HB-5917, As Passed House, May 9, 2006

SUBSTITUTE FOR

HOUSE BILL NO. 5917

     A bill to amend 1986 PA 32, entitled

"Emergency telephone service enabling act,"

by amending sections 401, 407, 408, 412, and 717 (MCL 484.1401,

484.1407, 484.1408, 484.1412, and 484.1717), section 401 as amended

by 1999 PA 81, sections 407 and 412 as added by 1999 PA 78, section

408 as amended by 2006 PA 74, and section 717 as added by 1999 PA

79.

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  pursuant to

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  pursuant to  under section  304b  304 of the Michigan

telecommunications act, 1991 PA 179, MCL  484.2304b  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  pursuant to  under

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

179, MCL  484.2304b  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  pursuant to  under section

304b  304 of the Michigan telecommunications act, 1991 PA 179, MCL

484.2304b  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  pursuant to  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  pursuant

to  under section  304b  304 of the Michigan telecommunications

act, 1991 PA 179, MCL  484.2304b  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  pursuant

to  under section  304b  304 of the Michigan telecommunications

act, 1991 PA 179, MCL  484.2304b  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  pursuant to  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  pursuant to  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.

     (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  pursuant to

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, 2006. However, if  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.

     Sec. 407. (1) The CMRS emergency telephone fund is created

within the state treasury to provide money to implement the

wireless emergency service order and this act.

     (2) The state treasurer may receive money or other assets from

any source for deposit into the fund. Money may be deposited into

the fund by electronic funds transfer. The state treasurer shall

direct the investment of the fund. The state treasurer shall credit

to the fund interest and earnings from fund investments.  The state

treasurer shall establish restricted subaccounts within the fund

for each of the categories listed in section 409(1)(a) to (e).

     (3) Money in the fund at the close of the fiscal year shall

remain in the fund and shall not lapse to the general fund.

     (4) The department of treasury shall expend money from the

fund, upon appropriation, only as provided in this act. The

disbursement of money may be by electronic funds transfer.

     (5) The auditor general shall audit the fund at least

annually.

     Sec. 408. (1)  Except as otherwise provided under subsection

(3), starting January 1, 2004, a  Each CMRS supplier or a reseller

shall include a service charge of  52  29 cents per month for each

CMRS connection that has a billing address in this state. The CMRS

supplier or reseller shall list a service charge authorized under

this section as a separate line item on each bill. The service

charge shall be listed on the bill as the "operational 9-1-1

charge".

     (2) Except as otherwise provided under subsection (3), a CMRS

supplier may submit an invoice to the subcommittee created in

section 410 for reimbursement from the CMRS emergency telephone

fund for costs incurred in implementing the wireless emergency

service order and this act. Within 90 days after the date the

invoice is submitted to the subcommittee, the subcommittee shall

review the invoice and make a recommendation to the committee for

the approval, in whole or in part, or denial of the invoice. The

committee shall approve an invoice submitted under this subsection

only if the invoice is for costs directly related to the providing

and installing of equipment that implements the wireless emergency

service order and this act. The committee shall authorize payment

of the invoice in accordance with the recommendations of the

subcommittee.

     (3) Before July 1, 2004, all CMRS suppliers shall notify the

committee in writing whether they will seek reimbursement from the

CMRS emergency telephone fund for costs incurred until December 31,

2005 in implementing the wireless emergency service order and this

act. If a CMRS supplier elects to seek reimbursement under this

subsection, it shall continue to impose the 52 cents per month

charge authorized under subsection (1) until December 31, 2005.

After December 31, 2005, the CMRS supplier shall impose a service

charge of 29 cents per month. A CMRS supplier that notifies the

committee in writing that it will not seek reimbursement under this

subsection shall impose a charge of 29 cents per month and not seek

reimbursement from the fund for costs in implementing the wireless

emergency service order and this act incurred after the date of its

notice to the committee.

House Bill No. 5917 (H-1) as amended May 4, 2006

     (2) Each CMRS supplier or reseller shall [collect] a service

charge of 29 cents per month [from] each of its prepaid customers. The

CMRS supplier or reseller shall have a 1-time option of selecting 1

of the following methods of determining the amount the CMRS

supplier or reseller is required to deposit under subsection (4):

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

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

period by $50.00 and then multiplying that number by 29 cents.

     (b) Twenty-nine cents for each active prepaid account of the

CMRS supplier or reseller the balance of which is equal to or

greater than 29 cents. As used in this subsection:

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

recharged or replenished his or her account at least once during

the billing period or calendar month or has a sufficient positive

balance at the end of each month equal to or greater than 29 cents.

     (ii) "CMRS reseller" means a provider who purchases

telecommunication services from another telecommunication service

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

the purchased services into a mobile telecommunication service.

     (iii) "Earned prepaid revenue" means all new revenue that has

been generated from prepaid service accounts since the close of the

last billing period or calendar month.

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

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

     (A) A michigan telephone number or a michigan identification number

for the service.

     (B) a service for exclusive use in an automotive vehicle and whose place of primary use is within this state. as used in this sub-subparagraph, "place of primary use" means that phrase as defined under 4 usc 124.]

(3)  (4) The department of state police may receive funds

from the CMRS emergency telephone fund for costs to administer this

act or to operate a regional dispatch center that receives and

dispatches 9-l-l calls. A breakdown of the costs funded under this

subsection shall be included in the annual report required under

section 412. Except as otherwise provided by this subsection, the

costs funded under this subsection shall not exceed 1/2 of 1 cent

of the monthly service charge collected under this section. If the

department of state police establishes the position of E-911

coordinator, the costs funded under this subsection shall not

exceed 1 cent of the monthly service charge collected under this

section.

(4)  (5) Except as otherwise provided in this section, the

money collected as the service charge under  subsection (1)

subsections (1) and (2) shall be deposited in the CMRS emergency

telephone fund created in section 407 not later than 30 days after

the end of the quarter in which the service charge was collected.

(5)  (6) All money collected and deposited in the CMRS

emergency telephone fund created in section 407 shall be

distributed as follows:

     (a) Except as provided in subsection  (9)  (8), 10 cents of

each monthly service charge shall be disbursed equally to each

county that has a final 9-1-1 plan in place that includes

implementing the wireless emergency service order and this act.

Money received by a county under this subdivision shall only be

used to implement the wireless emergency service order and this

act. Money expended under this subdivision for a purpose considered

unnecessary or unreasonable by the committee or the auditor general

shall be repaid to the fund.

     (b) Except as provided in subsection  (9)  (8), 15 cents of

each monthly service charge shall be disbursed on a per capita

basis to each county that has a final 9-1-1 plan in place that

includes implementing the wireless emergency service order and this

act. The committee shall certify to the department of treasury

quarterly which counties have a final 9-1-1 plan in place. The most

recent census conducted by the United States census bureau shall be

used to determine the population of each county in determining the

per capita basis in this subdivision. Money received by a county

under this subdivision shall only be used to implement the wireless

emergency service order and this act. Money expended under this

subdivision for a purpose considered unnecessary or unreasonable by

the committee or the auditor general shall be repaid to the fund.

     (c) One and one-half cents of each monthly service charge

shall be available to PSAPs for training personnel assigned to 9-1-

1 centers. A written request for money from the fund shall be made

by a public safety agency or county to the committee. The committee

shall semiannually authorize distribution of money from the fund to

eligible public safety agencies or counties. A public safety agency

or county that receives money under this subdivision shall create,

maintain, and make available to the committee upon request a

detailed record of expenditures relating to the preparation,

administration, and carrying out of activities of its 9-1-1

training program. Money expended by an eligible public safety

agency or county for a purpose considered unnecessary or

unreasonable by the committee or the auditor general shall be

repaid to the fund. Money shall be disbursed to an eligible public

safety agency or county for training of PSAP personnel through

courses certified by the commission on law enforcement standards

only for either of the following purposes:

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

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

1-1 service.

     (d) As provided under  subsections (2), (4), and (11)

subsection (10).

     (e) For fiscal year 2005-2006 only, an amount not to exceed

$15,000,000.00 for the annual rental obligations of the state

building authority under the bonds issued to finance the Michigan

public safety communications system project.

(6)  (7) Money received by a county under subsection  (6)(b)

(5)(b) and (c) shall be distributed by the county to the primary

PSAPs geographically located within the 9-1-1 service district by 1

of the following methods:

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

     (b) If distribution is not provided for in the 9-1-1 service

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

distribution between a county and a public agency.

     (c) If distribution is not provided for in the 9-1-1 service

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

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

population within the geographic area for which the PSAP serves as

primary PSAP.

     (d) If a county has multiple emergency telephone districts,

money for that county shall be distributed as provided in the

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

(7)  (8) If a county with a final 9-1-1 plan in place does

not accept 9-1-1 calls through the direct dispatch method, relay

method, or transfer method from a CMRS user, the revenues available

to the county under this section shall be disbursed to the public

agency or county responsible for accepting and responding to those

calls.

(8)  (9) In addition to the requirements of this subsection,

a county is not eligible to receive disbursements under subsection

(6)(a)  (5)(a) or (b) unless the county is compliant with the

wireless emergency service order and this act. A county shall be

compliant with phase 1 implementation by June 30, 2004 and phase 2

implementation by June 30, 2005. A county that is not compliant

with phase 1 implementation by June 30, 2004 and phase 2

implementation by June 30, 2005 shall use the disbursements

received under subsection  (6)(a)  (5)(a) and (b) only for purposes

of becoming compliant. A county that is not compliant with phase 1

implementation by December 31, 2004 and phase 2 implementation by

December 31, 2005 is not eligible to receive disbursements under

subsection  (6)(a)  (5)(a) and (b). Once the committee determines

that a county that is not eligible to receive disbursements is

compliant, the county shall begin receiving disbursements again

under subsection  (6)(a)  (5)(a) and (b). As used in this

subsection, "compliant" means the county has installed equipment

that is capable, and at a state of readiness, to deploy wireless

service for all CMRS providers within a county's 9-1-1 service

district or districts.

(9)  (10) From each service charge billed under  subsection

(1)  subsections (1) and (2), each CMRS supplier or reseller who

billed the customer shall retain 1/2 of 1 cent to cover the costs

of billing and collection as the only reimbursement from this

charge for billing and collection costs.

(10)  (11) Notwithstanding any other provision of this act,

the commission, following a contested case, shall issue an order no

later than June 29, 2004 establishing the costs that a local

exchange provider may recover in terms of the costs related to the

wireless emergency service order. Any cost reimbursement allowed

under this subsection shall not include a cost that is not related

to complying with the wireless emergency service order. After the

commission has issued the order, a local exchange provider may

submit an invoice to the commission for reimbursement from the CMRS

emergency telephone fund for costs incurred that are allowed under

the commission order. Within 45 days after the date an invoice is

submitted to the commission, the commission shall make a

recommendation to the committee for the approval, either in whole

or in part, or the denial of the invoice. The committee shall

authorize payment of an invoice in accordance with the commission's

recommendation. As used in this subsection:

     (a) "Commission" means the Michigan public service commission.

     (b) "Local exchange provider" means a provider of regulated

primary basic local exchange service as defined in section 102 of

the Michigan telecommunications act, 1991 PA 179, MCL 484.2102.

(11)  (12) A CMRS supplier or reseller is not liable for an

uncollected service charge billed under subsection (1) or (2) for

which the CMRS supplier or reseller has billed the CMRS user. If

only a partial payment of a bill is received by a CMRS supplier or

reseller, the CMRS supplier or reseller shall credit the amount

received as follows in priority order:

     (a) For services provided.

     (b) For the reimbursement under subsection  (10)  (9).

     (c) For the balance of the service charge.

(12)  (13) Amounts received under subsection  (12)(c)

(11)(c) shall be forwarded to the CMRS emergency telephone fund

created in section 407. Any uncollected portion of the service

charge that is not received shall be billed on subsequent billings

and, upon receipt, amounts in excess of the reimbursement under

subsection  (10)  (9) shall be forwarded to the CMRS emergency

telephone fund created in section 407.  The  Except for the service

charge paid under subsection (2), the service charge paid by a CMRS

user is not subject to a state or local tax.

     (14) A CMRS supplier or reseller shall implement the billing

provisions of this section not later than October 26, 1999.

(13)  (15) The department of state police shall annually

prepare a list of projects in priority order that the department of

state police recommends for funding from the funds collected under

former section 409(e). The legislature shall annually review and

approve projects by law. If a project provides infrastructure or

equipment for use by CMRS suppliers, the department of state police

shall charge a reasonable fee for use of the infrastructure or

equipment. Fees collected under this subsection shall be deposited

in the fund.

     Sec. 412. (1) The committee shall conduct and complete a cost

study and make a report on the service charge required in section

408 not later than April 30, 2000, and August 30 annually after

2000. The report of the study shall include at a minimum all of the

following:

     (a) The extent of emergency telephone service implementation

in this state by CMRS suppliers under the wireless emergency

service order and this act.

     (b) The actual costs incurred by PSAPs and CMRS suppliers in

complying with the wireless emergency service order and this act.

     (c) The service charge required in section 408 and a

recommendation to change the service charge amount if needed to

fund the costs of meeting the time frames in the wireless emergency

service order and this act.

     (d) A description of any commercial applications developed as

a result of implementing this act.

     (e) A detailed record of expenditures by each county relating

to the implementation of the wireless emergency service order and

this act.

     (2) The committee shall deliver the report of the study

prepared under subsection (1) to the secretary of the senate, the

clerk of the house of representatives, and the standing committees

of the senate and house of representatives having jurisdiction over

issues pertaining to telecommunication technology.

     (3) Upon receipt of the report, the legislature must consider

the findings of the report and determine whether an adjustment to

the  fee  service charge is necessary.

     Sec. 717. This act is repealed effective December 31,  2006

2008.