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.




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          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  




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          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.




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           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.





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           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
                                        
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