BILL ANALYSIS
AB 1874
Page 1
CONCURRENCE IN SENATE AMENDMENTS
AB 1874 (Cohn)
As Amended August 23, 2004
Majority vote
-----------------------------------------------------------------
|ASSEMBLY: |79-0 |(May 25, 2004) |SENATE: |31-0 |(August 24, |
| | | | | |2004) |
-----------------------------------------------------------------
Original Committee Reference: U. & C.
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)Establishes that it is California policy to: a) promote the
rapid accelerated deployment of information and advanced
communications services networks; b) increase investment in
communication infrastructure; c) improve opportunities for
economic development; and,
d) ensure the rules, regulations, and procedures for access to
public rights-of-ways advance 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
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. Caltrans may revoke the
permit on five days notice.
AB 1874
Page 2
The Senate amendments :
1)Delete intent language.
2)Add a provision clarifying that an encroachment permit may be
revoked on five days notice.
3)Add a provision stating that nothing in this act is intended
to affect the outcome of pending litigation between Caltrans
and a telecommunication company in Pacific Bell v. State of
California .
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.
AS PASSED BY THE ASSEMBLY , this bill was substantially similar
to the current version of this bill.
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 : 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 example is an extended fight between SBC
Communications and Caltrans over the installation of broadband
AB 1874
Page 3
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: 0008805