Assembly BillChaptered/SignedPublic Utilities
AB 2790: California Teleconnect Fund Administrative Committee Fund program.
What AB 2790 does, verified September 29, 2026
This bill aims to amend the Public Utilities Code to advance universal service in California. It requires discounted rates for qualifying schools, school districts, and county offices of education to be provided to preschools, transitional kindergarten, kindergarten, and grades 1-12, in addition to the existing services. The bill also alters the order in which e-rate discounts are applied, with the service provider first applying the discount if the customer meets the requirements. This change is intended to ensure that customers receive the most cost-effective option for telecommunications services.
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Last action: Chaptered by Secretary of State - Chapter 643, Statutes of 2026. (2026-09-27)Alert me
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| Sep. 27, 2026 | Chaptered by Secretary of State - Chapter 643, Statutes of 2026. |
| Sep. 27, 2026 | Approved by the Governor. |
| Sep. 03, 2026 | Enrolled and presented to the Governor at 4 p.m. |
| Aug. 26, 2026 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 79. Noes 0. Page 6593.). |
| Aug. 25, 2026 | In Assembly. Concurrence in Senate amendments pending. |
Latest bill textChaptered version, September 27, 2026 · 1,213 words
Assembly Bill No. 2790
CHAPTER 643
An act to amend Sections 280 and 884.5 of the Public Utilities Code, relating to communications.
[ Approved by Governor September 27, 2026. Filed with Secretary of State September 27, 2026. ]
LEGISLATIVE COUNSEL'S DIGEST
AB 2790, Committee on Communications and Conveyance. California Teleconnect Fund Administrative Committee Fund program.
Existing law vests the Public Utilities Commission with regulatory authority over public utilities, including telephone corporations. Existing law requires the commission to develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools maintaining kindergarten or any of grades 1 to 12, inclusive, community colleges, libraries, hospitals, health clinics, and community organizations.
This bill would require that the discounted rates also be provided to qualifying schools, school districts, and county offices of education serving preschools, transitional kindergarten, kindergarten, or any of grades 1 to 12, inclusive, public libraries and public library systems, rather than libraries, and noninstructional facilities operated or contracted by qualifying schools, school districts, county offices of education, community colleges, community college districts, public libraries, and public library systems, including their associated data centers or administrative offices, as provided.
Existing law authorizes all customers eligible to receive discounts for telecommunications services under the federal Universal Service E-rate program to also apply for discounts on telecommunications services provided through the California Teleconnect Fund Administrative Committee Fund program. Existing law requires the commission to first apply an E-rate discount if the customer, in the determination of the commission, meets the requirements for an E-rate discount, as provided.
This bill would instead require the service provider to first apply an E-rate discount, as determined by the commission, if the customer, in the determination of the commission, meets the requirements for an E-rate discount, except as provided.
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.
Because the provisions of this bill would be part of the act and a violation of a commission action implementing the bill’s requirements would be a crime, the bill would impose a state-mandated local program.
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.
This bill would provide that no reimbursement is required by this act for a specified reason.
The people of the State of California do enact as follows:
SECTION 1.
Section 280 of the Public Utilities Code is amended to read:280.
(a) The commission shall develop, implement, and administer a program to advance universal service by providing discounted rates to qualifying schools, school districts, and county offices of education serving preschools, transitional kindergarten, kindergarten, or any of grades 1 to 12, inclusive, community colleges, community college districts, public libraries, public library systems, hospitals, health clinics, and community organizations, consistent with Chapter 278 of the Statutes of 1994. All noninstructional facilities operated or contracted by qualifying schools, school districts, county offices of education, community colleges, community college districts, public libraries, and public library systems, including, but not limited to, their associated data centers or administrative offices, shall also be eligible for discounted rates pursuant to the program.(b) There is hereby created the California Teleconnect Fund Administrative Committee, which is an advisory board to advise the commission regarding the development, implementation, and administration of a program to advance universal service by providing discounted rates to qualifying schools, school districts, and county offices of education serving preschool, transitional kindergarten, kindergarten, or any of grades 1 to 12, inclusive, community colleges, community college districts, public libraries, public library systems, hospitals, health clinics, community organizations, and noninstructional facilities operated or contracted by qualifying schools, school districts, county offices of education, community colleges, community college districts, public libraries, and public library systems, consistent with Chapter 278 of the Statutes of 1994, and to carry out the program pursuant to the commission’s direction, control, and approval.
(c) All revenues collected by telephone corporations in rates authorized by the commission to fund the program specified in subdivision (a) shall be submitted to the commission pursuant to a schedule established by the commission. The commission shall transfer the moneys received to the Controller for deposit into the California Teleconnect Fund Administrative Committee Fund. All interest earned by moneys in the fund shall be deposited into the fund.
(d) Moneys appropriated from the California Teleconnect Fund Administrative Committee Fund to the commission shall be used exclusively by the commission for the program specified in subdivision (a), including all costs of the board and the commission associated with the administration and oversight of the program and the fund.
SEC. 2.
Section 884.5 of the Public Utilities Code is amended to read:884.5.
(a) This section shall apply to all customers eligible to receive discounts for telecommunications services under the federal Universal Service E-rate program administered by the Schools and Libraries Division of the Universal Service Administrative Company that also apply for discounts on telecommunications services provided through the California Teleconnect Fund Administrative Committee Fund program pursuant to subdivision (a) of Section 280.(b) A teleconnect discount shall be applied after applying an E-rate discount. The service provider shall first apply an E-rate discount, as determined by the commission, regardless of whether the customer has applied for an E-rate discount or has been approved, if the customer, in the determination of the commission, meets the eligibility requirements for an E-rate discount. This subdivision does not apply to a customer who is ineligible to receive an E-rate discount due to a programmatic restriction or eligibility limitation imposed under federal law.
(c) Notwithstanding subdivision (b), the teleconnect discount shall be applied without regard to an E-rate discount for a school district that meets the conditions specified for compensation pursuant to Article 4 (commencing with Section 42280) of Chapter 7 of Part 24 of Division 3 of Title 2 of the Education Code, unless that school district has applied for, and been approved to receive, the E-rate discount.
(d) In establishing a discount under the California Teleconnect Fund Administrative Committee Fund program, the commission shall give priority to bridging the “digital divide” by encouraging expanded access to state-of-the-art technologies for rural, inner-city, low-income, and disabled Californians.
(e) As used in this section:
(1) “E-rate discount” means an actual discount under the E-rate program, or a representative discount figure as determined by the commission.
(2) “E-rate program” means the federal Universal Service E-rate program administered by the Schools and Libraries Division of the Universal Service Administrative Company.
(3) “Teleconnect discount” means a discount on telecommunications services provided through the California Teleconnect Fund Administrative Committee Fund program set forth in subdivision (a) of Section 280.
SEC. 3.
No reimbursement is required by this act pursuant to Section 6 of Article XIII 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 B of the California Constitution.Text of AB 2790 as chaptered, from the official record. Connect Plus keeps every version and highlights what changed.Compare versions