SB-0815, As Passed Senate, December 6, 2007
September 25, 2007, Introduced by Senator PATTERSON and referred to the Committee on Energy Policy and Public Utilities.
A bill to amend 1986 PA 32, entitled
"Emergency telephone service enabling act,"
by amending section 401 (MCL 484.1401), as amended by 2006 PA 249.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 401. (1) An emergency telephone 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 emergency telephone
operational 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 telephone 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.
Senate Bill No. 815 as amended December 6, 2007
(c) If distribution is not provided in the plan or by
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, 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) Except as provided in sections 407 to 412, this section
shall not preclude the distribution of funding to secondary PSAPs
if the distribution is determined by the primary PSAPs within the
emergency telephone 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 and the emergency telephone
operational
charge shall not be levied or collected after <<December
31, 2007
FEBRUARY 29, 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.