BILL ANALYSIS                                                                                                                                                                                                           1
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                 SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
                                  ALEX PADILLA, CHAIR
          

          AB 912 -  Torres                                  Hearing Date:   
          July 7, 2009               A
          As Amended:         June 1, 2009             FISCAL       B
                                                                        
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                                       DESCRIPTION
           
           Current law  provides that the Warren-911 Emergency Assistance Act  
          establishes the number "911" as the primary emergency telephone  
          number of use in the state.

           Current law  imposes a surcharge on all intrastate telephone users  
          to fund the 911 emergency telephone system costs.

           Current law  requires the Department of General Services to annually  
          determine a surcharge rate sufficient to fund the fiscal year's 911  
          costs. 

           Current law  caps the surcharge at 0.75% and restricts the use of  
          the funds collected under the 911 surcharge 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 installation and ongoing expenses for  
                 systems necessary to operate the 911 emergency telephone  
                 system.

           Federal law  requires wireless telephone providers to automatically  
          route 911 calls from mobile telephones to the appropriate local  
          public safety answering point (PSAP) and to provide the PSAP  
          dispatcher with the location of the telephone if the public safety  
          agency has requested the transfer of wireless calls.











        This bill  would require that a minimum of 0.50% of all revenues  
       from intrastate wireline, wireless and VoIP services be allocated  
       for purposes authorized under current law. 

        This bill  would require that a maximum of 0.25% of all revenues  
       from intrastate wireline, wireless and VoIP services be allocated,  
       on a one-time only basis, to Primary Public Safety Answering Points  
       to recruit and train personnel in receiving enhanced "911" calls.














































                                        BACKGROUND
           
           The Warren 911 Emergency Assistance Act  - In 1976, the Warren 911  
          Emergency Assistance Act (911 Act) was enacted in order to reduce  
          the time required for a citizen to request and receive emergency  
          aid. Under the Act, the Department of General Services (DGS) was  
          designated with state oversight responsibilities for the state's  
          911 system.  

           The Surcharge  - To fund the costs of the state's 911 call system, a  
          surcharge of not less than 0.5% or more than 0.75%, is imposed on  
          all intrastate telephone (wireline, wireless, and VoIP) services.   
          Annually, DGS is required to determine a budget for the 911 system  
          and adjust the 911 surcharge as necessary.  The revenue generated  
          from the surcharge can only be used for the cost of the 911 system  
          network, databases, equipment, and software needed for call  
          delivery.  The surcharge is currently set at 0.50% of all  
          intrastate telephone calls.  For year 2006-07, the surcharge  
          generated $114 million for the state's 911 special fund.

           The 911 Call System and the Evolution thereof  - When an individual  
          calls 911 from a landline phone, the call is automatically routed  
          to the local PSAP. The PSAP has immediate access to the physical  
          location and phone number of the caller and can directly dispatch  
          emergency services. However, trends in telecommunications indicate  
          that more and more telephone users are migrating toward the  
          wireless option.  

          911 calls made from a mobile phone are either routed to a  
          California Highway Patrol dispatch center or a local PSAP,  
          depending on whether the call location can be identified and  
          whether the responsible PSAP has agreed to take those calls  
          directly.  When the CHP receives a mobile 911 call that requires a  
          response from local emergency responders, the CHP will forward the  
          call to the local PSAP.  This secondary routing can result in  
          critical delays in responding to emergencies.

           Wireless Enhanced 911 (W E911)  - In addition to delays, for quite  
          some time, 911 calls made from a wireless phone did not provide the  
          dispatcher with the caller's telephone number and location, like  
          wireline calls do. To address this problem, the Federal  
          Communications Commission (FCC) mandated that wireless service  
          providers (WSP) deliver this information, after receiving a formal  
          request from a PSAP.  Implementation is defined in two phases:  
          Phase I requires WSPs to provide the 911 caller's callback number.  









       Phase II requires WSPs to provide the caller's location.  As of  
       2003, California's six major wireless providers have begun to  
       provide both phases of W E911 service. Five years ago, no local  
       primary PSAP answered cell phone calls. Today of the 384 local  
       primary PSAPs, all but 34 Primary PSAPs answer wireless 911 calls. 

                                      COMMENTS
        
           1.   Author Concerns  - According to the author's office, AB 912  
            seeks to increase the flexibility of the uses of the State  
            Emergency Telephone Number Account funds to support  
            improvement for 9-11 services provided by PSAPs.   
            Specifically, this bill proposes to expand the use of  
            surcharge revenues to include costs to recruit and train the  
            public safety personnel to receive wireless E911 calls.  911  
            dispatchers perform a crucial function in the public safety  
            system.  Technologies around the receipt of 911 calls from  
            wireless callers present significant barriers to fast  
            response.  A primary focus of improving 911 capabilities has  
            become deployment by local agencies of technologies and  
            procedures for accepting W E911 calls.
        
             The bill requires a maximum of 0.25% of telecommunications  
            revenues be spent on recruiting and training.  Currently DGS  
            establishes the rate of the 911 surcharge between the  
            statutory boundaries of 0.5% and 0.75%, which are not altered  
            by this bill.  It appears that the author's intent is for DGS  
            to evaluate how much additional funding is necessary for that  
            purpose.  
        
          2.   Increased 911 Call Volumes and the Migration to Wireless  -  
            In 2005-06, 10.6 million 911 calls were made.  Of that number,  
            2.6 million were wireless 911 calls.  In 2007, an estimated 12  
            million 911 calls were recorded, representing a moderately  
            significant jump from previous years.  The author argues that  
            this increase has made it difficult for PSAPs to meet the  
            10-second answering guideline recommended by the National  
            Emergency Number Association.  However, according to DGS, 90%  
            of all 911 calls were answered within 10 seconds.  95% of all  
            calls were answered within 20 seconds.  With this data, it  
            does not appear that increased call volumes are negatively  
            affecting answering times.  On the other hand, with wireless  
            911 calls anticipated to increase, and the response barriers  
            inherent with wireless, having 100% of 911 calls answered  
            within 10 seconds seems to be a worthy public safety goal.









           
             3.   Appropriate Use of Funds?  - Currently the surcharge can  
               only be used to fund equipment, software and databases needed  
               to route calls to the 911 PSAPs.  The fund may not be used to  
               fund personnel costs at the dispatch centers.  While revenues  
               from the 911 surcharge have historically been used to fund the  
               physical 911 call delivery system, it is arguable that the 911  
               dispatcher him/herself is an intrinsic component of the  
               overall system. 

               The telephone companies oppose allowing the 911 surcharge  
               funds to be used for personnel costs, finding an appropriate  
               nexus between a surcharge and the physical routing of those  
               calls to a PSAP, but no nexus with the actual emergency  
               response process.  They contend that there is no evidence that  
               current funding levels for the 911 system are insufficient.   
               And they are concerned with this bill lets the proverbial  
               camel's nose of 911 funding for personnel training and  
               recruitment under the tent of more general funding for 911  
               personnel expenses.

               While the change proposed in this bill represents a departure  
               from traditional uses of the surcharge revenues, the author  
               hopes that this will encourage the 34 PSAPs that do not  
               receive wireless 911 calls to do so.  However, the committee  
               may wish to consider if a one-time payment to PSAPs is  
               sufficient enough to achieve the author's goal, let alone  
               sufficient enough to pay for additional training and  
               recruitment.  This bill could provide an additional $50-$60  
               million for recruiting and training 911 dispatchers.

               Over the years the committee has heard concerns about the  
               difficulty in retaining 911 dispatchers.  High turnover has  
               been attributed to low pay, stressful work, and poaching among  
               the public safety agencies.  This bill does not deal with the  
               employee retention issue.

              4.   Prior Legislation  - SB 1757 (Padilla) from last year  
               increased the cap on the 911 surcharge to 1.0% and authorized  
               the 911 program to pay for personnel costs under specified  
               circumstances.  That bill was held in the Senate Revenue and  
               Taxation Committee.

              5.   Double Referral  - This bill has been double referred to  
               Senate Committee on Revenue and Taxation.  Due to time  









            constraints, if amendments are proposed in Committee these  
            amendments must be taken in the second Committee.




















































                                      ASSEMBLY VOTES
           
          Assembly Floor                     (49-28)
          Assembly Appropriations Committee  (12-5)
          Assembly Utilities and Commerce Committee                       
          (10-4)

                                        POSITIONS
           
           Sponsor:
           
          Author

           Support:
           
          Alameda County Sheriff's Office
          Amador County Sheriff's Office
          Association for Los Angeles Deputy Sheriffs
          California Chapter of the National Emergency Number Association (in  
          concept)
          California State Association of Counties
          California State Sheriffs' Association
          California Statewide Law Enforcement Association
          Communications Workers of America, AFL-CIO District 9
          Del Norte County Sheriff's Office
          Mariposa County Sheriff's Office
          Riverside Sheriffs' Association
          Sacramento County Sheriff's Department
          San Bernardino County Sheriff's Office
          Santa Cruz County Sheriff's Office
          Shasta County Sheriff's Office
          Tuolumne County Sheriff's Office
          Ventura County Sheriff's Office
          Yolo County Sheriff's Department

           Oppose:
           
          AT&T
          California Association of Competitive Telecommunications Companies
          California Cable and Telecommunications Association
          California Communications Association
          California's Independent Telephone Companies
          CTIA - The Wireless Association
          Verizon Wireless










       


       Randy Chinn/Mandy Lee
       AB 912 Analysis
       Hearing Date:  July 7, 2009