BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           1477 (Hertzberg)
          
          Hearing Date:  8/20/01          Amended: 7/17/01       
          Consultant:  Anne Maitland          Policy Vote: Energy:  
          8-0           
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          AB 1477 allows cities, counties, and certain joint powers  
          authorities to establish a 311 nonemergency system and  
          authorizes a surcharge of up to 0.25% in the 911 charge in  
          those locales which opt to provide the nonemergency system

                              Fiscal Impact (in thousands)
           
          Major Provisions        2001-02             2002-03               2003-04   
           Fund  
          
          311 surcharge            $25 million revenue gain if levied  
          statewide     Local
          DGS administration      500                    500*                
          500*               General/911
           BOE administration                                                     
              378*                911
          *offset by surcharge revenues
          
          STAFF COMMENTS:  
          This bill meets the criteria for referral to the Suspense  
          file.  DGS will incur costs to develop standards and  
          approve plans before surcharges are collected.

          Current law imposes a surcharge on intrastate telephone  
          service.  The Department of General Services (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.

          This bill would allow each county, city, and joint powers  
          authority which operates a public safety answering point to  
          establish a 311 nonemergency system.  A nonemergency system  
          is defined as one which provides access to public safety  










          agencies and to other services provided by a jurisdiction  
          such as street maintenance and animal control.  Until  
          1/1/06, only cities and JPAs would have the exclusive  
          authority to establish a 311 system.  After that date, if a  
          city or JPA hasn't proposed a 311 system, a county is  
          authorized to establish one.

          DGS would be required to develop standards for this system  
          by 1/1/03 and determine a surcharge rate of up to 0.25% on  
          intrastate telephone service in each jurisdiction in which  
          meets the DGS standards.  The rate would be uniform  
          throughout the state.  The Board of Equalization would be  
          responsible from collecting the surcharge from telephone  
          suppliers who would, in turn, bill their customers.  These  
          fees would go into effect no earlier than 11/01/02.

          Staff notes that the Governor vetoed a similar bill last  
          year.