BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           669 (Hertzberg)
          
          Hearing Date:  8/28/02          Amended: 8/27/02       
          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  
          permits the Department of General Services (DGS) to aid  
          local agencies in setting up the systems.

                              Fiscal Impact (in thousands)
           
          Major Provisions       2002-03             2003-04               2004-05   
           Fund  
          
          DGS admin             --       --------Minor, if any--------General
          Implementation        --                    
          ----------Unknown---------Local
          
          STAFF COMMENTS:  
          
          SUSPENSE FILE.
          
          Recent amendments delete most of the provisions of the  
          bill, retaining only permissive language regarding local  
          establishment of the system and state aid.

          Previous versions of this bill were virtually identical to  
          AB 1477 (Hertzberg-2001) and AB 2837 (Hertzberg-2000), both  
          of which were vetoed.   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.