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