BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 914
                                                                  Page  1

          Date of Hearing:  May 8, 2003

                     ASSEMBLY COMMITTEE ON REVENUE AND TAXATION
                                  Ed Chavez, Chair

                      AB 914 (Reyes) - As Amended:  May 6, 2003

          Majority vote.  Fiscal Committee.

           SUBJECT  :  Emergency Telephone Users Surcharge:  Rate Increase

           SUMMARY  :  Requires local public safety agencies,  
          telecommunications providers, and the Department of General  
          Services (DGS) to expand the capabilities of California's 911  
          emergency system and allows DGS to reimburse local public safety  
          agencies and telecommunications providers for the upgrades.   
          Specifically,  this bill  :  

          1)Contains findings and declarations regarding the need to  
            update the 911 emergency reporting system to incorporate  
            various forms of telecommunications technologies.  

          2)States that the purpose of this bill is to establish the  
            telecommunications emergency response system as the primary  
            emergency telecommunications system for use in California, and  
            to encourage units of local government and combinations of  
            these units to develop and improve emergency communication  
            procedures and facilities in order to quickly respond to  
            persons calling "911" seeking emergency services.  

          3)Renames the "Warren 911 Emergency Assistance Act" the  
            "Telecommunications Emergency Response System Act" (the Act).   
            Makes substantive changes to the Warren 911 Emergency  
            Assistance Act, as follows:

             a)   Defines "public safety answering point" (PSAP) as a  
               telecommunications center capable of receiving requests for  
               emergency services by means of multiple telecommunications  
               sources including 911 circuits and dispatching the  
               necessary emergency services resources in response to a  
               request.

             b)   Defines "reporting system" as a telecommunications  
               service that automatically connects a person who uses  
               another telecommunications service, including 911 circuits,  








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               to an established PSAP through telecommunications service  
               facilities and is capable of automatically identifying the  
               caller's number, automatically locating the caller, holding  
               the incoming call, reconnecting on the same telephone line,  
               clearing a telephone line, automatically call routing, or  
               any combination of these capabilities.

             c)   Provides for the establishment of the 911 Committee and  
               specifies that this committee shall include one  
               representative from the California Chapter of the National  
               Emergency Numbering Association, one representative from  
               the California State Sheriff's Association, one  
               representative from the California Police Chief's  
               Association, and one representative from the California  
               Fire Chief's Association. 

             d)   Requires every local public agency to establish and have  
               in operation a reporting system and connectivity to the  
               telecommunications emergency response system, or to be part  
               of the telecommunications emergency response system.  All  
               reporting systems must be approved by the 911 Committee.   
               Requires all PSAPs to have access to operators who speak  
               languages other than English.  

             e)   Requires the Telecommunications Division within DGS,  
               with the advice and assistance of the Attorney General, to  
               provide funding to local public agencies to establish and  
               maintain a telecommunications emergency response system.

             f)   Provides that the 911 Committee shall, among its other  
               duties, be responsible for evaluating requests from local  
               agencies for state assistance and making recommendations to  
               the Chief of the Telecommunications Division within DGS  
               regarding local agency reimbursement.

             g)   Requires the 911 Committee to establish and review  
               technical and operational standards for the  
               telecommunications emergency response system by December  
               31, 2004.  

             h)   Provides that the National Emergency Number Association  
               (NENA) Standards for Recommended Formats and Protocols For  
               Data Exchange and NENA Recommended Standards for Local  
               Exchange Carriers, ALI Service Providers, and 911 Service  
               Jurisdictions shall be adopted by reference and required  








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               for all agencies, vendors, and telecommunications service  
               providers having any connectivity to the telecommunications  
               emergency response system.  No funds may be provided to any  
               agency, vendor, or service provider that the 911 Committee  
               determines is noncompliant.

             i)   Requires the 911 Committee to review and update  
               technical and operational standards for public agency  
               systems on a continuous basis.

             j)   Requires the 911 Committee to report annually to the  
               Legislature regarding the progress made in implementing the  
               systems required by the Act.  These reports are required to  
               contain the 911 Committee's recommendations for additional  
               legislation and funding.

          4)Renames the "Emergency Telephone Users' Surcharge Act" the  
            "Emergency Telecommunications Surcharge Act".  Makes  
            substantive changes to the Emergency Telephone Users'  
            Surcharge Act, as follows:

             a)   Updates the uses to which revenue in the State Emergency  
               Telephone Number Account may be put to include a  
               geographically-referenced statewide base mapping system, a  
               regionalized master street address guide, and an automatic  
               location identification database client server system.   
               These uses replace current law references to a basic system  
               with telephone central office identification and a system  
               employing automatic call routing.  

             b)   Provides that the surcharge is a fee (rather than a tax)  
               levied by the state.

           EXISTING LAW  provides for an Emergency Telephone Users'  
          Surcharge to fund local governments' costs to implement and  
          operate the 911 emergency telephone system.  The surcharge,  
          which is applied to intrastate calls, varies between a rate of  
          0.5% and 0.75%, depending on funding needs.  On or before each  
          September 1, DGS determines the rate it estimates will produce  
          sufficient revenue to fund the current fiscal year's costs.   
          Charges for lifeline services and for services from public  
          coin-operated telephones are exempt from the surcharge.  The  
          surcharge is collected from consumers by telephone companies and  
          is remitted to the Board of Equalization.  The Communications  
          Division within DGS establishes minimum technical and  








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          operational standards for local systems and approves the funding  
          necessary to implement and operate each system. 

           FISCAL EFFECT  :  None.  The Emergency Telephone Users' Surcharge  
          is set at a rate necessary to fully fund the 911 program. 

           COMMENTS  :   

          1)This comprehensive measure is intended to update the Warren  
            911 Emergency Services Act and the Emergency Telephone Users  
            Surcharge Act to clarify that the existing 911 system, which  
            is based on calls being directed to PSAPs by the public switch  
            telephone network, is part of a telecommunications network  
            rather than simply a call termination point.  This bill  
            requires the creation of a client-server network that will  
            allow PSAPs to access geo-reference maps, overlay them with  
            location information from wireless carriers, and pinpoint the  
            location of 911 calls made from cellular phones.  This bill  
            would provide funding for these upgrades through the existing  
            Emergency Telephone Users' Surcharge. 

          2)In 1972, the Legislature passed the Warren 911 Emergency  
            Assistance Act, which provided a single, three-digit emergency  
            telephone number through which emergency services could be  
            obtained, regardless of jurisdictional boundaries.  In time,  
            the original system was enhanced to allow a caller's address  
            to be displayed at the call answering point.  The Warren 911  
            Emergency Assistance Act provided funding to local agencies  
            for the necessary hardware to handle emergency calls and to  
            the telephone service providers for building and maintaining  
            the emergency reporting network.

          While the enhanced system was a tremendous improvement to  
            emergency reporting in its time, it has grown increasingly  
            inadequate.  Currently, the 911 system is able to locate a  
            caller from a landline phone by pulling up that caller's vital  
            information.  This information is transmitted to one of over  
            500 PSAPs by way of an Automatic Number Identification (ANI)  
            and Automatic Location Identification (ALI).  The ANI/ALI  
            information is provided over the regular phone network.  

          However, as cell phone usage and technological improvements in  
            wireless communication have grown over the last three decades,  
            the 911 system has, for the most part, remained unchanged.   
            Currently, only the Torrance Police Department has the ability  








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            to locate wireless 911 calls.  All other jurisdictions are  
            unable to locate calls made from cellular phones, because  
            either the receiving entity or the transmitting entity cannot  
            send ANI/ALI information.  This problem is further compounded  
            by the fact that while an emergency can move rapidly  
            throughout multiple jurisdictions, California's PSAPs have no  
            common communications capability.

          Today in the United States there are more than 90 million  
            wireless phone users who make more than 115,000 emergency  
            calls a day.  A February 2003 Consumers Report survey noted  
            that one in three people who own a cellular phone say they  
            bought it mainly for safety reasons.  The report also  
            highlighted that out of 11,500 nationwide subscribers  
            contacted in the fall of 2002, 1,880 said they tried to call  
            911 using a cell phone.  One-third of Consumer Reports  
            California respondents said they encountered some difficulty  
            getting through to 911. Individuals in California had the  
            highest percentage of unsuccessful calls to 911 (12%).

          3)This bill requires every local public agency to establish and  
            have in operation a reporting system and connectivity to the  
            telecommunications emergency response system, or to be part of  
            the telecommunications emergency response system.  However,  
            this bill lacks a definition for the term "telecommunications  
            emergency response system".  

          4)This measure was heard by the Assembly Utilities and Commerce  
            Committee on May 5, 2003 and passed by a vote of 13-0.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Chapter of the National Emergency Number Association
          California State Sheriff's Association

           Opposition 
           
          None on file
           
          Analysis Prepared by  :  Eileen Roush / REV. & TAX. / (916)  
          319-2098