BILL ANALYSIS AB 468 Page 1 GOVERNOR'S VETO AB 468 (Firebaugh) As Amended August 31, 2002 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: | |(May 10, 2001) |SENATE: |30-0 |(August 31, | | | | | | |2002) | ----------------------------------------------------------------- (vote not relevant) ----------------------------------------------------------------- |ASSEMBLY: |49-22|(August 31, | | | | | | |2002) | | | | ----------------------------------------------------------------- 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 Page 2 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 Page 3 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 FN: 0008150