BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           1184 (Adams)
          
          Hearing Date:  8/24/2009        Amended: 7/15/2009
          Consultant:  Bob Franzoia       Policy Vote: E,U&C  11-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 1184, an urgency measure, would exempt from the  
          prohibition on the use of automatic dialing-announcing devices  
          (ADADs), calls made by a state or local public official for a  
          governmental purpose.  This bill would require the Public  
          Utilities Commission (PUC) to determine what is not a  
          governmental purpose.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2009-10      2010-11       2011-12     Fund
           PUC proceeding         $157 one time; unknown  
          enforcementSpecial*
                                 costs ongoing          
                                                                  
          * PUC Utilities Reimbursement Account
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          Current law restricts the use of ADADs to between 9:00 AM and  
          9:00 PM and requires that the call begin with a live person  
          stating the nature of the call, inquiring whether the called  
          party consents to receiving the call, and disconnects the call  
          upon request, with specified exceptions.  This bill would add  
          calls made by state and local governmental officials for  
          governmental purposes to the list of exceptions, as enforced by  
          the PUC.  Those exceptions are:
          - Calls by public safety agencies providing information and  
          warnings regarding emergencies.
          - Calls by schools for contacting parents regarding attendance.
          - Calls by utilities or cable companies to customers regarding  
          prearranged customer premise visits.
          
          The PUC would open a rulemaking in order to determine the  










          definition of "governmental purpose" to be exempted from the  
          statutory requirements for the use of ADADs.  Based on the  
          public opposition and media attention regarding the use of ADADs  
          during the election season, it is reasonable to assume that  
          defining "governmental purpose" will be a difficult task.  The  
          PUC will need to develop the record through public hearings and  
          ample stakeholder input before making its final decision.  PUC  
          proceedings, which are similar to regulations and end with the  
          adoption of a decision, typically take one year or more to  
          complete.  Assuming a one-year time frame, this proceeding would  
          require a one third time Administrative Law Judge, a one third  
          time staff attorney and a one half time public utilities  
          regulatory analyst to research the issues and options, hold  
          workshops, administer the proceeding with possible evidentiary  
          hearings, develop the record, and write the proposed decision at  
          an estimated one-time cost of $157,443.  There also are  
          potential enforcement costs that have not been determined at  
          this time.