BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           914 (Reyes)
          
          Hearing Date:  8/28/03          Amended: 8/18/03 and  
          proposed to
                                                                       
                   be amended                 
          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*
                                An increase in the surcharge to the statutory 
                                cap would generate $5,000 annually in  
          available
                                funding. 
                                                               l
          *State Emergency Telephone Number Account (911 Fund)  
          
          STAFF COMMENTS:  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, is projected to generate $181 million in 2003-04  
          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 the  
          extent that funding is available in the 911 Fund, to local  
          agencies to establish 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". 

          According to DGS staff, revenues generated by the surcharge  
          are fully allocated each year.  To the extent that future  
          needs exceed available funding, the surcharge would need to  
          be increased.  Assuming an increase to the statutory cap of  
          0.75 percent, an additional $5 million would be available  
          annually for the purposes of this bill.  It is unknown  
          whether unmet funding needs would create General Fund  
          pressure to provide additional funding, or to raise the  
          statutory cap.   
          
          Proposed author amendments would reduce costs, by (1)  
          clarifying that DGS is required to provide funding only to  
          the extent that funds are available in the 911 Fund, (2)  
          deleting the requirement that DGS provide funding for  
          maintenance, and (3) defining telecommunications.