BILL ANALYSIS                                                                                                                                                                                                    �



                                                                    AB 1549


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          Date of Hearing:  January 11, 2016


                        ASSEMBLY COMMITTEE ON TRANSPORTATION


                                 Jim Frazier, Chair


          AB 1549  
          (Wood) - As Amended January 4, 2016


          SUBJECT:  Department of Transportation:  state highway  
          rights-of-way:  fiber-optic cables:  inventory


          SUMMARY:  Requires the California Department of Transportation  
          (Caltrans) to maintain an inventory of all conduits for  
          fiber-optic cables within state highway rights-of-way and to  
          make the information available to the public upon request.


          EXISTING LAW:  


          1)Makes legislative findings and declarations setting forth  
            policies related to telecommunications in California that  
            strive for ubiquitous availability to high-quality  
            telecommunications services in California.  


          2)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 required, in  
            part:










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             a)   The Business, Transportation, and Housing (BTH) Agency  
               to establish a database of current and prospective projects  
               for deploying broadband.  The database was 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  
               entities and broadband providers; and


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


          3)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 to the safety and the adequacy of highway  
            facilities.


          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  








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          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.  





          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.









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          Caltrans issues approximately 12,000 encroachment permits  
          annually, about 4,000 to 5,000 of which are telecommunications  
          related and may involve broadband installations.  The department  
          does not keep a complete inventory of all existing conduits  
          within its right-of-way, due in part to its inability to  
          adequately secure as-built documents from utilities when they do  
          work within the right-of-way.  Furthermore, the department does  
          not update encroachment permit data over time.  For instance, it  
          does not track changes in ownership of a particular installation  
          nor does it keep track of whether the installation is still  
          active or has been abandoned.





          Committee concerns and author's proposed amendments:  





          1)It is unclear that a lack of access to state highways is a  
            major impediment to wide-scale deployment of high-speed  
            internet access, particularly in light of Caltrans' experience  
            in the California Broadband Initiative.



          2)Even if Caltrans were to have the inventory required by this  
            bill, there is no assurance that it would be useful, in part  
            because the data would not necessarily be current.











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          3)In at least one case, a provider seeking an encroachment  
            permit asked Caltrans to keep confidential the location of the  
            telecommunication installation for fear of vandalism.   
            Presumably, wide-scale public availability of information  
            related to specific telecommunications facilities in state  
            highway rights-of-way could evoke similar concerns from other  
            providers.



          4)Overall, it is doubtful that the resources required by  
            Caltrans to keep an inventory current would be commensurate  
            with the benefits in terms of increasing access to  
            telecommunications.



          In response to these concerns, the author has indicated his  
          intent to take amendments in committee that would limit the  
          required inventory to conduits owned by Caltrans that are  
          installed after 2016.  These amendments will reduce the burden  
          on Caltrans to comply with the requirements of the bill and  
          offer a reasonable chance that the inventory may facilitate  
          co-location of additional broadband installations.  





          Pending legislation:  Federal legislation (HR 3805, Eschoo) is  
          pending that would enact the Broadband Conduit Deployment Act to  
          expand high-speed internet access.  The bill 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.










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          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file




          Opposition


          None on file




          Analysis Prepared by:Janet Dawson / TRANS. / (916) 319-2093