California Teleconnect Fund CTF Program

1. California Teleconnect Fund (CTF) Program A Program Administered by the California Public Utilities Commission

2. 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 08-09 is $33,202,000. CTF discount applies on CTF-eligible services (after applying the E-rate discount for schools and libraries).

3. 3 How is CTF funded? Funded by all California end users of telecommunications services by a surcharge on their phone bills. For FY 08-09, 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. 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 CBO’s (Community Based Organizations) – providing health care, educational instructions, computer training, public internet access, job training, or job placement Consortia

5. 5 Who became eligible as of June 2008? Community Colleges Up to $7.2 million of the $33.2 is earmarked and can be adjusted annually All participants in the CTN (California Telehealth Network) CBO’s that are 2-1-1 Information and Referral Service Providers

6. 6 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 (Partial T-1, PRI T-1, Data T-1, Point-to-Point T-1) 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 NEW: All forms of internet access are now eligible - Cable, Wireless, and other High-Speed services, by carrier choice, are honored by the CTF allowing non-telecommunications service providers for the first time as of June 2008.

7. How Rimrock Technologies Fits in with the CTF A special CTF Outreach and Assistance Unit within the CPUC to introduce non-participating but eligible entities to the CTF does not yet exist. Until it’s implementation, est. July 1, 2009 we’ve assumed the initiative to inform and assist in any way possible as an Advocate of the CTF. We charge no fee for this. Making Voice, Data, and Internet solutions via cutting-edge technologies affordable is both Rimrock Technologies and the CTF’s common vision. We help Organization save money. We’ve successfully done so for Catholic Charities, Association for Retarded Citizens, and numerous others. We encourage CTF participation as one way to accomplish this. We also perform a free phone bill analysis to ensure your with a CTF participating carrier, on the right plan for your needs, audit for billing errors, etc. 7

8. 8 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 CBO’s advanced service installation charge discount of up to 100%. Usage charges

9. 9 What are the charges eligible for CTF discount? Monthly recurring charge of CTF-eligible service. (refer back to slide 6) All approved participants should be eligible to receive the 50 percent discount from the California Teleconnect Fund for the monthly recurring CTF-eligible telecommunications and internet services. (Subject to carrier service footprint and participation level).

10. 10 What are the taxes/surcharges/surcredits covered by the CTF Program? The taxes and surcharges or surcredits listed below covered by the CTF Program are based only on the approved CTF discount amounts. Company specific surcharge/surcredit CPUC user fee - .11% Federal Excise Fee - 3% 911 Fee - .72% Local/City Tax – Varies by locality

11. 11 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.

12. 12 CTF Application Process CTF Application and guidelines can be downloaded from the CPUC website at: http://www.cpuc.ca.gov/static/telco/public+programs/CTF/ Steps: 1. Applicant completes and mails the application to the CPUC. 2. Communications Division (CD) reviews the CTF application. 3. CD 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 returns the discounted 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. How complicated is the application? 13

14. Easy ONE PAGE application! 14

15. 15 CTF Application Process Schools: 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 Others: Remember to enclose supporting documentation based on your type of Organization. (see following slides)

16. 16 Required Information: Schools Public School – California Department of Education Code Number and Sponsoring District’s 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.

17. 17 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 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.

18. 18 Required Information: Schools continued 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 church’s 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.

19. 19 Required Information: Schools continued Category 3: Private, Non-Religious School 1. CDE Code #; and 2. 501(c)(3) IRS tax exempt status letter addressed directly to the school.

20. 20 Required Information: Library – must be certificated by the California State Library. Non-Profit CBO’s: Mission statement, brochure, copy of your last filed 990’s, copy of your IRS tax-exempt status letter 2-1-1 Information and Resource providers: See CBO’s list

21. 21 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.

22. 22 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@cpuc.ca.gov

23. What you should do now: Please call Richard Hunter at 800-RIMRROCK (746-7625) Ext 4434 Have your telephone bill(s) and internet service provider bill(s) available. Allow us to review the completed CTF application before mailing it to the CPUC in order to ensure eligibility requirements are satisfied. 23

24. 24 Thank you!