BILL ANALYSIS
Appropriations Committee Fiscal Summary
855 (Firebaugh)
Hearing Date: 8/28/03 Amended: 8/18/03 and
proposed to
be amended
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 $14 in 2003-04 and
increas- Special*
ing to $154 by 2008-09, redirected to grant
program
PUC Digital Divide Unknown, potentially $100-200 annually
Unknown
*California Teleconnect Fund Administrative Committee Fund
STAFF COMMENTS: 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. In 2002-03, DGS collected
approximately $1.25 million in lease revenues from 312
wireless telecommunications providers (average annual lease
is $4006). 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. Future lease revenues are
indeterminable. However, over the past year, 13 new leases
were negotiated. Assuming an avg. annual lease of $4,006,
a similar number of new leases in future years, and 75% of
current leases are renegotiated as new leases as they
expire, the amount of redirected General Fund revenues
could be $14,000 in 2003-04, increasing annually to about
$154,000 by 2008-09. Increased costs to the PUC for admin.
could be $100,000-200,000 annually assuming 1-2 new
positions.
Page Two
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. It is unclear
whether DGS would be required to compile a separate list
for wireless providers. The bill requires DGS to make the
list available upon request, in a cost-effective manner.
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.
Amend to clarify that DGS shall provide, upon request and
payment of any applicable fee, the State Property Inventory
list, and specify that the PUC's administrative costs are
to be funded from the lease revenues.