BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  SB 1211
          Author:   Padilla (D)
          Amended:  5/27/14 
          Vote:     21

           
           SENATE ENERGY, UTILITIES & COMMUNICATIONS COMM  :  9-0, 4/1/14
          AYES:  Padilla, Fuller, Cannella, Corbett, DeSaulnier, Hill,  
            Knight, Pavley, Wolk
          NO VOTE RECORDED:  Block, De León

           SENATE GOVERNANCE & FINANCE COMMITTEE  :  6-0, 4/24/14
          AYES:  Wolk, Beall, DeSaulnier, Hernandez, Liu, Walters
          NO VOTE RECORDED:  Knight

           SENATE APPROPRIATIONS COMMITTEE  :  7-0, 5/23/14
          AYES:  De León, Walters, Gaines, Hill, Lara, Padilla, Steinberg


           SUBJECT  :    Emergency services:  Next Generation 911

           SOURCE  :     Author


           DIGEST  :    This bill requires the Office of Emergency Services  
          (OES) to develop a plan and timeline of target dates for  
          testing, implementing, and operating a Next Generation 911(Next  
          Gen 911) emergency communication system, including text to 911  
          service, throughout California, as specified. 

           ANALYSIS  :    Existing law:

          1.Requires OES to administer the state's 911 emergency telephone  
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            system, including local dispatch centers known as Public  
            Safety Answering Points (PSAPs), with funds from a 911  
            customer surcharge on intrastate communication service.

          2.Requires OES to determine annually, on or before October 1,  
            the customer surcharge rate to fund the subsequent year's  
            costs of the state 911 system.  

          Current decisions of the Federal Communications Commission (FCC)  
          establish May 15, 2014, as the date for large wireless service  
          providers to enable customers to text to 911 to any PSAP that is  
          "technically ready" and require carriers to send a "bounce-back"  
          message if the PSAP is not ready to receive texts. 

          Current federal law designates up to $7 billion from FCC  
          spectrum auctions to fund a nationwide public safety broadband  
          network known as FirstNet and directs that this network  
          integrate 911 PSAPs. 

          This bill:
           
           1.Requires that the OES plan for deploying Next Gen 911  
            incorporate, where consistent with public safety and  
            technologically feasible, shared infrastructure and elements  
            of FirstNet and other public safety communications networks  
            that receive state and federal funding.

          2.Requires OES, at least one month before finalizing the 911  
            surcharge rate, to prepare a summary of the calculation of the  
            proposed surcharge, include the costs it expects to incur  
            consistent with the plan to deploy text to 911 and Next Gen  
            911, and make this information available to the Legislature  
            and the 911 Advisory Board, and on the office's Internet Web  
            site. 

          Background
          
          OES Administers Statewide 911 System  .  California's existing 911  
          system, established pursuant to the Warren 911 Emergency  
          Assistance Act of 1976, includes 458 PSAPs that receive about 25  
          million 911 voice calls per year.  These calls are dispatched to  
          local first responders including police, ambulance, fire,  
          medical and other emergency service providers.  About 75 percent  
          of all 911 calls are from wireless devices.    

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          The Public Safety Communications Office within OES administers  
          the state 911 system, reviews local PSAPs' 911 equipment and  
          operations, and reimburses their reasonable costs for planning,  
          implementation, and maintenance of approved 911 systems.  In  
          2013, this office was transferred from the California Technology  
          Agency to OES as part of budget action.  The California  
          Emergency Number Association represents the state's PSAPs and  
          provides research, planning, and training to support 911  
          dispatchers and the state 911 system. A state 911 Advisory Board  
          advises OES on operation, funding, and long-range planning for  
          PSAPs and the state 911 system.  

           911 Funded By Customer Surcharge  .  The 911 program costs are  
          paid from the State Emergency Telephone Number Account funds,  
          which are derived from a statewide 911 surcharge on telephone  
          customer bills, including landline, wireless and Voice over  
          Internet Protocol services. OES is required to determine the  
          surcharge rate annually up to a statutory maximum of 0.75  
          percent of intrastate service charges.  The State Emergency  
          Telephone Number Account has been in a structural deficit for  
          years, with annual surcharge revenue declining from about $133  
          million in 2005-06 to about $80 million in 2012-13.  The rate  
          was set at 0.50 percent from 2007 through 2013, but in October  
          OES increased the surcharge to 0.75 percent effective January 1,  
          2014, with projected total revenue of $108 million for 2014-15.

           Next Gen 911Planning Underway .  Next Gen 911 refers to an  
          Internet Protocol (IP)-based, two-way communications system that  
          will enable real-time transmission of emergency-related voice,  
          text, data, photos, and video between the public and public  
          safety agencies.  Next Gen 911 will build upon, and eventually  
          replace, the existing 911 voice system that operates on the  
          legacy switched telephone network.  Implementing Next Gen 911  
          will require substantial funding for PSAP upgrades to an  
          IP-based platform.  OES (the California Technology Agency prior  
          to July 2013) published a roadmap in 2010, conducted public  
          stakeholder meetings in 2011, and now is conducting several  
          pilot projects with vendors and PSAPs. A "Rough Order Magnitude  
          Cost Estimate" reported in 2013 was $885 million for total  
          hardware and software costs to deploy conceptual Next Gen 911  
          design while also running the existing 9-1-1 system.  OES states  
          that this is an estimated $375 million additional investment  
          over five years on top of the $510 million to operate the  

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          existing system over that same five years.  But, because of a 50  
          percent margin of error in that estimate, OES states that it  
          will have refined cost estimates at the completion of the pilot  
          projects in mid-2015. 

           Text to 911 Requires PSAP Readiness .  No later than May 15,  
          2014, the four major wireless carriers, AT&T, Verizon, Sprint,  
          and T-Mobile, will offer all subscribers the ability to text to  
          911, pursuant to a voluntary commitment to the FCC.  A proposed  
          FCC rule would require all wireless and Internet-based text  
          providers to offer text-to-911 capability by December 31, 2014.   
          Short Message Service texting technology is an acceptable  
          interim solution prior to full deployment of Next Gen 911  
          infrastructure.  While a voice call to 911 is still preferred,  
          text to 911 offers public safety advantages for persons with  
          disabilities, in a hostage situation or home break-in when a  
          voice call can be dangerous, and when network congestion from  
          high usage during a crisis makes voice connections unavailable  
          or slow.

          But despite these 2014 carrier obligations, text to 911 will not  
          be fully operational until PSAPs are "technically ready" and  
          authorized by a state or local 911 agency to receive 911 text  
          messages. PSAPs require equipment upgrades, and likely  
          additional staff and training.  As stated by FCC Chairman  
          Wheeler:

               "Of course, as the saying goes, it takes two to tango.  
               Providers will deliver the information, but it will mean  
               little if PSAPs and state and local governments do not take  
               the necessary steps ? to ensure that PSAPs have sufficient  
               funding to deploy the necessary technologies and,  
               ultimately, make the migration to NG911."

          To date, OES has not specified plans to fund PSAP upgrades to  
          receive texts, but reports that it is conducting pilots to  
          verify the operation of each form of text to provide the PSAPs  
          with a basis to determine which, if any, form of text they want  
          to receive.  (OES also reports that all PSAPs currently have the  
          ability to receive Short Message Service to teletype texts,  
          devices used by the hearing-impaired.)  In the meantime,  
          carriers currently are required to send a "bounce-back"  
          auto-reply message to alert subscribers who attempt to text to  
          911 that the service is not available and that they should place  

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          a voice call instead. 

           Comments
          
           According to the author, this bill will enhance public safety  
          and achieve costs savings in two ways.  First, it will increase  
          transparency and accountability for establishing the state 911  
          surcharge, which will help ensure that the fee is adequate to  
          fund upgrades necessary for text to 911 and Next Gen 911.   The  
          bill does not increase the surcharge.  Second, it requires  
          coordinated planning of Next Gen 911 infrastructure with  
          FirstNet and other public safety communications systems, which  
          will help leverage federal funds and achieve maximum efficiency  
          through shared infrastructure where technologically feasible and  
          consistent with public safety.

           FISCAL EFFECT :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee, one-time costs  
          of approximately $250,000 from the State Emergency Telephone  
          Number Account (special)/General Fund for two years to develop a  
          plan and timeline for the deployment of a Next Gen 911 system.

           SUPPORT  :   (Verified  5/27/14)

          AT&T
          California's Independent Telecommunications Companies 
          California Police Chiefs Association 
          CALNENA 
          Frontier 
          Office of Ratepayer Advoates 
          The Utility Reform Network 
          Sprint 
          Verizon


          JG:nl  5/27/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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