BILL ANALYSIS Bill No: AB 855 SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION Senator Edward Vincent, Chair 2003-2004 Regular Session Staff Analysis AB 855 Author: Firebaugh As Amended: June 2, 2003 Hearing Date: July 1, 2003 Consultant: Art Terzakis SUBJECT Wireless Telecommunications: access to state property DESCRIPTION AB 855 is an urgency measure that creates a framework for access to state-owned real property by providers of wireless telecommunications services and generates funding for community technology programs in under served communities. Specifically, this measure: 1. Requires the Director of General Services (DGS) to compile and maintain an inventory of state-owned real property (excluding state-owned highway rights-of-way) that may be available for lease to providers of wireless telecommunications services for location of wireless telecommunications facilities. 2. Requires DGS to place the inventory on the department's website and authorizes DGS to negotiate and enter into agreements to lease state-owned property for wireless telecommunications facilities. 3. Stipulates that any such lease agreement must: (a) contain an acceptable lease term and provide for a reasonable rental fee paid to the state; (b) provide for use of the wireless provider's facilities located on state property by any appropriate state agency; and, (c) promote, if possible, agreements among providers for co-location of their facilities. AB 855 (Firebaugh) continued Page 2 4. Requires that 15% of the revenues collected pursuant to this bill be available, upon appropriation by the Legislature, for the purpose of addressing the state's "digital divide." 5. Also, requires that the revenues described in item #4 above be deposited in a newly created Digital Divide Account within the California Teleconnect Fund Administrative Committee Fund. 6. In addition, 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 the purpose of funding "community technology programs." 7. Defines "community technology programs" and "digital divide projects" for purposes of the bill and requires the PUC to report to the Legislature and Governor on an annual basis on the effectiveness of the program. PRIOR/RELATED LEGISLATION AB 468 (Firebaugh) 2001-2002 Session. Similar to AB 855 (Firebaugh) of 2003. (Vetoed by Governor? on the basis that placing telecommunications facilities on state property in local communities would thwart the discretionary review of local governments and that depositing the revenues into a new digital divide account was akin to transferring revenue from the General Fund.) AB 1150 (Firebaugh) 2001-02 Session. Similar to AB 855 of 2003 and AB 468 of 2002 authored by Mr. Firebaugh. (Held in Assembly Appropriations Committee) SB 678 (Polanco) Chapter 676 Statutes of 1999. Among other things, authorized the Director of DGS, to negotiate in the name of the state and in the interest of the state, access to state-owned property, not used for highway purposes, for various telecommunications and information technologies. Also, required the Director of Caltrans to similarly negotiate access to state-owned "highway" rights-of-way, as specified. SB 1166 (Bowen) 1999-2000 Session. Would have authorized AB 855 (Firebaugh) continued Page 3 Caltrans to enter into agreements to allow the installation of telecommunications infrastructure on Caltrans facilities and structures, and in state freeway and state highway rights-of-way, if a determination was made that they could be safely installed, operated and maintained. (Failed passage in Senate Transportation Committee) EXISTING LAW Existing law requires DGS, with the approval of the state agency concerned, to negotiate, in the name of the state, access to state-owned property not used for highway purposes, for those purposes and subject to those conditions, limitations, restrictions, and reservations, determined by DGS to be in the interest of the state. This requirement to negotiate access applies to telecommunications and information technologies. Existing law requires, to the extent permitted under existing law, DGS to determine the amount of consideration for, and means of access, including, but not limited to, lease, permit, or other form of providing a monetary or service consideration for the access. Existing law also imposes similar requirements on the Director of Caltrans with respect to state-owned highway rights-of-way. Existing law requires the PUC to develop a plan to encourage the widespread availability and use of advanced communications infrastructure consistent with the state policy of bridging the "digital divide." BACKGROUND According to the author's office, this measure is intended to provide wireless telecommunications providers the ability to locate cellular towers on state-owned property and generate additional revenue for "digital divide" projects in under-served communities throughout the state. The author's office maintains that making state property available for such leases will help expedite the deployment of wireless communication service and minimize the aesthetic impact of these facilities. The author's office also points out that this measure has been carefully drafted to address the concerns raised by the Governor in his veto of AB 468 of the previous legislative session. AB 855 (Firebaugh) continued Page 4 Arguments in Support: Proponents emphasize that AB 855 will: Help increase use of excess state property by the wireless industry and generate new revenue for the state. Help streamline the manner in which the wireless industry obtains state property leases. Help increase the service quality and capacity of the wireless industry throughout the state which can be critical in times of disaster or emergency situations. Help ensure that all Californians have access to state resources such as e-government kiosks and computer centers and help enhance the academic performance of school children. Arguments in Opposition: Opponents argue that this measure would provide them with little input relative to the approval process of telecommunications facilities and open the door to significant local aesthetic impacts. SUPPORT: As of June 27, 2003: AT&T Wireless California Community Technology Policy Group The Children's Partnership Cingular Wireless CompuMentor Crescent Park Multi-Cultural Family Resource Center New Directions, Inc. Nextel Communications Richmond District Neighborhood Center San Diego Community Technology Coalition Sprint T-Mobile USA, Inc. Verizon Wireless Western Addition Community Technology Center Women's Building (San Francisco, Ca) Youth Opportunities Unlimited Inc. AB 855 (Firebaugh) continued Page 5 OPPOSE: As of June 27, 2003: City of Fountain Valley Town of Apple Valley DUAL REFERRAL: Senate Energy, Utilities and Communications FISCAL COMMITTEE: Senate Appropriations Committee *********