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.








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          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  








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            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