BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          AB 2459 (Torres) - Local emergency telephone systems: 
          appropriate use.
          
          Amended: As Introduced          Policy Vote: E,U&C 9-3
          Urgency: No                     Mandate: No
          Hearing Date: July 2, 2012      Consultant: Bob Franzoia
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 2459 would require the California 911 Emergency 
          Communications Office to develop and implement a public 
          education campaign to instruct the public on appropriate and 
          inappropriate uses of the 911 emergency telephone system.

          Fiscal Impact: $835,000 in 2012-12 from the State Emergency 
          Telephone Number Account to design the campaign ($750,000) and 
          personnel ($85,000).
              $1.37 million annually thereafter for advertising costs 
              ($1.2 million) and personnel ($170,000).
              Unknown potential savings from a more efficiently operated 
              911 emergency telephone system.

          Background: Under current law, local governments (and the 
          California Highway Patrol) respond to calls made to the 911 
          emergency telephone system. The California Technology Agency 
          (agency) oversees the development and operation of the system. 
          California residents pay a surcharge based on the amount paid 
          for all intrastate telephone calls. The surcharge is set by the 
          agency, and must be between 0.5 percent and 0.75 percent of the 
          billed amount.  Currently, the surcharge is set at 0.5 percent. 
          Revenues generated from the surcharge are used to pay for state 
          oversight costs, paying for 911 database and networks costs, 
          local government equipment costs, and local public education 
          campaigns.

          This bill, unlike a previous bill, does not specify that the 
          costs of the campaign are to be considered allowable 
          administrative costs of the surcharge.

          This analysis estimates $750,000 in one-time costs to design the 
          campaign, $1.2 million annually in advertising costs, and 








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          $170,000 per year in staff costs to oversee the campaign.  Other 
          analyses have estimated moderately to significantly higher 
          costs.

          Proposed Law:  This bill requires the California 911Emergency 
          Communications Office to develop and implement a public 
          education campaign to instruct the public on appropriate and 
          inappropriate uses of the 911 system. This bill, unlike a 
          previous bill, does not specify subject areas that the campaign 
          may include, such as the difference between emergency calls and 
          non-emergency calls, information that callers should provide to 
          911 dispatchers, and education specifically directed towards 
          children.

          Related Legislation: This bill is similar to AB 424 (Torres) 
          2010, which was vetoed by Governor Schwarzenegger with the 
          following message:

          This bill would require the Office of the Chief Information 
          Officer (OCIO) to develop and implement a public education 
          campaign regarding the appropriate and inappropriate uses of the 
          911 emergency telephone system. This measure is unnecessary 
          inasmuch as the OCIO already has the authority to establish a 
          statewide education program. More importantly, however, is that 
          I cannot condone the estimated expenditure of $2.1 million 
          dollars on a public awareness campaign that is duplicative of 
          other efforts in a time of fiscal crisis. 

          For these reasons, I am unable to sign this bill.

          Staff Comments: It isn't clear if or how the effectiveness of a 
          public education campaign will be determined. 

          Staff notes that according to the governor's budget proposal, 
          expenditures in the State Emergency Telephone Number Account are 
          projected to total about $123.5 million in 2011-12, while 
          revenues will total only $81.2 million.  This operating 
          shortfall is covered by a $15.3 million carryover balance in the 
          account plus repayment of a $28 million loan made from the 
          account to the General Fund as part of the 2010-11 Budget Act.  
          The account is projected to have a balance of only $1million as 
          of June 30, 2013.  Some increase in the surcharge rate will 
          likely be necessary to address the apparent structural imbalance 
          in the fund in addition to funding the costs of this bill.








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          Recommended Amendments: Staff recommends this bill be amended to 
          sunset the public education campaign on January 1, 2014 thereby 
          allowing two years for startup, implementation and public 
          education.