AB 300 – Pre-Paid Telephone Surcharge Passes Assembly Conference Committee


AB 300 – The bill that will impose a surcharge on pre-paid cell phones and go for funding 9-1-1 passed the State Assembly Conference Committee today. APCO and California Fire Chiefs Association held a 30 minute conference call with Jonathan Arambel, Assembly Member Perea’s staffer, on the morning of September 11, 2013, to discuss concerns about how the funds collected would be used.

On the call was Jonathan Arambel , Ralph Heim – PPA, Don Wise – Cal Chiefs Southern Division, Leslie Wilson – Cal Chiefs Southern Division, Jim Acosta and Chuck Berdan – APCO.

Mr. Arambel started off by saying that the goal of the bill was to increase the 9-1-1 fund. He believed that the opponents to the bill did not have their facts straight related to any potential deficits. He questioned the apparently inflated operational costs by the Board of Equalization (BoE), stating that they appeared to be several times the cost of similar programs in states that have already implemented the same surcharge.

Mr. Arambel explained that this proposed surcharge is based on the retail cost of the pre-paid phone, data plan, minutes, and anything else that is added at the point of sale (PoS), as opposed to the other way of the carrier only charging for the wholesale cost of voice minutes. He reported that Pennsylvania showed a 40% increase in their fund, and Maine showed a 300% increase.

Regarding the sunsetting of the law, Mr. Arambel explained that this is a legal way to make sure that the legislation is doing what it is supposed to do – create revenue for the 9-1-1 fund. If it is working, then a new bill would be introduced to continue the surcharge. If it isn’t working, then through the legislature it could be fixed or it would die a natural death.

Mr. Arambel also admitted that this bill does nothing for Next Generation 9-1-1 – it is simply an attempt to add to the existing 9-1-1 fund.

The final question we placed was about the creation of a new account to put these monies. Mr. Arambel wasn’t sure where this new fund would reside, but felt it would be a part of the SETNA. He has offered to set up a meeting in Sacramento and bring representatives from BoE, PUC, and others to explain how the whole thing will work (if passed this week and signed by the Governor).

I think we have a better understanding of the bill, and time will tell how well this will work.

Thanks!
Chuck Berdan, Dispatch Manager
Alameda County Regional Emergency Communications Center