BILL ANALYSIS                                                                                                                                                                                                                   1
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             SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                            DEBRA BOWEN, CHAIRWOMAN
          

          AB 2837 -  Hertzberg                                    
          Hearing Date:  June 27, 2000         A
          As Amended:         June 20, 2000            FISCAL       B

                                                                       
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                                   DESCRIPTION
           
           Current law  provides for a "911" Emergency Telephone  
          Service system, which is financed by a surcharge on all  
          residential and business telephone bills, and caps that  
          surcharge at 0.75% of a customer's telephone bill.

           Current law  provides for a pilot program to test a "311"  
          non-emergency telephone system. 

           This bill  authorizes local public agencies to establish a  
          "311" non-emergency telephone system within their  
          jurisdictions.

           This bill  allows local public agencies to pay for such a  
          system by increasing the existing 911 surcharge on the  
          telephone bills in their local jurisdiction by an  
          unspecified amount.

           This bill  requires the Communications Division of the  
          Department of General Services (DGS) to help local public  
          agencies create "311" implementation plans, gives the  
          Division the authority to disapprove plans, and requires  
          the Division to administer the "311" program.

                                    BACKGROUND
           











               As most people are aware, "911" is the number for emergency  
               telephone service.  This service was created in 1976 and  
               paid for by a surcharge (statutorily capped at 0.75%) on  
               each telephone bill.

               The number of calls to "911" has grown faster that the  
               number of operators needed to answer those calls.  In Los  
               Angeles, it's been reported that 5% of all "911" calls went  
               unanswered and 27% of the calls took ten or more seconds to  
               answer. In the San Francisco Bay Area, 23% of "911" calls  
               made by cellular telephones went unanswered.  











































          A significant number of "911" calls are for non-emergency  
          purposes - estimates on just how many calls are of a  
          non-emergency variety range from as low as 20% to as high  
          as 95%.  Here in Sacramento, officials estimate between 50%  
          and 80% of "911" calls aren't true emergencies.  Current  
          law makes it a misdemeanor to use the "911" system for  
          anything other than reporting emergencies, though this has  
          obviously not been a successful deterrent.

          One idea for relieving the pressure on the "911" system is  
          to provide an alternate means of contacting public safety  
          agencies for non-emergency purposes.  In 1996, President  
          Clinton called for the creation of a nationwide  
          non-emergency telephone service similar to "911."  In 1997,  
          the Federal Communications Commission ordered that "311"  
          service be made available for that purpose and in that same  
          year, the Legislature passed AB 1198 (Hertzberg), Chapter  
          887, Statutes or 1997, which created a "311" pilot program  
          in San Jose.  Under the pilot, a "311" number was tested  
          against an attempt to educate the public about an existing  
          7-digit non-emergency public assistance number.  

          Last year, a final draft report on the results of the pilot  
          program found that both approaches improved "911" response  
          and that the "311" program was the more effective of the  
          two approaches.  Under the "311" program, the average "911"  
          answer time decreased by 26%, and the number of  
          non-emergency calls to "911" decreased by 63%.

                                    QUESTIONS  

          1.Should local public agencies be authorized to create a  
            "311" non-emergency number within their jurisdiction?

          2.Will allowing each "public agency" to create such a  
            system inadvertently lead to consumer confusion and would  
            the public be better served by limiting the creation of  
            such a system to a citywide, countywide, or statewide  
            basis? 

          3.Is it appropriate to allow a local agency to raise the  
            existing surcharge on the telephone bills of customers in  
            their jurisdiction in order to pay for the "311" system?   
            If so, should the amount of that surcharge be capped?











                                          COMMENTS

               1)Mandatory Statewide Application vs. Voluntary Local  
                 Application  .  Conceptually, this bill replicates the  
                 statewide "911" program on a voluntary basis for "311"  
                 non-emergency services with the hope that the response  
                 time for true emergency "911" calls will increase by  
                 diverting non-emergency calls to "311."

                 One of the benefits of the "911" system is that it's  
                 universal - no matter where you go in California, the  
                 service exists.  Allowing local jurisdictions to  
                 establish a "311" non-emergency system will have the  
                 benefit - as the San Jose pilot program demonstrated - of  
                 diverting non-emergency phone calls away from the "911"  
                 system.  However, if the system is adopted in  
                 checkerboard fashion by local agenices, it could be  
                 argued that the benefit won't be as great to the system  
                 (or the people who truly need emergency help) as it would  
                 if it were a universal system similar to the "911"  
                 system.  
































            Furthermore, if one of the goals of the program is to get  
            people to associate "311" with non-emergency public  
            safety calls in the same way they associate "911" with  
            emergency calls and "411" with information calls, one  
            could argue that allowing local agencies to adopt a "311"  
            system in a piecemeal fashion may inadvertently confuse  
            telephone users.  

            While making the system a statewide entity could solve  
            that problem, it could create other problems, such as  
            imposing a mandate on local governments in rural areas  
            that aren't being overwhelmed with "911" calls to the  
            degree where they need to create a separate "311" system.  
             

            Creating a statewide system but making it "optional" for  
            local governments to take part solves the problem of how  
            to best identify and bill telephone users, but if every  
            local agency doesn't opt into the system, the system will  
            have both checkerboard service and some people paying for  
            the system won't have access to its benefits.

           2)Narrowing The Universe To Cities Or Counties  .  As noted  
            above, the bill allows "public agencies" to create their  
            own "311" non-emergency system, instead of relying on a  
            locally elected city council or board of supervisors.    
            This raises several logistical questions.

            The first is whether a person who is served by a county  
            sheriff and an independently elected fire district could  
            be forced to pay two surcharges to fund two different  
            "311" non-emergency systems.  

            The second is the issue of telephone billing complexity,  
            because each telephone customer would need to be matched  
            to a public safety agency for the purpose of assessing  
            the surcharge and that public safety agency may not  
            mirror city boundaries or utility service territories.  

            The third is the issue of "economies of scale."  If three  
            neighboring public agencies set up three different "311"  
            non-emergency systems, that would arguably not be as cost  
            efficient as if they were to band together and create one  
            system that all of them could share.  While the bill puts  










                 the DGS Division of Telecommunications in charge of  
                 setting standards and arbitrating disputes, allowing each  
                 individual agency the ability to set up its own system  
                 will undoubtedly lead to conflicts.

                 Given the potential for checkerboarding, the potential  
                 that a person could pay to fund more than one "311"  
                 system, the complexities associated with billing, and the  
                 potential that economies of scale may not be realized,  
                  the author and Committee may wish to consider  whether the  
                 creation of a "311" non-emergency system should be  
                 limited to a citywide basis (which would limit the  
                 potential number of systems to 450+) or a countywide  
                 basis (which would limit the potential number of systems  
                 to 58).







































           3)Should The Surcharge Be Capped?   If a local public agency  
            elects to create a "311" program, the bill allows a  
            surcharge to be assessed on the intrastate  
            telecommunications service bill of every person within  
            the jurisdiction of the public agency.  The surcharge  
            authorized by this bill would be on top of a 0.75%  
            surcharge for "911" service, but the amount a public  
            agency can charge isn't capped.   The author and Committee  
            may wish to consider  whether imposing a cap on the  
            surcharge that could be established under this bill is  
            appropriate.

           4)The Attorney General  .  Page 6, Lines 1-7 of the bill give  
            the Attorney General the ability to commence judicial  
            proceedings to enforce compliance by any public agency or  
            public utility providing telephone service with the  
            provisions of this article.  It's unclear why this power  
            is necessary or what circumstance the author envisions  
            arising that would trigger the need for the Attorney  
            General to exercise the authority granted by this  
            section.

           5)Technically Speaking  .  There are a variety of technical  
            issues that the author and committee may wish to resolve:

            a) Page 2, Line 3.  The word "is" should be inserted  
            after the word "system."
             
            b) Page 3, Lines 11-12 and Page 6, Line 20.  These  
            sections refer to the creation of a "Statewide  
            Nonemergency Telephone System," yet as noted earlier,  
            this bill, while creating a optional system for local  
            agencies throughout the state to use, doesn't create a  
            "statewide system."

            c) Page 5, Lines 27-39.  The bill clearly gives local  
            agencies the ability to create "311" systems, yet this  
            section of the bill requires cities and counties that  
            adopt "311" systems to file notices of their final plans  
            with adjacent cities and counties.  If the author limits  
            the creation of "311" systems to cities and/or counties,  
            this section is adequate.  However, if each local agency  
            within a city or a county can create a "311" plan, this  
            section should be amended to ensure that such local  










                 agencies notify the city and/or county in which they're  
                 located.

                 d) Page 9, Line 38.  A sentence should be added to  
                 clarify that approval for cost recovery of the  
                 incremental costs for the "311" system should go through  
                 the same process as incremental costs for the "911"  
                 system.
               
                                       ASSEMBLY VOTES
                
               Assembly Governmental Organization Committee(11-0)
               Assembly Appropriations Committee  (14-7)
               Assembly Floor                     (63-14)

                                         POSITIONS
                
                Sponsor:
                Author



































           Support:
           Association for Los Angeles Deputy Sheriffs
          Los Angeles Police Protective League
          Riverside Sheriff's Association
          Santa Clara County Board of Supervisors

           Oppose:
           State Board of Equalization


          Randy Chinn 
          AB 2837 Analysis
          Hearing Date:  June 27, 2000