BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON TRANSPORTATION AND HOUSING
                              Senator Jim Beall, Chair
                                2015 - 2016  Regular 

          Bill No:          AB 1549           Hearing Date:     6/14/2016
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          |Author:   |Wood                                                  |
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          |Version:  |5/16/2016                                             |
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          |Urgency:  |No                     |Fiscal:      |Yes             |
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          |Consultant|Randy Chinn                                           |
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          SUBJECT:  Department of Transportation:  state highway  
          rights-of-way:  fiber optic cables


            DIGEST:  This bill requires Caltrans to maintain an inventory of  
          broadband conduit that it owns, collaborate with broadband  
          companies during construction projects, and install broadband  
          conduit in its construction projects for potential use by  
          broadband companies.

          ANALYSIS:
          
          Existing law:
          
          1)As set forth in a 2006 Governor's Executive Order (S-23-06),  
            created the California Broadband Task Force to facilitate  
            widespread deployment of state-of-the-art telecommunications  
            technology.  The Executive Order specifically requires, in  
            part:


             a)   The Business, Transportation, and Housing Agency (BTH)  
               to establish a database of current and prospective projects  
               for deploying broadband.  The database is to be available  
               for use by broadband providers, state entities, and  
               municipalities.


             b)   State agencies to place broadband conduit in their  
               infrastructure projects for use by multiple government  








          AB 1549 (Wood)                                         PageB of?
          
               entities and broadband providers.


             c)   State agencies to expedite permitting for broadband  
               providers' requests for access to rights-of-way.


          2)Generally authorizes Caltrans to lease to public agencies or  
            private entities the use of areas above or below state  
            highways, subject to any reservations, restrictions, and  
            conditions that the department deems necessary to ensure  
            adequate protection of the safety and the adequacy of highway  
            facilities.


          3)Establishes the California Broadband Council to promote  
            broadband deployment throughout the state and, to that end,  
            improve coordination among state agencies.


          This bill:

          1)Requires Caltrans to maintain an inventory of all broadband  
            conduit that it owns, is located within the state highway  
            rights-of-way, and is installed on or after January 1, 2017.   
            Such inventory shall be made available upon request to  
            verified companies or organizations working on broadband  
            deployment.

          2)When designing construction projects, Caltrans shall notify  
            the verified companies or organizations of those projects to  
            encourage collaborative broadband installations.  If no  
            verified company or organization chooses to collaborate and no  
            broadband conduit previously exists, Caltrans shall install an  
            empty conduit for potential use by others.

          COMMENTS:

          1)Purpose.  The United States compares poorly to other nations  
            in the speed, quality, and cost of broadband service<1>.   
            California is no different.  That's largely because public  
            policy is caught in the middle.  It has not supported a single  
            regulated broadband provider who would benefit from the  


          ---------------------------
          <1> Federal Communications Commission:  International Broadband  
          Data Report, August 13, 2012








          AB 1549 (Wood)                                         PageC of?
          
            economies of scope and scale, as is the case in other  
            countries.  And the competition that public policy has  
            encouraged has been too weak to result in high-quality,  
            high-speed service at reasonable rates.  This problem is of  
            course worse in rural areas where the demand for broadband  
            service isn't as concentrated as in urban and suburban areas.   


          2)Not for lack of effort.  Inadequate and costly broadband  
            service has been a longstanding problem for which California  
            has implemented many potential solutions.  One of the most  
            significant efforts resulted from a 2006 Executive Order from  
            Governor Schwarzenegger.  That order required the then-BTH to  
            encourage public/private broadband partnerships, required all  
            state agencies to place broadband conduit in their  
            infrastructure projects if there is sufficient demand, and  
            created the California Broadband Task Force.  

            The Task Force recommended that: 
             a)   high speed broadband infrastructure be built out to all  
               Californians
             b)   model permitting standards be developed and  
               collaboration among broadband providers be encouraged
             c)   use and adoption of broadband and computer technology be  
               increased 

            This bill redoubles the broadband buildout effort.  The  
            fundamental assumption in the bill is that landline broadband  
            infrastructure deployment can be done more quickly and  
            inexpensively when done in conjunction with Caltrans  
            construction projects.  This may well be true, and was one of  
            the bases for the 2006 Executive Order.

            As a result of the 2006 Executive Order, Caltrans created a  
            program to notify telecommunications providers of projects in  
            which they could install their fiber optic facilities during  
            the Caltrans construction process.  No provider participated  
            in any projects and consequently Caltrans decided to  
            discontinue the program in 2014.  That program was limited to  
            telecommunications companies licensed by the California Public  
            Utilities Commission.  Caltrans has an existing program for  
            collaboration with companies that want to use their facilities  
            for wireless broadband purposes.  This bill deals with  
            wireline broadband.










          AB 1549 (Wood)                                         PageD of?
          
          1)What inventory?  The bill requires Caltrans to maintain an  
            inventory of broadband conduit owned by the department.  The  
            purpose of the inventory is to make it convenient for  
            potential partners to utilize Caltrans facilities.  In order  
            to further that purpose the author and committee may wish to  
            consider specifying that the inventory shall be on a  
            centralized database.
          
           2) Who?  The bill uses the term "verified companies or  
             organizations," which is undefined.  The purpose of the bill  
             is to encourage broadband deployment by existing  
             telecommunications providers, local governments, and  
             non-profit consortiums.  The author and committee may wish to  
             consider clarifying the definition.
          
          3)When?  The bill calls for Caltrans to notify broadband  
            companies during the design phase of construction projects.   
            The notion is that freeways provide convenient, and sometimes  
            the only, physical connection between population centers, so  
            as Caltrans is fixing the road between city A and city B,  
            other companies should be permitted to install their conduit  
            and fiber optic cables in the trench for a fee, thereby  
            sharing costs.  If no company chooses to participate, then  
            Caltrans shall install an empty conduit which would be  
            available to others.  Rather than notifying companies, the  
            author and committee may wish to consider instead requiring  
            Caltrans to post a notice on their website, which will reduce  
            costs.  Also, it may not be appropriate to have Caltrans  
            install conduit in all its construction projects.  That's  
            because many, if not most, Caltrans construction projects  
            don't require trenching, such as road maintenance or repaving.  
             In those cases there would be no place to install the  
            broadband conduit.  And some construction projects are  
            inappropriate for conduit (e.g., building an onramp, repairing  
            a culvert).  

            Instead of requiring Caltrans to notify companies and  
            installing broadband conduit on all construction projects, the  
            author and committee may wish to consider requiring this only  
            for longitudinal projects that span at least two intersections  
            for which a trench suitable for broadband conduit is being  
            dug.
          
          Related Legislation:
          









          AB 1549 (Wood)                                         PageE of?
          
          S-23-06 Governor's Executive Order:  Twenty-First Century  
          Government: Expanding Broadband Access and Usage in California

          Assembly Votes:

            Floor:     78-0
            Appr:      17-0
            Trans:     16-0
          
          FISCAL EFFECT:  Appropriation:  No    Fiscal Com.:  Yes     
          Local:  No


            POSITIONS:  (Communicated to the committee before noon on  
          Wednesday,
                          June 8, 2016.)
          
            SUPPORT:  

          California Center for Rural Policy
          Corporation for Education Network Initiatives in California
          Placer County Board of Supervisors
          Rural County Representatives of California
          Tellus Venture Associates

          OPPOSITION:

          None recieved

          
          

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