H.F. 644 Section 1. Section 34A.7, subsection 1, paragraph a, Code 1 2013, is amended by striking the paragraph and inserting in 2 lieu thereof the following: 3 a. To encourage local implementation of E911 service, one 4 source of funding for E911 emergency communication systems 5 shall come from a surcharge per month, per access line on each 6 access line subscriber, of one dollar. 7 Sec. 2. Section 34A.7, subsection 1, paragraph b, 8 subparagraph (1), Code 2013, is amended to read as follows: 9 (1) The program manager shall notify a local exchange 10 service provider scheduled to provide exchange access line 11 service to an E911 service area that implementation of an E911 12 service plan has been approved by the joint E911 service board 13 and by the service area referendum and that collection of the 14 surcharge is to begin within sixty days. 15 Sec. 3. Section 34A.7, subsection 5, Code 2013, is amended 16 to read as follows: 17 5. Use of moneys in fund —— priority and limitations on 18 expenditure. 19 a. Moneys deposited in the E911 service fund shall be 20 used for the repayment of any bonds issued for the benefit 21 of or loan made to the joint E911 service board pursuant to 22 sections 34A.20 through 34A.22 , and as long as any such bond 23 or loan remains unpaid the surcharge shall not be reduced or 24 eliminated. Moneys deposited in the fund shall be subject to 25 such terms and conditions as may be contained in the relevant 26 bond documents, trust indenture, resolution, loan agreement, or 27 other instrument pursuant to which bonds are issued or a loan 28 is made, without regard to any limitation otherwise provided 29 by law. The surcharge may be increased, but shall not exceed 30 the maximum allowed in subsection 1 , upon approval of the 31 authority upon such terms and conditions as may be contained 32 in the relevant bond documents, trust indenture, resolution, 33 loan agreement, or other instrument pursuant to which bonds are 34 issued or a loan is made, as deemed necessary or prudent by the 35 -1- LSB 1422HZ (2) 85 rn/nh 1/ 7

H.F. 644 authority to secure repayment and assure marketability or a 1 reasonable interest rate. 2 b. Moneys deposited in the E911 service fund shall be used 3 for the following, in order of priority if paragraph “a” does 4 not apply: 5 (1) Money shall first be spent for actual recurring costs of 6 operating the E911 service plan. 7 (2) If money remains in the fund after fully paying for 8 recurring costs incurred in the preceding year, the remainder 9 may be spent to pay for nonrecurring costs, not to exceed 10 actual nonrecurring costs as approved by the program manager. 11 (3) If money remains in the fund after fully paying 12 obligations under subparagraphs (1) and (2), the remainder may 13 be accumulated in the fund as a carryover operating surplus. 14 If the surplus is greater than twenty-five percent of the 15 approved annual operating budget for the next year, the program 16 manager shall reduce the surcharge by an amount calculated to 17 result in a surplus of no more than twenty-five percent of the 18 planned annual operating budget. After nonrecurring costs have 19 been paid, if the surcharge is less than the maximum allowed 20 and the fund surplus is less than twenty-five percent of the 21 approved annual operating budget, the program manager shall, 22 upon application of the joint E911 service board, increase the 23 surcharge in an amount calculated to result in a surplus of 24 twenty-five percent of the approved annual operating budget. 25 The surcharge may only be adjusted once in a single year, upon 26 sixty days’ prior notice to the provider. 27 Sec. 4. Section 34A.7, subsection 7, Code 2013, is amended 28 by striking the subsection. 29 Sec. 5. Section 34A.7A, subsection 1, paragraphs a and b, 30 Code 2013, are amended to read as follows: 31 a. Notwithstanding section 34A.6 , the The administrator 32 shall adopt by rule a monthly surcharge of up to sixty-five 33 cents one dollar to be imposed on each communications service 34 number provided in this state. The surcharge shall be 35 -2- LSB 1422HZ (2) 85 rn/nh 2/ 7

H.F. 644 imposed uniformly on a statewide basis and simultaneously 1 on all communications service numbers as provided by rule 2 of the administrator. The surcharge shall not be imposed 3 on wire-line-based communications or prepaid wireless 4 telecommunications service. 5 b. The program manager shall provide no less than 6 sixty days’ notice of the surcharge to be imposed to each 7 communications service provider. The program manager, subject 8 to the sixty-five cent limit in paragraph “a” , may adjust the 9 amount of the surcharge as necessary, but no more than once in 10 any calendar year. 11 Sec. 6. Section 34A.7A, subsection 2, Code 2013, is amended 12 by adding the following new paragraph: 13 NEW PARAGRAPH . 0b. The program manager shall allocate 14 thirteen percent of the total amount of surcharge generated 15 to wireless carriers to recover their costs to deliver E911 16 phase 1 services. If the allocation in this paragraph is 17 insufficient to reimburse all wireless carriers for such 18 carrier’s eligible expenses, the program manager shall allocate 19 a prorated amount to each wireless carrier equal to the 20 percentage of such carrier’s eligible expenses as compared to 21 the total of all eligible expenses for all wireless carriers 22 for the calendar quarter during which such expenses were 23 submitted. When prorated expenses are paid, the remaining 24 unpaid expenses shall no longer be eligible for payment under 25 this paragraph. 26 Sec. 7. Section 34A.7A, subsection 2, paragraph e, Code 27 2013, is amended to read as follows: 28 e. If moneys remain in the fund after fully paying all 29 obligations under paragraphs “a” through , “0b” , “b” , “c” , 30 and “d” , the remainder may be accumulated in the fund as a 31 carryover operating surplus. This surplus shall be used 32 to fund future network and public safety answering point 33 improvements, including hardware and software for an internet 34 protocol-enabled next generation network, and wireless 35 -3- LSB 1422HZ (2) 85 rn/nh 3/ 7

H.F. 644 carriers’ transport costs related to wireless E911 services, if 1 those costs are not otherwise recovered by wireless carriers 2 through customer billing or other sources and approved by the 3 program manager in consultation with the E911 communications 4 council . Notwithstanding section 8.33 , any moneys remaining 5 in the fund at the end of each fiscal year shall not revert to 6 the general fund of the state but shall remain available for 7 the purposes of the fund. 8 Sec. 8. Section 34A.7A, Code 2013, is amended by adding the 9 following new subsection: 10 NEW SUBSECTION . 5. a. The program manager, in consultation 11 with the E911 communications council and the auditor of state, 12 shall establish a methodology for determining and collecting 13 comprehensive public safety answering point cost and expense 14 data through the county joint E911 service boards. The 15 methodology shall include the collection of data for all costs 16 and expenses related to the operation of a public safety 17 answering point and account for the extent to which identified 18 costs and expenses are compensated for or addressed through 19 E911 surcharges versus other sources of funding. 20 b. Data collection pursuant to paragraph “a” shall commence 21 no later than January 1, 2014, and shall be subject to an audit 22 by the auditor of state beginning July 1, 2014. The program 23 manager shall prepare a report detailing the methodology 24 developed and the data collected after such data has been 25 collected for a two-year period. The report and the results of 26 the initial audit shall be submitted to the general assembly by 27 March 1, 2016. A new report regarding data collection and the 28 results of an ongoing audit for each successive two-year period 29 shall be submitted by March 1 every two years thereafter. 30 Expenses associated with the audit shall be paid to the 31 auditor of state by the program manager from the E911 emergency 32 communications fund established in section 34A.7A. 33 c. A county joint E911 service board which fails to submit 34 expenses and costs pursuant to the methodology developed 35 -4- LSB 1422HZ (2) 85 rn/nh 4/ 7

H.F. 644 pursuant to paragraph “a” by March 31 of each year shall be 1 allocated sixty-five cents out of the one dollar emergency 2 communications service surcharge until March 31 of the 3 following year. Remaining funds shall be held in the carryover 4 operating surplus fund until the expenses and cost report is 5 submitted by the county joint E911 service board. If the 6 county joint E911 service board submits the expense and cost 7 report before March 30 of the following year, the set aside 8 funds shall be provided to the county joint E911 service board. 9 If the county joint E911 service board fails to submit the 10 expense and cost report within one year, funds shall revert to 11 the carryover operating surplus fund and be used in accordance 12 with section 34A.7A, subsection 2, paragraph “e” . 13 Sec. 9. REPEAL. Sections 34A.6 and 34A.6A, Code 2013, are 14 repealed. 15 Sec. 10. E911 EMERGENCY COMMUNICATION SYSTEMS —— 16 EFFICIENCIES STUDY. The homeland security and emergency 17 management division of the department of public defense shall 18 conduct a study to identify areas in which efficiencies of 19 operations and expenses could be achieved with regard to E911 20 emergency communication systems at both the state and local 21 level. The division shall submit a report containing the 22 results of the study to the general assembly by July 1, 2014. 23 EXPLANATION 24 This bill modifies provisions applicable to the 25 administration and funding of enhanced E911 emergency 26 communication systems. 27 The bill eliminates existing voter referendum requirements 28 regarding imposition of the local wire-line E911 service 29 surcharge and the alternative surcharge applicable to wire-line 30 communications contained in Code sections 34A.6 and 34A.6A, 31 respectively. The bill replaces current provisions authorizing 32 imposition of the wire-line E911 service surcharge in an amount 33 up to $1 per access line with a requirement that the surcharge 34 be imposed at the $1 level. The bill increases the level of 35 -5- LSB 1422HZ (2) 85 rn/nh 5/ 7

H.F. 644 the emergency communications service surcharge from the current 1 level of up to 65 cents per communications service number to 2 $1 per service number. 3 The bill reinstates provisions authorizing wireless carriers 4 to recover their E911 service delivery costs which were 5 eliminated during the 2012 legislative session. However, the 6 bill specifies that the program manager shall allocate 13 7 percent of the total amount of emergency communications service 8 surcharge revenue for such cost recovery. Further, the bill 9 requires the E911 program manager to consult with the E911 10 communications council regarding how revenue accumulated in the 11 emergency communications fund as carryover operating surplus 12 shall be allocated. Currently, this determination is made 13 strictly with the approval of the program manager. 14 Additionally, the bill directs the program manager, in 15 consultation with the council and the auditor of state, 16 to establish a methodology for determining and collecting 17 comprehensive public safety answering point cost and expense 18 data through the county joint E911 service boards. The bill 19 states that data collection shall commence no later than 20 January 1, 2014, and that the program manager shall prepare a 21 report detailing the methodology and the data collected after 22 the data has been collected for two years. The report is 23 required to be submitted to the general assembly by March 1, 24 2016, and every two years thereafter. The bill also provides 25 that the auditor of state shall perform an initial audit of 26 the data collection beginning July 1, 2014, with the audit 27 results submitted at the same time as the report. The audit 28 shall continue on an ongoing basis and the results of the audit 29 shall be submitted with the report every two years. The bill 30 provides that a county joint E911 service board which fails 31 to submit expenses and costs pursuant to the methodology by 32 March 31 of each year shall be allocated 65 cents out of the 33 $1 emergency communications service surcharge until March 31 34 of the following year. The remaining funds shall be held in 35 -6- LSB 1422HZ (2) 85 rn/nh 6/ 7

H.F. 644 the carryover operating surplus fund until the expenses and 1 cost report is submitted by the county joint E911 service 2 board. Further, the bill provides that if the county joint 3 E911 service board submits the expense report prior to March 30 4 of the following year, the set aside funds shall be provided to 5 the board, but if the board fails to submit the report within 6 one year, the funds shall revert to the carryover operating 7 surplus fund and be used in accordance with Code section 8 34A.7A. That Code section states that carryover surplus 9 funds shall be used to fund future network and public safety 10 answering point improvements, including hardware and software 11 for an internet protocol-enabled next generation network, 12 and wireless carriers’ transport costs related to wireless 13 E911 services, if those costs are not otherwise recovered by 14 wireless carriers through customer billing or other sources and 15 approved by the program manager. 16 The bill requires the homeland security and emergency 17 management division of the department of public defense 18 to conduct a study to identify E911 operations and expense 19 efficiencies, to be submitted in a report to the general 20 assembly by July 1, 2014. 21 -7- LSB 1422HZ (2) 85 rn/nh 7/ 7