BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1874
                                                                  Page  1

          Date of Hearing:   May 5, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                    AB 1874 (Cohn) - As Amended:  April 21, 2004 

          Policy Committee:                               
          UtilitiesVote:11-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill:

          1)Reduces, from 60 days to 45 days, the period allowed the  
            Department of Transportation (Caltrans) to (a) approve or deny  
            an application for an encroachment permit or (b) issue a final  
            written determination in response to an appeal of the  
            department's initial denial of a permit.  

          2)Requires that an encroachment permit issued by Caltrans to a  
            communications provider allow for the provider's access to the  
            equipment upon proper notification to Caltrans.  

          3)Establishes that it is the policy of the state to: (a) promote  
            the availability of a wide range of communication services;  
            (b) encourage the introduction of new services and the entry  
            of new providers; and (c) ensure that the rules, regulations  
            and procedures for access to public rights of way advances  
            these policies. 

           FISCAL EFFECT  

          Caltrans indicates that its current permitting staff of 270  
          would have to be increased by 90 positions in order to meet the  
          shorter deadline for responding to permit applications.   
          Assuming costs of $75,000 per year associated with each  
          position, total costs (State Highway Account) would be $6.8  
          million.  These costs would be offset to some extent by permit  
          fees.

           COMMENTS  








                                                                  AB 1874
                                                                  Page  2


           Purpose  . 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. 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. This  
          dispute centered over access rights to Caltrans property and,  
          according to SBC, has potentially delayed deployment of  
          broadband infrastructures to the North Coast by several years.  
          According to the author's office and the sponsor-the American  
          Electronic Association (AEA)-this bill will help resolve  
          problems like these by reducing impediments to the installation  
          of communications services on state highways. 

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081