BILL ANALYSIS                                                                                                                                                                                                    




                                                                  AB 912
                                                                  Page A

          ASSEMBLY THIRD READING
          AB 912 (Torres)
          As Amended  June 1, 2009
          Majority vote 

           UTILITIES & COMMERCE          10-4                  APPROPRIATIONS  
                              12-5        
           
           ------------------------------------------------------------------- 
          |Ayes:|Fuentes, De La Torre,     |Ayes:|De Leon, Ammiano, Charles   |
          |     |Carter, Fong, Furutani,   |     |Calderon, Davis, Fuentes,   |
          |     |Huffman, Krekorian,       |     |Hall, John A. Perez, Price, |
          |     |Skinner, Swanson, Torrico |     |Skinner, Solorio,           |
          |     |                          |     |Torlakson, Krekorian        |
          |     |                          |     |                            |
          |-----+--------------------------+-----+----------------------------|
          |Nays:|Duvall, Blakeslee,        |Nays:|Nielsen, Duvall, Harkey,    |
          |     |Fuller, Smyth             |     |Miller,                     |
          |     |                          |     |Audra Strickland            |
          |     |                          |     |                            |
           ------------------------------------------------------------------- 
           SUMMARY  :  Allows for a partial reallocation by the Department of  
          General Services (DGS) of revenues to the State Emergency  
          Telephone Number Account (911 surcharge account).
          Specifically,  this bill:  

          1)Specifies that a minimum of one-half of 1% of the charges for  
            intrastate telephone communications services must be spent on  
            six categories of expenditures specified in current law.

          2)Authorizes DGS to allocate up to one-quarter of 1% of the  
            charges for intrastate telephone communications services of fund  
            revenues to Public Safety Answering Points (PSAPs) for the  
            one-time costs to recruit and train personnel to handle these  
            calls.

           EXISTING LAW  :   

          1)Establishes the Warren 911 Act of 1976, which funds for the  
            telecommunication service between a 911 caller and a public  
            safety dispatcher.

          2)Imposes a surcharge on all intrastate telephone service that  
            shall be not less than .5% and not more than .75%, to provide  
            revenues sufficient to fund 911 emergency telephone system  








                                                                  AB 912
                                                                  Page B

            costs. 

          3)Provides that the Department of General Services (DGS) determine  
            the annual 911 budget requirement, and calculates the surcharge.

          4)Provides that the all of funds collected under the 911 surcharge  
            account shall be spent  solely  for the following purposes:

             a)    To pay refunds authorized under statute;

             b)   To pay the State Board of Equalization for the cost of the  
               administration of the 911 funds; 

             c)   To pay the DGS for its costs in administration of the 911  
               emergency telephone system; and, 

             d)   To pay service suppliers and communications equipment  
               companies for the for the installation and ongoing expenses  
               for systems necessary to operating the 911 energy telephone  
               system

          5)Federal law and regulations require wireless telephone providers  
            to automatically route 911 calls from mobile telephones to the  
            appropriate local public safety dispatcher and to provide the  
            dispatcher with the location of the telephone if the public  
            safety agency has requested the transfer of wireless calls. 

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, special fund costs of probably several million dollars  
          for payments to PSAPs for recruitment and training costs, provided  
          from revenue generated by an incremental increase in the surcharge  
          above 0.5%.

           COMMENTS  :  According to the author's office, the purpose of this  
          bill is to deliver on the promise of the Warren 911 Act to create  
          a seamless, responsive universal 911 emergency call program  
          without regard to the technology used by caller accessing the  
          system.  This bill intends to address that goal by giving local  
          jurisdictions the resources and incentives they need to accept 911  
          calls from mobile telephones so that mobile calls are not  
          initially routed to the California Highway Portal (CHP) before  
          being dispatched to local emergency officials. 

          When an individual calls 911 from a landline telephone, the call  
          is automatically routed to a local PSAP.  The local PSAP has  








                                                                  AB 912
                                                                  Page C

          immediate access to the physical location of the caller and can  
          directly dispatch emergency services.  When an individual calls  
          911 from a mobile telephone, the call may either be routed to a  
          CHP dispatch center or a local PSAP.  When CHP receives a mobile  
          911 telephone call that requires a response from local emergency  
          responders, CHP will forward the call the appropriate local PSAP.   
          This secondary routing can result in critical delays in responding  
          to emergencies. 

          Federal rules require mobile providers to route 911 calls to the  
          local PSAP if PSAP has the ability to receive these 911 calls and  
          has requested that the mobile provider routes the calls to them  
          instead of CHP.  Five years ago, no local primary PSAP answered  
          cell phone calls.  Today of the 384 local Primary PSAPs, all but  
          34 of them answer 911 calls placed by a cell phone. 

          The Surcharge:  DGS sets the annual surcharge, which must be  
          between 0.5% and 0.75% of the total amount of intrastate telephone  
          communication usage, and assesses the charge to customers through  
          a separate line item on the telephone bill.  The surcharge is  
          currently set at .5% of intrastate telephone calls, and the  
          revenue generated to fund California's 911 program totaled about  
          $104 million in 2007-08.  This revenue may only be used for the  
          physical equipment, software, and databases needed to route calls  
          to the dispatch centers and may not be used to fund personnel  
          costs at the dispatch centers.

          The bill also allows for up to 25% of the funds collected to be  
          allocated to PSAPs that receive 911 calls from mobile telephones  
          and allows these funds to be used for one-time personnel costs.   
          The author hopes that allowing PSAPs to use a limited amount of  
          funds for personnel costs will create an incentive for the  
          thirty-four PSAPs that do not receive the mobile calls today to  
          begin receiving these calls. 


           Analysis Prepared by  :    Edward Randolph / U. & C. / (916)  
          319-2083 


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