BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1375
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          SENATE THIRD READING
          SB 1375 (Price)
          As Amended  August 2, 2010
          Majority vote 

           SENATE VOTE  :35-0  
           
           UTILITIES & COMMERCE            14-0                 
          APPROPRIATIONS      16-0        
           
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          |Ayes:|Bradford, Knight, Tom     |Ayes:|Fuentes, Conway,          |
          |     |Berryhill, Buchanan,      |     |Bradford,                 |
          |     |Carter, Fletcher, Fong,   |     |Charles Calderon, Coto,   |
          |     |Fuentes, Fuller,          |     |Davis,                    |
          |     |Furutani, Huffman, Ma,    |     |De Leon, Gatto, Hall,     |
          |     |Swanson, Villines         |     |Harkey, Miller, Nielsen,  |
          |     |                          |     |Norby, Solorio,           |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Allows a local telephone corporation to provide  
          access to 911 emergency services for at least 120 days after  
          disconnection of residential basic phone service for nonpayment  
          of any delinquent account, instead of indefinitely.  In  
          addition, allows a telephone corporation to disconnect any line  
          in existence on January 1, 2011, that provides access to 911  
          emergency services with no customer account attached for that  
          line, if a 90-day notice is provided that contains specified  
          information.

           EXISTING LAW   requires all telephone corporations, excluding  
          mobile providers to provide every existing and newly installed  
          residential telephone connection with access to 911 emergency  
          service regardless of whether an account has been established.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee analysis: 

          1)Any costs to PUC would be minor and absorbable.

          2)Based on the current estimated number of warm lines statewide,  
            annual special fund savings of around $2 million to end the  
            maintenance of warm line records in the 911 database.  [State  








                                                                  SB 1375
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            Emergency Telephone Number Account]

           COMMENTS  :   Current law requires all landline telephone  
          corporations, to the extent permitted by existing technology or  
          facilities, to provide every residential telephone connection  
          with access to 911 emergency service regardless of whether an  
          account has been established.  The law prohibits any corporation  
          from terminating this "warm line" service for nonpayment of any  
          delinquent account.  The intent of this law was to ensure that  
          people can always call 911 from their home even when they have  
          just moved in and regular phone service has not started yet, or  
          when regular service has been discontinued because they cannot  
          afford to pay their telephone bill. The law also requires  
          telephone corporations to inform subscribers of the availability  
          of warm line service in a manner determined by PUC.

          Telephone corporations (and their ratepayers) incur the cost of  
          maintaining the facilities for warm lines and the telephone  
          number associated with each line that registers at the local  
          Public Safety Answering Point (PSAP) if a 911 call is  
          transmitted on the line.  The companies claim that these costs  
          have increased because of rapid growth in the number of warm  
          lines as subscribers discontinue landline service and transfer  
          to wireless, cable, or VoIP service.  The PUC reports that the  
          total number of landline access lines in California has  
          decreased from 25 million in 2001 to 20 million in 2008.  When  
          customers abandon wireline service, the wire to the residence  
          remains as a warm line.  

          PUC staff analysis estimates that about 3% of 911 calls from  
          warm lines required an actual fire or emergency medical  
          response, which equates to about 270 calls during March 2009.   
          The analysis discloses that this number does not coincide with  
          the total number of calls.  The 3% only represents the minimum  
          number of emergency calls from warm lines and it does not  
          include calls dispatched directly by primary PSAPs that are  
          police and fire primary PSAPs.  In addition, the 3% estimate  
          does not count the police dispatches for emergencies that  
          require law enforcement presence.


           Analysis Prepared by  :    Gina Adams / U. & C. / (916) 319-2083 










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