BILL ANALYSIS
Appropriations Committee Fiscal Summary
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| |468(Firebaugh) |
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|Hearing Date: 8/30/02 |Amended: 8/6/02 |
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|Consultant: Lisa Matocq |Policy Vote: E, U & C 5-0 |
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BILL SUMMARY: AB 468, an urgency bill, requires that 20%
of the revenues derived from certain leases of state-owned
property to wireless telecommunications facilities be
redirected from the General Fund, to a separate account,
administered by the Public Utilities Commission (PUC) for
the purpose of funding a "Digital Divide" grant program.
The bill also requires the Department of General Services
(DGS) to develop and maintain a list of state-owned
properties which may be available for telecommunications
facilities.
Fiscal Impact (in thousands)
Major Provisions 2002-03 2003-04
2004-05 Fund
DGS lease revenues/ Unknown loss of revenues to the General
General/
Digital Divide programs Fund, potentially $360 annually. Funds
Special*
are to be redirected to grant program.
PUC Unknown administrative costs, probably
Special**
under $150. Costs may be offset by fee
revenues.
DGS inventory list Unknown, potentially
significant, costs General
*California Teleconnect Fund
**Public Utilities' Reimbursement Account
STAFF COMMENTS: SUSPENSE FILE. Under current law, DGS is
authorized to lease state-owned property to various
entities. Each year, DGS collects about $964,000 in lease
revenues from 299 wireless telecommunications providers.
These revenues are deposited primarily in the General Fund.
The Department of Transportation (DOT) also collects about
$2.4 million annually from about 100 wireless
telecommunications companies.
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.
The 20% of the lease revenues referred to in the bill are
to be used, upon appropriation by the Legislature, to fund
a community technology grant program to bridge the Digital
Divide. Because these revenues would otherwise be deposited
in the General Fund, this shift represents a loss to the
General Fund. The bill also requires the PUC to administer
these funds in conjunction with the California Teleconnect
Fund. Staff notes there is no provision for the PUC's
administrative costs. 20% of current lease revenues would
be $192,800 annually. However, the provisions of this bill
only apply to future leases which
AB 468 (Firebaugh)
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meet other specified criteria. According to the author's
office, there is an identified need for at least 900
facilities in the next year with each lease averaging
approximately $2,000. Therefore, the shift of funds could
be $360,000 annually.
DGS currently maintains the State Property Inventory (SPI),
which is a public document. This bill requires DGS to
compile, within 120 days of the effective of the bill, and
maintain an inventory of state-owned property that may be
available for lease to providers of wireless
telecommunications services for location of their
facilities, and specifies that this list shall be the sole
source of inventory for this purpose. This implies that
DGS would be required to compile a separate and tailored
list which takes into consideration the facilities needs of
the wireless telecommunications industry, and could set a
precedent for other industries to request such an inventory
list. DGS could incur significant costs in compiling such
a list.
STAFF RECOMMENDS that the bill be amended to:
1) establish or specify the separate account of the
California Teleconnect Fund to be used,
2) provide for, from the 20% of revenues, and cap the
PUC's administrative costs (5% is a standard),
3) further clarify the grant program provisions, such as
minimum or maximum amount of grant award, competitive
criteria, if any, etc.
4) require the grant recipient to report to the PUC on the
effectiveness of the program, and require the PUC to report
to the Legislature and Governor,
5) clarify whether DGS is required to compile a separate
inventory list or whether the existing SPI list suffices.
If the existing SPI suffices, this section of the bill
should be stricken.
STAFF NOTES that a similar bill, AB 1150 (Firebaugh) died
in the Assembly Appropriations Committee earlier this year.
Author amendments: The author proposes amendments which
(1) would reduce costs by clarifying that DGS is not
required to compile a separate inventory list and that DGS
may charge a fee to offset costs, and providing for and
capping the PUC's administrative costs, (2) specify the
separate account to be established, and (3) relate to local
zoning issues.