BILL ANALYSIS
Appropriations Committee Fiscal Summary
AB2837 (Hertzberg)
Hearing Date:8/14/00 Amended:8/8/00
Consultant: Anne Maitland Policy Vote:Energy: 8-0
____________________________________________________________
___
BILL SUMMARY:
AB 2837 allows counties to establish a 311 nonemergency
system and increases the 911 surcharge in those counties
which opt to provide the nonemergency system
Fiscal Impact (in thousands)
Major Provisions 2000-01 2001-02 2002-03
Fund
311 surcharge annual revenue gain of up to $100 million
911
if all 58 counties participate
DGS admin 500+ 580*
1,000* General/911
BOE admin 300*
600* 911
STAFF COMMENTS:
This bill meets the criteria to be placed on the Suspense
file.
Current law imposes a surcharge on intrastate telephone
service. DGS sets the rate each September 1, up to a
maximum 0.75% rate. The current rate is 0.72%. The Board
of Equalization collects the tax from about 500 telephone
suppliers. Revenues deposited in the 911 Fund are used to
support the state's 911 emergency telephone system.
AB 2837 would allow each county to establish a 311
nonemergency system. If a county board of supervisors
approved such a system, DGS would be required to levy an
additional surcharge of up to 0.75% on intrastate calls
made within that county. It is intended that this rate be
uniform across counties.
AB 2837 requires DGS to establish technical and operational
standards by 7/1/01 for the development of these county
systems. A county which seeks to operate a 311 program
must present a plan to DGS and to adjacent counties. DGS
will use these plans to develop the surcharge to be levied.
Staff notes that Legislative Counsel has opined that this
surcharge is not a state tax. The August 8 amendments
require the board of supervisors to approve a 311 system.
This may have the effect of making the local board
ultimately responsible for the levying of the surcharge and
may make the surcharge subject to Proposition 218 voting
requirements.
Staff suggests amendments to (1) define "nonemergency
system" and clarify whether the system would be limited to
nonemergency police and fire services or would be used for
all local government services, (2) create a separate
subaccount for 311 revenues, (3) provide for reimbursement
of BOE's costs from 311 revenues, and (4) clarify that the
same rate will be levied in all counties that elect to
participate.