BILL ANALYSIS                                                                                                                                                                                                    



                                                                           
           AB 1477
                                                                  Page  1

          CONCURRENCE IN SENATE AMENDMENTS
          AB 1477 (Hertzberg)
          As Amended September 7, 2001
          Majority vote
           
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          |ASSEMBLY:  |74-1 |(June 4, 2001)  |SENATE: |24-7 |(September 10, |
          |           |     |                |        |     |2001)          |
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           Original Committee Reference:    G.O.  

           SUMMARY  :  Allows cities, counties, and certain joint powers  
          authorities to establish a 311 non-emergency system and  
          authorizes a surcharge increase of up to 0.25% in those locales  
          which opt to provide the non-emergency system.  

           The Senate Amendments  reduce the 311 surcharge authorized by  
          this bill from  of 1% to  
           of 1%, and provide chaptering-out amendments along with various  
          other technical changes. 

           EXISTING LAW  :

          1)Establishes 911 as the primary emergency telephone number in  
            the state and requires local and state public safety agencies  
            to participate in the emergency telephone system.  The system  
            is financed by a surcharge imposed upon all residential and  
            business telephone bills, and caps the surcharge at 0.75% of a  
            customer's phone bill.

          2)Requires state and local agencies to maintain a secondary  
            number for non-emergency telephone calls.

           AS PASSED BY THE ASSEMBLY  , this bill allowed cities, counties,  
          and certain joint powers authorities to establish a 311  
          non-emergency system and authorized a surcharge increase of up  
          to  of 1% of the 911 charge in those locales which opt to  
          provide the non-emergency system.  

           FISCAL EFFECT  :  The Senate Appropriations Committee estimates a  
          $25 million revenue increase.  

           COMMENTS  :  Current law imposes a surcharge on intrastate  








                                                                           
           AB 1477
                                                                 Page  2

          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 require DGS to  
          determine a surcharge rate of up to 0.25% on intrastate  
          telephone service in each jurisdiction opting to provide the  
          non-emergency system.  

          This bill avoids a chaptering-out conflict with SB 896  
          (Poochigian).


           Analysis Prepared by  :  Jemahl ?men/ G.O. / (916) 319-2531


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