California Teleconnect Fund CTF Program

1
California Teleconnect Fund (CTF) Program

• A Program Administered by the
• California Public Utilities Commission

2
What is CTF?

• California Teleconnect Fund (CTF) is a state
  program, administered by the California Public
  Utilities Commission. The current budget for
  fiscal year 07-08 is 25,057,000.
• CTF discount applies on CTF-eligible services
  after applying the E-rate discount for schools
  and libraries.

3
How is CTF funded?

• Funded by all end users of telecommunications
  services by a surcharge on their phone bills.
• For FY 07-08, surcharge rate is 0.13 percent. If
  your monthly bill for in-state service is 100,
  then the amount for CTF is 13 cents.

4
Who is eligible for CTF discounts?

• K-12 public and private schools having endowments
  of less than 50 million
• Public libraries
• Municipal, County, or District-owned hospitals
  and clinics
• Community Based Organizations providing health
  care, educational instructions, computer
  training, job training, or job placement
• Consortia

5
What currently are CTF-eligible services?

• Measured business line or its functional
  equivalent
• Switched 56 or its functional equivalent
• Integrated Services Digital Network (ISDN) or its
  functional equivalent
• T-1 line
• DSL - even though this is a CTF-eligible service,
  the CPUC cannot mandate carriers to offer the
  discount because the State is preempted from
  regulating broadband internet services, pursuant
  to FCC 05-150, released on 8/5/05.
• OC 3 OC 192 (fiber transfer that has a
  bandwidth of up to 1 Gbps)
• Functional equivalents vary between service
  providers

6
What charges are not discounted by CTF?

• Generally, non-recurring charges (e.g.
  installation charge) except from 1/1/07 to
  6/30/08 2 Million is appropriated for CBOs
  advanced service installation charge discount of
  up to 100.
• Usage charges

7
What are the charges/taxes/fees eligible for CTF
discount?

• Monthly recurring charge
• Company specific surcharge/surcredit
• CPUC user fee - .11
• Federal Excise Fee - 3
• 911 Fee - .72
• Local/City Tax Varies by locality

8
What are the taxes/surcharges/surcredits covered
by the CTF Program?

• The taxes and surcharges or surcredits covered by
  the CTF Program are based only on the approved
  CTF discount amounts.

9
No resale or sharing of CTF discounted services

• The CTF discount services cannot be resold to, or
  shared with, any other non-qualifying entity or
  person.

10
Review of PPP - CTF

• R.06-05-028 Rulemaking to Review the
  Telecommunications Public Policy Programs (CTF,
  ULTS, DDTP, and Payphone)

11
SB 1102 PU Code Section 884.5 (Statewide
Average is 69 and 68 for FY 06-07 and FY 07-08,
respectively.)

• E-rate Discount Application - Five Categories
• CTF participant with pending E-rate application
  apply the statewide average E-rate discount
  before applying the CTF discount. The E-rate and
  CTF discounts will be trued up to the effective
  date of the E-rate.
• CTF participant that has not filed for E-rate
  apply the current statewide average discount
  before applying the CTF discount (69 for FY
  06-07 and 68 for FY 07-08).
• CTF participant that applied for E-rate discount,
  but denied 0 must be shown on the funding
  commitment letter. Apply the 50 CTF discount to
  CTF-eligible services.
• CTF participant that is a necessary small school
  as defined in Section 42283 of the Education Code
  apply the 50 discount to CTF-eligible services
  unless the customer presents the actual E-rate
  discount. In that case, apply the E-rate
  discount before applying the CTF discount.
• CTF Participant that has been approved for E-rate
  for the entire fiscal year, but the dollar amount
  granted is not sufficient to cover all the CTF
  eligible services for the entire fiscal period.
  Apply the actual E-rate discount before applying
  the CTF discount.

12
CTF Application Process

• CTF Application and guidelines can be downloaded
  from the CPUC website at http//www.cpuc.ca.gov/s
  tatic/telco/publicprograms/ctf_faq.htm__
• Steps
• 1. Applicant completes and mails the
  application to the CPUC.
• 2. TD reviews the application.
• 3. TD sends the approval letter to the
  applicant.
• 4. Applicant notifies the carrier within 30
  days of the approval letter.
• 5. Customer informs carrier their approved
  application number.
• 5. Carrier sends the applicant the discounted
  application form.
• 6. Customer completes and mails the discounted
  application service form to the carrier.
• 7. Carrier reviews the form and it may take at
  least 3-4 months for
• the customer to see the credit on their
  bill.

13
CTF Application Process

• Ensure that the name, address, and California
  Department of Education (CDE) Code are
  identical to the affidavit sent to you by the
  CDE. To check your records, visit www.cde.ca.gov

14
Required Information

• Public School California Department of
  Education Code Number and Sponsoring Districts
  Name.
• Category 1 Private, Catholic School
• California Department of Education Code Number
• Copy of 501(c)(3) IRS tax exempt status letter
  addressed to the Assistant General Counsel,
  United States Conference, WA, D.C.
• Cover page copy of the Official Catholic
  Directory and
• Copy of the page in the directory listing the
  name of the church and/or school.

15
Required Information

• Category 2 Private, Religious (other than
  Catholic)
• California Department of Education Code number,
  and
• 501(c)(3) IRS tax exempt status letter addressed
  directly to the school.
• If the IRS tax exempt status letter was not
  addressed directly to the school, please submit
  the following
• Letter from the church stating that your school
  is the churchs subunit
• Copy of the church directory or similar directory
  cover page and
• Page in the directory listing the name of the
  church and/or school.

16
Required Information

• Category 3 Private, Non-Religious School
• 1. CDE Code and
• 2. 501(c)(3) IRS tax exempt status
  letter addressed directly to the school.
• Library must be certificated by the California
  State Library.

17
No need to re-apply for CTF discounts once
approved.

• For new CTF customer, the effective date of the
  CTF discounts will be the date the
  Telecommunications Division date stamped your
  application, IF
• You contact your telephone service provider (TSP)
  within 30 days of the approval letter, otherwise
  your CTF discount will be effective on the date
  of contact.
• For existing CTF customer, the effective date of
  the CTF discount on additional CTF service will
  be the date you placed your order if you inform
  them that you are a CTF participant.

18
Where to file the application?

• California Public Utilities Commission
• Communications Division CTF Program
• 505 Van Ness Avenue
• San Francisco, CA 94102
• For further questions or information, please
  contact
• Fe N. Lazaro at fnl_at_cpuc.ca.gov