BILL ANALYSIS Ó AB 1549 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1549 (Wood) As Amended August 19, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |78-0 |(January 27, |SENATE: |39-0 |(August 17, | | | |2016) | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: TRANS. SUMMARY: Requires the California Department of Transportation (Caltrans), after January 1, 2017, to take certain steps to facilitate broadband deployment. The Senate amendments: 1)Require Caltrans, under certain conditions, to notify companies or organizations, as defined, of anticipated construction projects for the purpose of encouraging collaborative broadband installations. 2)Authorize companies or organizations to collaborate with the department to install broadband conduit as part of a project. AB 1549 Page 2 3)Require Caltrans, by January 1, 2018, to develop guidelines to facilitate the installation of broadband conduit on state highway rights of way. FISCAL EFFECT: Unknown COMMENTS: Long-standing federal and state policies encourage wide-scale deployment of advanced telecommunication capabilities. However, according to a report issued in February 2015 by the Federal Communications Commission (FCC), broadband deployment in the United States - especially in rural areas - is failing to keep pace with today's advanced, high-quality voice, data, graphics, and video offerings. According to the FCC, 17% of all Americans lack access to high-speed telecommunication services. In rural areas, that number grows to 53%. Strategies for facilitating rapid broadband deployment typically include providing easy, quick access to public rights-of-way, particularly longitudinal rights of way such as streets and roads. However, according to the FCC, the largest cost of deploying broadband is burying fiber optic cables and conduit underground. In fact, the Federal Highway Administration indicates that 90% of the cost of deploying broadband is due to the cost of roadway excavation. As a result, President Obama recently issued an executive order directing his transportation department to facilitate expeditious access to highway rights-of-way at minimal cost to telecommunications providers. Caltrans, as a part of the California Broadband Initiative developed in response to Governor Schwarzenegger's Executive Order in 2006, instituted a policy to encourage broadband co-location within the state highway rights-of-way. For seven years, the department announced each upcoming highway project and invited telecommunications providers to lay conduit as a part of the project. In the end, not one provider participated in the project, and the effort was disbanded. AB 1549 Page 3 Telecommunications providers can still access Caltrans' rights-of-way to install conduit via the department's encroachment permit process, however. Furthermore, on the wireless side of the telecommunications industry, Caltrans has an active program to facilitate the build-out and co-location of public and private wireless telecommunication systems. The department participates in the state's central data base of state-owned, non-highway properties available for use by telecommunications providers, and it has policies and procedures in place to streamline the necessary encroachment permits. Pending legislation: Federal legislation (HR 3805, Eschoo) is pending that would enact the Broadband Conduit Deployment Act to expand high-speed internet access. HR 3805 would require federal-aid highway projects to include broadband conduit beneath paved surfaces if an evaluation determines that there will be a need to install conduit sometime within the next 15 years. Similar legislation has been introduced twice before but was unsuccessful in securing passage. Analysis Prepared by: Janet Dawson / TRANS. / (916) 319-2093 FN: 0004807