BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           424 (Torres)
          
          Hearing Date:  08/12/2010           Amended: 06/22/2010
          Consultant:  Brendan McCarthy   Policy Vote: EU&C 8-1
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          ____
          BILL SUMMARY: AB 424 requires the Office of the Chief  
          Information Officer to develop and implement a public education  
          campaign regarding appropriate and inappropriate uses of the 911  
          emergency telephone system.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions        2010-11      2011-12       2012-13     Fund
           
          Education campaign     $920       $1,373      $1,373    Special  
          *                      

          * State Emergency Telephone Number Account.
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          ____

          STAFF COMMENTS: Suspense File.

          Under current law, local governments (and the California Highway  
          Patrol) respond to calls made to the 911 emergency telephone  
          system. The state Office of the Chief Information Officer is  
          required to oversee the development and operation of the system.  
          California residents pay a surcharge based on the amount paid  
          for all intrastate telephone calls. The surcharge is set by the  
          Department of General Services, and must be between 0.5 percent  
          and 0.75 percent of the billed amount. (Currently, the surcharge  
          is set at 0.5 percent.) Revenues generated from the surcharge  
          are used to pay for state oversight costs, paying for 911  
          database and networks costs, local government equipment costs,  
          and local public education campaigns.

          AB 424 requires the Office of the Chief Information Officer to  
          develop and implement a public education campaign to instruct  
          the public on appropriate and inappropriate uses of the 911  
          system. The bill sets out several subject areas that the  
          campaign may include, such as the difference between emergency  










          calls and non-emergency calls, information that callers should  
          provide to 911 dispatchers, and education specifically directed  
          towards children.

          The bill specifies that the costs of the campaign are to be  
          considered allowable administrative costs of the 911 surcharge.

          The Office of the Chief Information Officer estimates that the  
          bill will require about $750,000 in one-time costs to design the  
          campaign, about $1.2 million per year in advertising costs, and  
          about $170,000 per year in staff costs to oversee the campaign.

          Staff notes that while the State Emergency Telephone Number  
          Account has a projected fund balance of over $100 million, the  
          account also has a structural deficit of about $15 million per  
          year.