BILL ANALYSIS                                                                                                                                                                                                              1
          1





                SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                               DEBRA BOWEN, CHAIRWOMAN
          

          SB 911 -  Alpert                                  Hearing Date:   
          April 22, 2003             S
          As Amended:         April 3, 2003            FISCAL       B
                                                                        
                                                                        9
                                                                        1
                                                                        1


                                      DESCRIPTION
           
           Current law  provides for a "911" emergency telephone services  
          program administered by the Department of General Services'  
          Telecommunications Division (DGS-TD).  This program, funded  
          through a surcharge on telephone bills, pays for the equipment  
          and services needed by the local public safety agency to answer  
          the "911" call.

           This bill  creates a State 911 Administrative Board (Board) to  
          oversee DGS-TD's administration.  The Board is comprised of nine  
          voting members appointed by the Governor from specified law  
          enforcement agencies, with the Chief of DGS-TD's 911 office  
          serving as a non-voting chair.  Board members serve at the  
          pleasure of the Governor for two-year terms and are limited to  
          two consecutive terms.  The Board meets quarterly in open  
          session and while board members won't receive compensation, they  
          will be reimbursed for travel and per diem.

          The duties of the Board, as established by  this bill  , are to:

          1)Develop, approve and implement the policies, practices, and  
            procedures for the state's 911 program;
          2)Develop, approve, and implement technical and operations  
            standards for the state's 911 program consistent with the  
            National Emergency Number Association standards;
          3)Develop, approve, and implement the duties, responsibilities,  
            and training standards for county coordinators and 911  
            managers;
          4)Review and approve all proposed budget, funding, and  
            reimbursement decisions related to the 911 program;











          5)Review and approve all proposed projects and studies conducted  
            or funded by the state's 911 program.

                                      BACKGROUND
           
          Since its inception in the mid-1970's, DGS's Telecommunications  
          Division (DGS-TD) has administered the state's 911 program.   
          This includes evaluating local 911 systems, reviewing,  
          approving, and reimbursing local public safety agencies for the  
          necessary and reasonable costs associated with the planning,  
          implementation, and maintenance of a state-approved 911 system.

          The state 911 program is funded through a surcharge on telephone  
          service.  That surcharge is statutorily capped at 0.75% of a  
          customer's phone bill, but right now is set at 0.72% by DGS-TD  
          and hasn't been increased since 1995.  The surcharge raises  
          about $130 million annually, with about half of the money going  
          to pay for database services, where the incoming 911 call is  
          identified with a telephone number and street address.  One  
          quarter goes to pay for carrying the telephone call, and one  
          quarter pays for the telephones and computers housed in the  
          public safety dispatch centers.

          As cellular telephone location information becomes available,  
          the 911 system will need to be upgraded.  The California Highway  
          Patrol (CHP) is the first responder for most all cellular 911  
          calls.  Funds have been reserved to pay for the CHP upgrades.

                                       COMMENTS
           
           1.Is DGS-TD Being Stingy Or Is It Just Doing Its Job?   DGS-TD is  
            a control agency charged with guarding a limited number of  
            dollars set aside to pay for 911 service in California.  It's  
            responsible for the economical and lawful use of public funds  
            - a responsibility that at times can collide with a public  
            safety agency's charge to deliver essential public services  
            with those 911 dollars.  It's that collision that's given rise  
            to this measure.

            Various public safety organizations have begun to question the  
            effectiveness of DGS-TD's administration of the 911 program,  
            citing There are four primary concerns:

               v      DGS-TD doesn't consider input from the public  










                 safety agencies;
               v      There is no way to appeal a DGS-TD decision;
               v      DGS-TD's formula for determining the number of  
                 911 workstations it will pay for significantly  
                 understates the actual number of workstations  
                 required;
               v      DGS-TD unreasonable limits the amount it will  
                 pay per 911 workstation.

            DGS has created a California Emergency Services Advisory Board  
            to promote communication between public safety agencies and  
            DGS-TD, but public safety agencies don't believe the Board  
            gives their input sufficient weight.   The author and committee  
            may wish to consider  whether it would be more appropriate to  
            create an advisory board whose members are selected by the  
            public safety agencies themselves, instead of simply giving  
            those agencies control over the 911 funding decisions as this  
            bill does.

           1.We Don't Like Your Decision, So We'll Appeal It To Ourselves.    
            This measure creates a commission comprised of 911  
            professionals to oversee the 911 program and all funding  
            decisions and is loosely modeled on approaches at the Board of  
            Corrections (BOC) and the Peace Officers Standards and  
            Training (POST) Commission.

            While public safety agency representatives do make up the  
            majority of both the BOC and POST (as they would on the Board  
            created by this bill), there is a  crucial difference  in that  
            BOC and POST don't control the amount of money they have to  
            disburse.  By contrast, the Board created by this bill would  
            have some degree of control because the Board would be  
            authorized to establish the telephone surcharge level (up to  
            the 0.75% statutory cap) for the 911 fund.  As noted in the  
            "Background" section, the current surcharge is 0.72%.  By  
            creating a Board comprised exclusively of public safety agency  
            representatives and allowing it to set the surcharge level,  
            this bill eliminates the useful tension in current law  
            (DGS-TD's fiduciary role vs. the public safety agency service  
            provider role) and replaces it with an inherent conflict by  
            making the public safety agency both the taxpayer fiduciary  
            and the essential service provider.   The author and committee  
            may wish to consider  whether this is appropriate.  In light of  
            the valid concern that there is no formal appeals process for  










            DGS-TD decisions,  the author and committee may wish to  
            consider  whether it would be more appropriate to create such a  
            process using DGS's existing Office of Administrative  
            Hearings.  
           
           2.The Legislature Tied DGS-TD's Hands.   The public safety  
            agencies believe  DGS-TD, which pays for the 911 workstations,  
            has created a "one size fits all" formula that seriously  
            underestimates the number of workstations required to meet  
            public safety needs.  They're concerned that unless DGS-TD's  
            formula is revised, local governments will have to foot the  
            bill for the remaining workstations.  

            In one specific case involving the San Diego Police Department  
            (SDPD), DGS-TD is only willing to pay for about half the  
            number of workstations SDPD believes it needs.  DGS-TD  
            responds it previously didn't independently determine the  
            proper number of workstations, but now that it has actual 911  
            call volumes, it is making an independent determination. 

            DGS-TD is statutorily limited to only paying for equipment  
            used to deal with 911 calls.  Obviously, responding to non-911  
            calls is a public safety duty, but paying for the equipment to  
            handle those calls with 911 funds is not legally permitted.   
             The author and committee may wish to consider  whether it would  
            be more appropriate to, instead of shifting control of all  
            funding decisions to the public safety agencies, allow DGS-TD  
            to approve requests to use 911 money to pay for equipment that  
            isn't directly related to provide 911 service.  Such was the  
            approach of a bill last year, AB 2569 (Cardoza), which was  
            defeated in the Assembly  Appropriations Committee.
           
          3.The Legislature Tied The Public Safety Agencies' Hands.    
            DGS-TD has taken bids for 911 workstations and received ten  
            qualified responses.  It will provide local agencies with  
            funding for up to the cost of the 5th least expensive bid and  
            if a public safety agency chooses one of the other five  
            vendors, the local agency will have to make up the cost  
            difference.  

            DGS-TD's effort to drive down the cost of workstations is  
            consistent with legislation unanimously approved and signed  
            into law in 1996.  AB 3462 (Takasugi), Chapter 746, Statutes  
            of 1996, was sponsored by DGS because prior to its enactment,  










            local agencies had every incentive to "gold plate" their  
            equipment requests and no incentive to keep costs down since  
            they would get fully reimbursed from the 911 fund.  Handing  
            control over the 911 fund to the public safety agencies, as  
            this bill proposes to do, effectively side-steps this  
            seven-year-old contracting reform.   The author and committee  
            may wish to consider  whether this is appropriate.















































                                       POSITIONS
           
           Sponsor:
           
          California Chapter of the National Emergency Number Association 
          California State Sheriffs' Association

           Support:
           
          Arroyo Grande Fire Department
          San Diego Police Department

           Oppose:
           
          None on file







































          Randy Chinn 
          SB 911 Analysis
          Hearing Date:  April 22, 2003