California Teleconnect Fund (CTF)

1. California Teleconnect Fund (CTF) Communications Division California Public Utilities Commission September 2011

2. California Teleconnect Fund (CTF) • A state program administered by the California Public Utilities Commission • Participants receive a 50% discount on select communications services • $75.207 million budget for fiscal year 2011-2012 (Res. T-17290) • www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/

3. How is CTF Funded? • Users of telecommunications services pay a CTF surcharge on instate phone bills • Current CTF surcharge rate is 0.079% • If a monthly bill for in-state service is $100, the CTF surcharge is 7 cents

4. Who is Eligible? • K-12 Schools: public & private, annual endowments < $50 million • Public Libraries • Hospitals & Clinics: municipal, county, or district-owned • Community Based Organizations: must be non-profit and directly provide health care, educational instruction, computer training, job training/placement, or 2-1-1 Information & Referral Services • Community Colleges • California Telehealth Network Consortium

5. Which Services are Eligible? • Measured Business Line (1 MB) • Basic Voice over Internet Protocol (same functionality as 1 MB) • Switched 56 • Integrated Services Digital Network (ISDN) • T-1 Lines • Internet Access Services • OC 3 – OC 192 • Multiprotocol Label Switching (in conjunction with a broadband service) • & functional equivalents, which may vary between service providers

6. How does the CTF Discount Work? • 50% off the monthly recurring charges of eligible services • Discount also applies to: company specific surcharge/surcredits, CPUC User Fee, Federal Excise Fee, 911 Fee, & local/city specific taxes • Schools & Libraries: Federal E-Rate discount applied prior to CTF discount • Not eligible: installation, equipment & other non-recurring charges

7. How does the CTF Discount Work? • Savings reflected on monthly bill, which is net of discount • The service providers are reimbursed for the discounts by the CTF program • CTF discounted services cannot be resold to, or shared with, any other non-qualifying entity or person

8. Federal E-Rate Discount Application • Applies to all schools & libraries • CTF discount only applies to eligible charges remaining after application of the E-Rate discount • The statewide average E-Rate percentage (currently 70%) is used if: • Customer did not apply for E-Rate • Customer’s E-Rate application is pending – discount “trued up” by service provider upon receipt of E-Rate funding commitment letter • An E-Rate discount of 0% if: • Customer’s application was rejected with 0% discount in funding commitment letter • Customer is small school district as defined by Section 42280 of California Education Code, unless school has an actual E-Rate

9. How to Receive the Discount • Eligibility requirements, the application & instructions are at the CTF website www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/ • Approved applicants receive Approval Letter & Application Number, which they use to notify their service provider of CTF-eligibility • If customer notifies their service provider within 30 days from receipt of the Approval Letter, the discount is retroactive to the day the application was filed • If customer notifies their service provider after 30 days from receipt of the Approval Letter, the discount begins on the date of notification

10. How to Receive the Discount (cont’d) • Approved applicants – cont’d • Customer should inform their service provider of CTF eligibility each time a new service is ordered • Customer should document (contact info, date, request made…) all requests made to their service provider • See above website for contact info of participating service providers • Once approved, there is no need to re-apply or submit a new CTF application with the California Public Utilities Commission – CTF Program at this time. You will be notified if re-certification is required in the future.

11. Application Process: Required Info • Public Schools • CA Department of Education’s (CDE) County-District-School (CDS) 14-digit code number and sponsoring district’s name • Private, Catholic School • CDE’s CDS 14-digit 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 • Copy of the page in the directory listing the name of the church and/or school

12. Application Process: Required Info • Private, Religious (other than Catholic) • CA Department of Education’s County-District-School code # • 501(c)(3) IRS tax exempt status letter addressed to the school If the IRS tax exempt status letter was not addressed directly to the school, please submit the following: • Letter from church stating your school is the church’s subunit • Copy of the church directory or similar directory cover page • Page of directory listing the name of the church and/or school

13. Application Process: Required Info • Private, Non-Religious School • CDE’s CDS Code number • 501(c)(3) IRS tax exempt status letter addressed directly to the school • Library • Proof of certification by the California State Library

14. Application Process: Required Info • Community Colleges • 3-digit Management Information System Code

15. Application Process: Required Info • Government-Owned Hospitals and Health Clinics • Letter indicating that it is owned and operated by government employees • Cover page directory copy • Page in the directory indicating the name of the person that signed the letter

16. Application Process: Required Info • Community Based Organizations • 501(c)(3) or 501(d) IRS tax-exempt status letter addressed to the organization • Latest IRS Form 990 that is addressed to the organization • Mission statement • Brochure of the organization • CPUC adopted Resolution, if applying as 2-1-1 service provider • Name change documentation, if applicable • A letter explaining a change of address, if applicable

17. Application Process: Required Info • Community Based Organizations (cont’d) • Non-profit hospitals and health clinics applying as CBOs must also provide the following information: • List the names and residential addresses of your board of directors (please do not use your business address), and describe how the board of directors is representative of the community you serve. • Are you located in a rural area and/or do you provide health care to a rural population? If yes, describe that rural area/community. • Describe the geographic community or neighborhood, community of identity, or community of interest to which you provide health care. • Is your yearly revenue, including grants and contributions, under $50 million? If yes, state the amount of your yearly revenue.

18. Additional CTF Discount on Installation Costs (SB 909/SB870) • $1.5 million funding available for basic installation costs of advanced services for non-profit CBOs • CBOs must be engaged in diffusing advanced technology and provide computer training to local communities • 100% discount on high speed broadband service installation charge (no special construction) • Speed of at least 384 kbps • Advanced service must be installed from 7/1/10 through 3/31/2012, or until funding is depleted, whichever comes first

19. For additional CTF information, please visit: http://www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/ CTF application instructions and form http://www.cpuc.ca.gov/NR/rdonlyres/A1918EBC-FF9A-4EF1-A228-66A24592B21B/0/CTFGuidelinesandApplicationRevised112008_fnlrevised112508.doc CPUC Contact Persons: Fe Lazaro fnl@cpuc.ca.gov Adam Clark ajc@cpuc.ca.gov Nate Christo nc2@cpuc.ca.gov