BILL ANALYSIS
AB 1874
Page 1
ASSEMBLY THIRD READING
AB 1874 (Cohn)
As Amended May 20, 2004
Majority vote
UTILITIES AND COMMERCE 11-0 APPROPRIATIONS 21-0
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|Ayes:|Reyes, Campbell, Bogh, |Ayes:|Chu, Runner, Bates, Berg, |
| |Calderon, Canciamilla, | |Calderon, Corbett, |
| |Diaz, La Malfa, Levine, | |Correa, Daucher, |
| |Ridley-Thomas, | |Firebaugh, Goldberg, |
| |Strickland, Wesson | |Haynes, Keene, Leno, |
| | | |Nation, Negrete McLeod, |
| | | |Oropeza, Pavley, |
| | | |Ridley-Thomas, Wesson, |
| | | |Wiggins, Yee |
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SUMMARY : Requires that a permit issued to a communications
provider for the installation of its facilities installed on
state highways allow the communications provider to access its
facilities for operation, repair, maintenance, or minor
alteration. Requires the California Department of
Transportation (CalTrans) to either approve or deny an
application for an encroachment permit for a telephone,
telegraph, or cable company 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 for a telephone, telegraph, or cable
company within 45 days of receiving a completed permit.
3)Entitles any communications provider who receives, or has
received, an encroachment permit for the installation of
facilities installed on state highways, to an annually
renewable permit for the operation, repair, maintenance, or
AB 1874
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minor alteration of its facilities and service connections
that do not require excavation. Caltrans may revoke the permit
if the permittee fails to comply with the provisions of this
article, after reasonable notice and an opportunity to cure is
provided to the permittee.
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.
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 : According to Caltrans, this bill could require
as many as 90 new 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
would be $6.8 million. These costs would be offset to some
extent by permit fees.
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.
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
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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.
Analysis Prepared by : Edward Randolph / U. & C. / (916)
319-2083
FN: 0005792