BILL ANALYSIS Ó
AB 1131
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Date of Hearing: May 18, 2011
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Felipe Fuentes, Chair
AB 1131 (Lara) - As Amended: April 26, 2011
Policy Committee:
UtilitiesVote:12-0
Urgency: No State Mandated Local Program:
No Reimbursable:
SUMMARY
This bill:
1)Requires the Director of General Services (DGS), by January
31, 2012, to provide a status report to the Legislature on
implementation of prior legislation intended to increase the
leasing of state-owned property for wireless communication
facilities. The report is to include the number of leases,
revenue generated, and money deposited in the Digital Divide
Account (DDA).
2)Requires the director to take specified steps to further
facilitate lease agreements on state property with providers
of wireless telecommunications services. These steps include
identifying an alternate state site when a state agency
rejects a lease, requiring state agencies to notify the
director of, and provide an explanation for, the denial of a
lease, and working with agencies to resolve issuing resulting
in a rejection.
FISCAL EFFECT
Minor absorbable one-time costs for the required report and
minor ongoing administrative costs to further facilitate lease
agreements, potentially more than offset by increased revenues
from additional leases.
COMMENTS
1)Background . AB 855 (Firebaugh)/Chapter 820 of 2003, required
DGS to compile and maintain an inventory of state-owned
AB 1131
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property that may be available to lease for wireless
communications facilities, and to facilitate such lease
agreements to the greatest extent possible. The bill also
directed 15% of the revenues from new such leases, except
those on Caltrans' property, into the newly-established DDA to
be used for a grant program, under the auspices of the Public
Utilities Commission, to address the digital divide.
The legislation specified that the grant program could not
commence until at least $500,000 was available in the DDA. The
account has not yet attained this level, so the grant program
has not begun.
2)Purpose . According to DGS, the database required by AB 855 is
in place and staff continually improves and streamlines the
telecommunication site leasing process to optimize state
assets. DGS-managed telecommunications leases currently
generate about $2 million a year, but the majority of these
sites are owned by special fund entities and the majority are
not "new" leases.
This bill is intended to improve and streamline DGS' leasing
processes pursuant to AB 855. The author notes that "during
times of mounting economic uncertainty, it is imperative that
we take full advantage of opportunities that will help
generate new revenues for our state to pay for our priorities.
If current law practices are not working effectively to
generate the revenues envisioned and progress is stalled in an
effort to bridge the digital divide, other strategies need to
be employed."
Analysis Prepared by : Chuck Nicol / APPR. / (916) 319-2081