BILL ANALYSIS
Appropriations Committee Fiscal Summary
AB2837 (Hertzberg)
Hearing Date:8/23/00 Amended:8/8/00 + LCR 17512
Consultant: Anne Maitland Policy Vote:Energy: 8-0
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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: 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.
The proposed amendments define "nonemergency system" to
include nonemergency police, fire and emergency medical
services as well as government services such as street
maintenance and animal control, (2) create a separate
subaccount for 311 revenues, (3) provide for reimbursement
of BOE's costs from 311 revenues, and (4) allow the cities
of Los Angeles and San Jose to create a 311 system without
approval of the county board of supervisors.