BILL ANALYSIS
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THIRD READING
Bill No: AB 1874
Author: Cohn (D)
Amended: 7/2/04 in Senate
Vote: 21
SENATE ENERGY, U.&C. COMMITTEE : 7-0, 6/22/04
AYES: Bowen, Morrow, Battin, Dunn, McClintock, Sher,
Vasconcellos
NO VOTE RECORDED: Alarcon, Murray
SENATE APPROPRIATIONS COMMITTEE : 10-0, 8/12/04
AYES: Alpert, Battin, Aanestad, Bowen, Escutia, Johnson,
Karnette, Machado, Murray, Poochigian
NO VOTE RECORDED: Ashburn, Burton, Speier
ASSEMBLY FLOOR : 79-0, 5/25/04 - See last page for vote
SUBJECT : Information and Advanced Communications
Deployment
Act of 2004
SOURCE : TechNet
DIGEST : This bill (1) makes legislative findings and
declarations regarding the importance of deployment of
advanced communication services, and (2) shortens
processing time for encroachment permits for
telecommunication and cable television companies from 60 to
45 days.
ANALYSIS : Current law establishes the following as
CONTINUED
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California's telecommunications policies:
1. Continuing a universal service commitment by assuring
the affordability and widespread availability of high
quality telecommunications services to all Californians.
2. Encouraging the development and deployment of new
technologies and the equitable provision of services in
a way that efficiently meets customer needs and
encourages the ubiquitous availability of a wide choice
of state-of-the-art services.
3. Promoting economic growth, job creation, and the
substantial social benefits that come from the rapid
implementation of advanced information and
communications technologies by adequate long-term
investment in necessary infrastructure.
4. Promoting lower prices, broader consumer choice, and
avoidance of anti-competitive conduct.
This bill makes several findings and declarations regarding
the importance of deployment of advanced communication
services.
This bill establishes that it is California policy to:
1. Promote the rapid accelerated deployment of information
and advanced communications services networks.
2. Increase investment in communication infrastructure.
3. Improve opportunities for economic development.
This bill says nothing in these policies alters the rights
provided to telephone companies pursuant to Section 7901 of
the Public Utilities Code.
Current law authorizes the State Department of
Transportation (Caltrans) to issue permits to locate
structures necessary for telephone or electric service
within the highway right of way, and requires Caltrans to
act on those permits within 60 days of receiving a
completed application.
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Current law authorizes telephone corporations to build
transmission lines along any public highway, but not in
ways which inconvenience the public use of such highway.
This bill creates a 45-day permitting process at Caltrans
solely for telephone and cable companies.
This bill entitles telephone corporations to an automatic
permit renewal for the operation, repair, maintenance or
alteration of facilities that don't require excavation.
Background
This bill stems from a study by TechNet, a lobbying
organization for the high tech industry. According to the
study, one of the most significant ways states can improve
broadband deployment is by opening up access to the public
rights-of-way. The study also concluded the greatest
impediment is permitting municipalities to be solely
responsible for setting right-of-way policies.
While this may be an issue in other states, it's not an
issue in California because state law grants telephone
companies the right to install their facilities on any
public road. Municipalities are limited to controlling the
time, place and manner in which those facilities are
installed.
The TechNet study also observed that delays in permitting
are a serious impediment to infrastructure deployment, and
recommended that time limits be established. California
already has a 60-day time limit and this bill reduces the
time for Caltrans to act on a permit request by a telephone
or cable company to 45 days.
Section 7901 of the Public Utilities Code authorizes
telephone corporations to build transmission lines along
any public highway, but not in ways which inconvenience the
public use of such highway. Courts have found this ability
to build is to be granted without compensation to
taxpayers. Caltrans has contended these court decisions
don't apply to controlled-access freeways and has
successfully received $10 million in taxpayer compensation
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for the use of those rights-of-ways from certain telephone
companies. However, Caltrans has been challenged in court
by SBC over this compensation and that case is pending.
FISCAL EFFECT : Appropriation: No Fiscal Com.: Yes
Local: No
According to Senate Appropriations Committee:
Fiscal Impact (in thousands)
Major Provisions 2004-05 2005-06 2006-07 Fund
Cal Trans Unknown costs, potentially
$200-300Special*
annually for one to two years. Costs
should be offset by fee revenues
*State Highway Account
Staff comments
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
percent increase in workload.
SUPPORT : (Verified 8/5/04)
TechNet (source)
American Electronics Association
SBC
ASSEMBLY FLOOR :
AYES: Aghazarian, Bates, Benoit, Berg, Bermudez, Bogh,
Calderon, Campbell, Canciamilla, Chan, Chavez, Chu,
Cogdill, Cohn, Corbett, Correa, Cox, Daucher, Diaz,
Dutra, Dutton, Dymally, Firebaugh, Frommer, Garcia,
Goldberg, Hancock, Harman, Haynes, Jerome Horton, Shirley
Horton, Houston, Jackson, Keene, Kehoe, Koretz, La Malfa,
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La Suer, Laird, Leno, Levine, Lieber, Liu, Longville,
Lowenthal, Maddox, Maldonado, Matthews, Maze, McCarthy,
Montanez, Mountjoy, Mullin, Nakanishi, Nakano, Nation,
Negrete McLeod, Oropeza, Pacheco, Parra, Pavley, Plescia,
Reyes, Richman, Ridley-Thomas, Runner, Salinas,
Samuelian, Simitian, Spitzer, Steinberg, Strickland,
Vargas, Wesson, Wiggins, Wolk, Wyland, Yee, Nunez
NO VOTE RECORDED: Leslie
NC:sl 8/17/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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