BILL ANALYSIS Appropriations Committee Fiscal Summary 669 (Hertzberg) Hearing Date: 8/5/02 Amended: 8/5/02 Consultant: Karen French Policy Vote: E, U & C 6-2 Communications ____________________________________________________________ ___ BILL SUMMARY: AB 669 authorizes every public agency to establish a nonemergency telephone system and specifies that "311" would be the dedicated number within the system. The bill authorizes the Department of General Services (DGS) to aid local agencies in setting up the systems and requires the Division of Telecommunications to establish technical and operational standards for the system. Fiscal Impact (in thousands) Major Provisions 2002-03 2003-04 2004-05 Fund DGS admin $515 -- --General Implementation -Unknown, multimilions-Unknown STAFF COMMENTS: This bill meets the criteria for referral to the Suspense File. Prior to the latest set of amendments, this bill was virtually identical to AB 1477 (Hertzberg-2001) and AB 2837 (Hertzberg-2000), both of which were vetoed. The previous version of the bill would have allowed local entities to pay for the system by imposing a surcharge (of up to 0.25% of a customer's phone bill) on intrastate telephone bills for customers within the jurisdiction of the entity, to be administered through the State Board of Equalization. Current law imposes a surcharge on intrastate telephone service. DGS sets the rate each September 1, up to a maximum 0.75% rate. The current rate is 0.72%. The Board of equalization collects the surcharge from about 500 telephone suppliers. Revenues deposited in the 911 Fund are used to support the state's emergency telephone system.