BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           914 (Reyes)
          
          Hearing Date:  8/18/03          Amended: 8/18/03       
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          6-0                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY:  AB 914 makes numerous changes in order to  
          expand the capability of the 911 system.  
                              Fiscal Impact (in thousands)
           Major Provisions            2003-04             2004-05              
           2005-06            Fund  
          DGS/local agencies       Unknown costs, potentially in the millions   
               Special*/
                                                               General
          *State Emergency Telephone Number Account (911 Fund)  
          
          STAFF COMMENTS:  This bill meets the criteria for referral  
          to the Suspense File.   AB 515 (Ch. 1005, St. of 1972)  
          mandated the establishment of a statewide universal  
          emergency telephone number to be used by public safety  
          agencies. Subsequent legislation established the Emergency  
          Telephone Users Surcharge to be imposed on intrastate  
          telephone communications charges, in order to provide  
          funding for the 911 system.  The surcharge, currently 0.73  
          percent, generates about $130 million annually to support  
          the 911 system. 

          Current law requires DGS to assist local public agencies in  
          obtaining financial help to establish emergency telephone  
          service.  This bill requires DGS to provide funding to  
          local agencies to establish and maintain a  
          telecommunications emergency response system.  The bill  
          also expands the scope of projects and types of equipment  
          that may be funded from the 911 Fund, administered by the  
          Department of General Services (DGS), by (1) adding  
          geographic information systems, and (2) replacing various  
          terms, such as "telephone" with "telecommunications  
          system", "basic reporting system" with "reporting system". 

          Increased costs are unknown, but probably in the millions.   
          The $130 million generated by the surcharge each year is  
          fully allocated, according to DGS staff. To the extent that  
          future needs exceed available funding, the surcharge may  










          need to be increased (an increase to 0.75 percent, the  
          statutory cap, would generate $5 million/year).  Otherwise,  
          there could be cost pressure on the General Fund to provide  
          the additional funding. 
          
          "Telecommunications" is not defined. Some suggest that it  
          could be interpreted to include Internet access, high-speed  
          data or satellite communications, or fax transmissions.   
          STAFF RECOMMENDS that the author or committee consider  
          amending the bill to (1) define "telecommunications", and  
          (2) require DGS to provide funding, to the extent that  
          funds are available in the 911 Fund. 

          SB 911 (Alpert), pending in the Assembly, creates the State  
          911 Advisory Board to advise DGS on specified topics, such  
          as expediting enhanced 911 technology.