BILL ANALYSIS                                                                                                                                                                                                                   1
               1





             SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            DEBRA BOWEN, CHAIRWOMAN
          

          AB 669 -  Hertzberg                          Hearing Date:   
          June 25, 2002                   A
          As Amended:         March 11, 2002 FISCAL                    
             B
                                                                       
            
                                                                       
            6
                                                                       
            6
                                                                       
            9

                                   DESCRIPTION
           
           Current law  provides for a "911" Emergency Telephone  
          Service system, which is financed by a surcharge on all  
          residential and business telephone bills, and caps that  
          surcharge at 0.75% of a customer's telephone bill.

           Current law  provides for a pilot program to test a "311"  
          non-emergency telephone system. 

           This bill  authorizes cities or joint powers authorities to  
          establish a "311" non-emergency telephone system within  
          their jurisdictions.  If these agencies don't notify the  
          affected county and the Department of General Services  
          (DGS) by January 1, 2006 of their intent to establish a  
          "311" system, the county may establish such a system.   
          Wireless carriers are exempt from the provisions of this  
          bill until January 1, 2007.

           This bill  allows cities, counties, or joint powers  
          authorities to pay for such a system by imposing a  
          surcharge on intrastate telephone bills for customers  
          within that organization's jurisdiction of up to 0.25% of a  
          customer's phone bill, which would be administered through  
          the State Board of Equalization.

           This bill  requires the Telecommunications Division within  











               DGS to develop technical and operational standards for the  
               "311" system by January 1, 2003.  DGS shall review local  
               public agency plans for their "311" system to ensure they  
               comply with the DGS standards and shall monitor the "311"  
               systems to ensure they remain in compliance.

                                         BACKGROUND
                
               "911" is the number for emergency telephone service.  This  
               service was created in 1976 and paid for by a  statewide   
               surcharge (statutorily capped at 0.75%) on each telephone  
               bill.

               The number of calls to "911" has grown faster that the  
               number of operators needed to answer those calls.  In Los  
               Angeles, it's been reported that 5% of all "911" calls went  
               unanswered and 27% of the calls took ten or more seconds to  
               answer.  In the San Francisco Bay Area, 23% of "911" calls  
               made by cellular telephones went unanswered.  

               A significant number of "911" calls are for non-emergency  
               purposes - estimates on just how many calls are of a  
               non-emergency variety range from as low as 20% to as high  
               as 95%.  In Sacramento, officials estimate between 50% and  
               80% of "911" calls aren't true emergencies.  Current law  
               makes it a misdemeanor to use the "911" system for anything  
               other than reporting emergencies, though this has obviously  
               not been a successful deterrent.

               One idea for relieving the pressure on the "911" system is  
               to provide an alternate means of contacting public safety  
               agencies for non-emergency purposes.  In 1996, President  
               Clinton called for the creation of a nationwide  
               non-emergency telephone service similar to "911."  In 1997,  
               the Federal Communications Commission ordered that "311"  
               service be made available for that purpose and in that same  
               year, the Legislature passed AB 1198 (Hertzberg), Chapter  
               887, Statutes of 1997, which created a "311" pilot program  
               in San Jose.  Under the pilot, a "311" number was tested  
               against an attempt to educate the public about an existing  
               7-digit non-emergency public assistance number.  

               In 1999, a final draft report on the results of the pilot  
               program found that both approaches improved "911" response  










          and that the "311" program was the more effective of the  
          two approaches.  Under the "311" program, the average "911"  
          answer time decreased by 26%, and the number of  
          non-emergency calls to "911" decreased by 63%.  The City of  
          San Jose was one of the pilot project cities.  It found the  
          "311" system relieved pressure on the "911" system and has  
          elected to continue the operation of the "311" system past  
          the end of the pilot project.

                                     COMMENTS
                                         
           1)The Third Time Is The Charm?   Except for the wireless  
            carrier exemption, this bill is virtually identical to AB  
            1477 (Hertzberg), which this committee passed 8-0 in  
            2001, and AB 2837 (Hertzberg), which this committee  
            passed 8-0 in 2000.  Both bills were vetoed by Governor  
            Davis, who wrote with respect to AB 1477:

               While I agree with the author that the 911 emergency  
               system is overburdened in some jurisdictions, I  
               believe that the solution provided by AB 1477 is  
               unnecessary at this time.  First, DGS has conducted  
               research on the implementation of non-emergency pilot  
               projects and has recommended that the State not invest  
               in a 311 system without conclusive information  
               regarding the relative benefits of such a program.   
               Because this bill would authorize an additional  
               surcharge on telephone users to support this program,  
               there should be ample justification to support the   
               proposed level of the increase.  However, none of the  
               pilot studies authorized by previous legislation have  
               been able to provide this justification.  In addition,  
               local governments are already authorized to impose  
               telephone surcharges on users within their  
               jurisdictions, and may use those revenues to establish  
               non-emergency telephone systems.  To the extent that  
               individual communities determine a 311 program to be  
               beneficial, local jurisdictions may implement such  
               programs under existing law and I would encourage such  
               a local initiative.
                                             
           2)Mandatory Statewide Application vs. Voluntary Local  
            Application  .  Conceptually, this bill replicates the  
            statewide "911" program on a voluntary basis for "311"  










                 non-emergency services with the hope, based on the pilot  
                 projects, that the response time for true emergency "911"  
                 calls will decrease by diverting non-emergency calls to  
                 "311."

                 One of the benefits of the "911" system is that it's  
                 universal - no matter where you go in California, the  
                 service exists.  Allowing local jurisdictions to  
                 establish a "311" non-emergency system will have the  
                 benefit - as the San Jose pilot program demonstrated - of  
                 diverting non-emergency phone calls away from the "911"  
                 system.  However, if the system is adopted in  
                 checkerboard fashion by local agencies, it could be  
                 argued that the benefit won't be as great to the system  
                 (or the people who truly need emergency help) as it would  
                 if it were a universal system similar to the "911"  
                 system.  

                3)Narrowing The Universe To Cities Or Counties  .  As noted  
                 above, the bill allows cities, joint powers agencies, or  
                 counties to create their own "311" non-emergency system.   
                 This raises several logistical questions.

                 The first is the issue of telephone billing complexity,  
                 because each telephone customer would need to be matched  
                 to the relevant organization for the purpose of assessing  
                 the surcharge.  

                 The second is the issue of "economies of scale."  If  
                 three neighboring cities set up three different "311"  
                 non-emergency systems, that wouldn't be as cost effective  
                 as if they were to band together and create one system  
                 that all of them could share.  While the bill puts the  
                 DGS Division of Telecommunications in charge of setting  
                 standards and arbitrating disputes, allowing each  
                 individual organization the ability to set up its own  
                 system will undoubtedly lead to conflicts and  
                 diseconomies, though each system will be better tailored  
                 to the need of the local community.

                  The author and committee may wish to consider  limiting  
                 the creation of a "311" non-emergency system to a  
                 citywide basis (which would limit the potential number of  
                 systems to 450+) and/or a countywide basis (which would  










            limit the potential number of systems to 58) to narrow  
            the potential for conflict.
           
          
                                  PRIOR VOTES
           
          Senate Public Safety Committee     (5-0)*
          Assembly Floor                     (77-0)*
          Assembly Public Safety             (7-0)*

          *Votes reflect a previous, unrelated version of the bill.











































                                         POSITIONS
                
                Sponsor:
                
               Author

                Support:
                
               City of Los Angeles 
               City of Moreno Valley
               City of Oakland
               Los Angeles Fire Department
               Los Angeles Police Department
                Oppose:
                
               California Public Utilities Commission (unless amended)



               














               Randy Chinn 
               AB 669 Analysis
               Hearing Date:  June 25, 2002