BILL ANALYSIS AB 468 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 468 (Firebaugh) As Amended August 31, 2002 Majority vote ----------------------------------------------------------------- |ASSEMBLY: | |(May 10, 2001) |SENATE: |30-0 |(August 31, | | | | | | |2002) | ----------------------------------------------------------------- (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 FN: 0007952