SB-0410, As Passed Senate, May 24, 2007

SUBSTITUTE FOR

SENATE BILL NO. 410

      A bill to amend 1986 PA 32, entitled

"Emergency telephone service enabling act,"

by amending the title and sections 101, 102, 201, 202, 203, 205,

301, 302, 303, 307, 308, 312, 319, 320, and 401 (MCL 484.1101,

484.1102, 484.1201, 484.1202, 484.1203, 484.1205, 484.1301,

484.1302, 484.1303, 484.1307, 484.1308, 484.1312, 484.1319,

484.1320, and 484.1401), the title as amended by 1994 PA 36,

sections 102 and 303 as amended by 1999 PA 80, section 201 as

amended by 1999 PA 78, section 205 as amended by 1998 PA 23,

sections 301 and 401 as amended by 2006 PA 249, section 308 as

amended by 1994 PA 29, section 319 as added by 1989 PA 36, and

section 320 as amended by 1998 PA 122, and by adding sections

401a, 401b, 401c, 401d, and 401e.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1                              TITLE

 2        An act to provide for the establishment of emergency

 3  telephone 9-1-1 districts; to provide for the installation,

 4  operation, modification, and maintenance of universal emergency

 5  number 9-1-1 service systems; to provide for the imposition and

 6  collection of certain charges; to provide the powers and duties

 7  of certain state agencies, local units of government, public

 8  officers, telephone service suppliers, and others; to create an

 9  emergency telephone 9-1-1 service committee; to provide remedies

10  ; to provide and penalties; and to repeal certain parts of this

11  act on specific dates acts and parts of acts.

12        Sec. 101. This act shall be known and may be cited as the

13  "emergency telephone 9-1-1 service enabling act".

14        Sec. 102. As used in this act:

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

16  1-1 service feature provided by the service supplier that

17  automatically provides the name and service address or, for a

18  CMRS service supplier, the location associated with the calling

19  party's telephone number as identified by automatic number

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

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

22  service feature provided by the service supplier that

23  automatically provides the calling party's billing telephone

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

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

26  commercial mobile radio service regulated under section 3 of

 1  title I and section 332 of title III of the communications act of

 2  1934, chapter 652, 48 Stat. 1064, 47 U.S.C. USC 153 and 332, and

 3  the rules of the federal communications commission or provided

 4  pursuant to under the wireless emergency service order.

 5  Commercial mobile radio service or CMRS includes all of the

 6  following:

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

 8  telephone used in cellular telephone service or personal

 9  communication service.

10        (ii) A functional equivalent of a radio telephone

11  communications line used in cellular telephone service or

12  personal communication service.

13        (iii) A network radio access line.

14        (d) "Commission" means the Michigan public service

15  commission.

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

17  created under section 712.

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

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

20  ANI from a selective router to the proper PSAP and the costs

21  associated with the 9-1-1 database and data distribution system

22  of the primary 9-1-1 service supplier identified in a county 9-1-

23  1 plan. As used in this subdivision, "common network" means the

24  elements of a service supplier's network that are not exclusive

25  to the supplier or technology capable of accessing the 9-1-1

26  system.

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

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

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

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

 4  1-1 by means of a local telephone device, cellular telephone

 5  device, wireless communication device, voice over the internet

 6  device, or any other means.

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

 8  CMRS customer.

 9  (i) (e) "Consolidated dispatch" means a countywide or

10  regional emergency dispatch service that provides dispatch

11  service for 75% or more of the law enforcement, fire fighting,

12  emergency medical service, and other emergency service agencies

13  within the geographical area of a 9-1-1 service district or

14  serves 75% or more of the population within a 9-1-1 service

15  district.

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

17  sections 401b, 401c, and 401e.

18  (k) (f) "Database service provider" means a service supplier

19  who maintains and supplies or contracts to maintain and supply an

20  ALI database or a an MSAG.

21  (l) (g) "Direct dispatch method" means that the agency

22  receiving the 9-1-1 call at the public safety answering point

23  decides on the proper action to be taken and dispatches the

24  appropriate available public safety service unit located closest

25  to the request for public safety service.

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

27  or private agency that responds to events or situations that are

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

 2  threaten the public safety. An emergency response service

 3  includes a police or fire department, an ambulance service, or

 4  any other public or private entity trained and able to alleviate

 5  a dangerous or threatening situation.

 6  (n) (i) "Emergency service zone" or "ESZ" means the

 7  designation assigned by a county to each street name and address

 8  range that identifies which emergency response service is

 9  responsible for responding to an exchange access facility's

10  premises.

11  (o) (j) "Emergency telephone charge" means emergency

12  telephone operational charge and emergency telephone technical

13  charge allowed under section 401.

14  (p) (k) "Emergency telephone 9-1-1 district" or "9-1-1

15  service district" means the area in which 9-1-1 service is

16  provided or is planned to be provided to service users under a 9-

17  1-1 system implemented under this act.

18  (q) (l) "Emergency telephone 9-1-1 district board" means the

19  governing body created by the board of commissioners of the

20  county or counties with authority over an emergency telephone 9-

21  1-1 district.

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

23  charge allowed under section 401 for nonnetwork technical

24  equipment and other costs directly related to the dispatch

25  facility and the operation of 1 or more PSAPs including, but not

26  limited to, the costs of dispatch personnel and radio equipment

27  necessary to provide 2-way communication between PSAPs and a

 1  public safety agency. Emergency telephone operational charge does

 2  not include non-PSAP related costs such as response vehicles and

 3  other personnel.

 4  (s) (n) "Emergency telephone technical charge" means a

 5  charge for as allowed under section 401 or 401d for costs

 6  directly related to 9-1-1 service including plant-related costs

 7  associated with the use of the public switched telephone network

 8  from the end user to the selective router, the network start-up

 9  costs, customer notification costs, billing costs including an

10  allowance for uncollectibles for technical and operational

11  charges, common network costs, administrative costs, database

12  management costs, and network nonrecurring and recurring

13  installation, maintenance, service, and equipment charges of a

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

15  Emergency telephone technical charge does not include costs

16  recovered under sections 401b(9) and 408(2).

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

18  particular service user's premises to the telephone system

19  communication service. Exchange access facilities include service

20  supplier provided access lines, PBX trunks, and centrex line

21  trunk equivalents, all as defined by tariffs of the service

22  suppliers as approved by the public service commission. Exchange

23  access facilities do not include telephone pay station lines or

24  WATS, FX, or incoming only lines.

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

26  service plan that has been modified only to reflect necessary

27  changes resulting from any exclusions of public agencies from the

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

 2  section 306 and any failure of public safety agencies to be

 3  designated as PSAPs or secondary PSAPs under section 307.

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

 5  perpetual database that contains information continuously

 6  provided by a service district that defines the geographic area

 7  of the service district and includes an alphabetical list of

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

 9  names of each community in the service district, the emergency

10  service zone of each service user, and the primary service

11  answering point identification codes.

12  (w) (r) "Obligations" means bonds, notes, installment

13  purchase contracts, or lease purchase agreements to be issued by

14  a public agency under a law of this state.

15  (x) (s) "Person" means an individual, corporation,

16  partnership, association, governmental entity, or any other legal

17  entity.

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

19  "primary PSAP" means a communications facility operated or

20  answered on a 24-hour basis assigned responsibility by a public

21  agency or county to receive 9-1-1 calls and to dispatch public

22  safety response services, as appropriate, by the direct dispatch

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

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

25  the jurisdictions in which it is located and other participating

26  jurisdictions, if any.

27  (z) (u) "Prime rate" means the average predominant prime

 1  rate quoted by not less than 3 commercial financial institutions

 2  as determined by the department of treasury.

 3  (aa) (v) "Private safety entity" means a nongovernmental

 4  organization that provides emergency fire, ambulance, or medical

 5  services.

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

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

 8  district located in whole or in part within the state.

 9  (cc) (x) "Public safety agency" means a functional division

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

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

12  services.

13  (dd) (y) "Qualified obligations" means obligations that meet

14  1 or more of the following:

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

16  district, and for which all of the following conditions are met:

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

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

19  and costs of issuing the obligations. The proceeds of obligations

20  shall not be used for operational expenses.

21        (B) The weighted average maturity of the obligations does

22  not exceed the useful life of the capital assets.

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

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

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

26  meet the conditions described in subparagraph (i) and the net

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

 1  refunding obligations, excluding the cost of issuance, will be

 2  less than the net present value of the principal and interest to

 3  be paid on the obligations being refunded, as calculated using a

 4  method approved by the department of treasury.

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

 6  information and relays it by telephone, radio, or private line a

 7  communication service to the appropriate public safety agency or

 8  other provider of emergency services that has an available

 9  emergency service unit located closest to the request for

10  emergency service for dispatch of an emergency service unit.

11  (ff) (aa) "Secondary public safety answering point" or

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

13  safety agency or private safety entity that receives 9-1-1 calls

14  by the transfer method only and generally serves as a centralized

15  location for a particular type of emergency call.

16  (gg) (bb) "Service supplier" means a person providing a

17  telephone service or a CMRS communication service to a service

18  user in this state.

19  (hh) (cc) "Service user" means an exchange access facility

20  or CMRS service customer of a service supplier within a 9-1-1

21  system a person receiving a communication service.

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

23  under sections 401a and 401c.

24  (jj) (dd) "Tariff" means the rate approved by the public

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

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

27  mobile radio service by a particular supplier.

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

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

 3  a specified 9-1-1 service district.

 4  (ll) (ff) "Transfer method" means that a PSAP transfers the

 5  9-1-1 call directly to the appropriate public safety agency or

 6  other provider of emergency service that has an available

 7  emergency service unit located closest to the request for

 8  emergency service for dispatch of an emergency service unit.

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

10  service" means public telephone communication service that

11  provides service users with the ability to reach a public safety

12  answering point by dialing the digits "9-1-1".

13  (nn) (hh) "Universal emergency number service system" or "9-

14  1-1 system" means a system for providing 9-1-1 service under this

15  act.

16  (oo) (ii) "Wireless emergency service order" means the order

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

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

19        Sec. 201. (1) Except as provided in sections 407 to 412, a

20  universal An emergency number 9-1-1 service system shall not be

21  implemented pursuant to this act unless a tariff exists for each

22  service supplier designated by the final 9-1-1 service plan to

23  provide 9-1-1 service in the universal emergency number system in

24  this state except as provided under this act.

25        (2) One or more counties may create an emergency 9-1-1

26  service system under this act.

27        (3) With the approval of the county board of commissioners

 1  in a county with a population of 1,800,000 or more, 4 or more

 2  cities may create an emergency 9-1-1 service district under this

 3  act.

 4        (4) Each service supplier in this state is required to

 5  provide each of its service users access to the 9-1-1 system.

 6  Each service supplier shall provide the committee with contact

 7  information to allow for notifications as required under section

 8  712.

 9        Sec. 202. A public agency which is excluded from a 9-1-1

10  service district in a 9-1-1 system implemented pursuant to under

11  this act, but which is operating an existing emergency telephone

12  9-1-1 service at the time the 9-1-1 system is implemented, shall

13  permit any technical modifications to its existing system which

14  are necessary for compatibility with the 9-1-1 system. Any cost

15  of the service supplier associated with such modifications shall

16  not be the responsibility of the excluded public agency but shall

17  be included as part of the costs be collected from service users

18  in the 9-1-1 service district. pursuant to section 401.

19        Sec. 203. The digits 9-1-1 shall be the primary emergency

20  telephone 9-1-1 number within every 9-1-1 system established

21  pursuant to this act. A public safety agency whose services are

22  available through a 9-1-1 system implemented pursuant to under

23  this act may maintain a separate secondary backup number for

24  emergencies, and shall maintain a separate number for

25  nonemergency telephone calls contacts.

26        Sec. 205. (1) A 9-1-1 system established pursuant to under

27  this act shall be capable of transmitting requests for law

 1  enforcement, fire fighting, and emergency medical and ambulance

 2  services to 1 or more public safety agencies which provide the

 3  requested service to the place where the call originates.

 4        (2) A 9-1-1 system shall process all 9-1-1 calls originating

 5  from telephones within an exchange any part of which is within

 6  the emergency telephone 9-1-1 district served by the system. This

 7  requirement does not apply to any part of an exchange not located

 8  within the county or counties that established the 9-1-1 system

 9  if that part has been included in an implemented 9-1-1 system for

10  the county within which that part is located.

11        (3) A 9-1-1 system may provide for transmittal of requests

12  for other emergency services, such as poison control, suicide

13  prevention, and civil defense. Conferencing capability with

14  counseling, aid to persons with disabilities, and other services

15  as considered necessary for emergency response determination may

16  be provided by the 9-1-1 system.

17        Sec. 301. (1) The board of commissioners of a county may

18  establish an emergency telephone 9-1-1 district within all or

19  part of the county and may cause 9-1-1 service to be implemented

20  within the emergency telephone 9-1-1 district under this act.

21        (2) The board of commissioners of a county all or part of

22  which is operating an existing emergency telephone service may

23  shall modify the existing emergency telephone service or may

24  alter the scope or method of financing of 9-1-1 service within

25  all or part of the county by establishing an emergency telephone

26  9-1-1 district and causing 9-1-1 service to be implemented within

27  the emergency telephone 9-1-1 district under this act.

 1        (3) The board of commissioners of a county may create an

 2  emergency telephone 9-1-1 district board and delegate certain

 3  powers to the board.

 4        (4) If the board of commissioners of a county has created

 5  multiple emergency telephone districts before March 2, 1994, the

 6  emergency telephone districts created shall receive all

 7  operational funds collected by the service supplier of the

 8  district and operate the systems as provided by this act.

 9        Sec. 302. Two or more county boards of commissioners may

10  jointly establish an emergency telephone 9-1-1 district within

11  all or part of the counties and may cause 9-1-1 service to be

12  implemented within such the emergency telephone 9-1-1 district

13  pursuant to under this act. If 2 or more county boards of

14  commissioners wish to jointly establish an emergency telephone 9-

15  1-1 district pursuant to under this act, then all actions

16  required or permitted to be taken by a county or its officials

17  pursuant to under this act shall be taken by each county or the

18  officials of each county, and all notices required or permitted

19  to be given to a county or its officials pursuant to under this

20  act shall be given to each county or the officials of each

21  county.

22        Sec. 303. (1) To establish an emergency telephone 9-1-1

23  district and to cause 9-1-1 service to be implemented within that

24  emergency telephone 9-1-1 district, the board of commissioners of

25  a county shall first adopt a tentative 9-1-1 service plan by

26  resolution.

27        (2) A tentative 9-1-1 service plan shall comply with chapter

 1  II and shall address at a minimum all of the following:

 2        (a) Technical considerations of the service supplier,

 3  including but not limited to, system equipment for facilities to

 4  be used in providing emergency telephone 9-1-1 service.

 5        (b) Operational considerations, including but not limited

 6  to, the designation of PSAPs and secondary PSAPs, the manner in

 7  which 9-1-1 calls will be processed, the dispatch functions to be

 8  performed, plans for documenting closest public safety service

 9  unit dispatching requirements, the dispatch of Michigan state

10  police personnel, and identifying information systems to be

11  utilized.

12        (c) Managerial considerations including the organizational

13  form and agreements that would control technical, operational,

14  and fiscal aspects of the emergency telephone 9-1-1 service.

15        (d) Fiscal considerations including projected nonrecurring

16  and recurring costs with a financial plan for implementing and

17  operating the system.

18        (3) The tentative 9-1-1 service plan shall require each

19  public agency operating a PSAP under the 9-1-1 system to pay

20  directly for all installation and recurring charges for terminal

21  equipment, including customer premises equipment, associated with

22  the public agency's PSAP, and may require each public agency

23  operating a PSAP under the 9-1-1 system to pay directly to the

24  service supplier all installation and recurring charges for all

25  9-1-1 exchange and tie lines associated with the public agency's

26  PSAP.

27        Sec. 307. (1) Any public safety agency designated in the

 1  tentative 9-1-1 service plan to function as a PSAP or secondary

 2  PSAP shall be so designated under the final 9-1-1 service plan if

 3  the public safety agency files with the county clerk a notice of

 4  intent to function as a PSAP or secondary PSAP within 45 days

 5  after the public agency which the public safety agency has been

 6  designated to serve by the tentative 9-1-1 service plan receives

 7  a copy of the resolution and the tentative 9-1-1 service plan

 8  adopted pursuant to under section 303. The notice of intent to

 9  function as a PSAP or secondary PSAP shall be in substantially

10  the following form:

11 NOTICE OF INTENT TO FUNCTION

12 AS A PSAP OR SECONDARY PSAP

13

14 Pursuant to section 307 of the emergency telephone 9-1-1

15 service enabling act, ________________________ shall

16 function as a (check one) _______________ PSAP

17 ___________ Secondary PSAP within the 9-1-1 service district

18 of the tentative 9-1-1 service plan adopted by resolution

19 of the board of commissioners for the county of

20 _________________________, on ________________, 19_______.

21                                _____________________________

22                         (Acknowledgment)

23        (2) If a public safety agency designated as a PSAP or

24  secondary PSAP in the tentative 9-1-1 service plan fails to file

25  a notice of intent to function as a PSAP or secondary PSAP within

26  the time period specified in subsection (1), the public safety

27  agency shall not be designated as a PSAP or secondary PSAP in the

 1  final 9-1-1 service plan.

 2        Sec. 308. The clerk of each county which has adopted a

 3  tentative 9-1-1 service plan pursuant to under section 303 shall

 4  give notice by publication of the hearing on the final 9-1-1

 5  service plan to be held pursuant to under section 309. The notice

 6  shall be published twice in a newspaper of general circulation

 7  within the county, the first publication of the notice occurring

 8  at least 30 days prior to the date of the hearing. The notice

 9  shall state all of the following:

10        (a) The time, date, and place of the hearing.

11        (b) A description of the boundaries of the 9-1-1 service

12  district of the final 9-1-1 service plan. as determined at the

13  expiration of the time for filing a notice of exclusion from 9-1-

14  1 service district pursuant to section 306.

15        (c) That if the board of commissioners of the county, after

16  a hearing, adopts the final 9-1-1 service plan pursuant to under

17  this act, an emergency telephone technical the state 9-1-1 charge

18  and, if an emergency telephone operational a county 9-1-1 charge

19  has been approved, an emergency telephone operational charge

20  shall be collected on a uniform basis from all service users

21  within the 9-1-1 service district.

22        Sec. 312. (1) After Except as otherwise provided under

23  subsection (2), after a final 9-1-1 service plan has been adopted

24  pursuant to under section 310, a county may amend the final 9-1-1

25  service plan only by complying with the procedures described in

26  sections 301 to 310. Upon adoption of an amended final 9-1-1

27  service plan by the county board of commissioners, the county

 1  shall forward the amended final 9-1-1 service plan to the service

 2  supplier or suppliers designated to provide 9-1-1 service within

 3  the 9-1-1 service district as amended. Upon receipt of the

 4  amended final 9-1-1 service plan, each designated service

 5  supplier shall implement as soon as feasible the amendments to

 6  the final 9-1-1 service plan in the 9-1-1 service district as

 7  amended.

 8        (2) The county board of commissioners may by resolution make

 9  minor amendments to the final 9-1-1 service plan for any of the

10  following:

11        (a) Changes in PSAP premises equipment, including, but not

12  limited to, computer-aided dispatch systems, call processing

13  equipment, and computer mapping.

14        (b) Changes involving the participating public safety

15  agencies within a 9-1-1 service district.

16        (c) Changes in the 9-1-1 charges collected by the county

17  subject to the limits under this act.

18        Sec. 319. A public agency that plans to establish a 9-1-1

19  system without using the financing method provided by section 401

20  under this act shall do all of the following:

21        (a) Provide public notice of its intent to enter into a

22  contract for 9-1-1 services. The public notice shall be provided

23  in the same manner as required under section 308.

24        (b) Provide public notice of its intent to enter into a

25  contract for 9-1-1 services to the county board of commissioners

26  of the county within which the public agency is located and to

27  all other public agencies that share wire centers with the

 1  contracting public agency. The public notice shall be provided in

 2  the same manner as required under section 308.

 3        (c) Conduct a public hearing in the same manner as required

 4  under section 309.

 5        Sec. 320. (1) The county shall create an emergency telephone

 6  9-1-1 district board if a county creates a consolidated dispatch

 7  within an emergency telephone 9-1-1 district after March 2, 1994.

 8        (2) The membership of the board and the board's powers and

 9  duties shall be determined by the county board of commissioners.

10  However, the The membership of the board shall include a

11  representative of the county sheriff or his or her designated

12  representative, a representative of the Michigan state police

13  designated by the director of the Michigan state police, and a

14  firefighter. If the emergency telephone 9-1-1 district consists

15  of more than 1 county, the sheriff representative shall be

16  appointed by the president of the Michigan sheriffs' association.

17        (3) A county or other public agency may make appropriations

18  to the emergency telephone 9-1-1 district board.

19        (4) A public agency may contract with the emergency

20  telephone 9-1-1 district board, and persons who are both members

21  of the board and of the governing body of the public agency may

22  vote both on the board and the body if approved by the contract.

23        (5) The basis under which a consolidated dispatch meets the

24  requirement for being a dispatch under section 102(c) shall

25  determine the system to be used in dispatching participating

26  service units.

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

 1  9-1-1 service district as defined in section 102 and created

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

 3  created by the county may enter into an agreement with a public

 4  agency that does either of the following:

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

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

 7  district for the benefit of qualified obligations.

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

 9  issuing qualified obligations of a portion of the emergency

10  telephone operational charge or the state 9-1-1 charge sufficient

11  to pay when due principal of and interest on qualified

12  obligations.

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

14  benefit of qualified obligations is valid and binding from the

15  time the qualified obligations are issued without a physical

16  delivery or further act. A pledge, assignment, lien, or security

17  interest is valid and binding and has priority over any other

18  claim against the emergency telephone 9-1-1 district board, the

19  9-1-1 service district, or any other person with or without

20  notice of the pledge, assignment, lien, or security interest.

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

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

23  and collection service for an emergency telephone technical

24  charge and emergency telephone operational charge from all

25  service users of the service supplier within the geographical

26  boundaries of the emergency telephone or 9-1-1 service district.

27  The billing and collection of the emergency telephone operational

 1  charge and that portion of the technical charge used for billing

 2  cost shall begin as soon as feasible after the final 9-1-1

 3  service plan has been approved. The billing and collection of the

 4  emergency telephone technical charge not already collected for

 5  billing costs shall begin as soon as feasible after installation

 6  and operation of the 9-1-1 system. The emergency telephone

 7  technical charge and emergency telephone operational charge shall

 8  be uniform per each exchange access facility within the 9-1-1

 9  service district. The portion of the emergency telephone

10  technical charge that represents start-up costs, nonrecurring

11  billing, installation, service, and equipment charges of the

12  service supplier, including the costs of updating equipment

13  necessary for conversion to 9-1-1 service, shall be amortized at

14  the prime rate plus 1% over a period not to exceed 10 years and

15  shall be billed and collected from all service users only until

16  those amounts are fully recouped by the service supplier. The

17  prime rate to be used for amortization shall be set before the

18  first assessment of nonrecurring charges and remain at that rate

19  for 5 years, at which time a new rate may be set for the

20  remaining amortization period. Recurring costs and charges

21  included in the emergency telephone technical charge and

22  emergency telephone operational charge shall continue to be

23  billed to the service user.

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

25  the limitation provided by this section, the amount of the

26  emergency telephone technical charge and emergency telephone

27  operational charge to be billed to the service user shall be

 1  computed by dividing the total emergency telephone technical

 2  charge and emergency telephone operational charge by the number

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

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

 5  412, the amount of emergency telephone technical charge payable

 6  monthly by a service user for recurring costs and charges shall

 7  not exceed 2% of the lesser of $20.00 or the highest monthly rate

 8  charged by the service supplier for primary basic local exchange

 9  service under section 304 of the Michigan telecommunications act,

10  1991 PA 179, MCL 484.2304, within the 9-1-1 service district. The

11  amount of emergency telephone technical charge payable monthly by

12  a service user for nonrecurring costs and charges shall not

13  exceed 5% of the lesser of $20.00 or the highest monthly rate

14  charged by the service supplier for primary basic local exchange

15  service under section 304 of the Michigan telecommunications act,

16  1991 PA 179, MCL 484.2304, within the 9-1-1 service district.

17  With the approval of the county board of commissioners, a county

18  may assess an amount for recurring emergency telephone

19  operational costs and charges that shall not exceed 4% of the

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

21  service supplier for primary basic local exchange service under

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

23  MCL 484.2304, within the geographical boundaries of the assessing

24  county. The percentage to be set for the emergency telephone

25  operational charge shall be established by the county board of

26  commissioners under section 312. A change to the percentage set

27  for the emergency telephone operational charge may be made only

 1  by the county board of commissioners. The difference, if any,

 2  between the amount of the emergency telephone technical charge

 3  computed under subsection (4) and the maximum permitted under

 4  this section shall be paid by the county from funds available to

 5  the county or through cooperative arrangements with public

 6  agencies within the 9-1-1 service district.

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

 8  telephone technical charge and emergency telephone operational

 9  charge shall be collected in accordance with the regular billings

10  of the service supplier. The amount collected for emergency

11  telephone operational charge shall be paid by the service

12  supplier to the county that authorized the collection. The

13  emergency telephone technical charge and emergency telephone

14  operational charge payable by service users pursuant to this act

15  shall be added to and shall be stated separately in the billings

16  to service users.

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

18  service district created or enhanced after June 27, 1991, the

19  amount of emergency telephone technical charge payable monthly by

20  a service user for recurring costs and charges shall not exceed

21  4% of the lesser of $20.00 or the highest monthly rate charged by

22  the service supplier for primary basic local exchange service

23  under section 304 of the Michigan telecommunications act, 1991 PA

24  179, MCL 484.2304, within the 9-1-1 service district.

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

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

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

 1  the service supplier for primary basic local exchange service

 2  under section 304 of the Michigan telecommunications act, 1991 PA

 3  179, MCL 484.2304, within the geographical boundaries of the

 4  assessing county or assess a millage or combination of the 2 to

 5  cover emergency telephone operational costs. In a ballot question

 6  under this subsection, the board of commissioners shall

 7  specifically identify how the collected money is to be

 8  distributed. An affirmative vote on a ballot question under this

 9  subsection shall be considered an amendment to the 9-1-1 service

10  plan pursuant to section 312. Not more than 1 ballot question

11  under this subsection may be submitted to the voters within any

12  12-month period. An assessment approved under this subsection

13  shall be for a period not greater than 5 years.

14        (9) The total emergency telephone operational charge as

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

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

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

18  line.

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

20  voters approve the charge to be assessed on the service user's

21  telephone bill on a ballot question under subsection (8), the

22  service provider's bill shall state the following:

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

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

25  charge assessed by your telephone carrier. If you have questions

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

27  TELEPHONE NUMBER).".

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

 2  accounting shall be made of the emergency telephone operational

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

 4  accounting required by section 405.

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

 6  provided in sections 407 to 412, the emergency telephone

 7  operational charge collected under this section shall be

 8  distributed by the county or the counties to the primary PSAPs by

 9  1 of the following methods:

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

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

12  according to any agreement for distribution between the county

13  and public agencies.

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

15  agreement, then according to the distribution of access lines

16  within the primary PSAPs.

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

18  had multiple emergency telephone districts before the effective

19  date of the amendatory act that added this subsection, then the

20  emergency telephone operational charge collected under this

21  section shall be distributed in proportion to the amount of

22  access lines within the primary PSAPs.

23        (14) Except as provided in sections 407 to 412, this section

24  shall This act does not preclude the distribution of funding to

25  secondary PSAPs if the distribution is determined by the primary

26  PSAPs within the emergency telephone 9-1-1 district to be the

27  most effective method for dispatching of fire or emergency

 1  medical services and the distribution is approved within the

 2  final 9-1-1 service plan.

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

 4  emergency telephone technical charge and the emergency telephone

 5  operational charge shall not be levied or collected after

 6  December 31, 2007. If all or a portion of the emergency telephone

 7  operational charge has been pledged as security for the payment

 8  of qualified obligations, the emergency telephone operational

 9  charge shall be levied and collected only to the extent required

10  to pay the qualified obligations or satisfy the pledge.

11        (16) Subsections (3) through (13) do not apply after

12  December 31, 2007.

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

14  401c, each service supplier within a 9-1-1 service district shall

15  bill and collect a state 9-1-1 charge from all service users of

16  the service supplier within the geographical boundaries of the 9-

17  1-1 service district or as otherwise provided by this section.

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

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

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

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

22  a service user shall be established as provided under subsection

23  (4). The amount of the state 9-1-1 charge shall not be more than

24  25 cents or less than 15 cents. The charge may be adjusted

25  annually as provided under subsection (4).

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

27  with the regular billings of the service supplier. Except as

 1  otherwise provided under this act, the amount collected for the

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

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

 4  1-1 fund created under section 407. The charge allowed under this

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

 6  payment receipt.

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

 8  shall be effective January 1, 2008. The state 9-1-1 charge shall

 9  reflect the actual costs of operating, maintaining, upgrading,

10  and other reasonable and necessary expenditures for the 9-1-1

11  system in this state. The state 9-1-1 charge may be reviewed and

12  adjusted as provided under subsection (5).

13        (5) The commission in consultation with the committee shall

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

15  and the distribution percentages under section 408 to be

16  effective on January 1, 2009 and January 1, 2010. Any adjustment

17  to the charge by the commission shall be made no later than

18  October 1 of the preceding year and shall be based on the

19  committee's recommendations under section 412. Any adjustments to

20  the state 9-1-1 charge or distribution percentages after December

21  31, 2010 shall be made by the legislature.

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

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

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

25  for each 10 access points or access lines per billed account.

26        (7) This section takes effect January 1, 2008.

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

 1  section 401a, after December 31, 2007 a county board of

 2  commissioners may, by resolution, millage as otherwise allowed by

 3  law, with the approval of the voters in the county, or any

 4  combination thereof, assess a county 9-1-1 charge. The board of

 5  commissioners shall state in the resolution, ballot question, or

 6  millage request the anticipated amount to be generated.

 7        (2) The charge assessed under this section and section 401e

 8  shall not exceed the amount necessary to implement, maintain, and

 9  operate the 9-1-1 system in the county.

10        (3) If the voters approve the charge to be assessed on the

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

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

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

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

15  charge assessed by your service supplier. If you have questions

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

17  TELEPHONE NUMBER).".

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

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

20  the charge approved under this section.

21        (5) Except as otherwise provided in subsection (9), the

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

23  quarterly directly to the county and distributed by the county to

24  the primary PSAPs by 1 of the following methods:

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

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

27  according to any agreement for distribution between the county

 1  and public agencies.

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

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

 4  1 district.

 5        (6) The county may adjust the county 9-1-1 charge annually

 6  to be effective July 1. The county shall notify the committee no

 7  later than April 1 of each year of any change in the county 9-1-1

 8  charge under this section.

 9        (7) If a county has multiple emergency response districts,

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

11  distributed under subsection (5) in proportion to the population

12  within the emergency 9-1-1 district.

13        (8) This section shall not preclude the distribution of

14  funding to secondary PSAPs if the distribution is determined by

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

16  most effective method for dispatching of fire or emergency

17  medical services and the distribution is approved within the

18  final 9-1-1 service plan.

19        (9) The service supplier may retain 2% of the approved

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

21  and collections under this section.

22        (10) The charge allowed under this section shall be listed

23  separately on the customer's bill and shall state by which means

24  the charge was approved under subsection (1).

25        (11) Information submitted by a service supplier to a county

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

27  1976 PA 442, MCL 15.221 to 15.231, and shall not be released by

 1  the county without the consent of the service supplier.

 2        (12) If a service user has multiple access points or access

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

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

 5  for each 10 access points or access lines per billed account.

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

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

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

 9  annually by the committee by combining the amounts determined

10  under subsections (2) and (3).

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

12  of selecting 1 of the following methods of determining the

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

14  9-1-1 charge amount:

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

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

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

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

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

20  established under section 401a for each active prepaid account of

21  the CMRS supplier or reseller.

22        (3) The committee shall review and annually establish the

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

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

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

26  imposed statewide.

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

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

 2  provided under section 408.

 3        (5) This section takes effect January 1, 2008.

 4        (6) As used in this section:

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

 6  recharged or replenished his or her account at least once during

 7  the billing period or calendar month and has a sufficient

 8  positive balance at the end of each month equal to or greater

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

10  this section.

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

12  telecommunication services from another telecommunication service

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

14  integrates the purchased services into a mobile telecommunication

15  service.

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

17  generated from prepaid service accounts since the close of the

18  last billing period or calendar month.

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

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

21        (i) A Michigan telephone number or a Michigan identification

22  number for the service.

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

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

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

26  defined under 4 USC 124.

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

 1  service district shall provide a billing and collection service

 2  for an emergency telephone technical charge from all service

 3  users of the provider within the geographical boundaries of the

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

 5  collection of the emergency telephone technical charge used for

 6  billing cost shall begin as soon as feasible after the final 9-1-

 7  1 service plan has been approved. The billing and collection of

 8  the emergency telephone technical charge not already collected

 9  for billing costs shall begin as soon as feasible after

10  installation and operation of the 9-1-1 system. The emergency

11  telephone technical charge shall be uniform per each exchange

12  access facility within the 9-1-1 service district. The portion of

13  the emergency telephone technical charge that represents start-up

14  costs, nonrecurring billing, installation, service, and equipment

15  charges of the service supplier, including the costs of updating

16  equipment necessary for conversion to 9-1-1 service, shall be

17  amortized at the prime rate plus 1% over a period not to exceed

18  10 years and shall be billed and collected from all service users

19  only until those amounts are fully recouped by the service

20  supplier. The prime rate to be used for amortization shall be set

21  before the first assessment of nonrecurring charges and remain at

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

23  the remaining amortization period. Recurring costs and charges

24  included in the emergency telephone technical charge shall

25  continue to be billed to the service user.

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

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

 1  the total emergency telephone technical charge by the number of

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

 3        (3) The amount of emergency telephone technical charge

 4  payable monthly by a service user for recurring costs and charges

 5  shall not exceed 2% of the lesser of $20.00 or the highest

 6  monthly rate charged by the local exchange provider for primary

 7  basic local exchange service under section 304 of the Michigan

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

 9  1-1 service district. The amount of emergency telephone technical

10  charge payable monthly by a service user for nonrecurring costs

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

12  highest monthly rate charged by the provider for primary basic

13  local exchange service under section 304 of the Michigan

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

15  1-1 service district. The difference, if any, between the amount

16  of the emergency telephone technical charge computed under

17  subsection (2) and the maximum permitted under this section shall

18  be paid by the county from funds available to the county or

19  through cooperative arrangements with public agencies within the

20  9-1-1 service district.

21        (4) The emergency telephone technical charge shall be

22  collected in accordance with the regular billings of the local

23  exchange provider. The emergency telephone technical charge

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

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

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

27  that term as defined in section 102 of the Michigan

 1  telecommunications act, 1991 PA 179, MCL 484.2102.

 2        Sec. 401e. (1) No later than September 15, 2007, each county

 3  that decides to assess a surcharge under section 401b shall with

 4  the assistance of the state 9-1-1 office submit to the commission

 5  all of the following:

 6        (a) The initial county 9-1-1 surcharge for each 9-1-1

 7  service district to be effective January 1, 2008.

 8        (b) The estimated amount of revenue to be generated in each

 9  9-1-1 service district for 2007.

10        (c) Based on the surcharge established under this

11  subsection, the estimated amount of revenue to be generated for

12  2008.

13        (2) If the amount to be generated in 2008 exceeds the amount

14  received in 2007 plus an amount not to exceed 2.7% of the 2007

15  revenues, the commission, in consultation with the committee,

16  shall review and approve or disapprove the county 9-1-1 surcharge

17  adopted under section 401b. If the commission does not act by

18  October 15, 2007, the county 9-1-1 surcharge shall be deemed

19  approved. If the surcharge is rejected, it shall be adjusted to

20  ensure that the revenues generated do not exceed the amounts

21  allowed under this subsection. In reviewing the surcharge under

22  this subsection, the commission shall consider the county's

23  historical expenditures and documented needs as they relate to

24  the allowable and disallowable costs as approved by the committee

25  on June 21, 2005.

26        Enacting section 1. This amendatory act does not take effect

27  unless Senate Bill No. 411 of the 94th Legislature is enacted

 1  into law.