BILL ANALYSIS
Senate Appropriations Committee Fiscal Summary
Senator Christine Kehoe, Chair
912 (Torres)
Hearing Date: 8/17/2009 Amended: 8/17/2009
Consultant: Bob Franzoia Policy Vote: E,U&C 9-2
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BILL SUMMARY: AB 423 would specify that a minimum of 0.50
percent of the charges for intrastate telephone communications
services and Voice over Internet Protocol (VoIP) service to
which an existing surcharge applies, be spent for the costs of
administering, operating, and maintaining the state 911
emergency telephone number system, including, until December 31,
2011, a maximum of 0.25 percent of the charges for intrastate
telephone communications services and VoIP service to which the
surcharge applies for a one time payment to primary Public
Safety Answering Points (PSAPs) for personnel costs.
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Fiscal Impact (in thousands)
Major Provisions 2009-10 2010-11 2011-12 Fund
Requirement to allocate set No costs or savings; sets
minimum appro- Special*
percentage of funds priation at a level estimated to be lower
than actual surcharge level
One time revenue $0 to up to $2,826 to $4,710 through
Special*
availability December 2011
One time administration of Unknown, potentially
significant Special*
payments to PSAPs
* State Emergency Telephone Number Account (1760-0022)
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STAFF COMMENTS:
Chapter 443/1976 provides for a surcharge on intrastate
communications services to be deposited in the State Emergency
Telephone Number Account. This account was created to fund the
costs of planning and implementing a uniform three digit
telephone number through which emergency services can be
obtained. Revenue and Taxation Code 41030 provides that the
Department of General Services (DGS) shall determine annually a
surcharge rate that it estimates will produce sufficient revenue
to fund the current fiscal year's 911 system costs, though in no
event shall such a surcharge rate in any year be greater than
three fourths of one percent (0.75) nor less than one half of
one percent (0.5). This bill would substitute the Office of the
Chief Information Officer (OCIO) as the entity responsible for
the system. This is conforming statutes as the OCIO has already
assumed staff and functions previously administered by DGS.
PSAPs are entities which have the responsibility of answering
calls placed to 911 and for ensuring that emergency assistance
is dispatched expeditiously. It is estimated that approximately
90 percent of PSAP costs, generally staffing and facilities, are
borne by
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AB 912 (Torres)
the local agency. The allocation of the 911 network, database,
and call taking equipment to the PSAPs represents the remaining
10 percent, which is paid by the state. There are 384 PSAPs
with all but 34 PSAPs, including Long Beach, Oakland, and
Sacramento, answering wireless 911 calls. PSAPs would submit
claims for reimbursement of costs necessary to recruit and train
safety personnel to accept wireless enhanced 911 calls. The
OCIO would incur costs to confirm the claims.
This account has a 2009-10 fund balance estimated at $95,253,000
after total expenditures of $127,741,000 on total resources of
$222,994,000. Total revenue is estimated at $94,200,000 (0.5
percent). (Revenue in 2008-09 was $98,900,000.) This bill
would make available up to 0.25 percent of the surcharge revenue
from within the existing cap. While this could make available
up to an estimated $47,000,000, in practice it would be up to an
estimated $2,826,000 (0.03 percent) to $4,710,000 (0.05 percent)
above the minimum one time for a two year period, upon
appropriation.
As noted by the fund balance that is approximately equal to the
revenue in 2008-09 and 2009-10 and the overappropriation, the
surcharge is collecting more than is needed to be appropriated
for the installation and ongoing expenses of the 911 system.