On October 16, 2017, California Governor Jerry Brown vetoed a bill that would have expedited the deployment of small cell infrastructure throughout the state. Hopefully, if he gets another opportunity, Governor Brown will reconsider his position and sign a new version of this bill which would facilitate deployment of 5G wireless technology.
Senate Bill 649 would have streamlined the process for obtaining permits to install small cell infrastructure, limited the fees that local governments could charge wireless providers, and constrained the ability of local governments to reject wireless deployment plans. Small cell deployment is necessary for the implementation of 5G wireless networks, the next generation of wireless networks with speeds 10 times faster than 4G. If the bill had not been vetoed, this legislation would have encouraged many billions of dollars in investment and economic activity throughout the state of California in addition to enhancing public safety and everyday “livability” for the state’s residents.
An Accenture Strategy report estimates that 5G technology will create $275 billion in investment, 3 million jobs, and $500 billion in gross domestic product throughout the United States. With California’s economy comprising roughly one-eighth of the U.S. economy, Governor Brown’s veto could be very costly to California’s economy.
Governor Brown’s rationale for vetoing the bill is that he does not want to limit the authority of local governments. According to the October 16 edition of TRDaily, Governor Brown said: “There is something of real value in having process that results in extending this innovative technology rapidly and efficiently. Nevertheless, I believe that the interest which localities have in managing rights of way requires a more balanced solution than the one achieved in this bill.”
Governor Brown’s rationale for vetoing the bill is that he does not want to limit the authority of local governments. According to the October 16 edition of TRDaily, Governor Brown said: “There is something of real value in having process that results in extending this innovative technology rapidly and efficiently. Nevertheless, I believe that the interest which localities have in managing rights of way requires a more balanced solution than the one achieved in this bill.”
Although this bill would have created statewide laws for small cell deployment, it would have maintained the “local government’s historic role and authority with respect to communications infrastructure and construction generally.” The bill would have preserved existing agreements between wireless providers and local governments. It would have allowed local governments to charge permit fees, annual attachment fees, and other fees depending on the location and building type. It would have maintained local governments’ authority to require permits for deployment outside of public rights-of-way. And, lastly, the bill would have allowed local governments to be reimbursed for the costs associated with attaching small cells to utility poles, streetlights, and other suitable infrastructure owned by the city or county.
As I explained in a January 2017 blog, 5G wireless technology will benefit local governments by enabling smart street lighting, optimizing public transportation routes, minimizing congestion with vehicle-to-vehicle communications, and decreasing the response times of police and first responders. All of these benefits not only make localities safer and more livable, they also create cost-savings for local governments. Here is what I said in my blog:
[A] report published earlier this month by Deloitte, entitled “Wireless Connectivity Fuels Industry Growth and Innovation in Energy, Health, Public Safety, and Transportation,” contains similar findings on the economic and social benefits of 5G wireless technology. This report says that smart cities collectively could create $1.8 trillion in additional revenue to the U.S. economy. With regard to public safety, the Deloitte report finds that a one-minute reduction in response time translates to an 8% reduction in mortality. It also says that self-driving cars could reduce emissions by 40-90%, travel times by 40%, and delays by 20%. Whether the economic impact of 5G technology is $500 billion or $1.8 trillion, it is clear that deployment of 5G will make cities safer, healthier, and contribute significantly to the U.S. economy.
So, Governor Brown’s decision could disadvantage the California economy as more and more states continue to adopt small cell legislation. And it will deprive California’s residents of the various public safety, environmental, health, and other benefits that 5G deployment is expected to bring. Hopefully, for the sake of California residents, Governor Brown reconsiders his veto and this bill soon returns to his desk for a signature.
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