Sacramento - Assembly Bill 2758, introduced by Assemblymember Patty Berg (D-Eureka), was approved on a 78-0 vote by the State Assembly today. AB 2758 extends the sunset date, from 2006 to 2008, that was originally placed on the Rural Telecommunications Grant Program.

"The Rural Telecommunications Grant Program will provide low-income rural communities with basic telephone service. This measure is of vital importance to unserved areas in the 1st Assembly District," said Berg.

In 2001, California's State Auditor estimated that 112,000 people lived in areas where telephone service was not offered. The CPUC has identified 26 areas throughout the State that do not have telephone service. These areas include Humboldt, Mendocino, Lake, Trinity, Colusa, Mono, Inyo, Riverside, Placer, Plumas, and Tulare Counties.

AB 2758 extends the sunset date on the Rural Telecommunications Grant Program, which is run by the California Public Utilities Commission (CPUC). The program will provide $10 million per year in grants to low-income rural communities, with no grant higher than $2.5 million. All grant monies are obtained through an existing 2.6 percent telephone surcharge on telephone service. CPUC staff is currently reviewing applications for the first funding cycle. The CPUC will begin accepting applications for the second funding cycle on May 26, 2004.

"This bill will remove barriers to obtaining basic telephone service in this State. This measure is about equity and access," said Berg.

AB 2758 has the strong support of the Regional Council of Rural Counties and SBC California. The bill is now headed to the State Senate.