BILL ANALYSIS 1
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SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
DEBRA BOWEN, CHAIRWOMAN
AB 2172 - Levine Hearing
Date: June 8, 2004 A
As Amended: May 28, 2004 FISCAL B
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DESCRIPTION
Current law allows the Director of the Department of
General Services (DGS) to lease DGS-managed property to
cellular telephone companies, allowing them to put wireless
towers on top of buildings and on state property (except
for property owned by Caltrans). Money from those leases
is deposited into the fund which was used to buy the
DGS-managed property.
Current law authorizes the Legislature to appropriate 15%
of the money from those leases described above to the
Digital Divide Account, which is a subaccount of the
California Teleconnect Fund Administrative Committee Fund
(CFFACF). Monies in the Digital Divide Account are
available to finance digital divide projects through the
Digital Divide Grant Program, as specified, upon
appropriation by the Legislature.
Current law requires grant funds to be awarded to
community-based nonprofit organizations that are exempt
from taxation under Section 501(c)(3) of the Internal
Revenue Code.
This bill changes the accounting by requiring that 15% of
the lease money be deposited directly into the Digital
Divide Account, now renamed the Digital Opportunities
Account, but doesn't otherwise alter the applicability of
the 15% or the requirement for appropriation. The
remaining 85% is deposited into the fund which was used to
buy the DGS-managed property, as is required today.
This bill requires the California Public Utilities
Commission (CPUC) to pay for the administration of the
Digital Opportunities Grant Program out of the CTFACF.
This bill narrows the field of eligible grant recipients to
those who run a nonprofit technology program, which is
defined as a community-based nonprofit organization that is
exempt from taxation under Section 501(c)(3) of the
Internal Revenue Code and engages in diffusing technology
into local communities and training local communities that
have no access to, or have limited access to, the Internet
and other technologies and are located in underserved
areas.
This bill specifies that programs eligible for the grants
include community programs that provide employment training
and skills.
This bill adds legislative findings, among them that access
through the Internet to governmental services and
educational programs can provide a cost-effective method of
service delivery.
This bill also makes numerous non-substantial changes to
the Digital Divide Grant Program, now renamed the Digital
Opportunities Grant Program.
BACKGROUND
Last year, AB 855 (Firebaugh), Chapter 820, Statutes of
2003, created a program to facilitate the use of
non-Caltrans state property by cellular telephone
companies. This program set aside 15% of most new lease
revenue for a grant program to pay for digital divide
projects. That program is administered by the CPUC in
conjunction with the CPUC's existing California Teleconnect
Fund, a program which discounts telecommunications rates to
schools, libraries, health care institutions, and qualified
community-based organizations.
COMMENTS
1.Money From A Disappearing Fund? The bill requires the
administrative cost of the Digital Opportunities Grant
Program to come from the California Teleconnect Fund
Administrative Committee Fund (CTFACF). Under the
Governor's proposed budget, this fund will have no money
by the end of the 2004-2005 fiscal year. The Senate has
proposed to fully fund the program, so the item is
currently before the Budget Conference Committee. If the
Governor's proposal is implemented, the grant program
won't have any money available to pay for administration.
Therefore, the author and committee may wish to consider
authorizing, instead of requiring, the CPUC to use the
funds from the CTFACF to pay for administration.
2.Making Fewer, Though Perhaps More Needy, Programs
Eligible For Grants . Under current law, grant funds are
awarded on a competitive basis subject to criteria set by
the CPUC. The grants must be distributed widely,
including urban and rural areas, and a recipient must be
a community-based nonprofit organizations that's exempt
from taxation under Section 501(c)(3) of the Internal
Revenue Code.
This measure makes fewer entities eligible for grants by
stating an eligible recipient must, in addition to being
a nonprofit 501(c)(3), also run a nonprofit technology
program that diffuses technology into local communities
and trains local communities that have no access, or have
limited access, to the Internet and other technologies
and are located in underserved areas.
3. Technically Speaking . There are a number of technical
amendments the author and committee may wish to consider
accepting.
First, on Page 5, Line 27, it appears to direct all of
the grant money to a single recipient. Instead of "a
nonprofit community technology program," the language
should read "nonprofit community technology programs."
Second, there is overlapping and duplicative language
between subdivision (e) of Section 14666.8 of the
Government Code (Page 4, Lines 9-23) and subdivision (a)
of Section 280.5 of the Public Utilities Code (Page 4,
Line 26 through Page 5, Line 2). These subdivisions both
describe where the 85% of lease revenues goes and what
the 15% of revenues can be used for. The intent is to
specify that 85% of lease revenues go back to the fund
which paid for the leased property and that 15% go to the
Digital Opportunities Account for appropriation by the
Legislature. It would be clearer to specify the 85%/15%
split in the Government Code, leaving how the 15% is
spent to the Public Utilities Code.
ASSEMBLY VOTES
Assembly Floor (76-0)
Assembly Appropriations Committee (19-0)
Assembly Utilities and Commerce Committee(12-0)
POSITIONS
Sponsor:
Author
Support:
None on file
Oppose:
None on file
Randy Chinn
AB 2172 Analysis
Hearing Date: June 8, 2004