BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1549


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1549 (Wood)


          As Amended  August 19, 2016


          Majority vote


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          |ASSEMBLY:  |78-0  |(January 27,   |SENATE: |39-0  |(August 17,      |
          |           |      |2016)          |        |      |2016)            |
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          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


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          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.  










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          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