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SB-0815, As Passed House, March 19, 2008

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 815

A bill to amend 1986 PA 32, entitled

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

by amending sections 401 and 408 (MCL 484.1401 and 484.1408),

section 401 as amended by 2007 PA 164 and section 408 as amended by

2007 PA 165.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 401. (1) An emergency 9-1-1 district board, a 9-1-1

service district as defined in section 102 and created under

section 201b, or a county on behalf of a 9-1-1 service area created

by the county may enter into an agreement with a public agency that

does either of the following:

(a) Grants a specific pledge or assignment of a lien on or a

security interest in any money received by a 9-1-1 service district

for the benefit of qualified obligations.

(b) Provides for payment directly to the public entity issuing

qualified obligations of a portion of the county 9-1-1 charge or

state 9-1-1 charge sufficient to pay when due principal of and

interest on qualified obligations.

(2) A pledge, assignment, lien, or security interest for the

benefit of qualified obligations is valid and binding from the time

the qualified obligations are issued without a physical delivery or

further act. A pledge, assignment, lien, or security interest is

valid and binding and has priority over any other claim against the

emergency 9-1-1 district board, the 9-1-1 service district, or any

other person with or without notice of the pledge, assignment,

lien, or security interest.

(3) Except as provided in sections 407 to 412, each service

supplier within a 9-1-1 service district shall provide a billing

and collection service for an emergency telephone technical charge

and emergency telephone operational charge from all service users

of the service supplier within the geographical boundaries of the

emergency telephone or 9-1-1 service district. The billing and

collection of the emergency telephone operational charge and that

portion of the 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 and

emergency telephone operational 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 and emergency telephone

operational charge shall continue to be billed to the service user.

(4) Except as provided in sections 407 to 412 and subject to

the limitation provided by this section, the amount of the

emergency telephone technical charge and emergency telephone

operational charge to be billed to the service user shall be

computed by dividing the total emergency telephone technical charge

and emergency telephone operational charge by the number of

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

(5) Except as provided in subsection (7) and sections 407 to

412, the amount of emergency telephone technical charge payable

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

exceed 2% of the lesser of $20.00 or the highest monthly rate

charged by the service supplier 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

service supplier 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. With the approval

of the county board of commissioners, a county may assess an amount

for recurring emergency telephone operational costs and charges

that shall not exceed 4% of the lesser of $20.00 or the highest

monthly rate charged by the service supplier for primary basic

local exchange service under section 304 of the Michigan

telecommunications act, 1991 PA 179, MCL 484.2304, within the

geographical boundaries of the assessing county. The percentage to

be set for the emergency telephone operational charge shall be

established by the county board of commissioners under section 312.

A change to the percentage set for the emergency telephone

operational charge may be made only by the county board of

commissioners. The difference, if any, between the amount of the

emergency telephone technical charge computed under subsection (4)

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.

(6) Except as provided in sections 407 to 412, the emergency

telephone technical charge and emergency telephone operational

charge shall be collected in accordance with the regular billings

of the service supplier. The amount collected for emergency

telephone operational charge shall be paid by the service supplier

to the county that authorized the collection. The emergency

telephone technical charge and emergency telephone operational

charge payable by service users pursuant to this act shall be added

to and shall be stated separately in the billings to service users.

(7) Except as provided in sections 407 to 412, for a 9-1-1

service district created or enhanced after June 27, 1991, 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

service supplier 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.

(8) Except as provided in sections 407 to 412, a county may,

with the approval of the voters in the county, assess up to 16% of

the lesser of $20.00 or the highest monthly rate charged by the

service supplier for primary basic local exchange service under

section 304 of the Michigan telecommunications act, 1991 PA 179,

MCL 484.2304, within the geographical boundaries of the assessing

county or assess a millage or combination of the 2 to cover

emergency telephone operational costs. In a ballot question under

this subsection, the board of commissioners shall specifically

identify how the collected money is to be distributed. An

affirmative vote on a ballot question under this subsection shall

be considered an amendment to the 9-1-1 service plan pursuant to

section 312. Not more than 1 ballot question under this subsection

may be submitted to the voters within any 12-month period. An

assessment approved under this subsection shall be for a period not

greater than 5 years.

(9) The total emergency telephone operational charge as

prescribed in subsections (5) and (8) shall not exceed 20% of the

lesser of $20.00 or the highest monthly flat rate charged for

primary basic service by a service supplier for a 1-party access

line.

(10) Except as provided in sections 407 to 412, if the voters

approve the charge to be assessed on the service user's telephone

bill on a ballot question under subsection (8), 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 telephone carrier. If you have questions

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

TELEPHONE NUMBER).".

(11) Except as provided in sections 407 to 412, an annual

accounting shall be made of the emergency telephone operational

charge approved under this act in the same manner as the annual

accounting required by section 405.

(12) Except as otherwise provided in subsection (13), or as

provided in sections 407 to 412, the emergency telephone

operational charge collected under this section shall be

distributed by the county or the counties 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.

agreement, then according to the distribution of access lines

within the primary PSAPs.

(13) Except as provided in sections 407 to 412, if a county

had multiple emergency telephone districts before ~~the effective~~

~~date of the amendatory act that added this subsection~~ March 2,

1994, then the emergency telephone operational charge collected

under this section shall be distributed in proportion to the amount

of access lines within the primary PSAPs.

(14) This act does 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.

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

emergency telephone technical charge collected under this section

and the emergency telephone operational charge shall not be levied

or collected after June 30, 2008. If all or a portion of the

emergency telephone operational charge has been pledged as security

for the payment of qualified obligations, the emergency telephone

operational charge shall be levied and collected only to the extent

required to pay the qualified obligations or satisfy the pledge.

(16) Subsections (3) through (13) do not apply after June 30,

2008.

Sec. 408. (1) Beginning January 1, 2008, a CMRS supplier or

reseller shall, until July 1, 2008, for each CMRS connection that

has a billing address in this state, continue to collect the

service charge that the CMRS supplier or reseller was authorized to

collect by this section prior to December 21, 2007. Except as

otherwise provided under this act, starting July 1, 2008, a service

supplier shall include a state 9-1-1 service charge per month as

determined under section 401a. The service supplier shall list the

state 9-1-1 service charge authorized under this act as a separate

line item on each bill. The service charge shall be listed on the

bill as the "state 9-1-1 charge".

(2) Each service supplier may retain 2% of the state 9-1-1

charge collected under this act to cover the supplier's costs for

billing and collection.

(3) Except as otherwise provided under subsection (2), the

money collected as the state 9-1-1 charge under subsection (1)

shall be deposited in the emergency 9-1-1 fund created in section

407 no later than 30 days after the end of the quarter in which the

state 9-1-1 charge was collected.

(4) Except as otherwise provided under section 401a(5), all

money collected and deposited in the emergency 9-1-1 fund created

in section 407 shall be distributed as follows:

(a) 82.5% shall be disbursed to each county that has a final

9-1-1 plan in place. Forty percent of the 82.5% shall be

distributed quarterly on an equal basis to each county, and 60% of

the 82.5% shall be distributed quarterly based on a population per

capita basis. Money received by a county under this subdivision

shall only be used for 9-1-1 services as allowed under this act.

Money expended under this subdivision for a purpose considered

unnecessary or unreasonable by the committee or the auditor general

shall be repaid to the fund.

(b) 7.75% shall be available to reimburse local exchange

providers for the costs related to wireless emergency service. Any

cost reimbursement allowed under this subdivision shall not include

a cost that is not related to wireless emergency service. A local

exchange provider may submit an invoice to the commission for

reimbursement from the emergency 9-1-1 fund for allowed costs.

Within 45 days after the date an invoice is submitted to the

commission, the commission shall approve, either in whole or in

part, or deny the invoice.

assigned to 9-1-1 centers. A written request for money from the

fund shall be made by a public safety agency or county to the

committee. The committee shall semiannually authorize distribution

of money from the fund to eligible public safety agencies or

counties. A public safety agency or county that receives money

under this subdivision shall create, maintain, and make available

to the committee upon request a detailed record of expenditures

relating to the preparation, administration, and carrying out of

activities of its 9-1-1 training program. Money expended by an

eligible public safety agency or county for a purpose considered

unnecessary or unreasonable by the committee or the auditor general

shall be repaid to the fund. The commission shall consult with and

consider the recommendations of the committee in the promulgation

of rules under section 413 establishing training standards for 9-1-

1 system personnel. Money shall be disbursed on a biannual basis to

an eligible public safety agency or county for training of PSAP

personnel through courses certified by the committee only for

either of the following purposes:

(i) To provide basic 9-1-1 operations training.

(ii) To provide in-service training to employees engaged in 9-

1-1 service.

(d) 1.88% credited to the department of state police to

operate a regional dispatch center that receives and dispatches 9-

1-1 calls, and 1.87% credited to the department of state police for

costs to administer this act and to maintain the office of the

state 9-1-1 coordinator.

(5) For fiscal year 2007-2008 only, an amount not to exceed

$500,000.00 to the department of state police to study the

feasibility of an IP-based 9-1-1 system in this state.

(6) Money received by a county under subsection (4)(a) shall

be distributed by the county to the primary PSAPs geographically

located within the 9-1-1 service district 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 9-1-1 service

plan under subdivision (a), then according to any agreement for

distribution between a county and a public agency.

plan under subdivision (a) or by agreement between the county and

public agency under subdivision (b), then according to the

population within the geographic area for which the PSAP serves as

primary PSAP.

(d) If a county has multiple emergency 9-1-1 districts, money

for that county shall be distributed as provided in the emergency

9-1-1 districts' final 9-1-1 service plans.

(7) The commission shall consult with and consider

recommendations of the committee in the promulgation of rules under

section 413 establishing the standards for the receipt and

expenditures of 9-1-1 funds under this act. Receipt of 9-1-1 funds

under this act is dependent on compliance with the standards

established under this subsection.

Enacting section 1. This amendatory act is retroactive and is

effective January 1, 2008.