BILL ANALYSIS                                                                                                                                                                                                              1
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                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                               DEBRA BOWEN, CHAIRWOMAN
          

          AB 1477 -  Hertzberg                                   Hearing  
          Date:  July 10, 2001                 A
          As Introduced:  February 23, 2001       FISCAL           B

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                                      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 local public agencies to establish a "311"  
          non-emergency telephone system within their jurisdictions.  If a  
          local public agency doesn't notify the affected county and the  
          Department of General Services (DGS) by January 1, 2006 of its  
          intent to establish a "311" system, the county may establish  
          such a system.

           This bill  allows local public agencies to pay for such a system  
          by imposing a surcharge on intrastate telephone bills for  
          customers within the local public agency's jurisdiction of not  
          more than 0.5% of a customer's phone bill 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%.  Here 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.

          This year, the two-house Budget Conference Committee has  
          apparently proposed transferring $40 million from the "911" fund  
          to the General Fund as part of SB 75 (Peace), the annual budget  
          bill, which is pending on both floor of the Legislature.    
          Similar transfers occurred in the early 1980's and, most  
          recently, in fiscal years 1991-92, 1992-93, and 1993-94.

                                       COMMENTS

          1)How Much Should The Surcharge Be?   Last year, this committee  
            and the Legislature passed a nearly identical measure, AB 2837  
            (Hertzberg).  The only significant difference is the amount of  
            the surcharge that a public agency could levy to create a  
            "311" system.  Last year's bill limited the surcharge to 0.25%  
            of a customer's bill, but this measure permits a surcharge of  
            up to 0.5%.   The author has agreed  to lower the surcharge cap  
            to 0.25%, making this bill virtually identical to last year's  
            AB 2837. 

           2)Veto Message  .  As noted above, this bill is virtually  
            identical to AB 2837 (Hertzberg) of 2000.  That bill was  
            vetoed by the Governor, who stated in his veto message:











               While the concept for a separate non-emergency  
               telephone system is a good one, the potential costs  
               for this program are unknown at this time.  Without  
               pilot projects to provide the data necessary to  
               estimate costs for this program, it would be premature  
               to approve this measure.

               Use of specific numbering resources falls primarily  
               within the Federal Communications Commission (FCC)'s  
               jurisdiction.  The California Public Utilities  
               Commission (PUC) manages California's valuable  
               numbering resources in compliance with those federal  
               rules and is currently coordinating with the FCC to  
               implement 211 and 511, respectively, for other uses.   
               I am directing the PUC to look at the provision of 311  
               services in concert with their existing 211 and 511  
               proceedings.

           3)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.  

           4)Narrowing The Universe To Cities Or Counties  .  As noted above,  
            the bill allows "public agencies" to create their own "311"  
            non-emergency system, instead of relying on a locally elected  
            city council or board of supervisors.   This raises several  
            logistical questions.

            The first is the issue of telephone billing complexity,  










            because each telephone customer would need to be matched to a  
            public safety agency for the purpose of assessing the  
            surcharge and that public safety agency may not mirror city  
            boundaries or utility service territories.  

            The second is the issue of "economies of scale."  If three  
            neighboring public agencies 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 agency 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.
           
          5)Technically Speaking  .  The bill is intended to give local  
            public agencies the first option of creating a "311" system.   
            If the local public entity doesn't elect to create such a  
            system and notify the county by January 1, 2006, then the  
            county is authorized to establish a system.   The author and  
            committee may wish to consider  clarifying the language in the  
            bill to also require any local public agency that wants to  
            establish a "311" system to also notify the county.  Also,  the  
            author and committee may with to consider  clarifying that the  
            period until January 1, 2006 is an exclusive period for the  
            local agencies to propose a "311" system.
                                           
                                   ASSEMBLY VOTES
           
          Assembly Floor                     (74-1)
          Assembly Appropriations Committee  (19-0)
          Assembly Governmental Organization Committee                    
          (15-0)


                                       POSITIONS
           










           Sponsor:
           
          Author

           Support:
           
          Association for Los Angeles Deputy Sheriffs
          City of Los Angeles
          City of San Jose
          League of California Cities
          Los Angeles Fire Department
          Los Angeles Police Department
          Los Angeles Police Protective League
          Riverside Sheriff's Association

           Oppose:
           
          City of Dana Point
          State Board of Equalization

          




















          Randy Chinn 
          AB 1477 Analysis
          Hearing Date:  July 10, 2001