall establish a service list ofinterested parties to be notified of California Advanced ServicesFund applications.

(f)  Moneys in the Rural and Urban Regional BroadbandConsortia Grant Account shall be available for grants to eligibleconsortia to fund the cost of broadband deployment activities otherthan the capital cost of facilities, as specified by the commission.An eligible consortium may include, as specified by thecommission, representatives of organizations, including, but notlimited to, local and regional government, public safety, elementaryand secondary education, health care, libraries, postsecondaryeducation, community-based organizations, tourism, parks andrecreation, agricultural, business, workforce organizations, and airpollution control or air quality management districts, and is notrequired to have as its lead fiscal agent an entity with a certificateof public convenience and necessity.

(g)  Moneys in the Broadband Infrastructure Revolving LoanAccount shall be available to finance capital costs of broadbandfacilities not funded by a grant from the Broadband InfrastructureGrant Account. The commission shall periodically set interest rateson the loans based on surveys of existing financial markets.

(h)  (1)  For purposes of this subdivision, the following termshave the following meanings:

(A)  “Publicly subsidized” means either that the housingdevelopment receives financial assistance from the United StatesDepartment of Housing and Urban Development pursuant to anannual contribution contract or is financed with low-incomehousing tax credits, tax-exempt mortgage revenue bonds, general

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obligation bonds, or local, state, or federal loans or grants and therents of the occupants, who are lower income households, do notexceed those prescribed by deed restrictions or regulatoryagreements pursuant to the terms of the financing or financialassistance.

(B)  “Publicly supported community” means a publiclysubsidized multifamily housing development that is wholly ownedby either of the following:

(i)  A public housing agency that has been chartered by the state,or by any city or county in the state, and has been determined tobe an eligible public housing agency by the United StatesDepartment of Housing and Urban Development.

(ii)  An incorporated nonprofit organization as described inSection 501(c)(3) of the Internal Revenue Code (26 U.S.C. Sec.501(c)(3)) that is exempt from taxation under Section 501(a) ofthat code (26 U.S.C. Sec. 501(a)), and that has received publicfunding to subsidize the construction or maintenance of housingoccupied by residents whose annual income qualifies as “low” or“very low” income according to federal poverty guidelines.

(2)  Notwithstanding subdivision (b) of Section 270, moneys inthe Broadband Public Housing Account shall be available for thecommission to award grants and loans pursuant to this subdivisionto an eligible publicly supported community if that entity otherwisemeets eligibility requirements and complies with programrequirements established by the commission.

(3)  (A)  Not more than twenty million dollars ($20,000,000)shall be available for grants and loans to a publicly supportedcommunity to finance a project to connect a broadband networkto that publicly supported community. A publicly supportedcommunity may be an eligible applicant only if the publiclysupported community can verify to the commission that thepublicly supported community has not denied a right of access toany broadband provider that is willing to connect a broadbandnetwork to the facility for which the grant or loan is sought andthe publically supported community is unserved.

(B)  (i)  In its review of applications received pursuant tosubparagraph (A), the commission shall award grants only tounserved housing developments.

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(ii)  For purposes of this subparagraph, a housing developmentis unserved when at least one housing unit within the housingdevelopment is not offered broadband Internet service.

(4)  (A)  Not more than five million dollars ($5,000,000) shallbe available for grants and loans to a publicly supported communityto support programs designed to increase adoption rates forbroadband services for residents of that publicly supportedcommunity. A publicly supported community may be eligible forfunding for a broadband adoption program only if the residentialunits in the facility to be served have access to broadband servicesor will have access to broadband services at the time the fundingfor adoption is implemented.

(B)  A publicly supported community may contract with othernonprofit or public agencies to assist in implementation of abroadband adoption program.

(5)  To the extent feasible, the commission shall approve projectsfor funding from the Broadband Public Housing Account in amanner that reflects the statewide distribution of publicly supportedcommunities.

(6)  In reviewing a project application under this subdivision,the commission shall consider the availability of other fundingsources for that project, any financial contribution from thebroadband service provider to the project, the availability of anyother public or private broadband adoption or deployment program,including tax credits and other incentives, and whether the applicanthas sought funding from, or participated in, any reasonablyavailable program. The commission may require an applicant toprovide match funding, and shall not deny funding for a projectsolely because the applicant is receiving funding from anothersource.

(7)  (A)  To provide funding for the purposes of this subdivision,the commission shall transfer to the Broadband Public HousingAccount twenty million dollars ($20,000,000) from the BroadbandInfrastructure Grant Account and five million dollars ($5,000,000)from the Broadband Infrastructure Revolving Loan Account. Anymoneys in the Broadband Public Housing Account that have notbeen awarded pursuant to this subdivision by December 31, 2020,shall be transferred back to the Broadband Infrastructure GrantAccount and Broadband Infrastructure Revolving Loan Account

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in proportion to the amount transferred from the respectiveaccounts.

(B)  The commission shall transfer funds pursuant tosubparagraph (A) only if the commission is otherwise authorizedto collect funds for purposes of this section in excess of the totalamount authorized pursuant to paragraph (3) of subdivision (d).

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