Legislature(2001 - 2002)

04/27/2001 01:45 PM Senate CRA

Audio Topic
* first hearing in first committee of referral
+ 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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