BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 468

                                                                  Page  1

          GOVERNOR'S VETO
          AB 468 (Firebaugh)
          As Amended August 31, 2002
          2/3 vote

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          |ASSEMBLY:  |     |(May 10, 2001)  |SENATE: |30-0 |(August 31,    |
          |           |     |                |        |     |2002)          |
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                             (vote not relevant)
           
           
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          |ASSEMBLY:  |49-22|(August 31,     |        |     |               |
          |           |     |2002)           |        |     |               |
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           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. 











                                                                  AB 468

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          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  :

          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 the California Department of Motor  
          Vehicles (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.

           GOVERNOR'S VETO MESSAGE  :

               This bill requires, with the approval of the  
               applicable state agency, the director of the  
               Department of Transportation or the director of the  
               Department of General Services to negotiate a lease  
               with any wireless telecommunications provider for  
               their facilities on state property.  This bill would  










                                                                  AB 468

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               also establish the Digital Divide Account and deposit  
               15% of the revenues collected from wireless  
               telecommunication providers to this account. 

               I am returning this bill for two reasons.  By  
               requiring approval of the applicable state  
               department, the location of telecommunication  
               facilities is then exempt from local land use review.  
                In some communities the location of cell towers is a  
               matter of great community interest.  I am unwilling  
               to thwart the discretionary review of local  
               governments.  I certainly am supportive of bridging  
               the digital divide as evidenced by my recent  
               signatures of SB 1863 (Bowen) which increases funding  
               to community technology centers and SB 1563 (Polanco)  
               which requires the Public Utilities Commission to  
               develop a meaningful plan to improve access to the  
               Internet.  However, the deposit of revenues into a  
               new Digital Divide Account is nothing more than a  
               transfer of the same revenues from the General Fund.   
               Because of the $24 billion revenue shortfall the  
               state has faced and continuing fiscal pressures, I am  
               unwilling to create this new account at the expense  
               of the General Fund.


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



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