BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2172
                                                                  Page  1

          Date of Hearing:   April 14, 2004

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                   Judy Chu, Chair

                   AB 2172 (Levine) - As Amended:  March 24, 2004 

          Policy Committee:                               
          UtilitiesVote:12-0 (Consent)

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires that all revenue from new telecommunications  
          leases, on state property acquired with funding other than the  
          General Fund, be deposited into that fund rather than depositing  
          15 percent of the lease revenue into the Digital Divide Account  
          as established in legislation enacted last year.

           FISCAL EFFECT  

          Unknown, probably minor revenue loss to the Digital Divide  
          Account, and commensurate revenue gain to other special funds.

           COMMENTS  

           Purpose  .  AB 855 (Firebaugh and Levine)-Chapter 820/Statutes of  
          2003 required the Department of General Services to compile an  
          inventory of state-owned land that could be leased for cell  
          phone equipment.  The bill required 15 percent of the money  
          generated from such new leases be deposited in the newly-created  
          Digital Divide Account within the California Teleconnect Fund  
          Administrative Committee Fund.  The Public Utilities Commission  
          is authorized to award grants from the Digital Divide Account on  
          a competitive basis to non-profit organizations for community  
          technology training programs.

          In signing AB 855, Governor Davis issued a signing message  
          asking that the authors pursue clean up legislation (AB 2172) to  
          clarify that if a wireless telecommunication facility is sited  
          on land purchased with money from a fund other than General  
          Fund, all revenue generated from the lease shall be deposited  
          into that special fund rather than diverting 15 percent to the  








                                                                  AB 2172
                                                                  Page  2

          Digital Divide Account.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081