BILL NUMBER: AB 1874	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 12, 2004
	AMENDED IN ASSEMBLY  MARCH 18, 2004

INTRODUCED BY   Assembly Member Cohn

                        FEBRUARY 3, 2004

   An act to add Section 14666.9 to the Government Code,  and to
amend Section 671.5 of, and to add Section 679.1 to, the Streets and
Highways Code,  relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1874, as amended, Cohn.  Telecommunications:  
Broadband   Information and Advanced Communications
 Deployment Act of 2004. 
   Existing law provides that the Department of Transportation shall
have full possession and control of the state highways and associated
property.  Existing law requires the department to approve or deny
an application from an applicant for an encroachment permit within 60
days of receiving a completed application that meets specified
requirements.  Existing law provides that the department's failure to
notify an applicant within the required time period that a permit is
denied is deemed to constitute approval of the permit. Existing law
authorizes an applicant for an encroachment permit to appeal to the
director of the department for a final determination of the
department's denial of an application.  Existing law requires the
director to make a final written determination within 60 days after
receipt of an applicant's appeal. Existing law entitles a city,
municipal utility district, municipal water district, or metropolitan
water district to a blanket permit, renewable annually, for the
installation of its service connections and for ordinary maintenance
of its facilities located or installed in state highways. Existing
law authorizes the department to revoke the blanket permit under
certain conditions.
   This bill would adopt the Information and Advanced Communications
Deployment Act of 2004.  The act would make it the public policy of
the state to, among other things, promote the availability of a wide
range of communications services to residents of California, to
improve the opportunities for economic development and delivery of
communications services, and to ensure that the rules, regulations,
and procedures for access to public rights-of-ways advance these
policies.  The bill would change the number of days the department
has to approve or deny an application for an encroachment permit and
the number of days the director has to make a final determination of
the applicant's appeal to 45 days.  The bill would also entitle a
communications provider to a blanket permit, renewable annually, for
the installation of its service connections and for operational
repair, maintenance, or alteration of its facilities and service
connections located or installed in state highways.  The bill would
authorize the department to revoke the blanket permit under certain
conditions.  
   Existing law requires the Director of General Services, with the
approval of the state agency concerned, to negotiate, in the name of
the state, access to state-owned property not used for highway
purposes, for those purposes and subject to those conditions,
limitations, restrictions, and reservations determined by the
director to be in the interest of the state.  Existing law provides
that this requirement to negotiate access applies to
telecommunications and information technologies.  Existing law
requires that, to the extent permitted under existing law, the
Director of General Services determine the amount of consideration
for, and the means of access, which includes, but is not limited to,
a lease, permit, or other form of providing a monetary or service
consideration for the access.
   Existing law imposes similar requirements on the Director of
Transportation with respect to state-owned highway rights-of-way.
   Existing law requires the Director of General Services to compile
and maintain an inventory of state-owned real property, excluding
certain property, that may be available for lease to providers of
wireless telecommunications services for location of wireless
telecommunications facilities, and to provide a requesting party,
upon payment of any applicable fee, with a copy of the inventory.
   This bill would adopt the Broadband Deployment Act of 2004 to
require the Director of General Services, in consultation with the
Director of Transportation, to develop a standardized application
form to be used by a provider of telecommunications or information
technologies for contracting with the director for access to
state-owned property or for contracting with the Director of
Transportation for access to state-owned highway rights-of-way.  The
bill would require The Director of General Services and the Director
of Transportation to promptly and reasonably act upon an application
for access to state-owned property or highway rights-of-way, to
approve or deny an application within 45 days of the making of the
application, and where an application is denied because it is
incomplete, require that the denial identify what additional
information or other matter is necessary to complete the application.
  The bill would require the Director of General Services and the
Director of Transportation to adopt standardized contractual
provisions to be included in a contract for access to state-owned
property or a state-owned highway right-of-way, that require
restoration of the property to preexisting condition, establish a
construction schedule, and any other terms necessary to ensure that
public disruption is minimized, while providing reasonable access to
state properties and state highway rights-of-way for the expansion of
telecommunications and information technologies infrastructure.  The
bill would provide for mediation and arbitration of any disputes.

   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.   The Legislature finds and declares the following:

   (a) Information and advanced communications services are the
foundations for California's continued technological and economic
leadership.  It has been estimated that the widespread deployment of
information and advanced communications services networks can
generate an increase of over $300 billion in incremental GSP and
nearly two million new jobs for the state of California over a
ten-year period.
   (b) Accelerated deployment of information and advanced
communication services infrastructure is a critical component of the
state's economic development and an improved quality of life for its
constituency.
   (c) Rights-of-way and public lands access is one of the most
important considerations for companies considering major new
investments in information and advanced communications services
infrastructure.  In order to encourage accelerated deployment of
information and advanced communications services in California, it is
important that rights-of-way access not be a barrier or impediment
to investment in broadband networks.
   (d) In order to support the goal of accelerated deployment of
information and advanced communications services, state entities
should ensure prompt access to public lands by expediting and
steamlining rights-of-way access for the deployment of information
and advanced communications services infrastructure.
  SEC. 2.   Section 14666.9 is added to the Government Code, to
read:
   14666.9.  (a) This section shall be known, and may be cited
 , as the Broadband   as, the Information and
Advanced Communications  Deployment Act of 2004.  
   (b) In consultation with the Director of Transportation, the
 
   (b) It is the public policy of the state to do all of the
following:
   (1) Promote the availability of a wide range of communications
services to residents of this state at reasonable cost, including the
rapid accelerated deployment of information and advanced
communications services networks in the State of California.
   (2) Encourage the introduction of new services, the entry of new
providers, the development of new technologies, and increase
investment in the communication infrastructure of this state.
   (3) Improve the opportunities for economic development and the
delivery of communications services.
   (4) Ensure that the rules, regulations and procedures for access
to public rights-of-ways advance these policies.
   (c) Nothing in this section alters the rights provided to
telegraph or telephone corporations pursuant to Section 7901 of the
Public Utilities Code.
  SEC. 3.  Section 671.5 of the Streets and Highways Code is amended
to read: 
   671.5.  (a) The department shall either approve or deny an
application from an applicant for an encroachment permit within
 60  45  days of receiving a completed
application, as determined by the department.  An application for an
encroachment permit is complete when all other statutory
requirements, including the California Environmental Quality Act
(Division 13 (commencing with Section 21000) of the Public Resources
Code), have been complied with.  The department's failure to notify
the applicant within that  60-day  45-day 
period that the permit is denied shall be deemed to constitute
approval of the permit.  Thereafter, upon notifying the department,
the applicant may act in accordance with its permit application, as
if the permit had been approved.
   (b) If the department denies an application for an encroachment
permit, it shall, at the time of notifying the applicant of the
denial, furnish to the applicant a detailed explanation of the reason
for the denial.
   (c) The department shall adopt regulations prescribing procedures
for an applicant to appeal to the director for a final determination
of the department's denial of an application.  The appeal shall be
made in writing to the director.  There shall be a final written
determination by the director within  60   45
 calendar days after receipt of the applicant's written appeal.
The adopted regulations shall require the appellant to pay to the
department a fee of not more than 50 percent of the estimated
administrative cost to the department of conducting the appeal.
   (d) Nothing in this section precludes an applicant and the
department from mutually agreeing to an extension of any time limit
provided by this section.   
  SEC. 4.  Section 679.1 is added to the Streets and Highways Code,
to read:
   679.1.  Any communications provider is entitled to a blanket
permit, renewable annually, for the installation of its service
connections and for operation, repair, maintenance, or alteration of
its facilities and service connections, located or installed in state
highways.  However, the department may revoke the blanket permit if
the permittee fails to comply with the provisions of this article,
after reasonable notice and opportunity to cure is provided to the
permittee.   director shall develop a standardized
application form to be used by a provider of telecommunications or
information technologies for contracting with the director for access
to state-owned property or for contracting with the Director of
Transportation for access to state-owned highway rights-of-way.
   (c) (1) The director shall promptly and reasonably act upon an
application for access to state-owned property.  The director shall
approve or deny an application within 45 days of the filing of the
application.  If the application is denied because it is incomplete,
the denial shall identify what additional information or other matter
is necessary to complete the application.
   (2) The Director of Transportation shall promptly and reasonably
act upon an application for access to state-owned highway
rights-of-way.  The Director of Transportation shall approve or deny
an application within 45 days of the filing of the application.  If
the application is denied because it is incomplete, the denial shall
identify what additional information or other matter is necessary to
complete the application.
   (d) (1) The director shall adopt standardized contractual
provisions to be included in a contract for access to state-owned
property that require restoration of the property to preexisting
condition.  Every contract shall contain an agreed-upon construction
schedule and any other terms necessary to ensure that public
disruption is minimized while providing reasonable access to state
properties for the expansion of telecommunications and information
technologies infrastructure.
   (2) The Director of Transportation, in consultation with the
director, shall adopt standardized contractual provisions to be
included in any contract for access to state-owned highway
rights-of-way, that minimize disruption to state-owned highway
rights-of-way, that require reasonably prompt repair of any surface
or subterranean damage or disruption to the rights-of-way, and that
will restore the rights-of-way to preexisting condition.  Every
contract shall contain an agreed-upon construction schedule and any
other terms necessary to ensure that public disruption is minimized
while providing reasonable access to state-owned highway
rights-of-way for the expansion of telecommunications and information
technologies infrastructure.
   (e) (1) If the applicant and the director are unable to reach
agreement on a construction schedule, contractual terms necessary to
ensure that public disruption is minimized, contractual terms for
restoration of the property to preexisting condition, or any other
contractual terms the director seeks to impose to protect the public
health, safety, and welfare, the applicant may request appointment of
a mediator.
   (2) If the applicant and the Director of Transportation are unable
to reach agreement on a construction schedule, contractual terms
necessary to ensure that public disruption is minimized, contractual
terms for restoration of the state-owned highway rights-of-way to
preexisting condition, or any other contractual terms the Director of
Transportation seeks to impose to protect the public health, safety,
and welfare, the applicant may request appointment of a mediator.
   (3) The director shall establish procedures for the qualification
and appointment of mediators.  A mediator shall be appointed within
seven days of the applicant requesting appointment and the mediator
shall promptly commence the mediation process and if the mediation is
unsuccessful in resolving any dispute, issue recommendations within
30 days for a resolution of any disagreement.
   (4) If either party is unwilling to accept the recommendations of
the mediator for resolution of the dispute, the party may within 30
days of receipt of the recommendations, request binding arbitration.
The director shall establish procedures for the appointment of
impartial third-party arbitrators and may contract with an
established existing arbitration service to perform the arbitrations.
  The rules shall provide for prompt appointment of an arbitrator,
that the arbitration be concluded and an award issued within 60 days.
  The parties may agree to one extension for up to 30 days for
conclusion of the arbitration process.