BILL ANALYSIS
Appropriations Committee Fiscal Summary
855 (Firebaugh)
Hearing Date: 8/18/03 Amended: 8/18/03
Consultant: Lisa Matocq Policy Vote: E, U & C
6-0
G. O. 8-1
_______________________________________________________________
BILL SUMMARY: AB 855, an urgency measure, requires that
15% of the revenues derived from new leases of state-owned
property to wireless telecommunications providers be
redirected from the General Fund to a separate account,
administered by the Public Utilities Commission (PUC), for
the purpose of funding a "Digital Divide" grant program, as
specified.
Fiscal Impact (in thousands)
Major Provisions 2003-04 2004-05
2005-06 Fund
DGS inventory list Unknown costs, probably not substantial
General
Lease revenues/ Unknown loss of revenues to the General
General/
Digital Divide program Fund, potentially $270 annually. Funds
Special*
are to be redirected to grant program.
PUC Digital Divide Unknown, potentially $100-200 annually
Unknown
Administration
*California Teleconnect Fund Administrative Committee Fund
STAFF COMMENTS: This bill meets the criteria for referral
to the Suspense File. "Digital Divide" refers to the
disparity among Californians who own a home computer and
have Internet access and training, and those who do not.
Under current law, DGS is authorized to lease state-owned
property to various entities. Each year, DGS collects
about $1 million in lease revenues from 299 wireless
telecommunications providers. The 15% of lease revenues
redirected from the General Fund to the new Digital Divide
Account within the California Teleconnect Fund are to be
used, upon appropriation by the Legislature, to fund a
community technology grant program to bridge the Digital
Divide. The bill specifies that the PUC may not implement
the grant program until at least $200,000 has been
deposited into the Digital Divide Account. According to
background information of a similar bill, AB 468
(Firebaugh) of 2002, there is an identified need for at
least 900 facilities in the next year with each lease
averaging approximately $2,000. Therefore, the shift of
funds could be $270,000 annually. Increased costs to the
PUC for administratiion could be $100,000 to $200,000
annually assuming 1-2 new positions.
DGS currently maintains the State Property Inventory (SPI),
which is a public document. This bill requires DGS to
compile, within 120 days of the effective date of the bill,
and maintain an inventory of state-owned property that may
be available for lease to wireless telecommunications
providers. This implies that DGS would be required to
compile a separate and tailored list for the wireless
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telecommunications industry, and could set a precedent for
other industries to request such an inventory list. The
bill requires DGS to make the list available upon request,
in a cost-effective manner.
STAFF RECOMMENDS that the bill be amended to:
(1)clarify that DGS may charge a fee sufficient to cover
its costs of compiling and maintain the inventory list
for the telecommunications industry,
(2)specify that the PUC's administrative costs are to be
funded from the lease revenues, and
(3)clarify whether the PUC or the California Teleconnect
Fund Administrative Committee is responsible for
administering the universal service program.
AB 468 (Firebaugh) of 2002, which passed off this
Committee's Suspense File, was similar to this bill and was
vetoed by the Governor. In his veto message, Governor
Davis expressed concern over (1) exempting from local land
use review the location of telecommunications facilities,
and (2) the transfer of revenues from the General Fund
given the state's fiscal situation. AB 1150 (Firebaugh) of
2002 was also similar to this bill and died in the Assembly
Appropriations Committee.