BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                   AB 855|
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                                 THIRD READING


          Bill No:  AB 855
          Author:   Firebaugh (D), et al
          Amended:  9/3/03 in Senate
          Vote:     27 - Urgency

           
           SENATE GOVERNMENTAL ORG. COMMITTEE  :  8-1, 7/1/03
          AYES:  Vincent, Cedillo, Chesbro, Dunn, Karnette, Morrow,  
            Murray, Soto
          NOES:  Brulte

           SENATE APPROPRIATIONS COMMITTEE  :  7-4, 8/29/03
          AYES:  Alpert, Bowen, Burton, Escutia, Karnette, Machado,  
            Murray
          NOES:  Aanestad, Ashburn, Johnson, Poochigian
          NO VOTE RECORDED:  Burton, Speier

           ASSEMBLY FLOOR  :  68-9, 6/5/03 - See last page for vote


           SUBJECT  :    Wireless telecommunications:  access to state  
          property

           SOURCE  :     Author


           DIGEST  :    This bill requires that 15 percent of the  
          revenues derived form new leases of state-owned property to  
          wireless telecommunications providers be redirected from  
          the General Fund to a separate account, administered by the  
          State Public Utilities Commission for the purpose of  
          funding a "Digital Divide" grant program, as specified.

           ANALYSIS  :    Existing law requires the State Department of  
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          General Services (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 the State Department of Transportation (DOT)  
          with respect to state-owned highway rights-of-way.

          Existing law requires the State Public Utilities Commission  
          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."

          This bill:

          1.Requires the Director of 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  







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            their facilities.

          4.Requires that 15 percent 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.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.Establishes the Digital Divide Grant Program, under which  
            the 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.Requires the PUC to develop, implement, and administer a  
            program to advance universal service by providing  
            discount rates to qualifying schools, libraries,  
            hospitals, health clinics, and community organizations,  
            consistent with existing law.

          8.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), 2001-02 Session  .  A similar bill that  
          passed the Senate Floor with a vote of 30-0 on 9/31/02 and  
          ultimately 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), 2001-02 Session  .  Also a similar bill  
          that died in the Assembly Appropriations Committee.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No







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                          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           Fund, potentially $14 in 2003-04  
          and            Special*
          program                    increasing to $154 by 2008-09,  
          redirected
                                            to grant program

          PUC Digital Divide  Unknown, potentially $100-$200 annually  
             Unknown  

           *California Teleconnect Fund Administrative Committee Fund

           SUPPORT  :   (Verified  9/3/03)

          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.

           OPPOSITION  :    (Verified  9/3/03)

          City of Fountain Valley







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          Town of Apple Valley
          State Department of Finance

           ARGUMENTS IN SUPPORT  :    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.

          Proponents emphasize that this bill will:

          1.Help increase use of excess state property by the  
            wireless industry and generate new revenue for the state.

          2.Help streamline the manner in which the wireless industry  
            obtains state property leases.

          3.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.

          4.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 bill  
          will provide them with little input relative to the  
          approval process of telecommunications facilities and open  
          the door to significant local aesthetic impacts.

          According to the State Department of Finance, in light of  
          the state's current fiscal situation, they are opposed to  
          this bill.  DGS already compiles and maintains an inventory  
          of state property, and is authorized to lease property for  
          the purposes stated in this bill.  The Governor vetoed a  







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          substantially bill, AB 468 (Firebaugh) of the 2001-02  
          Session, indicating that as the state faces continuing  
          fiscal pressures, he was "unwilling to create this new  
          account at the expense of the General Fund."


           ASSEMBLY FLOOR  : 
          AYES:  Aghazarian, Berg, Bermudez, Bogh, Calderon,  
            Canciamilla, Chan, Chavez, Chu, Cohn, Corbett, Correa,  
            Cox, Diaz, Dutra, Dutton, Dymally, Firebaugh, Frommer,  
            Garcia, Goldberg, Hancock, Harman, Jerome Horton, Shirley  
            Horton, Houston, Keene, Kehoe, Koretz, Laird, Leno,  
            Levine, Lieber, Liu, Longville, Lowenthal, Maddox,  
            Maldonado, Matthews, Maze, McCarthy, Montanez, Mullin,  
            Nakano, Nation, Negrete McLeod, Nunez, Oropeza, Pacheco,  
            Parra, Pavley, Plescia, Reyes, Richman, Ridley-Thomas,  
            Runner, Salinas, Samuelian, Simitian, Spitzer, Steinberg,  
            Strickland, Vargas, Wiggins, Wolk, Wyland, Yee, Wesson
          NOES:  Bates, Benoit, Campbell, Daucher, Haynes, La Malfa,  
            La Suer, Leslie, Mountjoy


          TSM:cm  9/3/03   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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