BILL ANALYSIS
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THIRD READING
Bill No: AB 1874
Author: Cohn (D)
Amended: 8/23/04 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, and establishing
policies to encourage, the deployment of advanced
communication services, and (2) shortens processing time
for encroachment permits for telecommunication and cable
television companies from 60 to 45 days.
Senate floor amendments of 8/23/04 clarify that nothing in
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this bill is intended to effect an existing lawsuit between
Pacific Bell and the State of California.
ANALYSIS : Current law establishes the following as
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 (DOT) to issue permits to locate structures
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necessary for telephone or electric service within the
highway right of way, and requires DOT to act on those
permits within 60 days of receiving a completed
application.
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 DOT 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.
The bill clarifies that nothing in its provisions is
intended to affect the outcome of pending litigation
between DOT and a telecommunication company in Pacific
Bell.
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 DOT to act on a permit request by a telephone or
cable company to 45 days.
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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. DOT has contended these court decisions don't
apply to controlled-access freeways and has successfully
received $10 million in taxpayer compensation for the use
of those rights-of-ways from certain telephone companies.
However, DOT 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
DOT Unknown costs, potentially
$200-300Special*
annually for one to two years. Costs
should be offset by fee revenues
*State Highway Account
Staff comments
DOT 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 DOT 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 8/24/04)
TechNet (source)
American Electronics Association
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SBC
AT&T
Intel
Cisco
Palm, Inc.
NetFlix
Conexant Systems
Marimba
Synopsys
Broadcom
Silicon Valley Bank
FileNet
California Telephone Association
Silicon Valley Manufacturing Group
Verizon Wireless
Cellular Telecommunications and Internet Association
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,
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 8/24/04 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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