BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1874
                                                                  Page  1

          Date of Hearing:  April 19, 2004

                    ASSEMBLY COMMITTEE ON UTILITIES AND COMMERCE
                                 Sarah Reyes, Chair
                     AB 1874 (Cohn) - As Amended:  April 12, 2004
           
          SUBJECT  :  Telecommunications:  Information and Advanced  
          Communications Deployment Act of 2004.

           SUMMARY  :  Grants a communications provider an entitlement to a  
          blanket permit for the installation operation, repair,  
          maintenance, or alteration of its equipment located or installed  
          on state highways.  Requires the California Department of  
          Transportation (CalTrans) to either approve or deny an  
          application for an encroachment permit within 45 days of  
          receiving a completed application.  Specifically,  this bill  :  

          1)States that it is the public policy of the state to promote  
            the availability of a wide range of communication services; to  
            encourage the introduction of new services, the entry of new  
            providers, the development of new technologies, and increase  
            investment in communication; and ensure that the rules,  
            regulations and procedures for access to public rights of way  
            advances these policies.

          2)Requires CalTrans to approve or deny an application for an  
            encroachment permit within 45 days of receiving a completed  
            permit.

          3)Entitles any communications provider to receive a blanket  
            permit, renewable annually, for the installation of its  
            service connections and for operation, repair, maintenance, or  
            alteration of its facilities and/or service connections,  
            located or installed in state highways.  Such permits may be  
            revoked if the permittee fails to comply with requirements of  
            the Streets and Highway Code.

           EXISTING LAW:  

          1)Provides that telephone or telegraph corporations may  
            construct lines along or upon any public road or highway.

          2)Authorizes CalTrans to issue written permits to allow a party  
            to place, change, or renew an encroachment.  









                                                                  AB 1874
                                                                  Page  2

          3)Provides that CalTrans shall improve or deny an application  
            for an encroachment permit within 60 days of receiving a  
            completed permit. 

          4)Provides that any city, municipal utility district, municipal  
            water district or metropolitan water district is entitled to a  
            blanket permit, for the installation of its service  
            connections and for ordinary maintenance of its facilities  
            located or installed in State highways.

           FISCAL EFFECT  :  Unknown.

           COMMENTS  :  This bill continues a tradition of legislation to  
          create a statewide policy to advance the deployment of advance  
          communications technologies on state lands.  As far back as  
          1850, the then territory of California provided that highway  
          rights of way shall be made available for the installation of  
          telegraph lines.  Over time this provision has been amended and  
          interpreted by the courts to allow all telephone and telegraph  
          companies to install equipment on public roads and highways and  
          only pay the state or local government for the costs of repair  
          and maintenance of the right of way. 

          More recently, AB 885 (Firebaugh), Chapter 820, Statutes of  
          2003, and AB 468 (Firebaugh) (2002), created or attempted to  
          create mechanisms to make it easier for companies to install  
          cell phone towers on state land. 

          Recently, telephone companies have complained that the state has  
          at times made it difficult for them to install next generation  
          technologies such as fiber optic cables across the state.  One  
          example is an extended fight between SBC Communications and  
          CalTrans over the installation of broadband cables along Highway  
          101 to provide advanced services to residents of the North Coast  
          region.  The fight centered over access rights to Caltrans  
          property and has potentially delayed deployment of broadband  
          infrastructures to the North Coast by several years.  

          According to the author's office and the sponsor, this bill will  
          help resolve problems like these by eliminating impediments to  
          the installation of communications services on state highways.   
          This bill will provide for a simpler more effective way for  
          telecommunications providers to access public rights of way.

           Blanket Permit?








                                                                 AB 1874
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           This bill provides that any communications provider may receive  
          a "blanket permit" for the installation of its service  
          connections and for operation, repair, maintenance, or  
          alteration of its facilities located or installed in state  
          highways.  However, there is no definition in code of what a  
          "blanket permit" entails. 

          The author states that the intent of offering a blanket permit  
          is to provide communications companies the opportunity to access  
          and maintain equipment that is already installed on state  
          highways without seeking an additional permit.  In order to more  
          effectively address this intent, the committee may wish to  
          consider amending this bill to clarify that an encroachment  
          permit for the installation of a communications equipment shall  
          also provide the communications company with the right, upon  
          notice to CalTrans, to access equipment for the purpose of  
          repair, maintenance and alterations. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          American Electronics Association (Sponsor) 
          Cellular Telecommunications & Internet Association
          AT&T
          Verizon Wireless (Support as Amended)
          Tech Net
          SBC
          MCI

           Opposition 
           
          None on file.
           

          Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083