BILL ANALYSIS
AB 855
Page 1
ASSEMBLY THIRD READING
AB 855 (Firebaugh)
As Amended June 2, 2003
2/3 vote. Urgency
UTILITIES AND COMMERCE 9-2 APPROPRIATIONS 17-7
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|Ayes:|Reyes, Richman, |Ayes:|Steinberg, Berg, Kehoe, |
| |Canciamilla, Jerome | |Corbett, Diaz, Firebaugh, |
| |Horton, Levine, Maddox, | |Goldberg, Leno, Nation, |
| |Nunez, Ridley-Thomas, | |Chan, Nunez, Pavley, |
| |Wolk | |Ridley-Thomas, Simitian, |
| | | |Wiggins, Yee, Laird |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Campbell, La Suer |Nays:|Bates, Daucher, Haynes, |
| | | |Maldonado, Pacheco, |
| | | |Runner, Samuelian |
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SUMMARY : 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 Department of General Services (DGS) to compile,
maintain and prepare an inventory state-owned real property,
excluding state owned highway rights-of-way, that may be
available for lease to wireless telecommunications providers
for location of wireless telecommunications facilities and
make the inventory of available properties be put on DGS Web
site.
2)Authorizes the Director of DGS to lease state-owned property
for wireless telecommunications facilities.
3)Requires that 15% of revenues from new DGS leases pursuant to
#2 above 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.
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4)Establishes the Digital Divide Grant Program, under which the
Public Utilities Commission (PUC) shall award grants from the
Digital Divide Account on a competitive basis to non-profit
organizations for community technology training programs.
5)Requires PUC to report to the Legislature and the Governor on
the effectiveness of the program annually.
6)Takes effect immediately.
EXISTING LAW requires:
1)The Directors of DGS, with the approval of the state agency
concerned, and Transportation to negotiate access to
state-owned property, to include highway rights-of way.
2)Provides that this requirement also applies to
telecommunications and information technologies.
3)The director of both agencies to determine the amount of
consideration for, and means of access to include lease permit
or other form of providing a monetary or service consideration
for the access.
4)Requires PUC to develop a plan to encourage the widespread
availability and use of advance communications infrastructure
consistent with the state policy of bridging the digital
divide.
FISCAL EFFECT : According to the Assembly Appropriations
Committee:
1)One-time General Fund (GF) costs of around $25,000 each for
DGS to place its property inventory on their Web site 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
AB 855
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to the General Fund.
4)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 5% administrative costs authorized in this
bill.
COMMENTS : According to the author and sponsors of this bill,
the intent of this bill is to improve the quality of cell phone
service in California by providing wireless telecommunications
carriers with an access to place wireless facilities on state
property while additionally providing an additional revenue
stream for the digital divide projects.
Proponents argue that there is excess state owned property that
can be used to cite new wireless facilities. These facilities
are needed to reduce the number of dropped calls and the number
of "dead zones" where there is currently no wireless coverage.
This bill will open these locations for lease by the cellular
providers.
The revenue from these leases will be divided between the GF
(85%) and a new fund to be administered by the PUC (15%) which
will be used to fund competitive grants to fund programs aimed
at increase computer access in undeserved areas.
Analysis Prepared by : Angela Haywood / U. & C. / (916)
319-2083
FN: 0001610