Gov. Arnold Schwarzenegger has implemented one of the several recommendations issued by his Broadband Task Force earlier this year by approving legislation that would allow California's 320 community services districts (CSDs) to construct and operate telecommunications infrastructure to deliver broadband within their jurisdictions. CSDs are part of a category of limited purpose local governments known as special districts.
Under Senate Bill 1191, CSDs would serve as stopgap providers until a private sector provider opts to serve their areas with services of comparable cost and quality. CSDs would then have to sell or lease the plant to the private provider at fair market value under the legislation.
Notably, the measure was not opposed by telephone or cable companies, which suggests lawmakers might come back in 2009 with new legislation expanding the concept to other types of local government.
Here's a link to the text of SB 1191 and a news release issued by Schwarzenegger's Press Office.