BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 1477

                                                                  Page  1

          GOVERNOR'S VETO
          AB 1477 (Hertzberg)
          As Amended September 7, 2001
          2/3 vote

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          |ASSEMBLY:  |74-1 |(June 4, 2001)  |SENATE: |24-7 |(September 10, |
          |           |     |                |        |     |2001)          |
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          |ASSEMBLY:  |71-5 |(September 12,  |        |     |               |
          |           |     |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  










                                                                  AB 1477

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          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  
          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).

           GOVERNOR'S VETO MESSAGE  :

               This bill would authorize every local public agency to  
          establish a 311
                non-emergency telephone system.  This 311 system would be  
          funded by a
                state-imposed  surcharge of 1/4 of 1% (0.25%) on  
          intrastate telephone
                communication services.
                
                The bill would require the Department of General Services  
          (DGS) to develop
                technical and operational standards for the development of  
          a coordinated 311
                system, review locally submitted plans and monitor such  
          plans for compliance.
                DGS would determine if an increase to the surcharge is  
          needed, and it would
                also be responsible for the disbursement of collected  
          funds from the surcharge
                to public agencies and communications equipment suppliers  










                                                                  AB 1477

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          for costs associated
                with the 311 system.  While I agree with the author that  
          the 911 emergency
                system is overburdened in some jurisdictions, I believe  
          that the solution
                provided by AB 1477 is unnecessary at this time.
                
                First, DGS has conducted research on the implementation of  
          non-emergency pilot
                projects and has recommended that the State not invest in  
          a 311 system without
                conclusive information regarding the relative benefits of  
          such a program.
                Because this bill would authorize an additional surcharge  
          on telephone users
                to support this program, there should be ample  
          justification to support the
                proposed level of the increase.  However, none of the  
          pilot studies authorized
                by previous legislation have been able to provide this  
          justification.  In
                addition, local governments are already authorized to  
          impose telephone
                surcharges on users within their jurisdictions, and may  
          use those revenues to
                establish non-emergency telephone systems.  To the extent  
          that individual
                communities determine a 311 program to be beneficial,  
          local jurisdictions may
                implement such programs under existing law and I would  
          encourage such a local
                initiative.


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


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