BILL ANALYSIS AB 855 Page 1 Date of Hearing: May 21, 2003 ASSEMBLY COMMITTEE ON APPROPRIATIONS Darrell Steinberg, Chair AB 855 (Firebaugh) - As Amended: May 6, 2003 Policy Committee: UtilitiesVote:9-2 Urgency: Yes State Mandated Local Program: No Reimbursable: SUMMARY This bill seeks to facilitate the placement of wireless telecommunication towers and facilities on state-owned property and to use a portion of new lease revenues from these facilities to address the state's "digital divide." Specifically, this bill: 1)Requires the Departments of Transportation (Caltrans) and General Services (DGS) to do the following with state-owned highway rights-of-way and all other state-owned property, respectively: a) Compile and maintain an inventory, within 120 days, of state property potentially available for lease to providers of wireless telecommunications facilities. b) Make the list available on the department's website. c) Develop and distribute materials to local agencies encouraging them to undertake (a) and (b). 2)Authorizes the Directors of Caltrans and DGS to lease state-owned property for wireless telecommunications facilities. 3)Requires that 15 percent of revenues from new DGS leases pursuant to (2) are available upon appropriation for projects to address the digital divide. These revenues are to be deposited in the newly established Digital Divide Account within the California Teleconnect Fund Administrative Committee Fund, and for which the Public Utilities Commission (PUC) may use up to 5 percent for administrative costs. AB 855 Page 2 4)Establishes the Digital Divide Grant Program, under which the PUC shall award grants on a competitive basis to non-profit organizations for community technology training programs. 5)Requires the PUC to report annually on the effectiveness of the grant program. FISCAL EFFECT 1)One-time General Fund costs of around $25,000 each for DGS to place its property inventory on their website and to distribute materials to local governments. 2)Caltrans indicates that it would incur significant costs to determine which of its properties, including the state highway system, are available for lease. 3)Funding available for the digital divide grants would depend on revenues from new DGS leases. If current annual DGS lease revenues of $1 million were to double (this would take a number of years), then $150,000 would be available for the grant program. These revenues for grants would otherwise go to the General Fund. 4)The PUC would incur special fund costs of about $80,000 for one staff to establish the grant program and ongoing costs of about $40,000 to administer the program. These costs are greater than the five percent administrative costs authorized in the bill. COMMENTS 1)Purpose . The intent of this bill is to provide cellular carriers the ability to place cellular towers on state property while providing an additional revenue stream for the digital divide. The author maintains that, making public property available for such leases will expedite the deployment of wireless communication service and minimize the aesthetic impact of these facilities. 2)Prior Legislation . Last year, AB 468 (Firebaugh), which was similar to this bill, was vetoed by the governor, who argued that placing telecommunications facilities on state property in local communities would thwart the discretionary review of AB 855 Page 3 local governments and that depositing the revenues into a new digital divide account was akin to transferring revenue from the General Fund. Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081