BILL ANALYSIS
Appropriations Committee Fiscal Summary
1874 (Cohn)
Hearing Date: 8/04/04 Amended: 7/2/04
Consultant: Lisa Matocq Policy Vote: E, U & C
7-0
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BILL SUMMARY: AB 1874 reduces, from 60 to 45 days, the
time period for the Department of Transportation (Cal
Trans) to (1) approve or deny an application from a
telephone or cable television corporation for an
encroachment permit, and (2) issue a final written
determination in response to a related appeal. The bill
also establishes state policy related to communications
services.
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Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06
2006-07 Fund
Cal Trans Increased costs of up to $1,960
annually for Special*
one to two years
Compensation for See comments below
Special*
rights-of-way
*State Highway Account
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STAFF COMMENTS: This bill meets the criteria for referral
to the Suspense File. The bill also entitles any
communications provider who receives, or has received, an
encroachment permit, to an annually renewable permit for
the operation, minor alteration, maintenance, or repair of
its facilities and connections, as specified.
Cal Trans processes approximately 16,000 encroachment
permits annually. Of the current 270 staff assigned to
permitting, 90 are responsible for the particular type of
permitting affected by this bill. Increased costs for Cal
Trans to hire additional staff to process these
encroachment permits within a shorter time period could be
$1.96 million annually for one to two years, assuming a 25%
increase in workload.
The bill also specifies that it is the policy of the state
to, among other things: (1) "Promote the availability of a
wide range of communications services to residents?", (2)
"?increase investment in the communication infrastructure
of this state," and (3) "Improve the opportunities for
economic development and the delivery of communications
services." It is unknown what cost pressures the above
mentioned policies may create for state agencies.
In addition, Cal Trans has expressed concern that Sec.
14666.9(c) on page 3, lines 36-38 could impact pending
litigation between the department and SBC that could result
in potentially significant foregone revenues for the use of
freeway rights-of-way by telecommunications companies.
Since 2000, more than $10 million has been collected from
telecommunications companies for the use of such
rights-of-way.