California Teleconnect Fund (CTF)

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California Teleconnect Fund (CTF)

Communications Division

California Public Utilities Commission

September 2009

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California Teleconnect Fund (CTF)

• A state program administered by the California Public Utilities Commission

• Participants receive a 50% discount on select communications services

• $60.34 million budget for fiscal year 2009-10

• www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/

http://www.cpuc.ca.gov/PUC/Telco/Public+Programs/CTF/

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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

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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 Participants

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Which Services are Eligible?

• Measured Business Line• 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

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How does the CTF Discount Work?

• 50% off the monthly recurring charges of eligible services

o Discount also applies to: company specific surcharge/surcredits, CPUC User Fee, Federal Excise Fee, 911 Fee, & local/city specific taxes

o Schools & Libraries: Federal E-Rate discount applied prior to CTF discount

o Not eligible: installation, equipment & other non-recurring charges

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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

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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

o 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

o An E-Rate discount of 0% if:• Customer is denied E-Rate funding – verified by E-Rate funding

commitment letter• Customer is small school district as defined by Section 42280 of

California Education Code, unless school has an actual E-Rate

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How to Receive the Discount• Eligibility requirements, the application & instructions are at the

CTF websitewww.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

o 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

o If customer notifies their service provider after 30 days from receipt of the Approval Letter, the discount begins on the date of notification


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How to Receive the Discount (cont’d)

• Approved applicants – cont’d

o Customer should inform their service provider of CTF eligibility each time a new service is ordered

o Customer should document (contact info, date, request made…) all requests made to their service provider

o 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

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Application Process: Required Info

• Public Schoolso CA Department of Education’s (CDE) County-District-School

(CDS) 14-digit code number and sponsoring district’s name

• Private, Catholic Schoolo CDE’s CDS 14-digit code numbero Copy of 501(c)(3) IRS tax exempt status letter addressed to

the Assistant General Counsel, United States Conference, WA, D.C.

o Cover page copy of the Official Catholic Directoryo Copy of the page in the directory listing the name of the

church and/or school

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• Private, Religious (other than Catholic)o CA Department of Education’s County-District-School code #o 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:

o Letter from church stating your school is the church’s subunito Copy of the church directory or similar directory cover pageo Page of directory listing the name of the church and/or school

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• Private, Non-Religious Schoolo CDE’s CDS Code numbero 501(c)(3) IRS tax exempt status letter

addressed directly to the school

• Libraryo Proof of certification by the California State

Library

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• Community Collegeso 3-digit Management Information System Code

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• Government-Owned Hospitals and Health Clinics

o Letter indicating that it is owned and operated by government employees

o Cover page directory copyo Page in the directory indicating the name of

the person that signed the letter

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• Community Based Organizationso 501(c)(3) or 501(d) IRS tax-exempt status letter

addressed to the organizationo Latest IRS Form 990 that is addressed to the

organizationo Mission statemento Brochure of the organizationo CPUC adopted Resolution, if applying as 2-1-1

service providero Name change documentation, if applicableo A letter explaining a change of address, if applicable

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• Community Based Organizations (cont’d)o Non-profit hospitals and health clinics applying as CBOs must

also provide the following information:

o 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.

o 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.

o Describe the geographic community or neighborhood, community of identity, or community of interest to which you provide health care.

o Is your yearly revenue, including grants and contributions, under $50 million? If yes, state the amount of your yearly revenue.

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Additional CTF Discount on Installation Costs (SB 909)

• 1.8 million funding available for 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 7/1/08 through 3/31/2010, or until funding is depleted, whichever comes first

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• California Telehealth Network (CTN) Participantso Will receive CTF funding after broadband

infrastructure is builto CTN participants criteria will be posted on the

CPUC website at a later timeo http://www.caltelehealth.org/documents/loa_faq.pdf

http://www.caltelehealth.org/documents/loa_faq.pdf

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Thank you!

For Additional Information:


www.cpuc.ca.gov

Fe Lazaro [email protected]

Adam Clark [email protected]

Nate Christo [email protected]




http://www.cpuc.ca.gov/

California Teleconnect Fund (CTF)

Documents