BILL ANALYSIS Ó
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
AB 1131 (Lara)
Hearing Date: 8/25/2011 Amended: 4/26/2011
Consultant: Bob Franzoia Policy Vote: G O 12-0
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BILL SUMMARY: AB 1311 would revise provisions relating to the
identification and leasing of state property for wireless
telecommunications facilities. This bill would require the
Department of General Services (DGS) to report by January 31,
2012 on the number of wireless telecommunications lease
agreements entered into with providers of wireless
telecommunications services. The report would include the
number of leases, revenue generated, and money deposited in the
Digital Divide Account (DDA).
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Fiscal Impact (in thousands)
Major Provisions 2011-12 2012-13 2013-14 Fund
Alternative wireless site Unknown, potentially
significant uncom- General
identification process pensated workload ongoing
Report Likely minor costs one time General/
Special*
* Service Revolving Fund
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STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
This bill would require that if an application for a proposed
wireless facility lease agreement is rejected by a state agency
that has control over the property, DGS shall identify an
alternative site that will provide reasonable access and
accommodation that will meet the needs of the applicant. Staff
notes a lease request is submitted by the state agency to DGS
and it is unclear why identifying an alternative site should be
the responsibility of DGS or who will be responsible for the
cost of the additional workload. This bill also requires DGS to
collaborate with the state agency to resolve any issues that
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resulted in the state agency rejecting the proposed agreement.
It is unclear if this could be done in lieu of identifying an
alternative site or must be done in addition to identifying an
alternative site.
This bill does not require, as a prerequisite of a proposed
wireless facility lease agreement, that local permits be in
place prior to negotiating a lease agreement with the state.
The effect of this provision is unclear because local permits
are not needed in order for the state to site a facility on
state land.
Identifying wireless telecommunications facility sites can be
complex. Potential factors to consider in locating and
determining if a site would meet the needs of the applicant
include coordinating permission with property holders, reviewing
title documents and acquisition funding sources that may
prohibit telecom or income generating activity, identifying
general engineering standards for a base search model,
identifying physical factors such as site access, weather
conditions, power availability, neighboring property uses,
environmental considerations and security concerns. The
applicant may have additional needs beyond those listed above
and, as noted above, there is no guarantee that a lease would
result.
At this time, information is unavailable to determine if what,
if any, state agencies have rejected applications for wireless
facility lease agreements. Wireless telecommunications
facilities cannot be located on sites purchased with bond or
federal funds. CalTrans is exempt from the provisions of the
bill and when a facility is leased on CalFire property, up to
one half of the lease revenue is deposited with CalFire.
DGS no longer employs staff with the requisite technical
experience to perform the engineering aspect of site
identification as this function was transferred to the
California Technology Agency (CTA) in 2009. Therefore, DGS
would need to contract with CTA or hire the appropriate staff.
Additionally, as no funding is included with the bill and, as
the department is a fee-for-service entity, it is unclear if the
department could bill the wireless company for the
identification of the alternative site.
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DGS managed telecommunications leases generate about $2 million
annually, but the majority of these sites are owned by special
fund entities and the majority are not "new" leases. This bill
requires a report on the provisions of this bill that would be
due one month after the effective date of the bill. The report
would include information on all moneys deposited into the DDA
established by Chapter 820/2003. (15 percent of new lease
revenue after January 2004 is deposited into the DDA.) It
appears most, if not all, of the information to be included in
the report is currently available.
The proposed amendments are as follows:
SECTION 1. Section 14666.8 of the Government Code is amended to
read:
14666.8. (a) The director shall compile and maintain an
inventory of state-owned real property that may be available for
lease to providers of wireless telecommunications services for
location of wireless telecommunications facilities. This
inventory shall be the state's sole inventory of state-owned
real property available for this purpose. The term "state-owned
real property," as used in this section, excludes property owned
or managed by the Department of Transportation and property
subject to Section 7901 of the Public Utilities Code.
(b) The director shall provide, in a cost-effective manner, upon
payment of any applicable fee, a requesting party a copy of the
inventory.
(c) On behalf of the state, the director may negotiate and enter
into an agreement to lease department-managed and state-owned
real property to any provider of wireless telecommunications
services for location of its facilities with the approval of the
state agency with jurisdiction over the property . A lease for
this purpose shall do all of the following:
(1) Provide for fair market value to be paid by the provider of
wireless telecommunications service to the state to the extent
permitted under existing state law.
(2) Designate a lease term that is acceptable to the director
and the state agency that has control over the property. The
duration of the initial lease term for any wireless facility
shall not exceed 10 years, and the lease may provide for a
negotiated number of renewal terms, not to exceed five years for
each term.
(3) Provide for the use of the wireless provider's facilities
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located on the state-owned real property by any appropriate
state agency if technically, legally, aesthetically, and
economically feasible , and does not interfere with public safety
or emergency response activities .
(4) Facilitate, to the greatest extent possible, agreements
among providers of wireless telecommunications services for
collocation of their facilities on state-owned real property. If
an application for a proposed wireless facility lease agreement
is rejected by a state agency that has control over the
property, the director shall identify an alternative site that
will provide reasonable access and accommodation that will meet
the needs of the applicant. If a wireless facility lease
agreement is rejected, the state agency shall notify the
director and provide reasons for the denial. The director shall
collaborate with the state agency to resolve any issues that
resulted in the state agency rejecting the proposed wireless
facility lease agreement. The director shall encourage the state
agency to identify maximum opportunities for placement of
wireless facilities on state-owned property.
(5) Not require, as a prerequisite of a wireless facility lease
agreement, that local permits are in place prior to negotiating
a lease agreement with the state.
(d) (1) No later than January 31, 2012, the director shall
submit a report to the Legislature on the status of actions
taken by the director pursuant to this section, including the
number of wireless facility lease agreements for, and the
revenue generated from, state-owned real property that have been
entered into with providers of wireless telecommunications
services pursuant to this section and all moneys deposited into
the Digital Divide Account pursuant to Section 280.5 of the
Public Utilities Code.
(2) The requirement for submitting a report imposed under
pursuant to this subdivision is inoperative on March 31, 2017,
pursuant to Section 10231.5.
(3) A report submitted pursuant to this subdivision shall be
submitted in compliance with Section 9795.
(e) This section does not alter any existing rights of telegraph
or telephone corporations pursuant to Section 7901 of the Public
Utilities Code.
(f) Notwithstanding any other law, any revenue, collected from a
lease entered into pursuant to this section to use property that
was acquired with money from a fund other than the General Fund
shall be deposited into the fund from which the money was
obtained. Money received and deposited into a fund pursuant to
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this section shall be available upon appropriation by the
Legislature, notwithstanding any other law.
(g) Before making any state-owned real property that is part of
the State Water Resources Development System, as described in
Section 12931 of the Water Code, available for leasing under
this section, the director shall consult with the Department of
Water Resources as to whether the proposed location of a
wireless telecommunication facility is technically, legally,
environmentally, and economically feasible for wireless
telecommunication purposes.