On Oct 4, 2021, Governor Newsom Vetoed SB.556!

View our Sept 18, 2021 pitch to Gov. Newsom via Zoom .

SB.556 History — Last Amended in Assembly June 28, 2021

• 02/18/21 — Introduced. Read first time. To Com. on RLS. for assignment. To print.
• 02/19/21 — From printer. May be acted upon on or after March 21.
• 02/22/21 — (Ayes 32. Noes 4.)
• 02/22/21 — Art. IV. Sec. 8(a) of the Constitution dispensed with.
• 02/22/21 — Joint Rule 55 suspended. (Ayes 32. Noes 4. Page 272.)
• 03/03/21 — Referred to Com. on E., U. & C.
• 03/16/21 — From committee with author’s amendments. Read second time and amended. Re-referred to Com. on E., U. & C.
• 03/26/21 — Set for hearing April 19.
• 04/12/21 — From committee with author’s amendments. Read second time and amended. Re-referred to Com. on E., U. & C.
• 04/20/21 — From committee: Do pass and re-refer to Com. on RLS. (Ayes 11. Noes 1. Page 842.) (April 19). Re-referred to Com. on RLS.
• 04/21/21 — Re-referred to Com. on GOV. & F.
• 04/21/21 — Set for hearing April 22.
• 04/26/21 — From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 896.) (April 22).
• 04/27/21 — Read second time and amended. Re-referred to Com. on APPR.
• 04/30/21 — Set for hearing May 10.
• 05/04/21 — From committee with author’s amendments. Read second time and amended. Re-referred to Com. on APPR.
• 05/10/21 — From committee: Be ordered to second reading pursuant to Senate Rule 28.8.
• 05/11/21 — Read second time. Ordered to third reading.
• 05/13/21 — In Assembly. Read first time. Held at Desk.
• 05/13/21 — Read third time. Passed. (Ayes 31. Noes 2. Page 1091.) Ordered to the Assembly.
• 05/20/21 — Referred to Coms. on L. GOV. and C. & C.
• 06/10/21 — From committee: Do pass and re-refer to Com. on C. & C. (Ayes 7. Noes 0.) (June 9). Re-referred to Com. on C. & C.
• 06/28/21 — From committee with author’s amendments. Read second time and amended. Re-referred to Com. on C. & C.
• 07/08/21 — From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 1.) (July 7). Re-referred to Com. on APPR.

Annotations Look Like This:

SECTION 1.

(a) The Legislature finds and declares all of the following:

   (1) Communities across California face a multitude of barriers to the deployment of resilient and accessible networks. Broadband internet access service in urban communities varies by neighborhood, with great discrepancies in infrastructure technology. Communities in rural areas often lack sufficient broadband internet access service, as well as the backhaul infrastructure, to provide broadband services.

   (2) The COVID-19 pandemic has highlighted the extent to which broadband access is essential for education, telehealth, remote working, public safety, public health and welfare, and economic resilience. The pandemic adds greater urgency to develop new strategies and expand on existing successful measures to deploy reliable networks. Connection to the internet at reliable speeds is also crucial to California’s economic recovery from the impact of COVID-19. Millions of children are attending classes remotely, telehealth visits have skyrocketed, and many more Californians are telecommuting from their places of residence. Additionally, with unprecedented growth in unemployment caused by COVID-19 and the need to participate in society from home, the demand for reliable broadband internet access service has significantly increased as millions of additional Californians need access to successfully weather the pandemic and to recover.

   (3) Mobile broadband internet access is critical to distance learning. Just as important, mobile broadband internet access is needed to address the digital divide . In 2017, for example, 73 percent of households accessed the internet using a cellular phone. The Federal Communications Commission reports that nearly 70 percent of teachers assign homework that requires broadband access. Although California has made progress closing the digital divide at schools, internet access at home is still a challenge. Almost 16 percent of schoolage children, about 945,000, had no internet connection at home in 2017 and 27 percent, about 1.7 million, did not have broadband connections. Access varies significantly by family income, parental education, race or ethnicity, and geography. For example, 22 percent of low-income households with schoolage children did not have any internet connection at home and 48 percent reported no broadband subscription at home.

   (4) Over 2,000,000 Californians lack access to high-speed broadband at benchmark speeds of 100 megabits per second download, including 50 percent of rural housing units. More than 14,000,000 Californians, over one-third of the population, do not subscribe to broadband at the minimum benchmark speed to support distance learning and technologies that depend on upload speed. Only 34 percent of adults over 60 years of age use the internet, excluding older adults from access to telemedicine, social services, and other support.

   (5) The Centers for Medicare and Medicaid Services define telehealth as “a two-way, real-time interactive communication between a patient and a physician or practitioner at a distant site through telecommunications equipment that includes, at a minimum, audio and visual equipment.” Telemedicine encompasses a growing number of applications and technologies, including two-way live or streaming video, videoconferencing, store-and-forward imaging along with the internet, email, smart phones, wireless tools, and other forms of telecommunication. These technologies facilitate and leverage the latest innovations in computer, network, and peripheral equipment to promote the health of patients around the world. Critical to its success is reliable broadband internet access.

   (6) Telehealth technology permits health care services to be delivered without in-person contact, reducing the risk of disease transmission to both patients and health care workers, and frees up in-person resources for COVID-19 patients. Telehealth allows patients to receive health services away from settings where the potential for contracting COVID-19 is high, such as hospitals, health clinic waiting rooms, private practices, and other medical facilities. Telehealth can also expand the reach of resources to communities that have limited access to needed services.

   (7) Due to widespread restrictions, and with fewer elective procedures occurring in California and around the country to reserve beds for COVID-19 patients, the telehealth share of total medical claim lines, which is the individual service or procedure listed on an insurance claim, increased 8,336 percent nationally from April 2019, to April 2020. Similar percentage increases have occurred in California.

• (8) Millions of Californians are working from home while sheltering in place. Even employers that had not previously permitted remote-work arrangements have changed their policies during the pandemic. The Department of General Services reports that 83.9 percent of state workers are working from home. Survey data indicates that nearly two-thirds of those who still had jobs during the pandemic were almost exclusively working from home. That compares with just 13 percent of workers who said they did so even a few times a week prior to the COVID-19 pandemic. Telework is expected to continue at rates much higher than before COVID-19 even after the pandemic is over. Among those workers surveyed who had previously not regularly worked from home, 62 percent said they were enjoying the change, and 75 percent expect their employers to continue to provide flexibility in where they work after the pandemic has passed. Indeed, the State of California, one of California’s largest employers, has stated the desire for 75 percent of the state’s workforce to remain home, at least part time, for the foreseeable future. The Metropolitan Transportation Commission in the San Francisco Bay Area voted to adopt a strategy to have large, office-based companies require people to work from home three days a week as a way to slash emissions of greenhouse gases from car commutes. Critical to the success of telework is reliable broadband internet access.

• (9) The enormous increases in distance learning, telehealth, and telework require a significant boost in broadband infrastructure, especially near the homes where these activities take place. To promote wireless broadband internet access near homes, it is in the interest of the state to ensure the deployment of wireless facilities on utility poles, street light poles, and traffic signal poles. It is in the interest of the state to ensure that local publicly owned electric utilities and local governments that own or control utility poles, traffic signal poles, or street light poles make available appropriate space and capacity on and in those structures to communications service providers, under reasonable rates, terms, and conditions.

• (10) The state has a compelling interest in ensuring that local governments provide access to utility poles, traffic signal poles, or street light poles, with nondiscriminatory fees that recover reasonable actual costs. Therefore, it is the intent of the Legislature that this part supersedes all conflicting local laws and this part shall apply in charter cities.

• (11) Time is of the essence to approve small wireless facility siting applications given the immediate need for broadband internet access, as amplified by the COVID-19 pandemic.

(b) It is the intent of the Legislature to facilitate the deployment of wireless broadband internet access and to bridge the digital divide by connecting students, families, and communities with reliable internet connectivity that will remain a necessity after the COVID-19 pandemic has abated.

SEC. 2.

The heading of Part 2 (commencing with Section 9510) of Division 4.8 of the Public Utilities Code is amended to read:

PART 2. Street Light Poles, Traffic Signal Poles, Utility Poles, and Support Structures

SEC. 3. Section 9510 of the Public Utilities Code is amended to read:

§ 9510.

(a) The Legislature finds and declares that in order that, to promote wireline and wireless broadband access and adoption, it is in the interest of the state to ensure that local governments and local publicly owned electric utilities, including irrigation districts, that own or control utility poles street light poles, traffic signal poles, utility poles, and support structures, including ducts and conduits, as applicable, make available appropriate space and capacity on and in those structures to cable television corporations, video service providers, and telephone corporations under reasonable rates, terms, and conditions.

(b) The Legislature further finds and declares that the oversight of fees and other requirements imposed by local publicly owned electric utilities or local governments as a condition of providing the space or capacity described in subdivision (a) is a matter of statewide interest and concern. Therefore, it is the intent of the Legislature that this part supersedes all conflicting local laws and this part shall apply in charter cities.

(c) The Legislature further finds and declares that local publicly owned electric utilities and local governments should provide access to utility poles and support structures with a recovery of street light poles, traffic signal poles, utility poles, and support structures, as applicable, with nondiscriminatory fees that allow for the recovery of reasonable actual costs without subsidizing for-profit cable television corporations, video service providers, and telephone corporations.

SECTION 1. SEC. 4. Section 9510.5 of the Public Utilities Code is amended to read:

§ 9510.5.

As used in this part, the following terms have the following meanings:

(a) “Communications service provider” means a cable television corporation, video service provider, or telephone corporation.

(b) “Governing body” means the governing body of a local government or local publicly owned electric utility, including, where applicable, a board appointed by a city council.

(c) “Local government” means a city, including a charter city, county, or city and county.

(d) “Street light pole” means a pole, arm, or fixture used primarily for street, pedestrian, or security lighting.

(e) “Traffic signal pole” means a pole, arm, or fixture used primarily for signaling traffic flow.

(f) “Utility pole” means an electricity electrical pole, electrical transmission tower, or telephone pole, but does not include a street light pole or an electricity electrical pole used solely for the transmission of electricity at 50 kilovolts or higher and not intended for distribution of communications signals or electricity at lower voltages.

SEC. 5. Section 9511 of the Public Utilities Code is amended to read:

§ 9511.

(a)

• (1)
  • (A) A local publicly owned electric utility shall make appropriate space and capacity on and in a street light pole, traffic signal pole, utility pole, and support structure owned or controlled by the local publicly owned electric utility available for use by a communications service provider pursuant to reasonable terms and conditions.
  • (a) (B) A local publicly owned electric utility shall make appropriate space and capacity on and in a utility pole and support structure owned or controlled by the local publicly owned electric utility available for use by a communications service provider pursuant to reasonable terms and conditions. Rates, terms, and conditions that are specified in a contract executed with a local publicly owned electric utility before January 1, 2012, shall remain valid until the contract, rate, term, or condition expires or is terminated according to its terms by one of the parties. If an annual fee is included in a contract executed before January 1, 2012, but the amount of the fee is left unspecified, the requirements of Section 9512 apply.
• (2)
  • (A) A local government shall make appropriate space and capacity on and in a street light pole, traffic signal pole, and support structure owned or controlled by the local government available for use by a communications service provider pursuant to reasonable terms and conditions.
  • (B) Unless the communications service provider and local government otherwise agree, if the contractual rates exceed two hundred seventy dollars ($270) per year per pole, the rates, terms, and conditions that are specified in a contract executed before January 14, 2019, shall remain valid only for wireless equipment that has already been attached to a pole by a communications service provider before January 1, 2022, and only until the contract, rate, term, or condition expires or is terminated according to its terms by one of the parties.

(b)

• (1) A local publicly owned electric utility or a local government shall respond to a request for use by a communications service provider of a utility pole or support structure ** street light pole, traffic signal pole, utility pole, or support structure, as applicable**, owned or controlled by the local publicly owned electric utility or local government within 45 days of the date of receipt of the request, or 60 days if the request is to attach to over 300 poles. If the request is denied, the local publicly owned electric utility or local government shall provide in the response the reason for the denial and the remedy to gain access to the utility pole street light pole, traffic signal pole, utility pole, or support structure. If a request to attach is accepted, the local publicly owned electric utility, utility or local government, within 14 days after acceptance of the request, shall provide a nondiscriminatory cost estimate, based on actual cost, reasonable actual cost, as described in the Federal Communications Commission’s Declaratory Ruling on Wireless Broadband Deployment (FCC 18-133, 33 FCC Rcd 9088 (2018)), for any necessary make-ready work required to accommodate the attachment. The requesting party shall accept or reject the make-ready cost estimate within 14 days. Within 60 days of acceptance of the cost estimate, the local publicly owned electric utility or local government shall notify any existing third-party attachers that make-ready work for a new attacher needs to be performed. The requesting party shall have the responsibility to coordinate with third-party existing attachers for make-ready work to be completed. All parties shall complete all make-ready work within 60 days of the notice, or within 105 days in the case of a request to attach to over 300 poles. The local publicly owned electric utility or local government may complete make-ready work without the consent of the existing attachers, if the existing attachers fail to move their attachments by the end of the make-ready timeline requirements specified in this paragraph.
• (2) The timelines described in paragraph (1) may be extended under special circumstances upon agreement of the local publicly owned electric utility or local government and the communications service provider.

(c) A Unless the communication service provider agrees to replace the street light pole, traffic signal pole, utility pole, or support structure, a local publicly owned electric utility or local government may deny an application for use of a utility pole or support structure street light pole, traffic signal pole, utility pole, or support structure, as applicable, because of insufficient capacity or safety, reliability, or engineering concerns. In denying an application, a local publicly owned electric utility or local government may also take into account the manner in which a request from a communications service provider under this part could impact an approved project for future use by the local publicly owned electric utility of its** or the local government of its street light poles, traffic signal poles**, utility poles or support structures for delivery of its core utility or municipal service.

(d) This part does not limit the authority of a local publicly owned electric utility or local government to ensure compliance with all applicable provisions of law in determining whether to approve or disapprove use of a utility pole or support structure. **street light pole, traffic signal pole, utility pole, or support structure, as applicable. **

SEC. 6. Section 9511.5 of the Public Utilities Code is amended to read:

§9511.5.

(a) If a A local publicly owned electric utility or local government that has the authority pursuant to other law to impose a fee to provide the use described in Section 9511, that fee shall be adopted and levied 9511 shall adopt and levy only the fee described in Section 9511, consistent with the requirements of this part.

(b) The governing body of the local publicly owned electric utility or a local government shall determine the fee pursuant to Section 9512.

(c) This part does not grant additional authority to a local publicly owned electric utility or local government to impose a fee that is not otherwise authorized by law.

SEC. 7. Section 9512 of the Public Utilities Code is amended to read:

§9512.

(a)

• (1) An annual fee charged by a local publicly owned electric utility or a local government for the use of a utility pole street light pole, traffic signal pole, or utility pole, as applicable, by a communications service provider shall for an attachment shall be imposed pursuant to reasonable terms and conditions, and shall not exceed an amount determined by multiplying the percentage of the total usable space that would be occupied by the attachment by the annual costs of ownership of the pole and its supporting anchor. As used in this paragraph and paragraph (2), “usable space” means the space above the minimum grade level that can be used for the attachment of wires, cables, and associated equipment. It shall be presumed, subject to factual rebuttal, that a single attachment occupies one foot of usable space and that an average street light pole, traffic signal pole, or utility pole contains 13.5 feet of usable space.
• (2) An annual fee charged by a local publicly owned electric utility or local government for use of a support structure by a communications service provider shall not exceed the local publicly owned electric utility’s or local government’s annual costs of ownership of the percentage of the volume of the capacity of the structure rendered unusable by the equipment of the communications service provider.
• (3) As used in this subdivision, the “annual costs of ownership” is the sum of the annual capital costs and annual operation costs of the pole street light pole, traffic signal pole, utility pole, or support structure, which shall be the average costs of all similar utility poles street light poles, traffic signal poles, utility poles, or structures owned or controlled by the local publicly owned electric utility. utility or local government. The basis for the computation of annual capital costs shall be historical capital costs less depreciation. The accounting upon which the historical capital costs are determined shall include a credit for all reimbursed capital costs. Depreciation shall be based upon the average service life of the utility pole street light pole, traffic signal pole, utility pole, or support structure. “Annual cost of ownership” does not include costs for any property not necessary for use by the communications service provider.

(b)

• (1) A local publicly owned electric utility or local government shall not levy a fee that exceeds the estimated amount required to provide use of the utility pole or support structure street light pole, traffic signal pole, utility pole, or support structure, as applicable, for which the annual recurring fee is levied. If the fee creates revenues in excess of actual costs, those revenues shall be used to reduce the fee.
• (2) A local publicly owned electric utility or local government establishes a rebuttable presumption that its fees are based on reasonable actual costs if they conform to the presumptively reasonable fees set forth in the Federal Communications Commission’s Declaratory Ruling on Wireless Broadband Deployment (FCC 18-133, 33 FCC Rcd 9088 (2018)).

(c) A jointly owned pole is not included within the requirements of this section, if a joint owner other than the local publicly owned electric utility or local government has control of access to the space that would be used by the communications service provider.

SEC. 8. Section 9513 of the Public Utilities Code is amended to read:

§9513.

(a) A local publicly owned electric utility or local government may require an additional one-time charge equal to three years of the annual fee described in Section 9512, for attachments reasonably shown to have been made without authorization that are discovered on or after January 1, 2012.

(b) A local publicly owned electric utility or local government may remove an attachment made without authorization, if all of the following conditions are met:

• (1) The owner of the attachment fails to pay the charge described in subdivision (a), if that charge is applicable.
• (2) The owner of the attachment does not seek approval to attach pursuant to this part within a reasonable period of time.
• (3) The owner of the attachment does not contest that the attachment was made without authorization.

(c) An attachment of a service drop wire is not made without authorization for the purposes of this section, if the owner of the attachment seeks approval to attach pursuant to this part within 45 days of the attachment.

SEC. 9. Section 9514 of the Public Utilities Code is amended to read:

§9514.

Nothing in this This part shall not be construed to prohibit a local publicly owned electric utility or local government from requiring a one-time fee to process a request for attachment, if the one-time fee does not exceed the actual cost of processing the request.

SEC. 10. Section 9514.5 is added to the Public Utilities Code, to read:

§9514.5.

This part does not prohibit a wireless service provider and a local government from mutually agreeing to a rate, charge, term, or condition that is different from that provided in this part. Either party may withdraw from a negotiation for an agreement upon written notice to the other party.

SEC. 11. Section 9515 of the Public Utilities Code is amended to read:

§9515.

(a) In the event that it becomes necessary for the local publicly owned electric utility or local government to use space or capacity on or in a support structure occupied by the communications service provider’s equipment, the communications service provider shall either pay all costs for rearrangements necessary to maintain the pole attachment or remove its equipment at its own expense.

(b)

• (1) If the communications service provider requests a rearrangement of the utility pole or support structure, a street light pole, traffic signal pole, utility pole, or support structure of a local publicly owned electric utility, and the local publicly owned electric utility has the authority to levy fees as described in Section 9511.5, the local publicly owned electric utility may charge a one-time reimbursement fee for the actual costs incurred for the rearrangement.
• (2) If the communication service provider requests a rearrangement of a street light pole, traffic signal pole, or supporting structure of a local government, the local government may charge a one-time reimbursement fee for the actual costs incurred for the rearrangement.

SEC. 12.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the Government Code.