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A Program Administered by the California Public Utilities Commission

California Department of Education 2005-2006 E-rate/CTF Training California Teleconnect Fund (CTF) Program. A Program Administered by the California Public Utilities Commission. What is CTF?.

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A Program Administered by the California Public Utilities Commission

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  1. California Department of Education2005-2006 E-rate/CTF TrainingCalifornia 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 05-06 is $20.3M. The balance on September 16, 2005 was $10,356,607, which we will reduce to about $2 million by the end of the fiscal year. • CTF provides 50% discounts on monthly recurring costs of CTF eligible services.

  3. How is CTF funded? • Funded by all end users of telecommunications services by a surcharge on their phone bills. • The fall, 2005, surcharge rate is 0.16 percent. If your monthly bill for in-state service is $100, then the amount for CTF is 16 cents. • We will reduce the rate early next year.

  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 • 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 • 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? • Non-recurring charges (e.g. installation charge) • Usage charges • In addition, the CPUC’s SB 720 program requires carriers to provide a 40% discount on first-time advanced services installation charges, such as a T-1 line, OC 3 to OC 192 and their functional equivalents installed between 9/23/03 and 3/1/06.

  7. What are the charges/taxes/fees eligible for CTF discount? • Monthly recurring charge • Company specific surcharge/surcredit • CPUC user fee - .0011% • Federal Excise Fee - .03% • 911 Fee - .0072% • 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. SB 1102 Implementation effective 1/1/06 • New law requires the Commission to apply the E-Rate discount before applying the CTF discount • Four participant categories for new program (subject to further discussion): • Had E-Rate discounts last year, current application is pending – apply the statewide average discount (about 72%) before applying the CTF discount until new E-Rate is presented to carrier. • Had no E-Rate discount last year, current application is pending – apply the statewide average discount (about 72%) before applying the CTF discount until new E-Rate is presented to carrier. • Had never applied for E-rate – apply the statewide average discount (about 72%). • E-Rate application was rejected by USAC - apply the 0% discount documented in the funding commitment letter presented to carrier.

  11. Important CTF Resolutions: • Resolution T-16742, issued 5/8/03 • http://www.cpuc.ca.gov/PUBLISHED/FINAL_RESOLUTION/26074.htm • Streamlined the CTF application process • Expanded eligibility to district owned hospitals and clinics, and CBOs offering training and access to the Internet • Included DSL as a CTF-eligible service

  12. Important CTF Resolutions: • Resolution T-16763, effective May 27, 2004 • http://www.cpuc.ca.gov/PUBLISHED/FINAL_RESOLUTION/37108.htm • Schools and libraries that received E-rate funding letters must provide input on E-rate discounts to their carriers within 75 days of filing Receipt of Service Confirmation Form (Form 486).

  13. 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_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 no. 5. Carrier sends the applicant the CTF form. 6. Customer completes and mails the CTF form to the carrier. 7. Customer receives credit approximately two months after mailing the CTF form to the carrier.

  14. 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

  15. Required Information: • Public School – California Department of Education Code Number • 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.

  16. 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 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.

  17. 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.

  18. 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, and • You must contact your telephone service provider (TSP) within 30 days of the approval letter. • 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.

  19. Where to file the application? California Public Utilities Commission Telecommunications 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

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