BILL ANALYSIS                                                                                                                                                                                                              1
          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                               DEBRA BOWEN, CHAIRWOMAN
          

          AB 468 -  Firebaugh                               Hearing Date:   
          June 11, 2002              A
          As Amended:         June 6, 2002                  FISCAL/URGENCY  
                B
                                                                        
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                                      DESCRIPTION
          
          Current law  directs the Department of General Services (DGS) to  
          negotiate access to non-highway state-owned property.  The  
          Department of Transportation (Caltrans) is required to negotiate  
          access to state-owned highway rights-of-way.  Payments for use  
          of land or facilities controlled by Caltrans are deposited in  
          the State Transportation Fund.

           This bill  provides that agreements negotiated by Caltrans to  
          place wireless facilities on state-owned property or highway  
          rights-of-way shall not be subject to local zoning ordinances or  
          regulation.

           This bill  requires DGS to compile and maintain an inventory of  
          state-owned property that is available to lease to providers of  
          wireless telecommunications service and to post this inventory  
          on the DGS website.  

           This bill  allows DGS to negotiate agreements to lease  
          state-owned property to wireless telecommunications providers.   
          Such agreements shall provide for a reasonable rental fee,  
          provide for use of the wireless providers facilities by state  
          agencies if technically and economically feasible, and  
          facilitate agreements by wireless providers to co-locate their  
          facilities.

           This bill  provides that wireless facilities installed on  
          state-owned property pursuant to a lease with DGS are not  
          subject to local zoning ordinances or regulation.












           This bill  provides that 10% of the revenues from wireless  
          provider lease fees shall be available upon appropriation by the  
          Legislature to fund projects for bridging the digital divide, as  
          defined.  Revenues from wireless providers pursuant to leases  
          with Caltrans in effect prior to January 1, 2003 are excluded  
          from the 10% requirement.

           This bill  requires the Governor's director of e-government to  
          develop criteria for selecting projects eligible for funding.   
          Such criteria shall be developed in consultation with  
          representatives of community technology programs, advocacy  
          groups, and community-based organizations, as defined.  The  
          first four projects shall include one each in cities in Orange  
          County, southeast Los Angeles, a northern California bay area  
          county, and one statewide program with centers in rural and  
          urban communities.  Funding for all digital divide projects  
          shall be included in the Governor's annual budget proposal.

           This bill  makes a number of findings and declarations regarding  
          the problem of the "Digital Divide," the desire to resolve the  
          problem, and the contribution that community technology  
          programs, as defined, can make towards that resolution.

                                      BACKGROUND
           
          One of the barriers to higher quality wireless (cellular)  
          telecommunications service is the difficulty in installing  
          antennas.  Negotiating leases and navigating through a wide  
          variety of local government restrictions can make it difficult  
          for wireless companies to erect an antenna.  While there is some  
          flexibility in where a cellular antenna can be located, that  
          flexibility is reduced when cellular traffic is dense, such as  
          in urban areas, and along major travel corridors.

          DGS currently has 299 leases with cellular companies, generating  
          $964,000 annually for the General Fund.  Caltrans has 100 leases  
          with cellular companies generating $2.4 million which is  
          deposited in the State Transportation Fund.

                                       COMMENTS

           1.Creating A Master List.  DGS currently has an inventory of  
            state-owned property, known as the State  Property Inventory  
            (SPI), but the SPI doesn't contain information on state-owned  










             highway  property.  Therefore, this bill will require DGS to  
            supplement the SPI with information from Caltrans on the  
            amount and location of state-owned highway property.

           2.Duplicative Authority?   As noted above, the bill requires DGS  
            to compile an inventory of available state-owned property,  
            including Caltrans property.  The bill also creates  
            duplicative authority in that both DGS and Caltrans are  
            authorized to enter into leases for Caltrans property.   The  
            author and committee may wish to consider  whether Caltrans -  
            and not DGS - should compile the inventory of the state-owned  
            highway property.   The author and committee may wish to  
            consider  whether it's appropriate to allow DGS to enter into  
            leases for state-owned highway property over the objection of  
            Caltrans, which this bill would allow as a result of the  
            duplicate leasing authority provision.

           3.Why Just Wireless?    This bill requires DGS to compile and  
            make available a list of state-owned real property that may be  
            available for lease to providers of wireless  
            telecommunications services for location of wireless  
            telecommunications facilities. However, other companies no  
            doubt have a desire to lease state property.  While existing  
            law authorizes DGS to lease state property to any company, it  
            doesn't require DGS to create an "industry specific" inventory  
            of such property and publish its availability on a website.   
             The author and committee may wish to consider  whether it's  
            appropriate to require DGS to compile and publish on its  
            website a list of available property for one specific industry  
            and whether this means DGS will have to evaluate each piece of  
            property to determine whether it's suitable for use by the  
            wireless telecommunications industry.  

           4.Database Availability  .  While state property records are  
            public information, requiring a list of available property to  
            be compiled and made available via the Internet raises a  
            question about whether this makes it easier for that  
            information to be used improperly.  For example, does the  
            state want to publicly post the location of the pumping  
            stations for the State Water Project or the location of  the  
            women's dormitory for state institutions?

           5.Overriding Local Control  .  This bill will make it easier for  
            wireless companies to install antennas by making state-owned  










            property available to them and eliminating the ability of  
            local governments to impose restrictions, or even deny, such  
            installations.  While the benefit to the wireless companies,  
            and wireless users, is obvious, it's not clear why they should  
            receive such a benefit at the expense of local governments and  
            residents who many not want to have wireless facilities  
            located in their areas.   The author and committee may wish to  
            consider  whether it's appropriate or necessary for this bill  
            to override all local zoning laws and restrictions.

           6.Digital Divide Pilot Projects  .  The bill specifies specific  
            locations for the first projects funded by the monies set  
            aside for digital divide projects - cities in Orange County,  
            southeast Los Angeles, and the Bay Area.  This prejudges where  
            the most meritorious projects are.   The author and committee  
            may wish to consider  deleting the references to specific areas  
            and instead require the selection criteria to include a  
            provision that the projects should be widely available.  Also,  
            the bill requires the Director of e-government to develop the  
            selection criteria.  This may not be appropriate, as this  
            isn't a function the e-government department was set up to  
            perform.  As such,  the author and committee may wish to  
            consider  having the California Public Utilities Commission,  
            the State Librarian, or another entity perform this role.

           7.Franchises  .  On Page 6, Lines 9-10 the bill uses the phrase  
            "not subject to an existing state franchise."  That language  
            is intended to deal with concerns articulated by the wireline  
            telephone corporations that this bill is a threat to their  
            statewide franchise, as specified in Section 7901 of the  
            Public Utilities Code, which, they argue, allows them to use  
            state and local rights of ways without charge.  That phrase  
            qualifies the term "state property" so DGS can only offer  
            leases on state property not subject to an existing state  
            franchise.  Because all state property is the subject of a  
            state franchise granted to the wireline telephone  
            corporations, this phrase renders the bill useless.  Nothing  
            in this bill infringes on the wireline telephone corporations'  
            statewide franchise.  Therefore,  the author and committee may  
            wish to consider  deleteing the phrase "not subject to an  
            existing state franchise."

           8.Related Legislation  .  This bill is similar to AB 1150  
            (Firebaugh), which died in the Assembly Appropriations  










            Committee in February 2002.
                                           
                                     PRIOR VOTES
           
          Senate Transportation Committee                                 
          (13-0)*
          Assembly Floor                     (76-0)*
          Assembly Appropriations Committee                               
          (21-0)*
          Assembly Transportation Committee                               
          (18-0)*

          *Votes reflect a previous, unrelated version of the bill
               








































                                       POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          AT&T  Wireless

           Oppose:
           
          None on file























          

          Randy Chinn 
          AB 468 Analysis
          Hearing Date:  June 11, 2001