BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 1211                     HEARING:  4/24/2014
          AUTHOR:  Padilla                      FISCAL:  Yes
          VERSION:  2/20/2014                   TAX LEVY:  No
          CONSULTANT:  Bouaziz                  

                    EMERGENCY SERVICES: NEXT GENERATION 911
          

          Requires the Office of Emergency Services (OES) to develop  
          a plan to implement Next Generation 911 in California.  


                           Background and Existing Law  

          State law requires 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.

          The surcharge is determined annually by OES, on or before  
          October 1, to fund the subsequent year's costs of the state  
          911 system. The surcharge cannot be greater than  
          three-quarters of 1 percent nor less than one-half of 1  
          percent.

          Federal law designates up to $7 billion from Federal  
          Communications Commission (FCC) spectrum auctions to fund a  
          nationwide public safety broadband network known as  
          FirstNet and directs that this network integrate 911 PSAPs.

          The FCC established 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.

          Next Generation 911 is an Internet Protocol (IP) based  
          two-way communication system that will enable real time  
          transmission of voice, text, data, photos, and videos.   
          Next Generation 911 will build upon, and eventually  
          replace, the existing 911 voice system that operates on the  
          legacy switched telephone network.  





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          OES published a Next Generation 911 roadmap in 2010,  
          conducted public stakeholder meetings in 2011, and is now  
          conducting several pilot projects with vendors and PSAPs.   
          Over the next five years, OES estimates upgrading to Next  
          Generation 911 will cost an additional $375 million on top  
          of the $510 million needed to operate the current system.   
          OES states that it will have refined cost estimates at the  
          completion of the pilot projects in mid-2015 because of a  
          50 percent margin of error in the current estimate. 


                                   Proposed Law  

          SB 1211 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 emergency communication system  
               throughout California.
                 Set a yearly surcharge rate no greater than  
               three-quarters of 1 percent nor less than one-half of  
               1 percent.
                 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, the 911  
               Advisory Board, and on the office's Internet Web site.  

                 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.



                               State Revenue Impact
           
          Unknown.


                                     Comments  

          1.   Purpose of the bill  .  According to the author,  





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          "California's statewide 911 telephone system is on the cusp  
          of a major upgrade to enable texting to 911 as a new  
          additional option for requesting assistance in an  
          emergency.  Eventually, "Next Generation 911"  
          infrastructure will enable real-time transmission of  
          emergency-related data, photos, and video between the  
          public and public safety agencies.   SB 1211 establishes a  
          transparent process for adjusting the customer fee that  
          funds the 911 system.  It also requires coordinated  
          planning of 911 upgrades, and shared infrastructure where  
          feasible, with other public safety communications networks  
          deployed in California with state and federal funds."

          2.   Need  .  Technological advances in communications have  
          resulted in consumers moving away from traditional  
          landlines.  Almost 75% of emergency calls are made from a  
          cellular device, but the current 911 system is not equipped  
          to receive texts, data, photos, or videos.  In an emergency  
          situation where a call cannot be made, but text or data may  
          be transmitted, it is imperative that a 911 system that can  
          receive that information be in place.   

          3.   Sufficient Revenue  .  SB 1211 does not change the  
          current statutory surcharge cap.  The current 911 program  
          is in a structural deficit with revenue declining from $133  
          million in 2005-2006 to a projected $78 million in  
          2013-2014.  According to The California Chapter of the  
          National Emergency Number Association, even at the maximum  
          surcharge level, "there is doubt that OES will be able to  
          fund the current 911 operation for more than a few years."   
          Additional funding is necessary to transition California's  
          current 911 system to the Next Generation 911 system, the  
          author may wish to consider setting the surcharge maximum  
          at a higher rate.  

          4.   Technical Amendment  .  SB 1211 states "No later than  
          September 1 of each year, at least one month before  
          determining the surcharge rate..." It is unclear why both  
          the deadlines of September 1 and one month prior are  
          needed. Committee staff suggests deleting "No later than  
          September 1 of each year." 
                                         

                       Support and Opposition  (04/21/14)

           Support  :  AT&T; The California Chapter of the National  





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          Emergency Number Association; California's Frontier  
          Communications; Sprint; Verizon.

           Opposition :  None received.