BILL ANALYSIS � 1
SENATE ENERGY, UTILITIES AND COMMUNICATIONS COMMITTEE
ALEX PADILLA, CHAIR
SB 1211 - Padilla Hearing Date:
April 1, 2014 S
As Introduced: February 20, 2014 FISCAL B
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DESCRIPTION
Current law requires the Office of Emergency Services (OES) to
administer the state's 911 emergency telephone system, including
local dispatch centers known as Public Safety Answering Points
(PSAPs), with funds from a 911 customer surcharge on intrastate
communication service. (Government Code � 5311-53120)
Current decisions of the Federal Communications Commission (FCC)
establish May 15, 2014, as the date for large wireless service
providers to enable customers to text to 911 to any PSAP that is
"technically ready" and require carriers to send a "bounce-back"
message if the PSAP is not ready to receive texts. (PS Docket
11-153 and 10-255)
This bill requires OES to develop a plan and timeline of target
dates for PSAP testing and deployment of text to 911 and a full
Next Generation 911 (Next Gen 911) emergency communication
system throughout California.
Current federal law designates up to $7 billion from FCC
spectrum auctions to fund a nationwide public safety broadband
network known as FirstNet and directs that this network
integrate 911 PSAPs. (Public Law 112-96)
This bill requires that the OES plan for deploying Next Gen 911
incorporate, where consistent with public safety and
technologically feasible, shared infrastructure and elements of
FirstNet and other public safety communications networks that
receive state and federal funding.
Current law requires OES to determine annually, on or before
October 1, the customer surcharge rate to fund the subsequent
year's costs of the state 911 system. (Revenue and Tax Code �
41030)
This bill requires OES, at least one month before finalizing the
911 surcharge rate, to prepare a summary of the calculation of
the proposed surcharge, include the costs it expects to incur
consistent with the plan to deploy text to 911 and Next Gen 911,
and make this information available to the Legislature and the
911 Advisory Board, and on the office's Internet Web site.
BACKGROUND
OES Administers Statewide 911 System - California's existing 911
system, established pursuant to the Warren 911 Emergency
Assistance Act of 1976, includes 458 PSAPs that receive about 25
million 911 voice calls per year. These calls are dispatched to
local first responders including police, ambulance, fire,
medical and other emergency service providers. About 75 percent
of all 911 calls are from wireless devices.
The Public Safety Communications Office within OES administers
the state 911 system, reviews local PSAPs' 911 equipment and
operations, and reimburses their reasonable costs for planning,
implementation, and maintenance of approved 911 systems. In
2013, this office was transferred from the California Technology
Agency (CTA) to OES as part of budget action. The California
Emergency Number Association (CalNENA) represents the state's
PSAPs and provides research, planning, and training to support
911 dispatchers and the state 911 system. A state 911 Advisory
Board advises OES on operation, funding, and long-range planning
for PSAPs and the state 911 system.
911 Funded By Customer Surcharge - The 911 program costs are
paid from the State Emergency Telephone Number Account (SETNA)
funds, which are derived from a statewide 911 surcharge on
telephone customer bills, including landline, wireless and Voice
over Internet Protocol (VoIP) services. OES is required to
determine the surcharge rate annually up to a statutory maximum
of 0.75 percent of intrastate service charges. The SETNA has
been in a structural deficit for years, with annual surcharge
revenue declining from about $133 million in 2005-06 to about
$80 million in 2012-13. The rate was set at 0.50 percent from
2007 through 2013, but in October OES increased the surcharge to
0.75 percent effective January 1, 2014, with projected total
revenue of $108 million for 2014-15.
Next Gen 911Planning Underway - Next Gen 911 refers to an
Internet Protocol (IP)-based, two-way communications system that
will enable real-time transmission of emergency-related voice,
text, data, photos, and video between the public and public
safety agencies. Next Gen 911 will build upon, and eventually
replace, the existing 911 voice system that operates on the
legacy switched telephone network. Implementing Next Gen 911
will require substantial funding for PSAP upgrades to an
IP-based platform. OES (CTA prior to July 2013) published a
roadmap in 2010, conducted public stakeholder meetings in 2011,
and now is conducting several pilot projects with vendors and
PSAPs. A "Rough Order Magnitude Cost Estimate" reported in 2013
was $885 million for total hardware and software costs to deploy
conceptual Next Gen 911 design while also running the existing
9-1-1 system. OES states that this is an estimated $375 million
additional investment over five years on top of the $510 million
to operate the existing system over that same five years. But,
because of a 50 percent margin of error in that estimate, OES
states that it will have refined cost estimates at the
completion of the pilot projects in mid-2015.
Text to 911 Requires PSAP Readiness - No later than May 15,
2014, the four major wireless carriers - AT&T, Verizon, Sprint,
and T-Mobile - will offer all subscribers the ability to text to
911, pursuant to a voluntary commitment to the FCC. A proposed
FCC rule would require all wireless and Internet-based text
providers to offer text-to-911 capability by December 31, 2014.
Short Message Service (SMS) texting technology is an acceptable
interim solution prior to full deployment of Next Gen 911
infrastructure. While a voice call to 911 is still preferred,
text to 911 offers public safety advantages for persons with
disabilities, in a hostage situation or home break-in when a
voice call can be dangerous, and when network congestion from
high usage during a crisis makes voice connections unavailable
or slow.
But despite these 2014 carrier obligations, text to 911 will not
be fully operational until PSAPs are "technically ready" and
authorized by a state or local 911 agency to receive 911 text
messages. PSAPs require equipment upgrades, and likely
additional staff and training. As stated by FCC Chairman
Wheeler:
"Of course, as the saying goes, it takes two to
tango. Providers will deliver the information, but it
will mean little if PSAPs and state and local
governments do not take the necessary steps. . . to
ensure that PSAPs have sufficient funding to deploy
the necessary technologies and, ultimately, make the
migration to NG911."
To date, OES has not specified plans to fund PSAP upgrades to
receive texts, but reports that it is conducting pilots to
verify the operation of each form of text to provide the PSAPs
with a basis to determine which, if any, form of text they want
to receive. (OES also reports that all PSAPs currently have the
ability to receive SMS to teletype texts, devices used by the
hearing-impaired.) In the meantime, carriers currently are
required to send a "bounce-back" auto-reply message to alert
subscribers who attempt to text to 911 that the service is not
available and that they should place a voice call instead.
Federal Funding for FirstNet - The Middle Class Tax Relief and
Job Creation Act of 2012 (Act) authorized up to $7 billion in
FCC spectrum auction revenue for a new nationwide wireless
broadband network for public safety communications with
direction that the network eventually be integrated with 911
PSAPs. The First Responder Network Authority, or FirstNet, is
established within the National Telecommunications and
Information Administration (NTIA) in the Commerce Department,
and OES is the lead agency in California. FirstNet also plans
to integrate public safety broadband networks funded by the
American Recovery and Reinvestment Act of 2009 (ARRA), including
the Los Angeles Regional Interoperable Communications System
Authority (LA-RICS),which received $154.6 million in ARRA funds,
and the Bay Area Regional Interoperable Communications System
(BayRICS), which received about $50 million in ARRA funds. In
expectation that public-private partnerships to build the new
network will reduce public funding needed, the Act includes
requirements and guidelines for shared use of existing
infrastructure.
In August 2013, California received its first funding allotment
from FirstNet - a $5.6 million planning grant. OES is using the
grant for governance planning, education and outreach, and data
collection on infrastructure and equipment that could be used by
FirstNet to build the network.
Other Public Safety Communications Systems - OES also oversees
other state public safety communications and warning systems
including text alerts to wireless devices, all of which were
discussed in an informational hearing on February 11, 2013.<1>
In addition, OES is responsible for developing a comprehensive
statewide earthquake early warning system, including the
establishment of warning notification distribution paths to the
public, as required by SB 135 (Padilla, 2013).
COMMENTS
1. Author's Purpose . According to the author, this bill
will enhance public safety and achieve costs savings in two
ways. First, it will increase transparency and
accountability for establishing the state 911 surcharge,
which will help ensure that the fee is adequate to fund
upgrades necessary for text to 911 and Next Gen 911. The
bill does not increase the surcharge. Second, it requires
coordinated planning of Next Gen 911 infrastructure with
FirstNet and other public safety communications systems,
which will help leverage federal funds and achieve maximum
efficiency through shared infrastructure where
technologically feasible and consistent with public safety.
2. Ensuring Transparency of 911 Customer Surcharge . The
state 911 surcharge is similar to the surcharges that fund
public purpose programs administered by the California
Public Utilities Commission (CPUC) in that it appears as a
line item on customer bills and can be adjusted annually
depending on program changes. However, the process for
setting the 911 fee lacks a transparent process.
Currently, the CPUC adjusts its surcharges through a
resolution that is open for public comment 30 days prior to
a commission vote. The resolutions include a status report
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<1>"Emerging Communications Technologies and Public Safety
Networks," informational hearing of the Senate Committee on
Energy, Utilities and Communications, February 11, 2013.
http://seuc.senate.ca.gov/20132014informationalhearings
on the program fund and an accounting of revenues, along
with a projection of expected program expenses for the
period to which the adjusted surcharge will apply,
typically a year. OES has no similar process but instead
simply notifies the Board of Equalization of the rate for
the coming year with no specified process for public review
or input. This bill ensures similar transparency for the
911 surcharge by requiring OES, at least 30 days prior to
the October 1 date by which it must annually determine the
911 surcharge rate, to prepare a summary of the calculation
of the proposed surcharge and make it available to the
Legislature and the 911 Advisory Board, and on the office's
Internet Web site.
3. Monitoring When Text to 911 Is Operational . By
requiring a plan and timeline for deployment of text to
911, the Legislature and stakeholders will be able to
monitor progress toward making PSAPs "technically ready"
for accepting requests for emergency assistance by text.
This, in turn, will inform decisions about funding needed
for PSAP upgrades. It also will help ensure public safety
by creating public awareness of when text to 911 is
available and operational as a method of requesting
emergency assistance.
4. Coordinated Planning to Reduce Costs . This bill ensures
that the state coordinates its planning of Next Gen 911
deployment with plans for FirstNet and any related public
safety communications system that receives state or federal
funds. At the same time, the bill appropriately gives OES
discretion to consider shared infrastructure or network
elements only when consistent with public safety and when
technologically feasible.
5. Ratepayer Impact . By requiring transparency in setting
the 911 customer surcharge, and promoting cost savings
through shared infrastructure funded by that surcharge,
this bill could help minimize increases in the 911
surcharge paid by all customers of landline, wireless and
VoIP service.
6. Double Referral . Should this bill be approved by the
committee, it will be re-referred to the Senate Committee
on Governance and Finance for its consideration.
POSITIONS
Sponsor:
Author
Support:
Frontier Communications
The Utility Reform Network
Oppose:
None on File
Jacqueline Kinney
SB 1211 Analysis
Hearing Date: April 1, 2014