BILL ANALYSIS 1 1 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 2 8 3 7 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