Legislature(1995 - 1996)

03/20/1995 01:40 PM House FIN

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
txt
  SENATE BILL 55                                                               
                                                                               
       "An  Act  repealing  the  sunset  of the  enhanced  911                 
       emergency reporting systems."                                           
                                                                               
  SENATOR JOHN TORGERSON  testified in support  of SB 55.   He                 
  explained the legislation would repeal the delayed Amendment                 
  provisions of the enhanced 911 emergency reporting  systems,                 
  as enacted in 1993.                                                          
                                                                               
  Senator  Torgerson  indicated  that  there  is a  review  of                 
  federal and/or state  funding for enhanced 911  systems.  He                 
  ascertained that  a funding  source for  a statewide  system                 
  would be remote.   At the same time, there  are enhanced 911                 
  systems in the State which are operating, and the State must                 
  be assured of  the ability to  assess a surcharge to  ensure                 
  operations.  He added that those systems have proven to be a                 
  viable and critical service.  The  bill, SB 55, would remove                 
  the "sunset" provisions resulting from the 1993 legislation.                 
  He  continued,   the  effect   of  the   bill  would   allow                 
  municipalities to  continue to  impose a  surcharge for  911                 
  services after July 1, 1996, and which in turn would provide                 
  for the critical service of the enhanced 911.                                
                                                                               
  Senator  Torgerson  spoke  in  opposition  to  Amendment  #1                 
  provided  by   Representative  Brown.     [Copy  on   file].                 
  Representative Brown  provided  the Committee  with a  brief                 
  history of  the system.   She stated  that Alaska  currently                 
  does not have  a universal  911 system although  communities                 
  are moving forward in developing a more sophisticated system                 
  of E911.  At this time, ten percent of Alaska does  not have                 
  any type of  emergency response system.   A number of  other                 
  communities  have  a  basic  system,  but not  the  enhanced                 
  service.                                                                     
                                                                               
                                                                               
                                2                                              
                                                                               
                                                                               
  Representative  Brown  suggested the  benefits  in providing                 
  middle ground communities  the opportunity  to use the  same                 
  mechanism  that  the larger  communities  have in  place for                 
  taking advantage of the E911.  That system would provide for                 
  an adequate public safety response  system within the State.                 
  She suggested ways of funding  the statewide response system                 
  which would not  effect the revenue  source to the  existing                 
  municipalities.  Amendment #1 would expand the definition of                 
  who could use the funds for a basic system.                                  
                                                                               
  Representative Brown summarized that there  would be no cost                 
  to  the State associated  with the  proposed amendment.   At                 
  this time, in order to have use of the E911 system, a charge                 
  to the users is attached at  a rate of $.50 cents per  month                 
  for the larger communities and $.75  cents per month for the                 
  smaller communities.  Those fees are  collected by the phone                 
  companies and then passed  on to the local government.   The                 
  local  governments  in  turn  use  those  fees  to  purchase                 
  equipment.                                                                   
                                                                               
  Representative  Brown  pointed out  that  the sunset  on the                 
  original  legislation would  have removed  the  authority to                 
  make the  change next  year.   The effect  of the  amendment                 
  would  allow those  communities  to use  that  fund for  any                 
  aspect   of   their   basic    enhanced   response   system.                 
  Representative  Brown  pointed out  that  there has  been no                 
  municipal  opposition to  the concept proposed  by Amendment                 
                                                                               
  KEVIN KOECHLEIN,  DIRECTOR OF  PUBLIC SAFETY  FOR THE  MATSU                 
  BOROUGH, MATSU, spoke in  support of SB 55.   He pointed out                 
  that the most important service  that government can provide                 
  its citizens is emergency medical  services and basic public                 
  safety  reporting  systems.     SB  55  would   allow  local                 
  municipalities around Alaska to continue to provide enhanced                 
  911   capabilities   not   only  in   the   development  and                 
  installation of the systems but  also the yearly operational                 
  costs to the systems.   He urged the Committee  to implement                 
  the proposed legislation promptly.                                           
                                                                               
  Representative Martin asked when the  public would no longer                 
  be responsible for paying the service charge.  Mr. Koechlein                 
  agreed  that  the  municipalities should  either  reduce the                 
  surcharge or reduce the tax dollars.   He guaranteed that at                 
  some point there would be a reduction to the public.                         
                                                                               
  Representative    Brown    disagreed   stating    that   the                 
  municipalities would continue to use  the surcharge in order                 
  to maintain the dispatch services.  She added that currently                 
  Anchorage is spending over  $5 million dollars per year  for                 
  costs associated with the response.                                          
                                                                               
                                                                               
                                3                                              
                                                                               
                                                                               
  Representative Parnell  elaborated that  when the  surcharge                 
  was  initially  enacted,  he  understood  that it  would  be                 
  discontinued when the systems  had been paid for.   He asked                 
  if  the  surcharge  funded  an  entire  communication system                 
  currently in place  or just  the enhanced 911  system.   Mr.                 
  Koechlein replied  that Matsu  Borough  understood that  the                 
  cost  of  the E911  system  would include  the  software and                 
  hardware for  the mapping system  and would  also display  a                 
  primary response  for  the police  or  fire station.    Also                 
  included  in that  sum would  be costs  associated  with the                 
  telephone line charges, costs to  maintain the data base and                 
  the individual 911 tracking lines.                                           
                                                                               
  BOB  GRIFFITH, SGT.,  ANCHORAGE  POLICE DEPARTMENT  DISPATCH                 
  CENTER, ANCHORAGE, testified in support of SB 55.  He added,                 
  the  Municipality  of  Anchorage   generates  $883  thousand                 
  dollars  revenue  from the surcharge.   Current expenditures                 
  to  support the 911 related service is $5.1 million dollars.                 
  Representative Parnell asked what costs had been included in                 
  the expenditure total.  Mr. Griffith pointed out that 50% of                 
  the dispatch  operation costs  amounted to  over $5  million                 
  dollars  and  did  not  include  the  operator  expenses  to                 
  coordinate  the  response.    Discussion  followed   between                 
  Representative  Parnell  and   Mr.  Griffith  regarding  the                 
  expenditures.                                                                
                                                                               
  Representative Martin voiced his concern  that the people of                 
  Anchorage were paying for more than  the E911 services.  Mr.                 
  Griffith  reiterated  that the  costs  to  man the  24  hour                 
  operation, which receives more than  12,000 calls per month,                 
  plus the cost of operating the fire department, creates a $5                 
  million dollar budget expenditure.                                           
                                                                               
  Representative  Parnell  agreed  with Representative  Martin                 
  that the surcharge had been passed only to fund  the cost of                 
  the E911 acquisition.  He asked if the acquisition costs had                 
  been met and  pointed out  that the surcharge  had not  been                 
  designed  to pay  for  the personnel  costs.   Mr.  Griffith                 
  responded that the acquisition costs had been amortized over                 
  a ten year period.   In the meantime, the  maintenance costs                 
  associated with the  E911 amounted  to $48 thousand  dollars                 
  per year to maintain the municipal  data base subscribers.                   
                                                                               
  Mr.  Griffith  added  that  the  legislation  would  provide                 
  coverage of the associated  telephone and personnel charges.                 
  Representative  Martin  recommended  extending  the  sunset.                 
  Senator Torgerson  stated that  all municipalities  were not                 
  like Anchorage, pointing out that the Kenai Borough collects                 
  $1000  dollars a month less than the  cost of operation.  He                 
  urged members not to remove the sunset.                                      
                                                                               
  (Tape Change, HFC 95-57, Side 2).                                            
                                                                               
                                4                                              
                                                                               
                                                                               
  STEVEN O'CONNOR, CHAIR, KPB 9-1-1 ADVISORY  BOARD, SOLDOTNA,                 
  stated that the Advisory Council supports the legislation to                 
  repeal the sunset date, July, 1996.  He added, following the                 
  review recommendations from the Alaska Division of Emergency                 
  Services, he encouraged  Committee members not to  adopt any                 
  amendments.                                                                  
                                                                               
  Mr. O'Connor  continued that  the statewide  E911 system  as                 
  currently proposed  would be  inappropriate.   If the  State                 
  wants to develop an E911 system  then they should do so with                 
  general  funds, a statewide  user fee,  or make  that system                 
  their priority as a capitol project to the Legislature.  The                 
  fee that the Kenai Peninsula Borough currently collects is a                 
  user fee gathered to support the E911 system, not a tax.                     
                                                                               
  Mr. O'Connor suggested creating a working committee upon the                 
  passage of the legislation.  That committee could consist of                 
  technical   specialists   and   E911    users   to   address                 
  recommendations   being  made  by  the  Alaska  Division  of                 
  Emergency Services.  He added that a statewide system should                 
  come  from the  grassroots level and  have input  from local                 
  jurisdictions and agencies.                                                  
                                                                               
  CRAIG LEWIS,  DIRECTOR, INTERIOR  REGION, EMERGENCY  MEDICAL                 
  SERVICES, FAIRBANKS,  encouraged the  Committee to  consider                 
  Amendment #1 offered  by Representative  Brown.  He  advised                 
  that the amendment  would create a  more fair situation  for                 
  rural areas to receive basic 911 services.                                   
                                                                               
  Co-Chair Hanley noted  his concern that the  amendment would                 
  guarantee that  the initial surcharge never be repealed.  He                 
  pointed out  that the addition  of the amendment  would also                 
  require  a  resolution and  title  change which  could delay                 
  passage of the legislation.                                                  
                                                                               
  Representative Brown argued that the initial request for the                 
  surcharge created  conflicting intentions.  She  stated that                 
  it would  be  used to  "acquire,  operate and  maintain  the                 
  system".  She pointed out  that if a fee existed for  larger                 
  communities, other municipalities should be included, adding                 
  that it  would be appropriate  for the local  governments to                 
  use the system.                                                              
                                                                               
  Representative   Brown   MOVED   to  adopt   Amendment   #1.                 
  Representative Mulder OBJECTED.                                              
                                                                               
  A roll call was taken on the MOTION.                                         
                                                                               
       IN FAVOR:      Navarre, Brown, Grussendorf                              
       OPPOSED:       Parnell,  Therriault,   Kelly,  Kohring,                 
                      Martin, Mulder, Hanley                                   
                                                                               
                                5                                              
                                                                               
                                                                               
  Co-Chair Foster was not present for the vote.                                
                                                                               
  The MOTION FAILED (3-7).                                                     
                                                                               
  Co-Chair  Hanley  recommended  the House  Finance  Committee                 
  introduce at a  later date  legislation which would  address                 
  Representative Brown's concern as stated in the amendment.                   
                                                                               
  Representative Mulder MOVED to report SB 55 out of Committee                 
  with individual  recommendations and  with the  accompanying                 
  fiscal notes.  There being NO OBJECTION, it was so ordered.                  
                                                                               
  SB  55  was  reported out  of  Committee  with  a "do  pass"                 
  recommendation and with zero fiscal  notes by the Department                 
  of Commerce  and  Economic Development  dated  2/13/95,  the                 
  Department  of   Public  Safety   dated  2/13/95,   and  the                 
  Department of Health and Social Services dated 2/13/95.                      

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