BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 468
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 468 (Firebaugh)
          As Amended August 31, 2002
          Majority vote
           
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          |ASSEMBLY:  |     |(May 10, 2001)  |SENATE: |30-0 |(August 31,    |
          |           |     |                |        |     |2002)          |
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                             (vote not relevant)
           
           Original Committee Reference:    U. & C.  

           SUMMARY  :  Provides that agreements negotiated by the Department  
          of Transportation (Caltrans) to place wireless facilities on  
          state-owned property or highway rights-of-way shall provide  
          compensation at fair market value. 

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:

          1)Provide that agreements negotiated by Caltrans to place  
            wireless facilities on state-owned property or highway  
            rights-of-way shall provide compensation at fair market value.  


          2)Allow DGS to negotiate agreements to lease state-owned  
            property to wireless telecommunications providers.  

          3)Provide that the agreements shall provide for a rental fee at  
            fair market value, cannot be longer than 10 years, limit  
            extensions to five years, 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. 

          4)Require that 15% of the revenues derived from certain leases  
            of state-owned property to wireless telecommunications  
            facilities be redirected from the General Fund (GF), to a  
            separate account, administered by the California Public  
            Utilities Commission (PUC) for the purpose of funding a  
            "Digital Divide" grant program. 

           EXISTING LAW  :









                                                                  AB 468
                                                                  Page  2

          1)Directs the Department of General Services (DGS) to negotiate  
            access to non-highway state-owned property. 

          2)Requires Caltrans 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.

           AS PASSED BY THE ASSEMBLY  , this bill codified safeguards  
          currently practiced at DMV against identity theft in the process  
          of obtaining duplicate driver's licenses and identification  
          cards.

           FISCAL EFFECT  :  Senate Appropriations notes that DGS currently  
          has 299 leases with wireless companies, generating $964,000  
          annually in GF revenue to the state.  If 600 new leases are  
          created, and the average revenue generated is $3,500 per lease,  
          the net revenue generated is $2.1 million, resulting in a GF  
          loss of about $210,000 annually.
           

          COMMENTS :  This bill makes legislative findings related to the  
          Digital Divide.  The Digital Divide refers to the disparity  
          among those Californians who own a home computer, have Internet  
          access, and related training, and those who do not.


           Analysis Prepared by  :    Paul Donahue / U. & C. / (916) 319-2083  



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