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F I S C A L I M P A C T R E P O R T

SPONSOR Tsosie

DATE TYPED 3/2/05

HB

SHORT TITLE Use Of State Lands For Telecommunications

SB 1039

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$0.1

Relates to Appropriation in the General Appropriation Act

REVENUE

Estimated Revenue

Subsequent

Years Impact

Recurring

or Non-Rec

Fund

Affected

FY05

FY06

$0.1

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Regulation Commission (PRC)

SUMMARY

Synopsis of Bill

SB1039 amends Section 19-7-27 to allow for the Commissioner to actively promote use of New

Mexico State Lands to establish wireless telecommunications networks in rural areas that are un-

derserved by telecommunications service providers. The Commissioner may also grant rights of

way and easements over, upon or across state lands for wireless telecommunications facilities

upon payment by the grantee of the price fixed by the commissioner, which shall not be less than

the minimum price for the lands, used, as fixed by law.

Significant Issues

The Commissioner shall actively seek telecommunications service providers who are able to ef-

Senate Bill 1039-- Page 2

fectively provide telephone, television, internet or other communication modalities by wireless

transmission to remote, underserved areas of the state.

PERFORMANCE IMPLICATIONS

All New Mexico State lands are subject to lease as provided by law. The Commissioner may

give first preference to any Department within the State that has been authorized by the legisla-

ture to acquire lands for the purpose of erecting buildings for state use.

FISCAL IMPLICATIONS

At present, the Commissioner may grant rights of way and easements for public highways, rail-

roads, tramways, telegraph, telephone and power lines, irrigation works, mining, logging and

other purposes upon payment that is fixed by law. It is unclear from the bill if the state will share

in any revenue received from wireless services.

TECHNICAL ISSUES

The bill is unclear as to what is intended by the phrase “shall actively promote” in Section 1.

The bill is unclear as to what is the definition of a “rural” or “underserved” area.

OTHER SUBSTANTIVE ISSUES

Many states are participating in “resource sharing” referring to joint ventures between the State

and private sector telecommunications firms where the state barters or sells the right-of-way ac-

cess in exchange for bandwidth capacity, equipment, services and/or revenue.

Wireless telecommunication facility sites should include placement in locations that preclude

them from being roadside hazards yet still provide safe access to the site for construction and

maintenance personnel.

AHO/lg