Legislature(2001 - 2002)
04/27/2001 01:45 PM Senate CRA
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* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
HB 186-911 SURCHARGE ON WIRELESS TELEPHONES
Representative Kevin Meyer, bill sponsor, testified that HB 186
allows municipalities to impose the same surcharge on wireless
phones as is currently charged on hard line phones in order to help
pay for enhanced 911 services. Wireless or cell phones comprise
about 25 percent of the 911 calls made today and the number is
rising. The enhanced 911 system provides a visual location and
telephone number of the individual making the 911 call. This is
particularly helpful for those individuals who are not able to
articulate that information.
It provides the technology, equipment and staffing necessary for
fast response time and automatic routing to the appropriate
emergency response unit.
With wire line phones, Anchorage is currently able to impose an E
911 surcharge of up to 50 cents while all other communities may
impose up to a 75 cent monthly charge. This was made possible by an
enabling state statute passed in 1994 that covered wire line phones
only.
The enhanced 911 surcharge is not unique to Alaska; in fact, many
Lower 48 cities have surcharges far in excess of those in Alaska.
It is needed to help cover the cost for cities to purchase and
maintain equipment and technology to provide adequate emergency
services.
This is a priority for Anchorage, Fairbanks and Kenai all of which
are anxious to implement enhanced 911 service for wireless phones
this summer or fall. The wireless carriers AT&T, ACS and GCI have
all been very supportive.
He called attention to the letters of support in committee packets.
Senator Lincoln joined the meeting.
SENATOR AUSTERMAN asked how many wireless phones would be assessed
the enhanced fee so he could get an idea of what is currently going
on and what the increase would be. He also wanted to know what the
total increase has been for 911 calls if 25 percent of those calls
are now coming from cell phones. Are there fewer calls coming from
wire line phones with the increase in cell phone use? Originally,
the enabling state statue passed in 1994 was for wire line phones.
He wondered whether the 50 and 75 cent surcharges were still
realistic due to the volume of phones and subscribers.
REPRESENTATIVE MEYERS said that was a good question and Mr. Rogers
with the Municipality of Anchorage would be able to answer that
question. He surmised the original statute was designed to purchase
equipment and technology and the support staff to maintain it. With
the wireless, new equipment would need to be purchased so the
surcharge would go toward those purchases.
DAN YOUMANS testified via teleconference as an AT&T wireless
representative in support of HB 186. The combination of cell phones
and 911 network has created a new and vital communication system
for AT&T customers.
They support a reasonable and equitable surcharge on the customers
to help defer the cost of 911 services. With this in mind, they
support a 50 cent maximum surcharge for all municipalities. The
technology and services for cell phones is very different from wire
line phones so they feel the charge should be the same for all
areas. Since cell phones are mobile and 911 calls could be made
from any location, all wireless customers should pay the same
amount.
Cost recovery would only apply when municipalities are in a
position to offer new, enhanced 911 services for wireless phones.
In the future, 911 operators will be able to receive the phone
number of the wireless caller the location of the cell site that is
connecting the call and eventually, the approximate location of the
caller. Since the new technologies benefit the general public, they
feel that wireless carriers should have some mechanism for
recovering their costs. HB 186 says they would be able to recover
those costs as specified by the Federal Communication Commission
(FCC). The legislation cites the FCC order on this issue.
CHAIRMAN TORGERSON asked, "Your testimony is that the 50 cents is
just to pay for the hardware?"
MR. YOUMANS said the 50 cents would pay for needed upgrades and the
general cost of serving people who are calling 911 on their cell
phones. When new technology and upgrades are needed at the 911
operator level and by the carriers, they have the need to recover
those upgrade costs.
SENATOR AUSTERMAN said the bill allows municipalities to assess the
surcharge so they may have the enhanced 911 service. He asked
whether he heard correctly that they expected to recover their
costs for service and what service was that?
MR. YOUMANS said there are two phases of the new services as
defined by the FCC. The first phase allows the 911 operator to
receive the phone number of the wireless phone caller. It also
allows the wireless operators to receive the location of the cell
site that is connecting the call. The second phase will give the
approximate location of the caller, which is a vital safety tool
for the operator.
SENATOR AUSTERMAN asked Mr. Youmans to call his office at (907)
465-2487 so he could have a one to one conversation.
DOUGLAS ROBINSON with the Municipality of Anchorage testified via
teleconference that he would be providing statistics, some of which
applies to the State of Alaska.
There are currently 30 states with legislation authorizing the
collection of wireless 911 surcharges. The charges vary from 35
cents to $2.00 and that revenue is used to assist financing
equipment, software upgrades for the E 911 public safety answering
points.
Specific uses for the revenues could be:
· For modifying the existing P-SAP software so the wireless X,Y
coordinate location data provided by the wireless carriers can
be displayed and tracked by 911 call takers
· Purchase required data interfaces for P-SAP computer aided
dispatch system of larger P-SAPs such as in Anchorage and
Fairbanks
· Network upgrades between the 911 system and the local exchange
carrier
The surcharge is strongly endorsed by the Association of Public
Safety Communication Officers (APSCO), National Emergency Number
Association (NENA). APSCO has recommended Anchorage as a model city
for phase 2 wireless 911 implementation.
THERESA HILLHOUSE, Anchorage Municipal Attorney's Office, was
available for questions.
MARK MEW, Deputy Chief of the Anchorage Police Department,
testified that about 250,000 calls per year come through their
dispatch center and a large portion of those come through the E 911
system.
The system was sized for wire line service. Cell phone use has
proliferated and a study conducted four years ago determined that
25 percent of the calls were coming in via cell phone. He believes
they are now approaching 50 percent. Due to the large number of
cell phone users, a single event will trigger multiple calls.
Wire line users are paying for the 911 service while cell phone
users are not.
SENATOR LINCOLN asked how many lines are designated for the E-911
lines and how many would be added if the surcharge is instituted
and is the 50 cent surcharge sufficient.
MR. MEW thought the number is eight trunks. About 50 calls will jam
the dispatch center and it's not unusual to receive that many calls
at once. A consultant would need to determine the number of
additional lines to put in. The 50 cent charge does not cover costs
now; it merely helps to offset the charges. He anticipates the cell
phone surcharge will help but not cover costs completely.
Currently, the surcharge covers about half the costs and he does
not know the percentage the cell surcharge would cover.
STEVE O'CONNOR testified via teleconference as the Kenai Peninsula
911 Advisory Committee Chairman. They have had an enhanced 911
system since the early 1990s. Since that time cell phone call
volume has increased from 5 percent to about 50 percent. They are
dealing with the same difficulties as Anchorage with multiple calls
for a single incident causing a 911 overload. They currently
collect 75 cents per line per month for wire line and recommend the
same fees for wireless phones. Fees offset the costs of operation
but don't cover them. The borough is budgeting $350,000 to $400,000
for Phase 1 and they view the 75 cent surcharge as important. Local
government is in the best position to decide what the fee should
be.
TIM ROGERS, Legislative Program Coordinator for the Municipality of
Anchorage, thought he could answer some of Senator Austerman's
questions. Recently, the Anchorage voters approved a bond issue for
$1.5 million to pay for necessary cellular upgrades for the E-911
service. That will cover consultants, hardware and software that
will be needed but not operational costs. The current surcharge
pays for roughly 40 percent of total operating costs and nothing
toward capital costs.
There are estimated to be 200,000 cell phones in Alaska.
SENATOR AUSTERMAN asked how the 200,000 relates to volume.
MR. ROGERS did not know but currently the annual surcharge
collected in Anchorage is around $1 million so an answer could be
figured mathematically.
MARK JOHNSON, Chief of Emergency Medical Services for the
Department of Health & Social Services, said there might be too
many calls coming in from urban areas but calls from outside an
urban area from a caller who does not know their location is
difficult, time consuming and potentially life threatening.
The rationale for the difference in fees is that smaller
communities have fewer phones to collect fees from so a higher
surcharge is necessary. If the fee is only 50 cents then some small
communities may not be able to afford the upgrades.
SENATOR LINCOLN asked for an explanation of 911 available referred
to in his letter.
MR. JOHNSON said there are many Alaskan communities with basic 911
service but there is no information available on who is calling and
from where. The enhanced feature provides the telephone number of
the caller and the location.
SENATOR LINCOLN asked if the list provided was for wire line or
wireless.
MR. JOHNSON said the list provided was for wire line.
SENATOR LINCOLN said fourteen communities that are listed as having
911 capabilities and she sincerely doubts that they have that the
ability to dial 911. She named Red Devil and Crooked Creek as
examples.
MR. JOHNSON said she might be correct. The data was lifted from a
recent McDowell Group study.
SENATOR AUSTERMAN asked for assurance that the option to charge a
75 cent surcharge was currently in the bill.
CHAIRMAN TORGERSON said it mirrored the wire line surcharges.
SENATOR PHILLIPS moved HB 186 and zero fiscal note from committee
with individual recommendations. There was no objection.
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