BILL ANALYSIS                                                                                                                                                                                                    




                    Appropriations Committee Fiscal Summary
          
                                           419 (Scott)
          
          Hearing Date:  4/28/03          Amended: 4/2/03 and  
          proposed to be
                                                                       
                   amended by LCR #31766               
          Consultant:  Lisa Matocq            Policy Vote: E, U & C  
          7-1                      
          ____________________________________________________________ 
          ___
          BILL SUMMARY: 
          
          SB 419 requires the Public Utilities Commission (PUC) to  
          adopt rules related to the conversion of cellular digital  
          packet data (CDPD) telecommunications systems used by  
          public safety departments, as specified. 

                              Fiscal Impact (in thousands)
           
          Major Provisions                2003-04           2004-05              
           2005-06               Fund  
          
          PUC                         Unknown, potentially $50-150 one-time,    
             Special*
                                      probably offset by fee revenues 

          *Utilities' Reimbursement Account (URA) 
          
          STAFF COMMENTS:  The author intends to offer a technical  
          amendment to clarify that the bill is not intended to  
          require any conversion by a public safety department, and  
          that the PUC is not required to "provide" for the  
          conversion, but rather, ensure that any such conversion  
          does not jeopardize public safety. 

          This bill makes legislative findings related to AT&T  
          Wireless and a particular wireless telecommunications  
          technology, CDPD, used by many public safety agencies.   
          CDPD enables mobile patrol field units to communicate with  
          their headquarters, as well as other databases, such as  
          those maintained by the Departments of Motor Vehicles and  
          Justice.     

          Apparently, AT&T announced that it will be terminating CDPD  










          service on July 1, 2004, and replacing it with newer  
          technology.   It is unknown what, if any, system upgrades  
          will be required of public safety departments as a result  
          of this change in technology.  The bill finds that public  
          safety agencies will need until at least July 1, 2007 to  
          convert to the new system, and requires the PUC to ensure  
          that any contractual conversion does not jeopardize the  
          public safety. 

          Increased costs to the PUC to adopt rules are unknown, but  
          could be in the range of $50,000 to $150,000.   URA  
          revenues are derived from an annual fee imposed on public  
          utilities.  Therefore, any increased costs to the PUC  
          should be offset by fee revenues.