BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 1549 (Wood) - Department of Transportation:  state highway  
          rights-of-way:  fiber optic cables
          
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          |Version: June 30, 2016          |Policy Vote: T. & H. 10 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Mark McKenzie       |
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          This bill meets the criteria for referral to the Suspense File.



          Bill  
          Summary:  AB 1549 would require the Department of Transportation  
          (Caltrans) to maintain a database that contains an inventory of  
          all department-owned broadband conduits installed in state  
          highway rights-of-way after January 1, 2017, and make that  
          information available to companies working on broadband  
          deployment.  The bill would also require the installation of  
          broadband conduit on certain highway construction projects,  
          either by the department or through collaboration with other  
          companies.


          Fiscal  
          Impact:  
           Estimated one-time Caltrans information technology (IT) costs  
            of approximately $915,000 for software, hardware, and staffing  
            to support the database and website components, as well as  
            meeting all Department of Technology requirements for IT  







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            project approvals.  (State Highway Account)

           Additional one-time Caltrans IT costs of approximately  
            $310,000 to implement additional security measures to secure  
            and encrypt information regarding fiber-optic facility  
            installations, and $27,500 in ongoing IT maintenance costs.   
            There could be unknown additional staffing impacts for  
            evaluation and monitoring of security measures.  (State  
            Highway Account)

           Unknown, major project cost increases, likely in the millions  
            annually, for Caltrans to install broadband conduits on  
            specified projects where there are no existing conduits in a  
            project area and no broadband deployment companies or  
            organizations offer collaboration.  (State Highway Account  or  
            federal/local/bond funds)


          Background:  Existing law 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.  Existing law also establishes the California  
          Broadband Council to promote broadband deployment throughout the  
          state and improve coordination among state agencies for that  
          purpose.

          A 2006 Governor's Executive Order (S-23-06) established the  
          California Broadband Task Force to facilitate widespread  
          deployment of state-of-the-art telecommunications technology.   
          The Executive Order specifically requires, in part:
           The Business, Transportation, and Housing Agency 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.
           State agencies to place broadband conduit in their  
            infrastructure projects for use by multiple government  
            entities and broadband providers.
           State agencies to expedite permitting for broadband providers'  
            requests for access to state rights-of-way.

          As a result of the 2006 Executive Order, Caltrans created a  
          program to notify telecommunications providers of projects in  








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          which they could install their fiber optic facilities during the  
          Caltrans construction process.  No provider participated in any  
          projects and consequently Caltrans discontinued 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.  


          Proposed Law:  
            AB 1549 would require Caltrans to maintain an inventory on a  
          centralized database of all department-owned broadband conduits  
          that house fiber optic communications cables that are located on  
          state highway rights-of-way and installed on or after January 1,  
          2017.  The bill requires Caltrans to make that information  
          available to specified companies or organizations working on  
          broadband deployment, upon request.
          AB 1549 would also require Caltrans to notify those companies or  
          organizations of department-led highway construction projects  
          that are parallel to the highway, span at least two overpasses,  
          and involve construction methods that are suitable for broadband  
          conduit installations.  The notification must come during the  
          design phase of the project by posting information about  
          suitable projects on the Caltrans website.


          The bill authorizes those companies or organizations to  
          collaborate with Caltrans to install broadband conduits, and  
          absent that collaboration, requires Caltrans to install  
          broadband conduit if none currently exists in the project area.




          Staff  
          Comments:  Caltrans constructs approximately 600 projects each  
          year, but there is no way to accurately predict how many  
          projects would be impacted by the requirements in the bill for  
          Caltrans to install broadband conduits (those meeting the  
          specified design criteria in areas where no broadband conduits  
          currently exist and there is a lack of collaborative interest  
          from other companies or organizations).  Depending on project  
          variables, costs to install broadband conduits can range from  








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          $185,000 to $290,000 per mile, not including additional staffing  
          costs for design work or to ensure quality assurance oversight  
          of installations during construction.  The additional  
          construction component could also extend project completion  
          timelines, the fiscal impact of which is unknown.


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