HOUSE BILL No. 5468

 

March 13, 2012, Introduced by Reps. Nesbitt, Horn, Price and Roy Schmidt and referred to the Committee on Energy and Technology.

 

     A bill to amend 1986 PA 32, entitled

 

"Emergency 9-1-1 service enabling act,"

 

by amending sections 102, 401a, 401b, 401c, and 401d (MCL 484.1102,

 

484.1401a, 484.1401b, 484.1401c, and 484.1401d), section 102 as

 

amended and sections 401c and 401d as added by 2007 PA 164 and

 

sections 401a and 401b as amended by 2008 PA 379.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 102. As used in this act:

 

     (a) "Automatic location identification" or "ALI" means a 9-1-1

 

service feature provided by the service supplier that automatically

 

provides the name and service address or, for a CMRS service

 

supplier, the location associated with the calling party's

 

telephone number as identified by automatic number identification

 

to a 9-1-1 public safety answering point.

 

     (b) "Automatic number identification" or "ANI" means a 9-1-1


 

service feature provided by the service supplier that automatically

 

provides the calling party's telephone number to a 9-1-1 public

 

safety answering point.

 

     (c) "Commercial mobile radio service" or "CMRS" means

 

commercial mobile radio service regulated under section 3 of title

 

I and section 332 of title III of the communications act of 1934,

 

chapter 652, 48 Stat. 1064, 47 USC 153 and 332, and the rules of

 

the federal communications commission or provided under the

 

wireless emergency service order. Commercial mobile radio service

 

or CMRS includes all of the following:

 

     (i) A wireless 2-way communication device, including a radio

 

telephone used in cellular telephone service or personal

 

communication service.

 

     (ii) A functional equivalent of a radio telephone

 

communications line used in cellular telephone service or personal

 

communication service.

 

     (iii) A network radio access line.

 

     (d) "Commission" means the Michigan public service commission.

 

     (e) "Committee" means the emergency 9-1-1 service committee

 

created under section 712.

 

     (f) "Common network costs" means the costs associated with the

 

common network required to deliver a 9-1-1 call with ALI and ANI

 

from a selective router to the proper PSAP and the costs associated

 

with the 9-1-1 database and data distribution system of the primary

 

9-1-1 service supplier identified in a county 9-1-1 plan. As used

 

in this subdivision, "common network" means the elements of a

 

service supplier's network that are not exclusive to the supplier


 

or technology capable of accessing the 9-1-1 system.

 

     (g) "Communication service" means a service capable of

 

accessing, connecting with, or interfacing with a 9-1-1 system,

 

exclusively through the numerals 9-1-1, by dialing, initializing,

 

or otherwise activating the 9-1-1 system through the numerals 9-1-1

 

by means of a local telephone device, cellular telephone device,

 

wireless communication device, interconnected voice over the

 

internet device, or any other means.

 

     (h) "CMRS connection" means each number assigned to a CMRS

 

customer.

 

     (i) "Consolidated dispatch" means a countywide or regional

 

emergency dispatch service that provides dispatch service for 75%

 

or more of the law enforcement, fire fighting, emergency medical

 

service, and other emergency service agencies within the

 

geographical area of a 9-1-1 service district or serves 75% or more

 

of the population within a 9-1-1 service district.

 

     (j) "County 9-1-1 charge" means the charge allowed under

 

sections 401b , 401c, and 401e.

 

     (k) "Database service provider" means a service supplier who

 

maintains and supplies or contracts to maintain and supply an ALI

 

database or an MSAG.

 

     (l) "Direct dispatch method" means that the agency receiving

 

the 9-1-1 call at the public safety answering point decides on the

 

proper action to be taken and dispatches the appropriate available

 

public safety service unit located closest to the request for

 

public safety service.

 

     (m) "Emergency response service" or "ERS" means a public or


 

private agency that responds to events or situations that are

 

dangerous or that are considered by a member of the public to

 

threaten the public safety. An emergency response service includes

 

a police or fire department, an ambulance service, or any other

 

public or private entity trained and able to alleviate a dangerous

 

or threatening situation.

 

     (n) "Emergency service zone" or "ESZ" means the designation

 

assigned by a county to each street name and address range that

 

identifies which emergency response service is responsible for

 

responding to an exchange access facility's premises.

 

     (o) "Emergency telephone charge" means the emergency telephone

 

operational charge and emergency telephone technical charge allowed

 

under section 401.

 

     (p) "Emergency 9-1-1 district" or "9-1-1 service district"

 

means the area in which 9-1-1 service is provided or is planned to

 

be provided to service users under a 9-1-1 system implemented under

 

this act.

 

     (q) "Emergency 9-1-1 district board" means the governing body

 

created by the board of commissioners of the county or counties

 

with authority over an emergency 9-1-1 district.

 

     (r) "Emergency telephone operational charge" means a charge

 

allowed under section 401 for nonnetwork technical equipment and

 

other costs directly related to the dispatch facility and the

 

operation of 1 or more PSAPs including, but not limited to, the

 

costs of dispatch personnel and radio equipment necessary to

 

provide 2-way communication between PSAPs and a public safety

 

agency. Emergency telephone operational charge does not include


 

non-PSAP related costs such as response vehicles and other

 

personnel.

 

     (s) "Emergency telephone technical charge" means a charge as

 

allowed under section 401 or 401d for costs directly related to 9-

 

1-1 service including plant-related costs associated with the use

 

of the public switched telephone network from the end user to the

 

selective router, the network start-up costs, customer notification

 

costs, common network costs, administrative costs, database

 

management costs, and network nonrecurring and recurring

 

installation, maintenance, service, and equipment charges of a

 

service supplier providing 9-1-1 service under this act. Emergency

 

telephone technical charge does not include costs recovered under

 

sections 401b(9) 401b(10) and 408(2).

 

     (t) "Exchange access facility" means the access from a

 

particular service user's premises to the communication service.

 

Exchange access facilities include service supplier provided access

 

lines, PBX trunks, and centrex line trunk equivalents, all as

 

defined by tariffs of the service suppliers as approved by the

 

public service commission. Exchange access facilities do not

 

include telephone pay station lines or WATS, FX, or incoming only

 

lines.

 

     (u) "Final 9-1-1 service plan" means a tentative 9-1-1 service

 

plan that has been modified only to reflect necessary changes

 

resulting from any exclusions of public agencies from the 9-1-1

 

service district of the tentative 9-1-1 service plan under section

 

306 and any failure of public safety agencies to be designated as

 

PSAPs or secondary PSAPs under section 307.


 

     (v) "Master street address guide" or "MSAG" means a perpetual

 

database that contains information continuously provided by a

 

service district that defines the geographic area of the service

 

district and includes an alphabetical list of street names, the

 

range of address numbers on each street, the names of each

 

community in the service district, the emergency service zone of

 

each service user, and the primary service answering point

 

identification codes.

 

     (w) "Obligations" means bonds, notes, installment purchase

 

contracts, or lease purchase agreements to be issued by a public

 

agency under a law of this state.

 

     (x) "Person" means an individual, corporation, partnership,

 

association, governmental entity, or any other legal entity.

 

     (y) "Prepaid wireless telecommunications service" means a

 

commercial mobile radio service that allows a caller to dial 9-1-1

 

to access the 9-1-1 system and is paid for in advance and sold in

 

predetermined units or dollars of which the number declines with

 

use in a known amount.

 

     (z) (y) "Primary public safety answering point", "PSAP", or

 

"primary PSAP" means a communications facility operated or answered

 

on a 24-hour basis assigned responsibility by a public agency or

 

county to receive 9-1-1 calls and to dispatch public safety

 

response services, as appropriate, by the direct dispatch method,

 

relay method, or transfer method. It is the first point of

 

reception by a public safety agency of a 9-1-1 call and serves the

 

jurisdictions in which it is located and other participating

 

jurisdictions, if any.


 

     (aa) (z) "Prime rate" means the average predominant prime rate

 

quoted by not less than 3 commercial financial institutions as

 

determined by the department of treasury.

 

     (bb) (aa) "Private safety entity" means a nongovernmental

 

organization that provides emergency fire, ambulance, or medical

 

services.

 

     (cc) (bb) "Public agency" means a village, township, charter

 

township, or city within the state and any special purpose district

 

located in whole or in part within the state.

 

     (dd) (cc) "Public safety agency" means a functional division

 

of a public agency, county, or the state that provides fire

 

fighting, law enforcement, ambulance, medical, or other emergency

 

services.

 

     (ee) (dd) "Qualified obligations" means obligations that meet

 

1 or more of the following:

 

     (i) The proceeds of the obligations benefit the 9-1-1 district,

 

and for which all of the following conditions are met:

 

     (A) The proceeds of the obligations are used for capital

 

expenditures, costs of a reserve fund securing the obligations, and

 

costs of issuing the obligations. The proceeds of obligations shall

 

not be used for operational expenses.

 

     (B) The weighted average maturity of the obligations does not

 

exceed the useful life of the capital assets.

 

     (C) The obligations shall not in whole or in part appreciate

 

in principal amount or be sold at a discount of more than 10%.

 

     (ii) The obligations are issued to refund obligations that meet

 

the conditions described in subparagraph (i) and the net present


 

value of the principal and interest to be paid on the refunding

 

obligations, excluding the cost of issuance, will be less than the

 

net present value of the principal and interest to be paid on the

 

obligations being refunded, as calculated using a method approved

 

by the department of treasury.

 

     (ff) (ee) "Relay method" means that a PSAP notes pertinent

 

information and relays it by a communication service to the

 

appropriate public safety agency or other provider of emergency

 

services that has an available emergency service unit located

 

closest to the request for emergency service for dispatch of an

 

emergency service unit.

 

     (gg) (ff) "Secondary public safety answering point" or

 

"secondary PSAP" means a communications facility of a public safety

 

agency or private safety entity that receives 9-1-1 calls by the

 

transfer method only and generally serves as a centralized location

 

for a particular type of emergency call.

 

     (hh) (gg) "Service supplier" means a person providing a

 

communication service to a service user in this state.

 

     (ii) (hh) "Service user" means a person receiving a

 

communication service.

 

     (jj) (ii) "State 9-1-1 charge" means the charge provided for

 

under sections section 401a. and 401c.

 

     (kk) (jj) "Tariff" means the rate approved by the public

 

service commission for 9-1-1 service provided by a particular

 

service supplier. Tariff does not include a rate of a commercial

 

mobile radio service by a particular supplier.

 

     (ll) (kk) "Tentative 9-1-1 service plan" means a plan prepared


 

by 1 or more counties for implementing a 9-1-1 system in a

 

specified 9-1-1 service district.

 

     (mm) (ll) "Transfer method" means that a PSAP transfers the 9-

 

1-1 call directly to the appropriate public safety agency or other

 

provider of emergency service that has an available emergency

 

service unit located closest to the request for emergency service

 

for dispatch of an emergency service unit.

 

     (nn) (mm) "Universal emergency number service" or "9-1-1

 

service" means public communication service that provides service

 

users with the ability to reach a public safety answering point by

 

dialing the digits "9-1-1".

 

     (oo) (nn) "Universal emergency number service system" or "9-1-

 

1 system" means a system for providing 9-1-1 service under this

 

act.

 

     (pp) (oo) "Wireless emergency service order" means the order

 

of the federal communications commission, FCC docket No. 94-102,

 

adopted June 12, 1996 with an effective date of October 1, 1996.

 

     Sec. 401a. (1) Except as otherwise provided under section

 

401c, each Each service supplier within a 9-1-1 service district

 

shall bill and collect a state 9-1-1 charge from all service users,

 

except for users of a prepaid wireless telecommunications service,

 

of the service supplier within the geographical boundaries of the

 

9-1-1 service district or as otherwise provided by this section.

 

The billing and collection of the state 9-1-1 charge shall begin

 

July 1, 2008. The state 9-1-1 charge shall be uniform per each

 

service user within the 9-1-1 service district.

 

     (2) The amount of the state 9-1-1 charge payable monthly by a


 

service user shall be established as provided under subsection (4).

 

The amount of the state 9-1-1 charge shall not be more than 25

 

cents or less than 15 cents. The charge may be adjusted annually as

 

provided under subsection (4).

 

     (3) The state 9-1-1 charge shall be collected in accordance

 

with the regular billings of the service supplier. Except as

 

otherwise provided under this act, the amount collected for the

 

state 9-1-1 charge shall be remitted quarterly by the service

 

supplier to the state treasurer and deposited in the emergency 9-1-

 

1 fund created under section 407. The charge allowed under this

 

section shall be listed separately on the customer's bill or

 

payment receipt or otherwise disclosed to the consumer.

 

     (4) The initial state 9-1-1 charge shall be 19 cents and shall

 

be effective July 1, 2008. The state 9-1-1 charge shall reflect the

 

actual costs of operating, maintaining, upgrading, and other

 

reasonable and necessary expenditures for the 9-1-1 system in this

 

state. The state 9-1-1 charge may be reviewed and adjusted as

 

provided under subsection (5).

 

     (5) The commission in consultation with the committee shall

 

review and may adjust the state 9-1-1 charge under this section and

 

the distribution percentages under section 408 to be effective on

 

July 1, 2009 and July 1, 2010. Any adjustment to the charge by the

 

commission shall be made no later than May 1 of the preceding year

 

and shall be based on the committee's recommendations under section

 

412. Any adjustments to the state 9-1-1 charge or distribution

 

percentages after December 31, 2010 shall be made by the

 

legislature.


 

     (6) If a service user has multiple access points or access

 

lines, the state 9-1-1 charge will be imposed separately on each of

 

the first 10 access points or access lines and then 1 charge for

 

each 10 access points or access lines per billed account.

 

     (7) This section takes effect July 1, 2008.

 

     Sec. 401b. (1) In addition to the charge allowed under section

 

401a, after June 30, 2008 a county board of commissioners may

 

assess a county 9-1-1 charge to service users, except for users of

 

a prepaid wireless telecommunications service, located within that

 

county by 1 of the following methods:

 

     (a) Up to $0.42 per month by resolution.

 

     (b) Up to $3.00 per month with the approval of the voters in

 

the county.

 

     (c) Any combination of subdivisions (a) and (b) with a maximum

 

county 9-1-1 charge of $3.00 per month.

 

     (2) A county assessing a county 9-1-1 charge amount approved

 

in the commission's order in case number U-15489 that exceeds the

 

amounts established in subsection (1) may continue to assess the

 

amount approved by the commission. Any proposed increase to the

 

amount approved in the commission order is subject to subsection

 

(1).

 

     (3) The charge assessed under this section and section 401e

 

shall not exceed the amount necessary and reasonable to implement,

 

maintain, and operate the 9-1-1 system in the county.

 

     (4) If the voters approve the charge to be assessed on the

 

service user's monthly bill on a ballot question under this

 

section, the service provider's bill shall state the following:


 

     "This amount is for your 9-1-1 service which has been approved

 

by the voters on (DATE OF VOTER APPROVAL). This is not a charge

 

assessed by your service supplier. If you have questions concerning

 

your 9-1-1 service, you may call (INCLUDE APPROPRIATE TELEPHONE

 

NUMBER).".

 

     (5) Within 90 days after the first day of each fiscal or

 

calendar year of a county, an annual accounting shall be made of

 

the charge approved under this section.

 

     (6) Except as otherwise provided in subsection (10), the

 

county 9-1-1 charge collected under this section shall be paid

 

quarterly directly to the county and distributed by the county to

 

the primary PSAPs by 1 of the following methods:

 

     (a) As provided in the final 9-1-1 service plan.

 

     (b) If distribution is not provided for in the plan, then

 

according to any agreement for distribution between the county and

 

public agencies.

 

     (c) If distribution is not provided in the plan or by

 

agreement, then according to population within the emergency 9-1-1

 

district.

 

     (7) Subject to subsection (1), the county may adjust the

 

county 9-1-1 charge annually to be effective July 1. The county

 

shall notify the committee no later than May 15 of each year of any

 

change in the county 9-1-1 charge under this section.

 

     (8) If a county has multiple emergency response districts, the

 

county 9-1-1 charge collected under this section shall be

 

distributed under subsection (6) in proportion to the population

 

within the emergency 9-1-1 district.


 

     (9) This section shall not preclude the distribution of

 

funding to secondary PSAPs if the distribution is determined by the

 

primary PSAPs within the emergency 9-1-1 district to be the most

 

effective method for dispatching of fire or emergency medical

 

services and the distribution is approved within the final 9-1-1

 

service plan.

 

     (10) The service supplier may retain 2% of the approved county

 

9-1-1 charge to cover the supplier's costs for billings and

 

collections under this section.

 

     (11) The charge allowed under this section shall be listed

 

separately on the customer's bill or otherwise disclosed to the

 

consumer and shall state by which means the charge was approved

 

under subsection (1).

 

     (12) Information submitted by a service supplier to a county

 

under this section is exempt from the freedom of information act,

 

1976 PA 442, MCL 15.231 to 15.246, and shall not be released by the

 

county without the consent of the service supplier. Unless required

 

or permitted by statute, court rule, subpoena, or court order, or

 

except as necessary for a county, the commission, committee, or

 

public agency to pursue or defend the public's interest in any

 

public contract or litigation, a county treasurer, the commission,

 

committee, agency, or any employee or representative of a PSAP,

 

database administrator, or public agency shall not divulge any

 

information acquired with respect to customers, revenues or

 

expenses, trade secrets, access line counts, commercial

 

information, or any other proprietary information with respect to a

 

service supplier while acting or claiming to act as an employee,


 

agent, or representative. An aggregation of information that does

 

not identify or effectively identify the number of customers,

 

revenues or expenses, trade secrets, access lines, commercial

 

information, and other proprietary information attributable to a

 

specific service supplier may be made public.

 

     (13) If a service user has multiple access points or access

 

lines, the county 9-1-1 charge will be imposed separately on each

 

of the first 10 access points or access lines and then 1 charge for

 

each 10 access points or access lines per billed account.

 

     (14) A county 9-1-1 charge assessed under subsection (1) shall

 

be used only to fund costs approved as allowable in a published

 

report by the committee prior to before December 1, 2008. The

 

committee shall notify the standing committees of the senate and

 

house of representatives having jurisdiction over issues pertaining

 

to communication technology at least 90 days prior to before

 

modifying what constitutes an allowable cost under this subsection.

 

     (15) Notwithstanding any other provision of this act, the

 

county 9-1-1 charge levied under this section shall not be levied

 

after the repeal date provided in section 717. If all or a portion

 

of the county 9-1-1 charge levied under this section has been

 

pledged as security for the payment of qualified obligations, the

 

county 9-1-1 charge shall be levied and collected only to the

 

extent required to pay the qualified obligations or satisfy the

 

pledge.

 

     Sec. 401c. (1) Each CMRS supplier or reseller shall collect an

 

emergency 9-1-1 charge from each of its prepaid customers. The

 

amount of the emergency 9-1-1 charge shall be established annually


 

by the committee by combining the amounts determined under

 

subsections (2) and (3).

 

     (2) The CMRS supplier or reseller shall have a 1-time option

 

of selecting 1 of the following methods of determining the portion

 

of the emergency 9-1-1 charge that represents the state 9-1-1

 

charge amount:

 

     (a) By dividing the total earned prepaid revenue received by

 

the CMRS supplier or reseller within the monthly 9-1-1 reporting

 

period by $50.00 and then multiplying that number by the amount of

 

the state 9-1-1 charge as established under section 401a.

 

     (b) By multiplying the amount of the state 9-1-1 charge as

 

established under section 401a for each active prepaid account of

 

the CMRS supplier or reseller.

 

     (3) The committee shall review and annually establish the

 

portion of the emergency 9-1-1 charge assessed under this section

 

that represents the county 9-1-1 charge amount. The charge shall be

 

based on the weighted average of all county 9-1-1 charges imposed

 

statewide.

 

     (4) The CMRS shall deposit the amount collected under this

 

section into the emergency 9-1-1 fund to be distributed as provided

 

under section 408.

 

     (5) This section takes effect July 1, 2008.

 

     (6) As used in this section:

 

     (a) "Active prepaid accounts" means a customer who has

 

recharged or replenished his or her account at least once during

 

the billing period or calendar month and has a sufficient positive

 

balance at the end of each month equal to or greater than the


 

amount of the emergency 9-1-1 charge established under this

 

section.

 

     (b) "CMRS reseller" means a provider who purchases

 

telecommunication services from another telecommunication service

 

provider and then resells, uses a component part of, or integrates

 

the purchased services into a mobile telecommunication service.

 

     (c) "Earned prepaid revenue" means new revenue that has been

 

generated from prepaid service accounts since the close of the last

 

billing period or calendar month.

 

     (d) "Prepaid customer" means a CMRS subscriber who pays in

 

full prospectively for the service and has 1 of the following:

 

     (i) A Michigan telephone number or a Michigan identification

 

number for the service.

 

     (ii) A service for exclusive use in an automotive vehicle and

 

whose place of primary use is within this state. As used in this

 

sub-subparagraph, "place of primary use" means that phrase as

 

defined under 4 USC 124.

 

     (1) A seller shall collect a prepaid wireless 9-1-1 surcharge

 

from a consumer for each retail transaction occurring in this

 

state.

 

     (2) The amount of the prepaid wireless 9-1-1 surcharge shall

 

be 1.92% per retail transaction. The charge allowed under this

 

section shall be either separately stated on an invoice, receipt,

 

or other similar document that is provided to a consumer by the

 

seller or otherwise disclosed to the consumer.

 

     (3) Each of the following transactions shall be considered to

 

have occurred in this state:


 

     (a) A retail transaction that is effected in person by a

 

consumer at a business location of a seller located in this state.

 

     (b) A retail transaction that is treated as occurring in this

 

state as provided in section 3c of the use tax act, 1937 PA 94, MCL

 

205.93c, as that section applies to a prepaid wireless calling

 

service.

 

     (4) A prepaid wireless 9-1-1 surcharge is the liability of the

 

consumer and not of the seller or of any provider.

 

     (5) Except as otherwise provided in subsection (6), if a

 

prepaid wireless telecommunications service is sold with 1 or more

 

products or services for a single, nonitemized price, the seller

 

shall collect 1.92% on the entire nonitemized price unless the

 

seller elects to do the following:

 

     (a) If the amount of the prepaid wireless telecommunications

 

service is disclosed to the consumer as a dollar amount, apply the

 

percentage to that dollar amount.

 

     (b) If the seller can identify the portion of the price that

 

is attributable to the prepaid wireless telecommunications service

 

by reasonable and verifiable standards from its books and records

 

that are kept in the regular course of business for other purposes

 

including, but not limited to, nontax purposes, apply the

 

percentage to that portion.

 

     (6) If a minimal amount of prepaid wireless telecommunications

 

service is sold with a prepaid wireless device for a single,

 

nonitemized price, a seller may elect not to apply the percentage

 

specified in subsection (5)(a) to that transaction. As used in this

 

subsection, "minimal amount" means an amount of service denominated


 

as 10 minutes or less or $5.00.

 

     (7) A seller shall remit to the department, by an electronic

 

funds transfer method approved by the department on or before the

 

twentieth day of the month, all prepaid wireless 9-1-1 surcharges

 

collected in the previous month.

 

     (8) A seller may retain 2% of prepaid wireless 9-1-1

 

surcharges that are collected by the seller to reimburse the seller

 

for its direct costs in collecting and remitting the prepaid

 

wireless 9-1-1 surcharges.

 

     (9) The department may retain not more than 2% of remitted

 

prepaid wireless 9-1-1 surcharges to reimburse the department for

 

its direct costs in administering the collection and remittance of

 

the prepaid wireless 9-1-1 surcharge. The department shall deposit

 

the remaining funds into the emergency 9-1-1 fund created in

 

section 407.

 

     (10) A provider or seller of prepaid wireless

 

telecommunications service is not liable for damages to any person

 

resulting from or incurred in connection with the provision of, or

 

failure to provide, 9-1-1 service or for identifying or failing to

 

identify the telephone number, address, location, or name

 

associated with any person or device that is accessing or

 

attempting to access 9-1-1 service.

 

     (11) A provider or seller of prepaid wireless

 

telecommunications service is not liable for damages to any person

 

resulting from or incurred in connection with the provision of any

 

lawful assistance to any investigative or law enforcement officer

 

of the United States, this state, or any other state in connection


 

with any lawful investigation or other law enforcement activity by

 

that law enforcement officer.

 

     (12) As used in this section:

 

     (a) "Consumer" means a person who purchases prepaid wireless

 

telecommunications services in a retail transaction.

 

     (b) "Department" means the Michigan department of treasury.

 

     (c) "Prepaid wireless 9-1-1 surcharge" means the charge that

 

is required to be collected by a seller from a consumer in the

 

amount established under subsection (2).

 

     (d) "Provider" means a person that provides prepaid wireless

 

telecommunications services under a license issued by the federal

 

communications commission.

 

     (e) "Retail transaction" means the purchase of prepaid

 

wireless telecommunications service from a seller for any purpose

 

other than resale.

 

     (f) "Seller" means a person who sells prepaid wireless

 

telecommunications service to another person.

 

     Sec. 401d. (1) Each local exchange provider within a 9-1-1

 

service district shall provide a billing and collection service for

 

an emergency telephone technical charge from all service users,

 

except for users of a prepaid wireless telecommunications service,

 

of the provider within the geographical boundaries of the emergency

 

telephone or 9-1-1 service district. The billing and collection of

 

the emergency telephone technical charge used for billing cost

 

shall begin as soon as feasible after the final 9-1-1 service plan

 

has been approved. The billing and collection of the emergency

 

telephone technical charge not already collected for billing costs


 

shall begin as soon as feasible after installation and operation of

 

the 9-1-1 system. The emergency telephone technical charge shall be

 

uniform per each exchange access facility within the 9-1-1 service

 

district. The portion of the emergency telephone technical charge

 

that represents start-up costs, nonrecurring billing, installation,

 

service, and equipment charges of the service supplier, including

 

the costs of updating equipment necessary for conversion to 9-1-1

 

service, shall be amortized at the prime rate plus 1% over a period

 

not to exceed 10 years and shall be billed and collected from all

 

service users only until those amounts are fully recouped by the

 

service supplier. The prime rate to be used for amortization shall

 

be set before the first assessment of nonrecurring charges and

 

remain at that rate for 5 years, at which time a new rate may be

 

set for the remaining amortization period. Recurring costs and

 

charges included in the emergency telephone technical charge shall

 

continue to be billed to the service user.

 

     (2) The amount of the emergency telephone technical charge to

 

be billed to the service user shall be computed by dividing the

 

total emergency telephone technical charge by the number of

 

exchange access facilities within the 9-1-1 service district.

 

     (3) The amount of emergency telephone technical charge payable

 

monthly by a service user for recurring costs and charges shall not

 

exceed 4% of the lesser of $20.00 or the highest monthly rate

 

charged by the local exchange provider for primary basic local

 

exchange service under section 304 of the Michigan

 

telecommunications act, 1991 PA 179, MCL 484.2304, within the 9-1-1

 

service district. The amount of emergency telephone technical


 

charge payable monthly by a service user for nonrecurring costs and

 

charges shall not exceed 5% of the lesser of $20.00 or the highest

 

monthly rate charged by the provider for primary basic local

 

exchange service under section 304 of the Michigan

 

telecommunications act, 1991 PA 179, MCL 484.2304, within the 9-1-1

 

service district. The difference, if any, between the amount of the

 

emergency telephone technical charge computed under subsection (2)

 

and the maximum permitted under this section shall be paid by the

 

county from funds available to the county or through cooperative

 

arrangements with public agencies within the 9-1-1 service

 

district.

 

     (4) The emergency telephone technical charge shall be

 

collected in accordance with the regular billings of the local

 

exchange provider. The emergency telephone technical charge payable

 

by service users under this act shall be added to and shall be

 

stated separately in the billings to service users or otherwise

 

disclosed to the consumer.

 

     (5) As used in this section, "local exchange provider" means a

 

provider of basic local exchange service as defined in section 102

 

of the Michigan telecommunications act, 1991 PA 179, MCL 484.2102.

 

     Enacting section 1. Section 717 of the emergency 9-1-1 service

 

enabling act, 1986 PA 32, MCL 484.1717, is repealed.

 

     Enacting section 2. This amendatory act takes effect July 1,

 

2012.