Legislature(2003 - 2004)

03/02/2004 08:05 AM House CRA

Audio Topic
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
                    ALASKA STATE LEGISLATURE                                                                                  
              HOUSE COMMUNITY AND REGIONAL AFFAIRS                                                                            
                       STANDING COMMITTEE                                                                                     
                         March 2, 2004                                                                                          
                           8:05 a.m.                                                                                            
                                                                                                                                
MEMBERS PRESENT                                                                                                               
                                                                                                                                
Representative Carl Morgan, Chair                                                                                               
Representative Kelly Wolf, Vice Chair                                                                                           
Representative Pete Kott                                                                                                        
Representative Ralph Samuels                                                                                                    
Representative Sharon Cissna                                                                                                    
                                                                                                                                
MEMBERS ABSENT                                                                                                                
                                                                                                                                
Representative Tom Anderson                                                                                                     
Representative Albert Kookesh                                                                                                   
                                                                                                                                
COMMITTEE CALENDAR                                                                                                            
                                                                                                                                
HOUSE BILL NO. 499                                                                                                              
"An Act relating to 911 systems."                                                                                               
                                                                                                                                
     - HEARD AND HELD; ASSIGNED TO SUBCOMMITTEE                                                                                 
                                                                                                                                
HOUSE BILL NO. 461                                                                                                              
"An Act relating to enhanced 911 surcharges and to emergency                                                                    
services dispatch systems of municipalities, certain villages,                                                                  
and public corporations established by municipalities."                                                                         
                                                                                                                                
     - HEARD AND HELD; ASSIGNED TO SUBCOMMITTEE                                                                                 
                                                                                                                                
PREVIOUS COMMITTEE ACTION                                                                                                     
                                                                                                                                
BILL: HB 499                                                                                                                  
SHORT TITLE: 911 SYSTEMS                                                                                                        
SPONSOR(S): REPRESENTATIVE(S) HEINZE                                                                                            
                                                                                                                                
02/16/04       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/04       (H)       CRA, L&C                                                                                               
03/02/04       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
                                                                                                                                
BILL: HB 461                                                                                                                  
SHORT TITLE: EMERGENCY SERVICES DISPATCH/911 SURCHARGE                                                                          
SPONSOR(S): REPRESENTATIVE(S) HOLM                                                                                              
                                                                                                                                
02/16/04       (H)       READ THE FIRST TIME - REFERRALS                                                                        
02/16/04       (H)       CRA, STA                                                                                               
03/02/04       (H)       CRA AT 8:00 AM CAPITOL 124                                                                             
                                                                                                                                
WITNESS REGISTER                                                                                                              
                                                                                                                                
JON BITTNER, Staff                                                                                                              
to Representative Cheryll Heinze                                                                                                
Alaska State Legislature                                                                                                        
POSITION STATEMENT:  Spoke on behalf of the sponsor of HB 499.                                                                  
                                                                                                                                
MARK MEW, Chapter President                                                                                                     
National Emergency Number Association                                                                                           
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  Discussed the goals of HB 499.                                                                             
                                                                                                                                
JIM HARPRING, Chair                                                                                                             
Legislative Subcommittee                                                                                                        
NENA Alaska Chapter                                                                                                             
(No address provided)                                                                                                           
POSITION STATEMENT:  Highlighted that HB 499 provides enabling                                                                  
language for communities to address concerns with regard to 911                                                                 
service.                                                                                                                        
                                                                                                                                
ROBERT RUFUS, Member                                                                                                            
NENA                                                                                                                            
(No address provided)                                                                                                           
POSITION STATEMENT:  During discussion of HB 499, answered                                                                      
questions.                                                                                                                      
                                                                                                                                
JIM ROWE, Director                                                                                                              
Alaska Telephone Association                                                                                                    
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:  During discussion of HB 499, expressed                                                                     
concern with regard to liability.                                                                                               
                                                                                                                                
BILL DOOLITTLE, Project Manager for 911 service                                                                                 
Municipality of Anchorage                                                                                                       
Anchorage, Alaska                                                                                                               
POSITION STATEMENT:                                                                                                             
                                                                                                                                
MARK JOHNSON, Chief                                                                                                             
Community Health & Emergency Medical Services                                                                                   
Division of Public Health                                                                                                       
Department of Health and Social Services                                                                                        
Juneau, Alaska                                                                                                                  
POSITION  STATEMENT:   Testified that  [the department]  supports                                                               
the concept of HB 499 and HB 461.                                                                                               
                                                                                                                                
ED OBERTS, Mayor's Assistant                                                                                                    
Office of the Mayor                                                                                                             
Kenai Peninsula Borough                                                                                                         
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  During discussion  of HB 499, indicated that                                                               
there needs  to be  regulatory reform.   During discussion  of HB
461, noted his appreciation for any assistance from the state.                                                                  
                                                                                                                                
STEVE O'CONNER, Assistant Chief                                                                                                 
Central Emergency Services;                                                                                                     
Chair, Kenai Peninsula Borough 911 Committee                                                                                    
Soldotna, Alaska                                                                                                                
POSITION STATEMENT:  Testified in support of HB 499.                                                                            
                                                                                                                                
MATTHEW RUDIG, Staff                                                                                                            
to Representative Jim Holm                                                                                                      
Alaska State Legislature                                                                                                        
POSITION STATEMENT:  Spoke on behalf of the sponsor of HB 461.                                                                  
                                                                                                                                
STEVE THOMPSON, Mayor                                                                                                           
City of Fairbanks                                                                                                               
Fairbanks, Alaska                                                                                                               
POSITION STATEMENT:  Testified in support of HB 461.                                                                            
                                                                                                                                
KEVIN RITCHIE, Executive Director                                                                                               
Alaska Municipal League (AML)                                                                                                   
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:   Testified  that AML  and the  Conference of                                                               
Mayors supports the concepts of both HB 499 and HB 461.                                                                         
                                                                                                                                
REPRESENTATIVE JIM HOLM                                                                                                         
Alaska State Legislature                                                                                                        
Juneau, Alaska                                                                                                                  
POSITION STATEMENT:  Spoke as the sponsor of HB 461.                                                                            
                                                                                                                                
ACTION NARRATIVE                                                                                                              
                                                                                                                                
TAPE 04-7, SIDE A                                                                                                             
Number 0001                                                                                                                     
                                                                                                                                
CHAIR  CARL  MORGAN  called  the  House  Community  and  Regional                                                             
Affairs  Standing  Committee  meeting   to  order  at  8:05  a.m.                                                               
Representatives Morgan,  Wolf, Kott, and Samuels  were present at                                                               
the call to order.   Representative Cissna arrived as the meeting                                                               
was in progress.                                                                                                                
                                                                                                                                
HB 499-911 SYSTEMS                                                                                                            
                                                                                                                                
CHAIR MORGAN announced that the  first order of business would be                                                               
HOUSE BILL NO. 499, "An Act relating to 911 systems."                                                                           
                                                                                                                                
Number 0115                                                                                                                     
                                                                                                                                
JON  BITTNER,  Staff  to Representative  Cheryll  Heinze,  Alaska                                                               
State Legislature, speaking  on behalf of the sponsor  of HB 499,                                                               
explained  that  HB 499  would  bring  Alaska closer  to  federal                                                               
standards for  enhanced 911  services.   Basically, HB  499 would                                                               
[allow the surcharge  to increase up to] $2  and would streamline                                                               
some of the  language in the current 911  statutes.  Furthermore,                                                               
HB 499 specifies that the governor's  office will be in charge of                                                               
the  oversight  and distribution  of  those  surcharges.   Beyond                                                               
that,  the legislation  closes loopholes,  ensures that  everyone                                                               
pays  his or  her  fair  share of  surcharges  for the  emergency                                                               
services used,  and mandates  that all  911 calls  throughout the                                                               
state  go  through  the Department  of  Public  Safety  answering                                                               
points.                                                                                                                         
                                                                                                                                
REPRESENTATIVE WOLF inquired as to the current surcharge.                                                                       
                                                                                                                                
MR. BITTNER  answered that  the current surcharge  is $.75  for a                                                               
wireline or  a wireless telephone.   However,  the aforementioned                                                               
surcharge isn't enough to cover  the federally mandated upgrades.                                                               
In further  response to Representative Wolf,  Mr. Bittner pointed                                                               
out that the  sponsor has been working closely  with the National                                                               
Emergency Numbering  Association (NENA),  a nationwide  911 group                                                               
which  has  taken surveys  of  all  50  states.   Between  [those                                                               
surveys]  and Alaska's  specific needs,  it was  thought that  $2                                                               
would  be  a  good  starting point  and  would  address  Alaska's                                                               
general needs.                                                                                                                  
                                                                                                                                
Number 0324                                                                                                                     
                                                                                                                                
REPRESENTATIVE  WOLF  indicated concern  with  regard  to the  $2                                                               
surcharge  being a  "starting point"  with the  potential for  an                                                               
increase.                                                                                                                       
                                                                                                                                
MR. BITTNER explained that the  $2 surcharge isn't mandatory, and                                                               
would be decided  by the municipalities.  Furthermore,  the $2 is                                                               
the upper  limit of the surcharge.   Mr. Bittner opined  that the                                                               
$2 is  the baseline figure  that will provide  the municipalities                                                               
with  enough leeway  to bring  them up  to code  and ensure  that                                                               
everyone has emergency services.                                                                                                
                                                                                                                                
REPRESENTATIVE KOTT pointed out that  some wireless plans offer a                                                               
family plan in which there  are multiple cell phones.  Therefore,                                                               
he  surmised  that  each  of those  cell  phones  with  different                                                               
numbers  would  have   the  $2  surcharge.    He   asked  if  the                                                               
aforementioned is correct.                                                                                                      
                                                                                                                                
MR. BITTNER offered to look into that.                                                                                          
                                                                                                                                
REPRESENTATIVE KOTT  pointed out  that the legislation  refers to                                                               
each wireless telephone number being assessed a $2 surcharge.                                                                   
                                                                                                                                
MR. BITTNER pointed out that each  of the wireless phones in that                                                               
family plan  would have the potential  to make a 911  call.  This                                                               
legislation spreads the [enhanced 911  costs] over all users.  He                                                               
reiterated that $2 is the maximum  surcharge, and added that a $2                                                               
surcharge would be necessary for extreme upgrades.                                                                              
                                                                                                                                
REPRESENTATIVE  KOTT  inquired  as   to  what  other  states  are                                                               
charging.                                                                                                                       
                                                                                                                                
MR.   BITTNER  explained   that   NENA   reviewed  other   states                                                               
implementation of  911 systems and factored  in Alaska's specific                                                               
issues to develop the $2 surcharge.                                                                                             
                                                                                                                                
Number 0636                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS surmised  that the  telephone company  is                                                               
the [surcharge] collector for the municipality.                                                                                 
                                                                                                                                
MR. BITTNER replied yes.                                                                                                        
                                                                                                                                
REPRESENTATIVE  SAMUELS  inquired  as  to how  much  of  this  is                                                               
capital  improvements,  new  equipment,   and  programming.    He                                                               
surmised  that   once  the   aforementioned  is   purchased,  the                                                               
operations should be the same.                                                                                                  
                                                                                                                                
MR. BITTNER agreed.                                                                                                             
                                                                                                                                
REPRESENTATIVE SAMUELS  opined that once the  surcharge is raised                                                               
to $2, that will be the fee.   He predicted that the fee wouldn't                                                               
be lowered to match the capital expenditures.                                                                                   
                                                                                                                                
MR. BITTNER directed attention to  page 3, line 24, and explained                                                               
that by placing  the certification and use of  all 911 surcharges                                                               
in the  governor's office, it  basically creates a  statewide 911                                                               
coordinator's  position.   This  position would  review what  the                                                               
municipalities  ask  for from  the  users  and what  is  actually                                                               
necessary to  bring the municipality  up to compliance  with this                                                               
legislation  and other  statutes.   If there  is a  disparity, he                                                               
assumed that the surcharges would be "tweaked."                                                                                 
                                                                                                                                
CHAIR MORGAN inquired  as to the meaning of the  language on page                                                               
3, lines  24-25.   He asked  if the  governor is  responsible for                                                               
collecting the money.                                                                                                           
                                                                                                                                
MR. BITTNER  replied no, the  governor isn't  responsible himself                                                               
to  collect  the  surcharge.   Mr.  Bittner  explained  that  the                                                               
municipalities  set  the  original surcharge  and  the  surcharge                                                               
would go to the governor,  or more likely his representative, the                                                               
statewide  911 coordinator.   The  coordinator would  review what                                                               
the  municipality would  need in  the  context of  the number  of                                                               
users and  the sum this  fee would  bring in, and  adjustments to                                                               
the surcharge would be made based  upon the review.  Any disputes                                                               
would be  settled by  the RCA.   He pointed out  that on  page 3,                                                               
line 2, the  language "[AND HAS NO JURISDICTION  OVER AN ENHANCED                                                               
911  SYSTEM]"  is  deleted.    This  legislation  designates  the                                                               
governor as responsible for the  certification and use of all 911                                                               
surcharges in  order to be  eligible for the federal  grant money                                                               
that's available for states to bring 911 systems up to code.                                                                    
                                                                                                                                
Number 0884                                                                                                                     
                                                                                                                                
REPRESENTATIVE WOLF asked  if any of the areas in  the state with                                                               
an enhanced 911 system have been reviewed.                                                                                      
                                                                                                                                
MR. BITTNER  said that he didn't  know of any areas  in the state                                                               
that have  an enhanced 911  system.  In  fact, most areas  of the                                                               
state  don't   have  basic  911   systems.    In   certain  rural                                                               
communities, a  911 call  would be  routed to  a restaurant  or a                                                               
local house at which someone would  likely be present at any hour                                                               
of the day or night.                                                                                                            
                                                                                                                                
REPRESENTATIVE  WOLF indicated  that the  Kenai Peninsula  has an                                                               
enhanced  911 system,  and asked  if  the $2  surcharge would  be                                                               
charged to those on the Kenai Peninsula.                                                                                        
                                                                                                                                
MR.  BITTNER answered  that  he  didn't see  any  reason why  the                                                               
municipality  would  need to  charge  such  a surcharge  if  it's                                                               
already compliant with the enhanced 911 system.                                                                                 
                                                                                                                                
Number 0975                                                                                                                     
                                                                                                                                
CHAIR MORGAN requested that Mr.  Bittner elaborate with regard to                                                               
how this legislation would impact Bush Alaska.                                                                                  
                                                                                                                                
MR. BITTNER explained that the  surcharges would ensure that Bush                                                               
Alaska  would  receive  emergency  911  services  that  currently                                                               
aren't  available.   All  public  safety  calls would  be  routed                                                               
through  a  public  safety  answering   point  (PSAP),  which  is                                                               
currently not the  case in the majority of  Alaska.  Furthermore,                                                               
bringing Alaska up to federal codes  would make it much easier to                                                               
obtain the  location of  a call,  which is  important information                                                               
necessary for a  prompt and appropriate emergency  response.  Mr.                                                               
Bittner  acknowledged that  rural Alaska  will pay  more than  it                                                               
does  currently.   However,  he opined  that  the benefits  would                                                               
outweigh  the cost.   In  further response  to Chair  Morgan, Mr.                                                               
Bittner  confirmed  that  this legislation  covers  wireline  and                                                               
wireless telephones.                                                                                                            
                                                                                                                                
Number 1066                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT inquired  as  to the  federal mandates  with                                                               
which the state  is trying to comply.  He  further inquired as to                                                               
the consequences if the state doesn't comply.                                                                                   
                                                                                                                                
MR. BITTNER said  that he didn't know  the specific consequences.                                                               
However, the Federal Communications  Commission (FCC) has said it                                                               
will  take unilateral  action soon  against  states that  haven't                                                               
moved in  the direction of  FCC compliance.  Mr.  Bittner pointed                                                               
out that the FCC has  specific timelines for wireless carriers to                                                               
come  into  compliance with  regard  to  location and  numbering.                                                               
With regard to specific state  sanctions for those states without                                                               
emergency 911 service, Mr. Bittner said he didn't about those.                                                                  
                                                                                                                                
Number 1204                                                                                                                     
                                                                                                                                
MARK   MEW,   Chapter   President,  National   Emergency   Number                                                               
Association  (NENA), started  his  testimony  by clarifying  some                                                               
points.  He pointed out that  there is a difference between basic                                                               
911 and enhanced 911.  Basic 911  means that a 911 call is routed                                                               
to  the closest  PSAP.    However, enhanced  911  means that  the                                                               
aforementioned happens  and the  PSAP automatically  receives the                                                               
telephone  number,  account  name,  and  location  of  the  call.                                                               
Enhanced  911 has  existed for  the wirelines  in some  places in                                                               
Alaska for some 20 years.   However, enhanced 911 services aren't                                                               
throughout  the state.   In  fact, there  are some  areas of  the                                                               
state that don't  have any basic 911 services.   This legislation                                                               
attempts  to  address  those  issues.   Mr.  Mew  indicated  that                                                               
enhanced  911   services  for   wirelines  is   relatively  easy,                                                               
technologically  speaking.   The surcharges  were based  on PSAPs                                                               
getting enhanced 911  service for wirelines, but  now more people                                                               
have wireless phones, and in fact  over half of the traffic comes                                                               
in  on wireless  phones.   The location  technology for  wireless                                                               
phones  is  new and  is  being  implemented  in Anchorage.    The                                                               
technology necessary to obtain the  location of a moving wireless                                                               
telephone is extremely complicated,  very expensive, and requires                                                               
massive infrastructure.   The PSAPS  need to obtain  the computer                                                               
equipment necessary  to take a latitude  and longitude coordinate                                                               
to place on a map and turn  it into a street address.  Therefore,                                                               
it's necessary  to increase the  surcharge.   Anchorage's current                                                               
$.50 surcharge can't fund that.   Furthermore, the $.75 surcharge                                                               
elsewhere in the state can't fund what's necessary either.                                                                      
                                                                                                                                
MR. MEW specified that the up  to $2 surcharge proposed in HB 499                                                               
would cover wireline and wireless  accounts.  The surcharge would                                                               
allow the PSAPs  to pay for their own equipment  upgrades as well                                                               
as Phase  II cost  recovery, which  is a  mechanism by  which the                                                               
telephone companies  can recover some  of the costs from  the 911                                                               
dispatch  centers.   This is  going on  across the  country under                                                               
many  different models.   There  is general  agreement in  Alaska                                                               
with regard  to the cost  recovery model  that the PSAPs  and the                                                               
industry would  like to have.   With regard to the  amount of the                                                               
surcharge,  he   informed  the   committee  that   the  surcharge                                                               
throughout the nation ranges from $.50 to $4.00.                                                                                
                                                                                                                                
MR.  MEW recalled  earlier mention  of the  FCC, and  pointed out                                                               
that  the  FCC  regulates  wireless  911 issues.    The  FCC  has                                                               
established a timeline that wireless  telephone companies need to                                                               
meet  in  order  to  accomplish  the  FCC's  mandate  to  produce                                                               
wireless  location.   There are  also  timelines and  constraints                                                               
that the  FCC forces upon  PSAPs when  they elect to  obtain such                                                               
information  from  the wireless  telephone  companies.   Mr.  Mew                                                               
highlighted  that the  wireline 911  services isn't  regulated by                                                               
the FCC.   In most states,  the Public Utilities Commission  of a                                                               
state regulates the  wireline 911 services.   In Alaska, wireline                                                               
911 issues aren't regulated.   This legislation would correct the                                                               
aforementioned by placing the regulatory function at the RCA.                                                                   
                                                                                                                                
Number 1675                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  related his understanding that  HB 499 would                                                               
go into effect 90 days after  being signed by the governor, which                                                               
could be  in July or August.   Therefore, he questioned  what one                                                               
would get for the $1.25  increase once this legislation goes into                                                               
effect.                                                                                                                         
                                                                                                                                
MR.  MEW  explained  that   this  legislation  provides  enabling                                                               
language, and therefore local jurisdictions  would have to update                                                               
ordinances to  match the  legislation.   He suggested  that given                                                               
the  opportunity,  the  local jurisdictions  would  increase  the                                                               
surcharge to the  $2.00.  He further explained  that the language                                                               
in  this  legislation  and most  ordinances  require  that  PSAPs                                                               
annually  evaluate  the  surcharge  revenue, compare  it  to  the                                                               
costs, and make adjustments as  necessary.  In other words, PSAPs                                                               
aren't allowed to  collect more revenue than is spent  on the 911                                                               
system.    In  a  jurisdiction  that  isn't  ready  for  wireless                                                               
location or  even for an  enhanced 911 system,  that jurisdiction                                                               
may not  have a  need for the  money.  Therefore,  it may  take a                                                               
couple of  years to study the  situation and write a  request for                                                               
proposals (RFP)  to determine whether  the $2.00  surcharge would                                                               
cover  the entire  cost of  the system.   He  specified that  the                                                               
surcharge  can't  be  collected   in  advance  of  providing  the                                                               
service.  However, those areas  already providing the service are                                                               
probably already  paying out much  more than the  jurisdiction is                                                               
receiving in surcharge revenue.   In Anchorage, historically, the                                                               
surcharge has recovered  approximately 50 percent of  the cost of                                                               
providing  911  service  and emergency  dispatch  services.    In                                                               
Anchorage,  when  the  $2.00  surcharge  is  collected,  wireless                                                               
telephones  will automatically  deliver  location information  to                                                               
the 911  center.   However, [this  legislation will  allow] rural                                                               
Alaska  and places  where  there is  no 911  system  to begin  to                                                               
establish a system  at this point.  The desire  is to create more                                                               
enhanced 911 centers.                                                                                                           
                                                                                                                                
Number 1923                                                                                                                     
                                                                                                                                
JIM  HARPRING,  Chair,   Legislative  Subcommittee,  NENA  Alaska                                                               
Chapter,  informed the  committee that  in 34  communities a  911                                                               
call  goes  nowhere.   This  legislation  will  provide  enabling                                                               
language  that  will  allow the  aforementioned  communities  the                                                               
ability to  address concerns.   Mr. Harpring explained  that NENA                                                               
has been addressing this for over two years.                                                                                    
                                                                                                                                
REPRESENTATIVE SAMUELS  related his understanding  that Anchorage                                                               
currently has  a $.50  surcharge, although  statute says  that it                                                               
could increase it to $.75.                                                                                                      
                                                                                                                                
MR.  MEW  explained  that  current  statute  takes  a  two-tiered                                                               
approach to surcharge  collection.  The current  statute is based                                                               
on  population,  and therefore  Anchorage  can  collect $.50  per                                                               
telephone account,  while every other location  can collect $.75.                                                               
He  opined that  the  legislature  felt that  Anchorage  is of  a                                                               
population that some economies of  scale could be achieved.  With                                                               
HB 499, the  distinction based on population  would be eliminated                                                               
as would  the distinction between wireline  and wireless service.                                                               
Therefore,  under HB  499  each [community]  in  the state  would                                                               
calibrate its  needs and could  collect up to $2.00  per wireline                                                               
or wireless account.                                                                                                            
                                                                                                                                
MR.  MEW  informed the  committee  that  a subcommittee  of  NENA                                                               
drafted  the language  of HB  499.   However, he  emphasized that                                                               
NENA isn't simply a PSAP  organization, although it happened that                                                               
most of  those who  worked on  this language  were from  PSAPs or                                                               
carried  that point  of  view.   Mr. Mew  pointed  out that  many                                                               
telephone companies  and wireless providers are  members of NENA,                                                               
which is  an open  organization.   He indicated  that not  all of                                                               
NENA's  members are  happy with  everything included  in HB  499.                                                               
However,  NENA  believes this  legislation  is  a good  place  to                                                               
start.                                                                                                                          
                                                                                                                                
Number 2148                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS  asked if  the  costs  for [enhanced  911                                                               
services]  are  capital  outlay,  such  as  for  programming  and                                                               
computer  software  or  hardware,   or  for  operating  expenses,                                                               
including the ongoing  expense of people.  He asked  if the $2.00                                                               
surcharge would ever fall below $2.00.                                                                                          
                                                                                                                                
MR.  MEW replied  that  he didn't  believe so.    In response  to                                                               
Representative Samuels'  first question,  Mr. Mew  explained that                                                               
initially  there will  be major  capital  outlays from  everyone,                                                               
industry  and  PSAPs alike.    The  language in  the  legislation                                                               
permits  surcharge collections  to be  spent on  the salaries  of                                                               
employees charged with ongoing operations  and maintenance of the                                                               
system.  Mr. Mew predicted  that [under the $2.00 surcharge] most                                                               
[communities]   will   still    not   receive   enough   revenue,                                                               
particularly  in  the  beginning   when  the  capital  outlay  is                                                               
occurring simultaneous  with paying the employees.   He suspected                                                               
that  tax dollars  would always  be necessary  to keep  the PSAPs                                                               
operational.                                                                                                                    
                                                                                                                                
REPRESENTATIVE  SAMUELS  turned to  the  matter  of the  industry                                                               
recouping  its  costs,  and related  his  assumption  that  those                                                               
already  collecting  a surcharge  already  have  the same  costs.                                                               
Therefore, he surmised  that if the size of the  check is larger,                                                               
shouldn't it be a moot point.                                                                                                   
                                                                                                                                
MR. MEW specified  that it relates to the Phase  II cost recovery                                                               
issue, and noted  that Phase I is relatively  inexpensive for the                                                               
telephone companies to  deliver.  The statute  specifies that the                                                               
telephone companies could cover  their costs, although it doesn't                                                               
specify how.  In order  to cooperate with the wireless companies,                                                               
most states are  conceding that the companies  deserve to receive                                                               
some  of their  money  back, which  is cost  recovery.   In  some                                                               
states, the  wireless company  will bill the  PSAP for  every 911                                                               
call.  The  aforementioned cost recovery model  isn't favored for                                                               
Alaska because there  tend to be multiple wireless  calls for one                                                               
911 situation  whereas there may only  be one wireline call.   In                                                               
either case  one event requires  only one radio dispatch  and one                                                               
policeman to respond, although there  may be 50-60 calls for that                                                               
event.    Therefore,   billing  by  the  call   would  result  in                                                               
skyrocketing  bills  by  the  company   for  its  cost  recovery,                                                               
although the  workload of  the PSAP wouldn't  increase.   The per                                                               
account  monthly bill  model seems  manageable, predictable,  and                                                               
provides the ability  to budget.  The  aforementioned is probably                                                               
the most  favored across  the nation.   Although the  PSAPs would                                                               
like to  avoid the Phase II  level cost recovery and  not have to                                                               
raise the surcharge to $2.00,  he acknowledged that the telephone                                                               
companies  are putting  millions into  the system  and are  being                                                               
paid  back some  of  their expenditures  throughout the  country.                                                               
Therefore, Mr.  Mew didn't believe  the [Phase II  cost recovery]                                                               
could be avoided, which has led to addressing it in statute.                                                                    
                                                                                                                                
Number 2373                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA surmised that  this legislation provides an                                                               
option for municipalities.                                                                                                      
                                                                                                                                
MR. MEW  replied yes,  and stated  that the  legislation provides                                                               
enabling language  that allows municipalities to  take steps that                                                               
they aren't now.   For example, a large company  may purchase one                                                               
main switchboard [a  private branch exchange (PBX)]  to which the                                                               
telephone company  delivers service.   There may be  many numbers                                                               
with the same prefix.  Much of  the time, the PSAP would only see                                                               
the location  of the  privately owned switch.   Therefore,  a 911                                                               
call  from the  public works  building  10 miles  away from  city                                                               
hall, which has a private switch,  would provide city hall as the                                                               
location of the  call if the individual  calling couldn't provide                                                               
an address.  This legislation  authorizes municipalities, if they                                                               
choose,  to  enact  language  that  would  force  PBX  owners  to                                                               
purchase whatever  is necessary  so that  the actual  location of                                                               
the telephone  can be passed  through.  The aforementioned  is an                                                               
expense  to a  PBX  owner.   Therefore, it's  left  to the  local                                                               
[governing bodies].                                                                                                             
                                                                                                                                
REPRESENTATIVE   CISSNA  related   her  understanding   that  the                                                               
legislation relates to some  responsibilities associated with the                                                               
911 routing.   She  asked if the  aforementioned places  any cost                                                               
responsibility  or equipment  responsibility on  communities that                                                               
have not elected to be part of the enhanced 911 system.                                                                         
                                                                                                                                
MR. MEW  stated that nothing  in HB 499 mandates  [any community]                                                               
to provide  911 service.   Mr. Mew specified  that Representative                                                               
Cissna is referring to unincorporated  areas that don't currently                                                               
have  statutory  authority  to   collect  any  surcharges.    The                                                               
language would merely allow those  unincorporated areas to obtain                                                               
the surcharge and provide the service.                                                                                          
                                                                                                                                
MR. HARPRING surmised that Representative  Cissna is referring to                                                               
AS 40.05.295, which works through  the local exchange carriers in                                                               
order to  allow them the  opportunity to route wireline  calls to                                                               
to a PSAP some place in the state.                                                                                              
                                                                                                                                
Number 2674                                                                                                                     
                                                                                                                                
ROBERT RUFUS, Member, NENA,  interpreted Representative Cissna to                                                               
ask if HB 499 is an  unfunded mandate to the smaller communities.                                                               
He explained  that there  wouldn't necessarily  be any  cost from                                                               
the  local exchange  carrier.   The local  exchange carriers  are                                                               
ready, willing,  and desire to do  so.  The local  exchanges have                                                               
repeatedly  requested  a  location  to  route  those  calls,  and                                                               
therefore this language  would provide the authority  for them to                                                               
physically  route  the call;  there  wouldn't  be any  associated                                                               
costs unless  the community decided  to provide its  own dispatch                                                               
services.                                                                                                                       
                                                                                                                                
REPRESENTATIVE  CISSNA inquired  as to  liability with  regard to                                                               
911 calls [and the ability or inability to respond].                                                                            
                                                                                                                                
MR.  MEW   answered  that   statutory  language   providing  some                                                               
liability  protection  for the  operators  of  the PSAPs  already                                                               
exists.  There is also  some liability coverage for the telephone                                                               
companies that  provide the  911 service  and equipment  to those                                                               
PSAPs.   He  opined  that the  aforementioned  language could  be                                                               
strengthened,  although  it  doesn't   seem  appropriate  at  the                                                               
moment.   However, he expressed  the need  to address it  at some                                                               
point because  things are  getting very  complicated and  in some                                                               
communities it  will be difficult  to get telephone  companies to                                                               
bid because the  liability would be so high.   In fact, there has                                                               
been  some  hesitancy from  some  in  providing this  service  in                                                               
Anchorage.                                                                                                                      
                                                                                                                                
Number 2856                                                                                                                     
                                                                                                                                
JIM ROWE,  Director, Alaska  Telephone Association,  informed the                                                               
committee that  the association  represents four  incumbent local                                                               
exchanges that  serve rural areas  of Alaska.  Although  Mr. Rowe                                                               
said that he was in general  agreement with most of the comments,                                                               
he disagreed with the comment that  nothing in HB 499 forces [any                                                               
community]  to  provide  911  services.    He  pointed  out  that                                                               
wireline  local exchange  carriers are  forced to  do 911  calls.                                                               
Mr.  Rowe  turned attention  to  page  4,  line 28,  "each  local                                                               
exchange telephone  company that provides wireline  service to an                                                               
area outside a municipality must  route all 911 calls originating                                                               
from  within  its  customer  service  base  to  a  public  safety                                                               
answering  point."   However, there  aren't PSAPs  for all  rural                                                               
communities.  Mr.  Rowe interpreted the language on  page 4, line                                                               
28, to place the responsibility  on the telephone company without                                                               
providing  it  the  authority  to create  PSAPs.    Although  the                                                               
telephone companies don't want  the aforementioned authority, the                                                               
telephone companies want  folks to realize that a  911 call can't                                                               
be routed  if there is no  PSAP.  Therefore, he  suggested adding                                                               
language  such  as  "as  designated by  the  state"  because  the                                                               
[telephone  companies would  like a  telephone number  that is  a                                                               
PSAP].  Mr. Rowe pointed out  that in a rural community connected                                                               
by  a satellite,  the only  place a  local telephone  company can                                                               
deliver  a call  outside the  local area  is to  a long  distance                                                               
carrier.                                                                                                                        
                                                                                                                                
MR.  ROWE  expressed  concern  with  regard  to  the  lack  of  a                                                               
reference of  who is paying for  the call.  He  posed a situation                                                               
in which  there was  a statewide  number located  in Juneau.   If                                                               
someone  calls  from  a  rural   community,  there  would  be  an                                                               
interstate long  distance service  charge that the  long distance                                                               
carrier  would like  to  have reimbursed.    However, under  this                                                               
legislation he  wasn't sure  who would be  reimbursed.   Mr. Rowe                                                               
informed the  committee that there  is a federal  regulation that                                                               
burdens a  local carrier with  the decision  of where to  route a                                                               
911  call  even  if  the  state  hasn't  designated  such.    The                                                               
aforementioned  places  a  lot of  responsibility  on  the  local                                                               
telephone company.                                                                                                              
                                                                                                                                
TAPE 04-7, SIDE B                                                                                                             
                                                                                                                                
MR.  ROWE   related  that  [the  Alaska   Telephone  Association]                                                               
believes the state should identify a  default PSAP if there is no                                                               
local,  municipal, or  regional PSAP.   He  clarified that  he is                                                               
only referring  to basic  911 services.   Before looking  at this                                                               
legislation, Mr. Rowe said he  believed 911 calls could be routed                                                               
to the  Alaska State Troopers.   However, that's  not acceptable.                                                               
As  Mr. Harpring  mentioned, there  are a  number of  communities                                                               
that  can't deliver  911  calls to  a  PSAP.   One  of the  large                                                               
liability issues  is when nonresident individuals  out fishing in                                                               
rural Alaska call 911 and nothing happens.                                                                                      
                                                                                                                                
CHAIR MORGAN  noted that  he agreed  with Mr.  Rowe's statements.                                                               
He informed  the committee that  in Aniak there are  three Alaska                                                               
State Troopers who  are stationed in Aniak.   However, when there                                                               
is  an emergency  before  8:00 a.m.  or 5:00  p.m.,  the call  is                                                               
routed  to Bethel,  which  is  long distance.    The sergeant  in                                                               
Bethel  has to  authorize a  trooper  in Aniak  to be  dispatched                                                               
because  it is  considered overtime.   Chair  Morgan acknowledged                                                               
that although the  troopers are stationed in Aniak,  they serve a                                                               
large region that includes Aniak.   Chair Morgan thanked Mr. Rowe                                                               
for bringing out  that many communities don't even  have a public                                                               
safety building.                                                                                                                
                                                                                                                                
MR. ROWE pointed  out that there are also  communities that don't                                                               
have village public safety officers  any more and some that don't                                                               
have any troopers close by.                                                                                                     
                                                                                                                                
Number 2846                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT   inquired  as   to  the   consequences  for                                                               
noncompliance.                                                                                                                  
                                                                                                                                
MR.  ROWE replied  no, but  related  that members  of the  Alaska                                                               
Telephone  Association   are  very   concerned  with   regard  to                                                               
liability for  those communities  for which there  is no  PSAP to                                                               
route an emergency phone call.   He referred the committee to FCC                                                               
01-351 paragraph 15.                                                                                                            
                                                                                                                                
MR. MEW  pointed out  that the  FCC has a  schedule in  place and                                                               
could  fine wireless  carriers for  not meeting  the deadline  to                                                               
provide  location  information.     Furthermore,  there  isn't  a                                                               
federal law  to which  telephone companies  and PSAPs  alike must                                                               
conform or  be fined.   If a PSAP requests  Phase I and  Phase II                                                               
wireless location  and certain  criteria is  met and  certain FCC                                                               
rules go  into place, the  telephone companies could be  fined if                                                               
they don't deliver and the PSAPs complain.                                                                                      
                                                                                                                                
MR.  ROWE emphasized  that the  concern is  not so  much about  a                                                               
fine, but rather the liability  associated with not being able to                                                               
deliver a 911 call from a community.                                                                                            
                                                                                                                                
Number 2720                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT posed  a situation in which  an attorney from                                                               
Las  Angeles, California,  is  fly fishing  in  rural Alaska  and                                                               
dials 911  after being bit  by a bear.   However, it's  six hours                                                               
before someone responds.  Isn't  liability assumed because of the                                                               
[lack  of readily  available] services  required to  [respond] to                                                               
the call, he asked.                                                                                                             
                                                                                                                                
MR. ROWE clarified  that the telephone company  is concerned that                                                               
it is able to get the call through.                                                                                             
                                                                                                                                
REPRESENTATIVE  KOTT surmised  then that  the liability  has been                                                               
shifted from the telephone company to the state.                                                                                
                                                                                                                                
MR. ROWE  emphasized that the  telephone companies want to  be in                                                               
compliance and want to deliver the call.                                                                                        
                                                                                                                                
MR.  MEW  reminded  the  committee  that  there  is  no  wireless                                                               
coverage in many places in rural Alaska.                                                                                        
                                                                                                                                
MR. ROWE  informed the committee  that the members of  the Alaska                                                               
Telephone  Association  are  concerned   with  the  up  to  $2.00                                                               
surcharge.   He pointed  out that many  items on  one's telephone                                                               
bill aren't local service charges,  and it appears that the local                                                               
telephone company is making this  money.  However, that's not the                                                               
case.                                                                                                                           
                                                                                                                                
REPRESENTATIVE  KOTT   noted  that   his  constituency   is  also                                                               
concerned about  the increase in  the surcharge.  He  inquired as                                                               
to the difference between basic and enhanced 911 service.                                                                       
                                                                                                                                
Number 2550                                                                                                                     
                                                                                                                                
BILL DOOLITTLE, Project Manager  for 911 service, Municipality of                                                               
Anchorage, explained  that basic 911  means that a 911  call goes                                                               
to a PSAP that  is staffed 24 hours a day.   However, an enhanced                                                               
911  system  includes the  additional  features  of a  call  back                                                               
number,   automatic   location,   and  the   subscriber's   name.                                                               
Selective routing  is a  feature in  which a  911 call  is routed                                                               
based on  the jurisdictional boundary  rather than  the telephone                                                               
company boundary.   Mr.  Doolittle pointed out  that part  of the                                                               
confusion  is  that enhanced  911  service  for a  wireline  call                                                               
utilize an  address from a  database maintained by  the telephone                                                               
companies  on  behalf of  the  PSAP  while a  wireless  telephone                                                               
expresses  location information  as  either the  cell  site or  a                                                               
latitude and  longitude, which is  typically provided by  a third                                                               
party to the wireless carrier.                                                                                                  
                                                                                                                                
MR.  MEW  pointed  out  that  enhanced 911  for  wirelines  is  a                                                               
reality,  but  Alaska hasn't  explored  the  location portion  of                                                               
enhanced 911 for wireless telephones.                                                                                           
                                                                                                                                
REPRESENTATIVE KOTT asked if any  of the states have considered a                                                               
user fee.                                                                                                                       
                                                                                                                                
MR. DOOLITTLE answered that one  of the guiding principles of 911                                                               
service is that there should be  no barriers to dialing the call.                                                               
Therefore, 911 calls  from a pay phone  or uninitialized cellular                                                               
service are  free.   The aforementioned  is the  reasoning behind                                                               
not having a fee  for service for 911 calls.   In fact, there are                                                               
many programs  throughout the nation in  which discarded cellular                                                               
telephones  are  refurbished and  given  to  victims of  domestic                                                               
violence or other  folks because there is no  fee associated with                                                               
the phone and the only number that can be dialed is 911.                                                                        
                                                                                                                                
Number 2337                                                                                                                     
                                                                                                                                
MARK  JOHNSON,  Chief,  Community   Health  &  Emergency  Medical                                                               
Services,  Division of  Public Health,  Department of  Health and                                                               
Social Services  (DHSS), began by relating  that [the department]                                                               
supports the concept of HB 499.   One of the advantages of 911 is                                                               
that it's  an easily remembered number  for emergency situations.                                                               
The enhanced  911 feature [allows]  the ability to call  back the                                                               
person in  order to provide  additional instructions.   Sometimes                                                               
it's necessary to  know the location of the caller  because he or                                                               
she  may  not  know  his  or  her  location.    As  a  result  of                                                               
legislation passed  10-12 years ago,  enhanced 911 is in  some of                                                               
the major  communities in Alaska.   Enhanced 911  service allowed                                                               
the municipalities  to charge a  surcharge through  the telephone                                                               
bills.  However, enhanced 911  service hasn't been implemented in                                                               
many  of the  rural  or smaller  communities of  the  state.   As                                                               
wireless  service  has come  about,  the  FCC has  mandated  that                                                               
wireless  telephones  must  be capable  of  features  that  allow                                                               
enhanced  911.   Mr. Johnson  said that  it's in  everyone's best                                                               
interest to  have a system  in which  a caller can  easily access                                                               
emergency  services  so  that  the  response  can  be  quick  and                                                               
appropriate.     Mr.   Johnson  specified   that  although   [the                                                               
department] isn't  in a position  to specify how much  money [the                                                               
improvements  require], it  can say  that it  would like  for the                                                               
system to be improved.                                                                                                          
                                                                                                                                
MR. JOHNSON turned  to the emergency response  situation in rural                                                               
areas.   He explained  that two-thirds  of the  state's emergency                                                               
medical service providers  (EMS) are volunteers.  In  some of the                                                               
smaller  communities   EMS  providers  carry  a   portable  radio                                                               
telephone, and  therefore a number  of EMS providers  may receive                                                               
the 911 call  on these portable radio telephones.   Although that                                                               
doesn't meet the definition of  a PSAP, he acknowledged that it's                                                               
better than nothing.  He noted  that there have been instances in                                                               
which emergency calls  from a smaller community  have been routed                                                               
to  a   larger  community,  which  have   sometimes  resulted  in                                                               
responders being  sent to the  wrong place.   For the  long term,                                                               
the goal  is to have a  statewide system in which  calls received                                                               
at a  PSAP with  enhanced features in  order that  the responders                                                               
can  be directed  to  the appropriate  place.   This  legislation                                                               
moves the state in the aforementioned direction.                                                                                
                                                                                                                                
Number 2105                                                                                                                     
                                                                                                                                
MR.  JOHNSON  addressed  the  issue  of  liability.    Under  the                                                               
Emergency  Medical  Service   statutes,  organizations  or  state                                                               
certified   providers   have   immunity  protections   under   AS                                                               
18.08.086,  including  those  trained and  serving  as  emergency                                                               
medical  dispatchers.   Mr.  Johnson  highlighted the  nationwide                                                               
poison control telephone  number, which is routed  to a certified                                                               
local center.   However, he pointed out that  Alaska doesn't have                                                               
a poison  control center, which  has resulted in a  memorandum of                                                               
agreement  with the  Oregon poison  control center.   Alaska  has                                                               
provided   Oregon   with   a  computerized   information   system                                                               
specifying  what medical  resources  exist in  each community  so                                                               
that   the  need   for  additional   medical  attention   can  be                                                               
appropriately  directed.   Mr. Johnson  said, "I  think that  the                                                               
technology  is making  it possible  for  us to  provide a  better                                                               
life-saving  service  to  all  of   our  citizens."    Still,  he                                                               
acknowledged that this  will take some time to  accomplish.  This                                                               
legislation  will  allow  the  urban   areas  with  the  wireline                                                               
enhanced  911 to  obtain additional  resources  to implement  the                                                               
wireless  enhanced  911,  which   could  happen  fairly  quickly.                                                               
Although  expanding to  the smaller  rural communities  will take                                                               
longer, he characterized HB 499 as the first step.                                                                              
                                                                                                                                
Number 1958                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT asked  whether the  ability of  the PSAP  to                                                               
call  back  the 911  caller  is  any  different than  the  caller                                                               
identification feature to which everyone can subscribe.                                                                         
                                                                                                                                
MR. JOHNSON  specified that he  didn't know how different  it is.                                                               
He said  he believes the enhanced  911 would be immediate.   Even                                                               
more critical  is the  automatic identification  location because                                                               
if the caller  and the responders don't know the  location of the                                                               
emergency,  then   it's  a  problem,  and   potentially  a  life-                                                               
threatening problem.                                                                                                            
                                                                                                                                
REPRESENTATIVE  KOTT  agreed  that the  automatic  identification                                                               
location  probably is  the more  important issue  of an  enhanced                                                               
system.   However, Representative  Kott pointed  out that  he has                                                               
three lines  and no matter which  line is used, it  will show the                                                               
same address.   Therefore,  he questioned  whether he  should pay                                                               
the $2.00 surcharge for each of those lines.                                                                                    
                                                                                                                                
MR. JOHNSON  reiterated that the  department isn't in  a position                                                               
to specify  the correct  amount for the  surcharge.   However, he                                                               
pointed  there are  upfront costs  and  ongoing operating  costs.                                                               
Mr. Johnson highlighted that the  department believes that one of                                                               
the important costs  is related to ongoing training.   In further                                                               
response to Representative Kott, Mr.  Johnson said that he didn't                                                               
know whether the state system  or governmental entities currently                                                               
pay the surcharge on each telephone.                                                                                            
                                                                                                                                
Number 1800                                                                                                                     
                                                                                                                                
ED  OBERTS,  Mayor's  Assistant,   Office  of  the  Mayor,  Kenai                                                               
Peninsula  Borough,   informed  the  committee  that   the  Kenai                                                               
Peninsula Borough has  been addressing enhanced 911  for at least                                                               
a year-and-a-half.   This legislation  will allow  the Regulatory                                                               
Commission of  Alaska (RCA)  to regulate  911 services,  which he                                                               
opined  is a  step  in the  right  direction.   Not  only does  a                                                               
"carrot" have  to be provided  to the carriers in  the community,                                                               
such  as through  a payback,  there also  needs to  be regulatory                                                               
reform.                                                                                                                         
                                                                                                                                
Number 1715                                                                                                                     
                                                                                                                                
STEVE  O'CONNER,  Assistant  Chief, Central  Emergency  Services;                                                               
Chair,  Kenai Peninsula  Borough 911  Committee, opined  that the                                                               
discussion today indicates  that the technology is  complex.  The                                                               
Kenai Peninsula Borough  has had enhanced 911  services since the                                                               
late 1980s and is a member of  the Alaska Chapter of NENA.  After                                                               
passage  of  the  last  legislation on  this  matter,  the  Kenai                                                               
Peninsula Borough adopted an ordinance  that allows it to collect                                                               
a  $.75  surcharge,  which  is currently  collected.    The  $.75                                                               
surcharge covers approximately 50  percent of the total operating                                                               
costs  of  the  borough's  911  system.    Therefore,  the  Kenai                                                               
Peninsula Borough  is fairly  close to  what Anchorage  has found                                                               
historically.   Also like Anchorage, the  Kenai Peninsula Borough                                                               
is looking  to implement  the wireless  technology that  comes in                                                               
Phase I  and II.   He reiterated earlier testimony  that wireless                                                               
telephones now  account for 50-60  percent of the  total 911-call                                                               
volume.   These  wireless calls  are coming  in with  no location                                                               
information.   With the  passage of HB  499, the  Kenai Peninsula                                                               
Borough would  again need to  revise its ordinance to  change the                                                               
$.75 surcharge.   Mr. O'Conner announced support of HB  499 as it                                                               
is.                                                                                                                             
                                                                                                                                
MR. O'CONNER  opined that HB  499 basically provides  a framework                                                               
for  municipal governments  to utilize  enhancements  to the  911                                                               
system.   Furthermore, the legislation allows  the infrastructure                                                               
at the  municipal level to be  built.  With regard  to Mr. Rowe's                                                               
concerns over the $2.00 surcharge,  Mr. O'Conner pointed out that                                                               
as Phase  I and  II are  implemented the  [members of  the Alaska                                                               
Telephone  Association]   will  look  for  cost   recovery.    As                                                               
mentioned earlier,  this process  will be  expensive for  the 911                                                               
PSAPs  and the  telephone  carriers.   Therefore,  some of  these                                                               
funds will be utilized for  cost recovery for the local telephone                                                               
carriers.                                                                                                                       
                                                                                                                                
Number 1551                                                                                                                     
                                                                                                                                
CHAIR  MORGAN returned  to concerns  regarding multiple  lines at                                                               
one location, and asked if faxes will be charged a $2.00 fee.                                                                   
                                                                                                                                
MR. O'CONNER related  his understanding that only  the lines from                                                               
which people  can call 911  will be charged the  $2.00 surcharge.                                                               
He specified that  part of the $2.00 surcharge is  to maintain an                                                               
accurate database for the PSAPs.   Oftentimes, those who call 911                                                               
are the individuals  having the emergency and  they aren't always                                                               
able  to  provide  the  [dispatcher]  with  complete  information                                                               
allowing emergency  services to be dispatched  to the appropriate                                                               
location.   In fact, the  Kenai Peninsula Borough  has documented                                                               
instances  in which  individuals try  to dial  911 when  having a                                                               
heart  attack   or  a  seizure.     Therefore,   having  accurate                                                               
information in the database is  critical as is the maintenance of                                                               
that database.  The per line  account surcharge helps pay for the                                                               
maintenance of the database.                                                                                                    
                                                                                                                                
Number 1434                                                                                                                     
                                                                                                                                
REPRESENTATIVE WOLF  said that his  fax line is charged  the $.75                                                               
surcharge.   He asked  if the  Kenai Peninsula  Borough currently                                                               
pays a surcharge for enhanced 911-wireline service.                                                                             
                                                                                                                                
MR. O'CONNER  opined that  under HB  499 the  telephone companies                                                               
are  allowed to  retain  a fee  for the  collection  of the  $.75                                                               
surcharge.                                                                                                                      
                                                                                                                                
REPRESENTATIVE WOLF asked  if the Kenai Peninsula  Borough [has a                                                               
surcharge] for enhanced 911 [services for wireless telephones].                                                                 
                                                                                                                                
MR.  O'CONNER answered  that  wireless  telephones are  currently                                                               
paying the  $.75 surcharge for  the operations of the  911 center                                                               
costs.   He clarified that  the borough is  just at Phase  I with                                                               
upgrades, and Phase II would be in the near future.                                                                             
                                                                                                                                
REPRESENTATIVE WOLF  inquired as to  the number of  extensions in                                                               
the Kenai Peninsula Borough schools.                                                                                            
                                                                                                                                
MR. OBERTS replied that he  didn't know, although he acknowledged                                                               
that it would be a substantial number.                                                                                          
                                                                                                                                
REPRESENTATIVE  WOLF surmised  then  that each  extension in  the                                                               
Kenai Peninsula Borough school district would pay $2.00.                                                                        
                                                                                                                                
REPRESENTATIVE KOTT surmised that  Representative Wolf was asking                                                               
whether the  Kenai Peninsula Borough  pays $.75  for governmental                                                               
lines or is exempt.                                                                                                             
                                                                                                                                
MR. O'CONNER related his belief  that the Kenai Peninsula Borough                                                               
does pay the $.75 surcharge on each line the borough has.                                                                       
                                                                                                                                
Number 1186                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS asked  if the  Municipality of  Anchorage                                                               
supports HB 499.                                                                                                                
                                                                                                                                
MR.   DOOLITTLE   replied   yes.     In   further   response   to                                                               
Representative  Samuels, Mr.  Doolittle related  that discussions                                                               
with  the   municipality  have  indicated  that   there  isn't  a                                                               
commitment to  implement the maximum  surcharge.  He  pointed out                                                               
that part  of the  problem is  that the  possible costs,  per the                                                               
carriers,  could be  in excess  of $2.00.   In  fact, one  of the                                                               
wireless carriers specified  that its surcharge might  be as high                                                               
as $4.00  per handset.   Upon exploring this for  several months,                                                               
carriers  have  proposed surcharges  from  $.50  to $4.00.    For                                                               
wireless service,  a $2.00 surcharge  seems to be in  the middle.                                                               
However, on the  wireline side, one must keep  in mind offsetting                                                               
the cost  of call taking in  addition to the cost  of technology.                                                               
Mr. Doolittle  turned to the  statewide perspective,  and pointed                                                               
out  that  many communities  have  to  borrow money  because  the                                                               
surcharge  doesn't  cover the  capital  cost.   Therefore,  $2.00                                                               
seems to be a good starting point.                                                                                              
                                                                                                                                
MR.  DOOLITTLE recalled  an earlier  question,  and informed  the                                                               
committee that  the surcharge  would be  charged to  every access                                                               
line  because "we"  don't know  what's on  the other  end of  the                                                               
line.    Therefore,  every  access line  should  be  charged  the                                                               
surcharge because of the possibility  that it could present a 911                                                               
call.  However, he noted  that federal reservations don't pay the                                                               
911 surcharge in Alaska or nationally.                                                                                          
                                                                                                                                
REPRESENTATIVE SAMUELS turned  attention to the bottom  of page 2                                                               
and the top of  page 3 of HB 499.  He posed  a situation in which                                                               
there is a  roll over on the Glenn Highway,  which prompts 50 911                                                               
calls.   In  the aforementioned  situation, would  the regulatory                                                               
authority pay for all 50 calls  or is there a negotiated contract                                                               
between the various  carriers and the municipality.   He inquired                                                               
as to who pays for the 50 calls.                                                                                                
                                                                                                                                
MR. DOOLITTLE specified that the only  cost for a 911 call is the                                                               
cost of the airtime.   At this time, there isn't  a charge to the                                                               
PSAP for receiving  a 911 call.  However, the  PSAP does bear the                                                               
911 trunks from  the carriers into the dispatch  center, which is                                                               
a  direct cost  to that  server.   The cost  burden falls  in the                                                               
staffing to ensure that all calls are answered.                                                                                 
                                                                                                                                
Number 0914                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  asked if the  suggestion, then, is  that the                                                               
surcharge pays for the dispatchers.                                                                                             
                                                                                                                                
MR. DOOLITTLE  replied yes.   Current  statutes specify  that all                                                               
the direct  costs of  911 services  can be  paid for  through the                                                               
surcharge,  including the  capital investments,  technology, call                                                               
taking, and  operational aspects.  Furthermore,  it would include                                                               
addressing and  geographic data management, which  is critical to                                                               
the success of [enhanced 911].                                                                                                  
                                                                                                                                
MR. HARPRING asked  if Representative Kott was  interested in the                                                               
direct staffing costs or the ancillary 911 costs.                                                                               
                                                                                                                                
REPRESENTATIVE KOTT  specified that he was  interested in whether                                                               
the  surcharge  paid for  the  dispatchers.   He  also  expressed                                                               
interest in  whether there is a  charge per call or  a negotiated                                                               
contract that covers all calls.                                                                                                 
                                                                                                                                
MR.  HARPRING explained  that the  business model  being used  is                                                               
amortizing the cost of doing  business.  Any cost associated with                                                               
the  cost  of  911  will  allow  this  enabling  language  to  be                                                               
determined at  the local  level.  However,  subsection (j)  of HB
499  governs what  constitutes true  costs.   Under this  type of                                                               
legislation, any monies associated  with or collected pursuant to                                                               
911 [calls] have  to be obligated to that type  of action.  Funds                                                               
collected  for  911 services  can't  go  into the  general  fund.                                                               
However, the funds  are at the discretion of  the local community                                                               
and  could  be   used  to  defray  costs   of  training  dispatch                                                               
personnel.    As far  as  direct  personnel costs,  Mr.  Harpring                                                               
specified  that  it  would  depend  upon  the  local  community's                                                               
bonding 911-surcharge  use.  Still,  the funds have to  remain in                                                               
the 911 field.                                                                                                                  
                                                                                                                                
REPRESENTATIVE   KOTT  commented   on   the  increased   cellular                                                               
telephone use in Alaska.   He estimated that currently 60 percent                                                               
of Alaskans  use cellular  telephones, and  he predicted  that in                                                               
the  future  80 percent  of  the  population will  have  cellular                                                               
telephones.  He  asked, "It seems to me that  if we're basing our                                                               
costs on 20 percent and 80  percent currently has the cell phones                                                               
available,  or in  use,  doesn't  that then  lower  the cost  per                                                               
[line]?"                                                                                                                        
                                                                                                                                
MR. HARPRING pointed  out that many of the  questions asked today                                                               
could be answered by the information provided at www.nena.org.                                                                  
                                                                                                                                
MR. DOOLITTLE agreed with Representative  Kott that in the future                                                               
there would be some efficiencies  based on gross revenues and the                                                               
actual cost of providing the  service.  It's difficult to develop                                                               
a business model that expresses the  direct cost of a 911 call to                                                               
the  direct cost  of  what it  takes  to answer  it.   Often  the                                                               
business model for  911 specifies the public as  the customer and                                                               
"we"  try to  answer  the  public's calls  for  assistance.   The                                                               
aforementioned becomes  important in  the context  of dispatching                                                               
because in  many communities, one  person answers  and dispatches                                                               
the call.   When the dispatcher  answers the call, the  public is                                                               
the customer but when the  dispatcher turns to dispatch the call,                                                               
the  customer is  the public  safety agency.   Therefore,  from a                                                               
purist standpoint  the focus is  on the call-taking aspect.   The                                                               
hope is that by setting the  surcharge high enough that there may                                                               
be  some cost  efficiencies once  the technology  is implemented,                                                               
and  therefore the  surcharge would  be lowered.   Mr.  Doolittle                                                               
related  his  belief  that the  aforementioned  occurred  in  the                                                               
Fairbanks Northstar Borough.                                                                                                    
                                                                                                                                
Number 0407                                                                                                                     
                                                                                                                                
REPRESENTATIVE  CISSNA related  her assumption  that the  cost of                                                               
technology  is part  of  the  high cost  of  this  service.   She                                                               
related her observation that this  legislation seems to be highly                                                               
suited to municipalities  in which there is  a fair concentration                                                               
of   population.     Although  this   legislation  seems   to  be                                                               
appropriate  for  municipalities  with a  fair  concentration  of                                                               
population,  Representative Cissna  didn't believe  it was  a fix                                                               
throughout Alaska.   She asked  if the cellular telephone  is the                                                               
most  expensive  part of  this  because  of  the newness  of  the                                                               
technology.     She  also  asked   if  it's  possible   to  craft                                                               
legislation that is appropriate to a [geographic] area.                                                                         
                                                                                                                                
MR. DOOLITTLE  agreed that it's  a very expensive service.   What                                                               
has  been discovered  is  that  the capital  costs  are, in  some                                                               
cases, high.   One must remember that the  wireless carriers have                                                               
a choice  of how  they deploy wireless  location technology.   In                                                               
some cases,  a new  handset is  required and  in other  cases, it                                                               
isn't.  In either case there  is typically a service provider who                                                               
presents  referring  costs.    The  aforementioned  is  the  most                                                               
challenging area because there is  no knowledge of the cost basis                                                               
for providing the services.  He  pointed out that there are about                                                               
three companies in  the U.S. that do this  for wireless carriers,                                                               
with one of them being a  near monopoly.  Mr. Doolittle explained                                                               
that this is an attempt to  balance the occasion in which someone                                                               
does need  assistance.   He specified  that 911  is the  point of                                                               
entry for  an emergency  response.  The  911 system  is available                                                               
for those  who find themselves  in unplanned circumstances  and a                                                               
life is  at stake.   It's difficult to  place a dollar  amount on                                                               
the  circumstances.   The technology  is available  and feasible,                                                               
and within the budget.                                                                                                          
                                                                                                                                
TAPE 04-8, SIDE B                                                                                                             
                                                                                                                                
MR. DOOLITTLE highlighted that local  communities can elect to do                                                               
this.  He expressed hope that  a balance has been found, although                                                               
he  acknowledged that  he is  challenged to  find the  right cost                                                               
point.                                                                                                                          
                                                                                                                                
Number 0071                                                                                                                     
                                                                                                                                
REPRESENTATIVE   KOTT   asked  whether   the   telecommunications                                                               
industry needs a  statutory fix for this issue or  whether it can                                                               
solicit  the  increase  from  the  RCA  in  order  to  cover  the                                                               
technology costs.                                                                                                               
                                                                                                                                
MR. DOOLITTLE  related his  understanding that  wireless carriers                                                               
have authority,  through the FCC,  for cost recovery  of wireless                                                               
Phase I and  II.  The quandary  is that if [the  state] is silent                                                               
with regard to  that cost recovery, then it's likely  that a line                                                               
item  will be  added to  the bill  for a  wireless Phase  II cost                                                               
recovery and  the money  will be kept  to offset  the investments                                                               
and  recurring  costs.    Therefore,   the  reason  to  pass  the                                                               
legislation   and  have   the  money   pass  through   the  local                                                               
jurisdiction   is  to   provide  some   accountability  for   the                                                               
performance  of the  911 system.   Mr.  Doolittle specified  that                                                               
it's not necessarily saying the  dollars would change or that the                                                               
carriers would  receive less  money, but there  is the  desire to                                                               
have  that  dialogue  at  the  local level  with  regard  to  how                                                               
wireless  911 works.    Therefore, Mr.  Doolittle  said that  the                                                               
wireless carriers will receive cost recovery one way or another.                                                                
                                                                                                                                
MR.  DOOLITTLE informed  the committee  that  NENA meetings  have                                                               
included much  debate with the local  exchange carriers regarding                                                               
what it  means for the RCA  vis-à-vis the wireless carriers.   It                                                               
has been  suggested that there  is a desire  for the RCA  to have                                                               
some jurisdiction  over wireless  carriers.  However,  that seems                                                               
not to be  allowed under federal statutes and  it's certainly not                                                               
the intent with this legislation.                                                                                               
                                                                                                                                
Number 0289                                                                                                                     
                                                                                                                                
REPRESENTATIVE WOLF surmised that  the $2.00 surcharge will raise                                                               
governmental expenses,  however this  legislation doesn't  have a                                                               
referral to  the House  Finance Committee.   Therefore,  he asked                                                               
whether this legislation will require a fiscal note.                                                                            
                                                                                                                                
REPRESENTATIVE   KOTT  stated   that  whether   the  governmental                                                               
entities, especially the state, pays  the current fee needs to be                                                               
addressed.  If the governmental  entities do pay the current fee,                                                               
then  there  should be  a  fiscal  note,  which would  require  a                                                               
referral  to the  House Finance  Committee.   Representative Kott                                                               
submitted that the  state would be the largest user  and thus pay                                                               
the largest fee.                                                                                                                
                                                                                                                                
MR. JOHNSON  recalled that the original  legislation [regarding a                                                               
911 surcharge] included a provision  for organizations with large                                                               
numbers [of  lines].  At the  very least he recalled  there being                                                               
discussion on the matter.                                                                                                       
                                                                                                                                
CHAIR MORGAN  announced that  due to  the numerous  questions, HB
499 would be held over.   He also announced that public testimony                                                               
would be closed.  [Later in the  hearing HB 499 was assigned to a                                                               
subcommittee  consisting  of   Representative  Wolf,  chair,  and                                                               
Representatives Kott and Cissna.]                                                                                               
                                                                                                                                
[HB 499 was held over and assigned to subcommittee.]                                                                            
                                                                                                                                
HB 461-EMERGENCY SERVICES DISPATCH/911 SURCHARGE                                                                              
                                                                                                                                
CHAIR MORGAN announced that the  final order of business would be                                                               
HOUSE BILL NO.  461, "An Act relating to  enhanced 911 surcharges                                                               
and  to emergency  services dispatch  systems of  municipalities,                                                               
certain   villages,  and   public  corporations   established  by                                                               
municipalities."                                                                                                                
                                                                                                                                
Number 0555                                                                                                                     
                                                                                                                                
MATTHEW  RUDIG, Staff  to Representative  Jim Holm,  Alaska State                                                               
Legislature,  spoke on  behalf of  the sponsor  of HB  461.   Mr.                                                               
Rudig provided the following testimony:                                                                                         
                                                                                                                                
     Essentially,   HB   461  gives   municipalities   local                                                                    
     control.      We   are   changing   statute   to   give                                                                    
     municipalities  the   ability  to   increase  emergency                                                                    
     dispatch surcharges for the users  of the service.  ...                                                                    
     "Enhanced 911"  ... is a  relatively new  innovation in                                                                    
     rescue  technology.     It  can  pinpoint   the  visual                                                                    
     location and  phone number of  a caller so an  EMT unit                                                                    
     can know  the exact  location and  the phone  number of                                                                    
     the emergency and  ... act more rapidly ....   There is                                                                    
     little  debate as  to the  merits of  this service  ...                                                                    
     it's a  good program.  Municipalities  have established                                                                    
     this system  all over  the country ....   The  State of                                                                    
     Alaska  recognized the  importance  of this  technology                                                                    
     when the  legislature ... amended  statute in  2001 ...                                                                    
     and added ... enhanced 911 to the existing statute.                                                                        
                                                                                                                                
     Currently, a  municipality in  statute may  only charge                                                                    
     75  cents per  month,  per  line for  the  system.   By                                                                    
     adopting  this legislation  in House  Bill 461,  we are                                                                    
     giving municipalities the ability  to recover the costs                                                                    
     of the operations  of enhanced 911.  This  bill has ...                                                                    
     two  provisions  regarding  that  point.    First,  the                                                                    
     initial  charge  that  a  municipality  may  charge  is                                                                    
     raised from  75 cents to  85 cents per month,  per line                                                                    
     for the  overall system.   Second,  municipalities will                                                                    
     have  the capability  to impose  a surcharge  of up  to                                                                    
     $2.15  for the  specific use  of funding  operations of                                                                    
     the enhanced 911  system.  This surcharge  will be used                                                                    
     for  the  dispatch of  the  system.    Now this  is  an                                                                    
     important distinction.  So, I  want to make this clear.                                                                    
     We  have a  system in  place, the  building, [and]  the                                                                    
     technology.   However, we have no  mechanism in statute                                                                    
     to  specifically allow  municipalities  to recover  the                                                                    
     costs   of   the   direct   operations.      Therefore,                                                                    
     municipalities   are  forced   to  shift   that  burden                                                                    
     directly to the property tax owners ....                                                                                   
                                                                                                                                
     Now, this bill also  adds another important distinction                                                                    
     to existing  statute.   If you  look on  page 3  of the                                                                    
     bill, lines  18-20, it states:   "The  municipality may                                                                    
     only use the emergency  services dispatch surcharge for                                                                    
     the  actual   labor  and  equipment  used   to  provide                                                                    
     emergency services  dispatch."   While the  amount they                                                                    
     may charge  is up to  $2.15 per month for  the service,                                                                    
     the city or borough cannot  charge more than the actual                                                                    
     cost  for  equipment,  labor, and  service  as  I  just                                                                    
     described.   The  city cannot  use the  funds from  the                                                                    
     surcharge in  any other  manner.   They have  to review                                                                    
     their costs  annually and  then they  cannot overcharge                                                                    
     the phone  users.  The  statute serves as  an automatic                                                                    
     check on the municipality.                                                                                                 
                                                                                                                                
     Yes, people's  phone bills could  increase due  to this                                                                    
     surcharge.   But  it  is solely  to  recover the  costs                                                                    
     associated  of  a  working  system  already  in  place.                                                                    
     Currently  the  statute  does  not  account  for  this.                                                                    
     Cities and  boroughs are using property  tax dollars to                                                                    
     recover the  costs.  In  essence, not all of  the users                                                                    
     are  paying for  their  service.   So essentially,  ...                                                                    
     this bill is the  legislature giving municipalities the                                                                    
     ability  to recover  costs  of  a working,  operational                                                                    
     system.     Nothing  in  this  bill   states  that  the                                                                    
     municipality  has to  impose this  surcharge.   That is                                                                    
     for the  municipality operating  the system  to decide.                                                                    
     The legislature  is just providing them  with a vehicle                                                                    
     to do so.   And I urge this committee  to consider this                                                                    
     bill because  it is clearly  an important step  to help                                                                    
     municipalities   around  the   state  deal   with  this                                                                    
     problem.     The   legislature  is   not  only   giving                                                                    
     municipalities  the   ability  for  local   relief  but                                                                    
     they're  also  providing  Alaskans with  further  local                                                                    
     control at the lowest level.                                                                                               
                                                                                                                                
Number 0920                                                                                                                     
                                                                                                                                
REPRESENTATIVE SAMUELS  inquired as  to how much  money Anchorage                                                               
would collect from this.                                                                                                        
                                                                                                                                
MR. RUDIG answered that he didn't know.                                                                                         
                                                                                                                                
REPRESENTATIVE  SAMUELS indicated  that  shifting  the charge  to                                                               
phone users  sort of skirts  tax cap issues.   He opined  that by                                                               
paying  through  the property  tax,  everyone  is paying  because                                                               
individuals either  own their home or  rent a home for  which the                                                               
property tax is  incorporated.  He surmised that  by allowing the                                                               
phone  company to  collect this  through a  charge rather  than a                                                               
tax, general  fund dollars can be  saved or spent elsewhere.   He                                                               
inquired as to how much money this would be in Anchorage.                                                                       
                                                                                                                                
MR. RUDIG pointed  out that the property tax payer  is paying for                                                               
the  emergency dispatch  and operations  in a  state building  or                                                               
federal building with  multiple lines.  Mr.  Rudig suggested that                                                               
there  are  42,000 lines  in  Fairbanks  and another  46,000  who                                                               
aren't  paying  for  the   [emergency  dispatch  and  operations]                                                               
service.  He  stressed that the municipalities are  given a check                                                               
and they  have to be  accountable for the surcharge.   Therefore,                                                               
this legislation shifts the burden to the municipalities.                                                                       
                                                                                                                                
Number 1102                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT  inquired as to  the problem with  allowing a                                                               
local government to assess its  costs through property taxes.  He                                                               
indicated that  those individuals with multiple  lines would fare                                                               
better with the  property tax covering the cost  because it would                                                               
be spread across the board, which would be more equitable.                                                                      
                                                                                                                                
MR. RUDIG  opined that [HB 461]  makes it a more  user-based fee.                                                               
He  pointed  out  that  this  legislation  provides  a  municipal                                                               
option.                                                                                                                         
                                                                                                                                
Number 1233                                                                                                                     
                                                                                                                                
STEVE THOMPSON, Mayor,  City of Fairbanks, testified  in favor of                                                               
HB  461, as  it's  broad-based legislation  that  covers what  is                                                               
necessary  in most  communities  in the  state.   Mayor  Thompson                                                               
pointed out that most communities  have tax caps or revenue caps.                                                               
With  revenue  sharing  dwindling,  the increase  in  the  Public                                                               
Employees'  Retirement   System  (PERS)  contribution,   and  the                                                               
increase in  the federal match  for the federal  highway dollars,                                                               
Fairbanks experienced a 10 percent  reduction in revenues.  There                                                               
is no way to recover that money  due to the tax and revenue caps.                                                               
Therefore, the  City of  Fairbanks has  experienced a  10 percent                                                               
reduction in general  fund dollars available to  run the dispatch                                                               
center and  other operations.   Mayor Thompson  expressed concern                                                               
that  a   911-dispatch  center  may  not   be  properly  staffed.                                                               
Furthermore,  whenever  there is  a  reduction  in revenues,  the                                                               
first  thing  to  be  reduced  is  training.    This  legislation                                                               
provides  a user  fee in  order to  ensure that  the 911-dispatch                                                               
center  is  properly  manned  with   individuals  who  have  been                                                               
properly trained.  He opined  that people wouldn't balk at paying                                                               
for this service to be available.                                                                                               
                                                                                                                                
MAYOR  THOMPSON turned  attention  to AS  29.35.131(b), which  in                                                               
part read:   "A customer  that has  more than 100  local exchange                                                               
access  lines from  a  local exchange  telephone  company in  the                                                               
municipality is  liable for  the enhanced  911 surcharge  only on                                                               
100 local  exchange access  lines."   Therefore, a  large company                                                               
would have  a maximum as  far as  its liability.   Mayor Thompson                                                               
opined  that  this legislation  doesn't  pose  an undue  cost  to                                                               
businesses to  upgrade the phone  system if there is  an exchange                                                               
in the  building that  doesn't specify  the location  [within the                                                               
building].   By  attrition,  the aforementioned  will happen,  he                                                               
predicted.   Mayor  Thompson noted  that [Fairbanks]  is Phase  1                                                               
compliant with all of the hard  lines and work is continuing with                                                               
the local  companies and the  others with regard to  the enhanced                                                               
wireless   911    service.      However,   to    accomplish   the                                                               
aforementioned, everyone  will have to purchase  cell telephones.                                                               
He estimated  that it  will take about  five years  to accomplish                                                               
the  enhanced wireless  911 service.   This  legislation provides                                                               
funds so that  all of the aforementioned can occur  over a period                                                               
of  time while  relieving  communities  that provide  life-saving                                                               
service.                                                                                                                        
                                                                                                                                
Number 1502                                                                                                                     
                                                                                                                                
REPRESENTATIVE KOTT surmised then that  there is an exception for                                                               
local governments  because local  governments won't pay  any more                                                               
than 100  lines, although there  may be 3,000 lines  in different                                                               
locations.                                                                                                                      
                                                                                                                                
MAYOR THOMPSON  pointed out that  [the 100 line exception]  is in                                                               
existing statute, AS 29.35.131(b).                                                                                              
                                                                                                                                
Number 1556                                                                                                                     
                                                                                                                                
KEVIN  RITCHIE,  Executive   Director,  Alaska  Municipal  League                                                               
(AML),  commented that  it's  exciting to  make  Alaska a  better                                                               
place.   The key issue is  revenue for the dispatch  centers.  In                                                               
the last  six years, the total  amount of revenue for  both sales                                                               
and property taxes has increased  29 percent.  The aforementioned                                                               
is  very  significant  and illustrates  that  municipalities  are                                                               
paying their own  way.  Spending hasn't increased  to that amount                                                               
because the amount  that taxes have increased is  fairly close to                                                               
the cuts in  revenue sharing and other  cuts [municipalities have                                                               
faced].    With  the  revenue  caps in  place,  there  isn't  the                                                               
flexibility to go higher.  Mr.  Ritchie pointed out that there is                                                               
the possibility of having a better  system, but there is the lack                                                               
of available  revenue to [achieve  a better system]  and property                                                               
taxes may  not be the  best way [to  raise funds for  an enhanced                                                               
911 system].   Mr. Ritchie emphasized that  taxes, surcharges, or                                                               
fees are just as difficult to raise  on the local level as on the                                                               
state level.   Therefore, it requires a great selling  job to get                                                               
the  public  on  board.    This  legislation  merely  allows  the                                                               
possibility of a municipality making  some increases in a process                                                               
that allows  everyone in  the community  to offer  their opinion.                                                               
This [legislation]  merely authorizes  the municipality  to raise                                                               
rates and go to  the maximum, if it can be  sold to the taxpayers                                                               
at the local level.                                                                                                             
                                                                                                                                
Number 1721                                                                                                                     
                                                                                                                                
REPRESENTATIVE  SAMUELS related  his understanding  that AML  and                                                               
the  Conference  of  Mayors  supports  both HB  461  and  HB  499                                                               
separately.   Therefore,  he surmised  that AML  supports raising                                                               
every telephone line in the state by $5 per month.                                                                              
                                                                                                                                
MR.  RITCHIE clarified  that  AML and  the  Conference of  Mayors                                                               
supports the concepts of both  pieces of legislation, but work is                                                               
necessary  to  ensure that  they  make  sense.   He  related  his                                                               
understanding that  the two concepts  presented in HB 461  and HB
499 would  be merged.  He  pointed out that HB  461 anticipates a                                                               
maximum  of $3  per  line  per month  and  HB  499 anticipates  a                                                               
maximum of  $2, and  therefore he  surmised that  it would  be no                                                               
more than $3.                                                                                                                   
                                                                                                                                
REPRESENTATIVE  SAMUELS  said  that isn't  what  the  legislation                                                               
says,  and  related  his  understanding   that  [both  pieces  of                                                               
legislation] have a total fee of up to $5 per line per month.                                                                   
                                                                                                                                
REPRESENTATIVE  KOTT inquired  as to  why local  governments with                                                               
100  lines or  more should  be given  a break  at the  expense of                                                               
constituents  or small  businesses that  may have  10 lines  in a                                                               
central location.   He said he  understood that this is  an issue                                                               
of revenue.                                                                                                                     
                                                                                                                                
MR.  RITCHIE pointed  out that  HB 499  would eliminate  the [100                                                               
lines or more  exemption] language while HB 461  leaves it alone.                                                               
From  a  municipal  level  it  probably doesn't  make  a  lot  of                                                               
difference because  the money is being  collected from "yourself"                                                               
to pay "yourself."  Therefore,  it's basically a wash because the                                                               
expense of running the 911  center is there regardless.  Although                                                               
this isn't  problematic at  the municipal level,  it could  be at                                                               
the state level.                                                                                                                
                                                                                                                                
REPRESENTATIVE  KOTT  opined  that  if the  [100  lines  or  more                                                               
exemption]  language  was  eliminated   and  specified  that  the                                                               
surcharge will be based on the  number of lines one has, then the                                                               
surcharge per line would be less.                                                                                               
                                                                                                                                
MR. RITCHIE  commented that Representative Kott's  argument seems                                                               
reasonable.                                                                                                                     
                                                                                                                                
Number 1965                                                                                                                     
                                                                                                                                
REPRESENTATIVE CISSNA  surmised that both  HB 461 and HB  499 are                                                               
aimed  at  municipalities,  which  see a  need  but  it  requires                                                               
revenue to  provide that need.   She inquired as to  why there is                                                               
[a maximum] limit  at all, and questioned  why something couldn't                                                               
be  constructed  to   give  the  total  decision   to  the  local                                                               
government.                                                                                                                     
                                                                                                                                
Number 2042                                                                                                                     
                                                                                                                                
REPRESENTATIVE JIM HOLM, Alaska  State Legislature, sponsor of HB
461,  related his  understanding that  there has  never been  any                                                               
discussion regarding  not having any  control at all  with regard                                                               
to  the  amount of  the  fee.   He  explained  that  when he  was                                                               
presented with the  legislation the [rate] was set  at $1.45, and                                                               
therefore  he   questioned  what  would  occur   in  the  future.                                                               
Representative Holm acknowledged that  it may well be appropriate                                                               
that  perhaps an  upper limit  shouldn't be  set because  at some                                                               
point the  locals will have  to address  it anyway.   However, he                                                               
noted  that  he wasn't  sure  how  the Regulatory  Commission  of                                                               
Alaska (RCA)  or another rate  controller would "play  into" this                                                               
legislation.   Representative  Holm deferred  to Mayor  Thompson,                                                               
who instigated the introduction of the legislation.                                                                             
                                                                                                                                
REPRESENTATIVE SAMUELS reiterated  his earlier question regarding                                                               
whether these pieces of legislation  are being viewed as mutually                                                               
exclusive.                                                                                                                      
                                                                                                                                
REPRESENTATIVE  HOLM explained  that both  pieces of  legislation                                                               
originated  independent  of  each  other.    Representative  Holm                                                               
related  his understanding  from  Mayor Thompson  that since  the                                                               
language  is   considerably  different  in  the   two  pieces  of                                                               
legislation,  a  marriage of  the  two  would be  difficult,  and                                                               
therefore the  two pieces of  legislation should  probably stand-                                                               
alone.   However, Representative  Holm said he  wasn't entrenched                                                               
in that  thinking.   With regard  to the  upper limit,  he opined                                                               
that the local  issue is with regard to whether  to use the upper                                                               
limit.    He   noted  that  he  suspected  that   there  will  be                                                               
differences  in the  cost  of these  services  across the  state.                                                               
Therefore, as  a statewide policy,  it may be  best not to  set a                                                               
limit at all.                                                                                                                   
                                                                                                                                
Number 2264                                                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT reiterated  his  earlier question  regarding                                                               
whether it's fair  to offer municipalities an  exemption from the                                                               
surcharge once  there are 100  lines at the expense  of residents                                                               
that  may  have  four  or  five  lines  at  one  residence.    He                                                               
questioned whether  the exemption  should be eliminated  in order                                                               
to spread  the costs  throughout the  users, and  therefore lower                                                               
the cost per line.                                                                                                              
                                                                                                                                
REPRESENTATIVE  HOLM said  he would  suggest that  Representative                                                               
Kott is probably  correct.  However, he pointed out  that in many                                                               
cases [those entities  being exempted because of  having over 100                                                               
lines]  include  hospitals  and universities.    The  chances  of                                                               
someone using 911  would be much greater  with individual service                                                               
as  opposed  to  large  businesses  or  government  agencies,  he                                                               
opined.   For example, [large businesses  or government agencies]                                                               
are open  7.5 to  8 hours a  day and the  phones aren't  used the                                                               
other portion of  the day.  However, a  residential phone carries                                                               
a greater possibility of using the 911 service.                                                                                 
                                                                                                                                
REPRESENTATIVE  KOTT  informed the  committee  that  he has  four                                                               
lines at  the same location,  within 20 feet  of each other.   To                                                               
place  a surcharge  on each  of the  aforementioned lines,  while                                                               
exempting  [entities  after reaching  100  lines]  is unfair,  he                                                               
opined.                                                                                                                         
                                                                                                                                
REPRESENTATIVE HOLM  indicated his agreement  with Representative                                                               
Kott.   Representative Holm mentioned  his belief that  those who                                                               
demand services should pay for the  service if possible.  In this                                                               
particular case, it's  a small cost per month for  a service that                                                               
has  huge  benefits.    He  expressed  his  desire  to  have  the                                                               
opportunity to recover those costs.                                                                                             
                                                                                                                                
Number 2560                                                                                                                     
                                                                                                                                
ED  OBERTS,  Mayor's  Assistant,   Office  of  the  Mayor,  Kenai                                                               
Peninsula  Borough, noted  his appreciation  for the  legislature                                                               
taking the time  to review this important issue.   One of the key                                                               
issues to keep  in mind is the accuracy of  the 911 databases, he                                                               
said.    Any  assistance  from   the  state  is  appreciated,  he                                                               
remarked.                                                                                                                       
                                                                                                                                
Number 2576                                                                                                                     
                                                                                                                                
MARK  JOHNSON,  Chief,  Community   Health  &  Emergency  Medical                                                               
Services,  Division of  Public Health,  Department of  Health and                                                               
Social   Services  (DHSS),   reiterated  that   the  [department]                                                               
supports  the concepts  of both  HB 461  and HB  499 because  the                                                               
department wants  to see  improved service.   With regard  to the                                                               
earlier mention  of the telephone companies  collecting the fees,                                                               
the telephone companies would have  to upgrade their equipment as                                                               
would the municipal/local dispatch centers.                                                                                     
                                                                                                                                
REPRESENTATIVE  KOTT announced  that  now that  he  has a  better                                                               
understanding of HB  461 and the costs associated  with it, there                                                               
would be some fiscal impact.   Therefore, a fiscal note will have                                                               
to be acquired.                                                                                                                 
                                                                                                                                
Number 2635                                                                                                                     
                                                                                                                                
CHAIR  MORGAN commented  that since  both  pieces of  legislation                                                               
have raised considerable  questions, both HB 499 and  HB 461 will                                                               
be assigned  to a subcommittee comprised  of Representative Wolf,                                                               
chair, and Representatives Kott and Cissna.                                                                                     
                                                                                                                                
ADJOURNMENT                                                                                                                   
                                                                                                                                
There being no  further business before the  committee, the House                                                               
Community  and Regional  Affairs Standing  Committee meeting  was                                                               
adjourned at 10:22 a.m.                                                                                                         

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