SF 2272 (LSB 6024SV (2) 84)

SENATE FILE 2272

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SSB 3170)

A BILL FOR

An Act relating to enhanced 911 emergency communication systems, including surcharges and the allocation of moneys collected from such surcharges.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 34A.2, Code 2011, is amended to read as follows:
   34A.2  Definitions.
   As used in this chapter, unless the context otherwise requires:
   1.  “Access line” means an exchange access line that has the ability to access dial tone and reach a public safety answering point.
   2.  “Administrator” means the administrator of the homeland security and emergency management division of the department of public defense.
   3.  “Communications service” means a service capable of accessing, connecting with, or interfacing with a 911 system by dialing, initializing, or otherwise activating the system exclusively through the digits 911 by means of a local telephone device, cellular telephone device, wireless communications device, or alternative means to be designated by the homeland security and emergency management division of the department of public defense by rule.
   4.  “Communications service provider” means a service provider, public or private, that transports information electronically via landline, wireless, internet, cable, or satellite.
   3.

5.  “Competitive local exchange service provider” means the same as defined in section 476.96.
   4.  “Emergency 911 notification device” means a product capable of accessing a public safety answering point through the 911 system.
   6.  “Emergency communications service surcharge” means a charge established by the program manager in accordance with section 34A.7A.
   5.

7.  “Enhanced 911” or “E911” means a service that provides the user of a communications service with the ability to reach a public safety answering point by dialing
 
using the digits 911, and that has the following additional features:

   a.  Routes an incoming 911 call to the appropriate public safety answering point.
   b.  Automatically provides voice, displays the name, address or location, and telephone number of an incoming 911 call and public safety agency servicing the location.
   6.

8.  “Enhanced 911 service area” means the geographic area to be serviced, or currently serviced under an enhanced 911 service plan, provided that an enhanced 911 service area must at minimum encompass one entire county. The enhanced 911 service area may encompass more than one county, and need not be restricted to county boundaries.
   7.

9.  “Enhanced 911 service plan” means a plan that includes the following information:
   a.  A description of the enhanced 911 service area.
   b.  A list of all public and private safety agencies within the enhanced 911 service area.
   c.  The number of public safety answering points within the enhanced 911 service area.
   d.  Identification of the agency responsible for management and supervision of the enhanced 911 emergency communication system.
   e.
  (1)  A statement of estimated costs to be incurred by the joint E911 service board or the department of public safety, including separate estimates of the following:
   (a)  Nonrecurring costs, including, but not limited to, public safety answering points, network equipment, software, database, addressing, initial training, and other capital and start-up expenditures, including the purchase or lease of subscriber names, addresses, and telephone information from the local exchange service provider.
   (b)  Recurring costs, including, but not limited to, network access fees and other telephone charges, software, equipment, and database management, and maintenance, including the purchase or lease of subscriber names, addresses, and telephone information from the local exchange service provider. Recurring costs shall not include personnel costs for a public safety answering point.
   (2)  Funds deposited in an E911 service fund are appropriated and shall be used for the payment of costs that are limited to nonrecurring and recurring costs directly attributable to the provision
 
receipt and disposition of the
 
911 emergency telephone communication service
 
call and may include costs for portable and vehicle radios, communication towers and associated equipment, and other radios and associated equipment permanently located at the public safety answering point and as directed by either the joint E911 service board or the department of public safety. Costs do not include expenditures for any other purpose, and specifically exclude costs attributable to other emergency services or expenditures for buildings or personnel, except for the costs of personnel for database management and personnel directly associated with addressing.
   f.  Current equipment operated by affected local exchange service providers, and central office equipment and technology upgrades necessary for the provider to implement enhanced 911 service within the enhanced 911 service area.
   g.  A schedule for implementation of the plan throughout the E911 service area. The schedule may provide for phased implementation.
   h.  The number of telephone access lines capable of access to 911 in the enhanced 911 service area.
   i.  The total property valuation in the enhanced 911 service area.
   8.

10.  “Local exchange carrier” means the same as defined in section 476.96.
   9.

11.  “Local exchange service provider” means a vendor engaged in providing telecommunications service between points within an exchange and includes but is not limited to a competitive local exchange service provider and a local exchange carrier.
   10.

12.  “Program manager” means the E911 program manager appointed pursuant to section 34A.2A.
   11.

13.  “Provider” means a vendor who provides, or offers to provide, E911 equipment, installation, maintenance, or exchange access services within the enhanced 911 service area.
   12.

14.  “Public or private safety agency” means a unit of state or local government, a special purpose district, or a private firm which provides or has the authority to provide fire fighting, police, ambulance, emergency medical services, or hazardous materials response.
   13.

15.  “Public safety answering point” means a twenty-four-hour public safety communications facility that receives enhanced 911 service calls and directly dispatches emergency response services or relays calls to the appropriate public or private safety agency.
   16.  “Wireless communications service” means commercial mobile radio service, as defined under sections 3(27) and 332(d) of the federal Telecommunications Act of 1996, 47 U.S.C. § 151 et seq.; federal communications commission rules; and the federal Omnibus Budget Reconciliation Act of 1993, Pub. L. No. 103-66. “Wireless communications service” includes any wireless two-way communications used in cellular telephone service, personal communications service, or the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communications service, or a network access line. “Wireless communications service” does not include a service whose customers do not have access to 911 or 911-like service, a communications channel utilized only for data transmission, or a private telecommunications system. 
   17.  “Wireless communications service provider” means a company that offers wireless communications service to users of wireless devices including but not limited to cellular, personal communications services, mobile satellite services, and enhanced specialized mobile radio. 
   14.18.  “Wireless E911 phase 1” means a 911 call made from a wireless device in which the wireless service provider delivers the call-back number and address of the tower that received the call to the appropriate public safety answering point.
   15.19.  “Wireless E911 phase 2” means a 911 call made from a wireless device in which the wireless service provider delivers the call-back number and the latitude and longitude coordinates of the wireless device to the appropriate public safety answering point.
   16.

20.  “Wire-line E911 service surcharge” is
 
means a charge set by the E911 service area operating authority and assessed on each wire-line access line which physically terminates within the E911 service area
 
in accordance with section 34A.7.
    Sec. 2.  Section 34A.3, subsection 4, Code 2011, is amended to read as follows:
   4.  Participation in joint E911 service board required.  A political subdivision or state agency having a public safety agency within its territory or jurisdiction shall participate in a joint E911 service board and cooperate in maintaining the E911 service plan.
    Sec. 3.  Section 34A.6, subsection 1, Code 2011, is amended to read as follows:
   1.  Before a joint E911 service board may request imposition of the wire-line
 
surcharge by the program manager, the board shall submit the following question to voters, as provided in subsection 2, in the proposed E911 service area, and the question shall receive a favorable vote from a simple majority of persons submitting valid ballots on the following question within the proposed E911 service area:
Shall the following public measure be adopted?

YES   ...

NO    ...

  Enhanced 911 emergency telephone service shall be funded, in whole or in part, by a monthly surcharge of (an amount determined by the local joint E911 service board of up to one dollar) on each telephone access line collected as part of each telephone subscriber’s monthly phone bill if provided within (description of the proposed E911 service area).
    Sec. 4.  Section 34A.7, subsection 1, paragraph a, unnumbered paragraph 1, Code 2011, is amended to read as follows:
   To encourage local implementation of E911 service, one source of funding for E911 emergency telephone communication systems shall come from a surcharge per month, per access line on each access line subscriber, except as provided in subsection 5, equal to the lowest amount of the following:
    Sec. 5.  Section 34A.7, subsection 2, paragraph b, Code 2011, is amended to read as follows:
   b.  A local exchange service provider is not liable for an uncollected surcharge for which the local exchange service provider has billed a subscriber but not been paid. The surcharge shall appear as a single line item on a subscriber’s periodic billing entitled, “E911 emergency telephone
 
communications service surcharge”.
    Sec. 6.  Section 34A.7A, Code 2011, is amended to read as follows:
   34A.7A  Wireless
 
Emergency communications service
 
surcharge —— fund established —— distribution and permissible expenditures.
   1.
  a.  Notwithstanding section 34A.6, the administrator shall adopt by rule a monthly surcharge of up to sixty-five cents
 
one dollar to be imposed on each wireless communications service number provided in this state. The surcharge shall be imposed uniformly on a statewide basis and simultaneously on all wireless communications service numbers as provided by rule of the administrator.

The surcharge shall not be imposed on wire-line-based communications.
   b.  The program manager shall provide no less than one hundred days’ notice of the surcharge to be imposed to each wireless communications service provider. The program manager, subject to the sixty-five cent
 
one dollar limit in paragraph “a”, may adjust the amount of the surcharge as necessary, but no more than once in any calendar year.
   c.
  (1)  The surcharge shall be collected as part of the wireless communications service provider’s periodic billing to a subscriber. The surcharge shall appear as a single line item on a subscriber’s periodic billing indicating that the surcharge is for E911 emergency telephone
 
communications service. In the case of a
 
prepaid wireless telephone
 
communications service
 
or device, this surcharge shall be remitted based upon the address associated with the point of purchase, the customer billing address, or the location associated with the mobile telephone number
 
device for each active prepaid wireless telephone
 
device that has a sufficient positive balance as of the last days of the information, if that information is available.
   (2)  In compensation for the costs of billing and collection, the wireless communications service provider may retain one percent of the gross surcharges collected.
   (3)  The surcharges shall be remitted quarterly by the wireless communications service provider to the program manager for deposit into the fund established in subsection 2.
   (4)  A wireless communications service provider is not liable for an uncollected surcharge for which the wireless communications service provider has billed a subscriber but which has not been paid.
   2.  Moneys collected pursuant to subsection 1 shall be deposited in a separate wireless E911 emergency communications fund within the state treasury under the control of the program manager. Section 8.33 shall not apply to moneys in the fund. Moneys earned as income, including as interest, from the fund shall remain in the fund until expended as provided in this section. Moneys in the fund shall be expended and distributed in the following priority order:
   a.  An amount as appropriated by the general assembly to the administrator shall be allocated to the administrator and program manager for implementation, support, and maintenance of the functions of the administrator and program manager and to employ the auditor of state to perform an annual audit of the wireless E911 emergency communications fund.
   b.  The program manager shall allocate twenty-one percent of the total amount of surcharge generated to wireless carriers to recover their costs to deliver
 
wireless E911 phase 1 services. If the allocation in this paragraph is insufficient to reimburse all wireless carriers for such carrier’s eligible expenses, the program manager shall allocate a prorated amount to each wireless carrier equal to the percentage of such carrier’s eligible expenses as compared to the total of all eligible expenses for all wireless carriers for the calendar quarter during which such expenses were submitted. When prorated expenses are paid, the remaining unpaid expenses shall no longer be eligible for payment under this paragraph.
   c.  The program manager shall reimburse wire-line carriers
 
communication service providers on a calendar quarter basis for carriers’ eligible expenses for transport costs between the selective router and the public safety answering points related to the delivery of wireless E911 phase 1 services.
   d.  The program manager shall reimburse wire-line carriers and third-party E911 automatic location information database providers on a calendar quarterly basis for the costs of maintaining and upgrading the E911 components and functionalities beyond the input to the E911 selective router, including the E911 selective router and the automatic location information database.
   e.  The program manager shall apply an amount up to five hundred thousand dollars per calendar quarter to any outstanding wireless E911 phase 1 obligations incurred pursuant to this chapter prior to July 1, 2004.
   f.

e.
  (1)  The program manager shall allocate an amount up to one hundred fifty-nine thousand dollars per calendar quarter equally to the joint E911 service boards and the department of public safety that have submitted an annual written request to the program manager in a form approved by the program manager by May 15 of each year. The program manager shall allocate to each joint E911 service board and to the department of public safety a minimum of one thousand dollars per calendar quarter for each public safety answering point within the service area of the department of public safety or joint E911 service board
 
that has submitted an annual written request to the program manager in a form approved by the program manager by May 15 of each year.
   (2)  Upon retirement of outstanding obligations referred to in paragraph “e”, the
 
The amount allocated under this paragraph “f”
 
“e” shall be twenty-five percent of the total amount of surcharge generated per calendar quarter allocated as follows:
   (a)  Sixty-five percent of the total dollars available for allocation shall be allocated in proportion to the square miles of the service area to the total square miles in this state.
   (b)  Thirty-five percent of the total dollars available for allocation shall be allocated in proportion to the wireless E911 calls taken at the public safety answering point in the service area to the total number of wireless E911 calls originating in this state.
   (c)  Notwithstanding subparagraph divisions (a) and (b), the minimum amount allocated to each joint E911 service board and to the department of public safety shall be no less than one thousand dollars for each public safety answering point within the service area of the department of public safety or joint E911 service board.
   (3)  The funds allocated in this paragraph “f”
 
“e” shall be used for communication equipment located inside the public safety answering points for the implementation and maintenance of wireless E911 phase 2
 
services. The joint E911 service boards and the department of public safety shall provide an estimate of phase 2 implementation costs to the program manager by January 1, 2005.
   g.

f.  If moneys remain in the fund after fully paying all obligations under paragraphs “a” through “f”
 
“e”, the remainder may be accumulated in the fund as a carryover operating surplus. This surplus shall be used to fund future phase 2 network and public safety answering point improvements, including hardware and software for an internet protocol-enabled next generation network, and wireless carriers’ transport costs related to wireless E911 services, if those costs are not otherwise recovered by wireless carriers through customer billing or other sources and approved by the program manager. Notwithstanding section 8.33, any moneys remaining in the fund at the end of each fiscal year shall not revert to the general fund of the state but shall remain available for the purposes of the fund.
   h.

g.  The administrator, in consultation with the program manager and the E911 communications council, shall adopt rules pursuant to chapter 17A governing the distribution of the surcharge collected and distributed pursuant to this subsection. The rules shall include provisions that all joint E911 service boards and the department of public safety which answer or service wireless E911 calls are eligible to receive an equitable portion of the receipts.
   3.
  a.  The program manager shall submit an annual report by January 15 of each year to the general assembly’s standing committees on government oversight advising the general assembly of the status of E911 implementation and operations, including both wire-line and wireless services, the distribution of surcharge receipts, and an accounting of the revenues and expenses of the E911 program.
   b.  The program manager shall submit a calendar quarter report of the revenues and expenses of the E911 program to the fiscal services division of the legislative services agency.
   c.  The general assembly’s standing committees on government oversight shall review the priorities of distribution of funds under this chapter at least every two years.
   4.  The amount collected from a wireless
 
communications service provider and deposited in the fund, pursuant to section 22.7, subsection 6, information provided by a wireless
 
communications service provider to the program manager consisting of trade secrets, pursuant to section 22.7, subsection 3, and other financial or commercial operations information provided by a wireless
 
communications service provider to the program manager, shall be kept confidential as provided under section 22.7. This subsection does not prohibit the inclusion of information in any report providing aggregate amounts and information which does not identify numbers of accounts or customers, revenues, or expenses attributable to an individual wireless communications service provider.
   5.  For purposes of this section, “wireless communications service” means commercial mobile radio service, as defined under sections 3(27) and 332(d) of the federal Telecommunications Act of 1996, 47 U.S.C. § 151 et seq.; federal communications commission rules; and the Omnibus Budget Reconciliation Act of 1993. “Wireless communications service” includes any wireless two-way communications used in cellular telephone service, personal communications service, or the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communications service, or a network access line. “Wireless communications service” does not include services whose customers do not have access to 911 or a 911-like service, a communications channel utilized only for data transmission, or a private telecommunications system.
    Sec. 7.  Section 34A.15, subsection 1, paragraph c, Code Supplement 2011, is amended to read as follows:
   c.  One person appointed by the Iowa association of chiefs of police and peace officers
 
association.
    Sec. 8.  REPEAL.  Section 34A.6A, Code 2011, is repealed.
EXPLANATION
   This bill makes several changes regarding the provisions of Code chapter 34A, relating to enhanced 911 emergency telephone systems.
   The bill modifies definitions applicable to the Code chapter. The bill provides that a “communications service” means a service capable of accessing, connecting with, or interfacing with a 911 system by dialing, initializing, or otherwise activating the system exclusively through the digits 911 by means of a local telephone device, cellular telephone device, wireless communications device, or alternative means to be designated by the homeland security and emergency management division of the department of public safety by rule.
   The bill provides that a “communications service provider” means a service provider, public or private, that transports information electronically via landline, wireless, internet, cable, or satellite. The bill changes references to the wireless communications surcharge contained in Code section 34A.7A to an “emergency communications service surcharge”, and adds a definition accordingly which references that Code section.
   The bill adds a definition of “wireless communications service” to mean commercial mobile radio service, as defined under specified federal legislation and rules, including any wireless two-way communications used in cellular telephone service, personal communications service, or the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communications service, or a network access line, and not including a service whose customers do not have access to 911 or 911-like service, a communications channel utilized only for data transmission, or a private telecommunications system. The bill also adds a definition of “wireless communications service provider” to mean a company that offers commercial mobile radio service to users of wireless devices including but not limited to cellular telephone services, personal communications services, mobile satellite services, and enhanced specialized mobile radio. The bill deletes a definition of “wireless communications service” currently contained in Code section 34A.7A, subsection 5, as being encompassed within the definitions added by the bill, and also deletes a definition of “emergency 911 notification device” which is not currently referred to within the Code chapter.
   The bill deletes a requirement that a state agency having a public safety agency within its territory or jurisdiction must participate in a joint E911 service board and cooperate in maintaining the E911 service plan, but retains that requirement with reference to political subdivisions.
   The bill adds a reference to “wire-line” surcharges with respect to the surcharge contained in Code section 34A.6, to clarify that it applies to wire-line, rather than wireless, communications and to promote consistency with the local wire-line E911 service surcharge imposed pursuant to Code section 34A.7. The bill deletes references to “telephone” communications systems and surcharges contained in Code section 34A.7, in favor of the broader “emergency” communication systems and surcharges.
   The bill specifies that the emergency communication services surcharge contained in Code section 34A.7A shall not be imposed on wire-line-based communications, deletes references to “telephone” devices and services contained in the Code section, and deletes references to “wireless” communications service providers and the “wireless” E911 emergency communications fund. The bill increases the emergency communications service surcharge from the current level of sixty-five cents per month to one dollar per month, and repeals Code section 34A.6A, which currently authorizes an alternative wire-line surcharge of up to $2.50 per month for a 24-month period.
   The bill deletes a requirement that up to $500,000 per calendar quarter of surcharge funds shall be applied to specified outstanding wireless E911 phase 1 obligations; deletes a requirement that up to $159,000 per calendar quarter shall be allocated equally to joint E911 service boards and the department of public safety if annual written request forms have been submitted; and qualifies that an allocation to each service board and the department of public safety of a minimum of $1,000 per calendar quarter for each public safety answering point must be pursuant to an annual written request. The bill adds hardware and software for an internet protocol-enabled next generation network to permissible uses of carryover operating surplus moneys.
   The bill additionally changes a current reference to the Iowa association of chiefs of police and peace officers to the Iowa peace officers association regarding appointments to the E911 communications council.