BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           669 (Hertzberg)
          
          Hearing Date:  8/22/02          Amended: 8/5/02        
          Consultant:  Karen French           Policy Vote: E, U & C   
          6-2                      
          ____________________________________________________________ 
          ___
          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           $580       $950                   $950General
          Implementation        --              $18,000               
          $36,000Unknown
          
          STAFF COMMENTS:  
          
          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.