BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | AB 855| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 445-6614 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ 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 CONTINUED AB 855 Page 2 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 AB 855 Page 3 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 AB 855 Page 4 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 AB 855 Page 5 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 AB 855 Page 6 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 **** END ****