BILL ANALYSIS 1
1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 855 - Firebaugh/Levine Hearing
Date: July 8, 2003 A
As Amended: June 2, 2003 FISCAL/URGENCY
B
8
5
5
DESCRIPTION
Current law directs the Department of General Services (DGS) to
negotiate access to non-highway state-owned property.
Current regulation has created the California Teleconnect Fund, a
program administered by the California Public Utilities Commission
(CPUC) to provide discounts on telecommunications service to
schools, libraries, health care institutions, and qualifying
community-based organizations.
This bill directs the Director of the DGS to, within 120 days,
compile an inventory of state-owned property that it manages,
excluding state-owned highway rights-of-way, that may be available
for lease to providers of cellular phone service for location of
telecommunications facilities. This inventory shall be made
available on the DGS website.
This bill authorizes the Director to negotiate and enter into
agreements to lease state-owned real property to any provider of
cellular phone service for location of its facilities. The lease
shall provide for a reasonable rental fee to be paid to the state,
designate a lease term acceptable to the director, provide for use
of the facilities by any appropriate state agency if feasible, and
facilitate agreements among cellular companies for co-location of
their facilities.
This bill sets aside 15% of the revenue from new leases, excluding
leases on Caltrans property, for the purpose of addressing the
digital divide issue, subject to appropriation by the Legislature.
These revenues shall be deposited in the Digital Divide Account,
which is a subaccount of the existing California Teleconnect Fund
Administrative Committee Fund, to provide grants to non-profit
community-based organizations for the purpose of providing
training in technology, developing content, job training, and
accessing e-government services. This program may not be
implemented until $200,000 has accumulated in the Digital Divide
Account.
BACKGROUND
One of the barriers to higher quality cellular telecommunications
service is the difficulty in installing antennas. Local
opposition and NIMBYism can make antenna siting a long and costly
process. Last year, the author introduced AB 468 (Firebaugh) to
address this problem. That bill required DGS to create a database
that cellular companies could examine to locate a potential
antenna site. That bill, which passed this committee 5-0, also
created a safe harbor under which an antenna placed on state
property that met specified conditions would be eligible for
expedited local government review. AB 468 was vetoed by the
governor due to concerns about the usurpation of local control and
the diversion of monies from the General Fund. The local control
provisions aren't in this year's version of the bill, and the bill
has been clarified so any monies going to digital divide purposes
comes only from new leases.
Under California's Public Records Act, state agencies have limited
authority to charge fees for access to records.
COMMENTS
1.Creating A Master List . DGS currently has an inventory of
state-owned property, known as the State Property Inventory
(SPI). This list should meet the requirements of this bill,
meaning DGS wouldn't have to go through the work of creating a
new, additional, or duplicate list.
2.Why Just Wireless? This bill requires DGS to compile and make
available a list of state-owned real property that may be
available for lease to providers of wireless telecommunications
services. However, other companies no doubt have a desire to
lease state property. While existing law authorizes DGS to
lease state property to any company, it doesn't require DGS to
create an "industry specific" inventory of such property and
publish its availability on a website. The author and committee
may wish to consider why it's appropriate to require DGS to
compile and publish on its website a list of available property
for one specific industry and whether this means DGS will have
to evaluate each piece of property to determine whether it's
suitable for use by the wireless telecommunications industry.
3.Database Availability . While state property records are public
information, requiring a list of available property to be
compiled and made available via the Internet raises a question
about whether this makes it easier for that information to be
used improperly. For example, does the state want to publicly
post the location of the pumping stations for the State Water
Project or the location of the women's dormitory for state
institutions? The requirement to post the list on the Internet
was removed from AB 468 before it passed out of this committee.
The author and committee may wish to consider removing this
provision of the bill or requiring DGS to establish a mechanism
so this information can be more selectively provided, perhaps
through a password-secured database.
4.California Teleconnect Fund . In 1996, the California Public
Utilities Commission created the California Teleconnect Fund,
consistent with policies articulated by the Legislature. While
the California Teleconnect Fund Administrative Committee Fund is
an account established in statute in 1999, the program itself is
not. The author and committee may wish to consider codifying
the program.
5.Comparing AB 468 & AB 855 . This bill has several provisions
which are slightly different from AB 468. This bill authorizes
"reasonable rental fees" while AB 468 called for "fair market
value rental fees." The author and committee may wish to
consider going back to the "fair market value rental fee"
language to ensure DGS isn't required to lease property to
private entities at below-market rates.
The duration of the lease is not specified in this bill, while
in AB 468 the lease term was capped at 10 years, with 5-year
renewals. The author and committee may wish to consider whether
it's appropriate to allow DGS to award a lease in perpetuity.
The bill limits DGS to negotiating an agreement to lease
state-owned real property that isn't subject to an existing
state franchise, while AB 468 allowed the director to negotiate
a lease on department-managed, state-owned real property. The
author and committee may wish to consider what this change means
and whether it's appropriate.
Public Utilities Code Section 7901 was created in 1951 to permit
telephone companies to build telephone lines on or across public
roads and waters, and to put up telephone poles as long as they
don't interfere with the public's use of the road or navigation
of the waters. AB 855 says it can't be construed to alter any
existing rights of telephone corporations under Section 7901.
It's unclear what purpose this provision of the bill serves and
what its impact may be. Arguably, the provision may be used to
argue that state or local governments don't have the ability to
condition the projects envisioned under this bill. As such, the
author and committee may wish to consider removing this section
of the bill.
ASSEMBLY VOTES
Senate Governmental Organizational Committee
(8-1)
Assembly Floor (68-9)
Assembly Appropriations Committee (17-7)
Assembly Utilities and Commerce Committee
(9-2)
POSITIONS
Sponsor:
AT&T Wireless
Support:
California Community Technology Policy Group
Cingular Wireless
CompuMentor
Crescent Park Multi-Cultural Family Resource Center
Nextel Communications
New Directions, Inc.
Richmond District Neighborhood Center
San Diego community Technology Coalition
T-Mobil USA
The Children's Partnership
Verizon Wireless
Western Addition Community Technology Center
Women's Building
Youth Opportunities Unlimited, Inc.
Oppose:
City of Fountain Valley
Town of Apple Valley
Randy Chinn
AB 855 Analysis
Hearing Date: July 8, 2003