BILL ANALYSIS Ó
Bill No: AB
1131
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Roderick D. Wright, Chair
2011-2012 Regular Session
Staff Analysis
AB 1131 Author: Lara
As Amended: April 26, 2011
Hearing Date: July 6, 2011
Consultant: Paul Donahue
SUBJECT : Location of mobile telephony equipment on state
property; Reporting
SUMMARY : Requires the Director of General Services to
report to the Legislature on the number of wireless
facility lease agreements entered into with providers of
wireless telecommunications services.
Existing law :
1) Requires the Department of General Services (DGS) to
compile, maintain and prepare an inventory of state-owned
real property, excluding state-owned highway rights-of-way,
that may be available for lease to wireless
telecommunications providers for location of wireless
telecommunications facilities.
2) Requires DGS to provide a requesting party with a copy
of the inventory upon payment of any applicable fee.
3) Authorizes the Director of DGS to negotiate and enter
into agreements to lease state-owned property to wireless
telecommunications providers for wireless
telecommunications facilities.
4) Establishes the Digital Divide Account (DDA) within the
California Teleconnect Fund Administrative Committee Fund
in the State Treasury, and requires 15% of the revenues
from fees collected from the lease of state-owned real
property to the providers of wireless telecommunications
AB 1131 (Lara) continued
Page 2
services shall be deposited in the DDA to finance digital
divide projects through the Digital Divide Grant Program.
This bill :
1) Requires the Director of DGS to provide a status report
to the Legislature by January 31, 2012 on its
implementation of prior legislation that was intended to
increase the leasing of state-owned property for wireless
communication facilities.
2) Specifies that the report shall include the number of
wireless facility lease agreements for state-owned
property, the revenue generated from the agreements, and
the money deposited in the Digital Divide Account (DDA)
3) 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
issues resulting in a rejection.
COMMENTS :
1) Purpose : The author states that "eight years after
legislation authorized the leasing of state-owned property
to facilitate the placement of wireless telecommunication
towers and facilities, few contracts have ever been
executed between the state and telecommunications companies
in California. In fact, the program has not yet generated
anywhere near enough revenue to trigger the PUC's
requirement to establish and implement the Digital Divide
Account. Clearly, there is significant discrepancy between
the original intent of the measure in concept and the
outcome of the bill's implementation in practice."
The author believes that the enabling legislation may be
too narrow in scope since it authorizes a limited inventory
of state-owned property for prospective leases and applies
only to new lease agreements. The author also notes that
the process for leasing the eligible state-owned property
is lengthy and burdensome and may have the unintended
consequence of discouraging telecommunications companies
AB 1131 (Lara) continued
Page 3
from leasing property from the state.
2) Background : 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
(e.g., CHP, Military Dept., CAL FIRE), and the majority
are not new leases. DGS states that non-special fund sites
are in short supply.
3) Digital Divide funding : Existing law specifies that 15%
of the revenues from fees collected from the lease of
state-owned real property to the providers of wireless
telecommunications services be deposited into the Digital
Divide Account in the California Teleconnect Fund. Current
law provides that this grant program shall not be carried
out until at least $500,000 is available in the DDA. The
revenue in the account routinely falls significantly short
of the minimum threshold. Consequently, no funds have been
spent on the grant program.
4) Support : Supporters state that this bill "represents a
win-win for the state and wireless phone consumers in the
state. By exploring ways to expand lease agreements on
state property, the bill would expand revenues available to
the State to fund its priorities, namely the Digital Divide
account. This account is critical to expand access to
broadband and wireless services for low-income, rural and
other hard-to-reach consumers."
This measure would help increase wireless coverage and
capacity to meet the insatiable demand by wireless
consumers and businesses for mobile broadband services.
Supporters note that wireless subscribership has increased
dramatically over the past decade, from 97 million in June
2000 to more than 300 million in December 2010, and with
about 35 million subscribers California has by far the
largest subscribership of any state.
5) Related legislation :
AB 1458 (De La Torre, 2005) would have increased the amount
of lease revenue directed to the Digital Divide Account
AB 1131 (Lara) continued
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from lease renewals and new leases. (Held in Senate
Appropriations)
AB 2172 (Levine, 2004) would have extended the application
of AB 855 to all leases of department-managed and
state-owned property, including renewals; eliminates the
Department of Transportation exemption; eliminates the
requirement that the Legislature appropriate the funds;
requires DGS to obtain the approval of the Department of
Water Resources (DWR) or the Reclamation Board (Board),
whichever is appropriate, before entering into a
telecommunications lease involving property that is part of
the State Water Resources Development System, or the
Sacramento River and San Joaquin River flood control
system; and authorizes the PUC to use funds from the
California Teleconnect Fund Administrative Committee Fund
to cover its administrative costs. (Held in Senate
Appropriations)
AB 855 (Firebaugh) Chapter 820, Statutes of 2003 authorized
DGS to negotiate and enter into agreements to lease
state-owned real property to any provider of cellular phone
service for location of its facilities. This bill set aside
15 percent of the revenue from new leases, excluding leases
on Department of Transportation property, for the purpose
of addressing the digital divide issue, subject to
appropriation by the Legislature.
AB 468 (Firebaugh, 2002) would have required agreements
negotiated by the Department of Transportation to place
wireless facilities on state-owned property or highway
rights-of-way shall provide compensation at fair market
value. Required 15% of the revenues derived from certain
leases to wireless telecommunications facilities be set
aside for the purpose of funding a "Digital Divide" grant
program. (Vetoed)
AB 3643 (Polanco) Chapter 278, Statutes of 1994 requires
the Public Utilities Commission (CPUC) to open a proceeding
to examine the current and future definitions of universal
service in telecommunications. Pursuant to that
legislation, the CPUC, in D. 96-10-066, created, among
other programs, the California Teleconnect Fund (CTF) to
provide discounted rates for specified services to schools
and libraries.
AB 1131 (Lara) continued
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SUPPORT:
AT&T
California Broadband Policy Network
CTIA - The Wireless Association
OPPOSE:
None on file
FISCAL COMMITTEE: Senate Appropriations Committee
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