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SB-1172, As Passed House, June 13, 2006

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 1172

A bill to amend 1986 PA 32, entitled

"Emergency telephone service enabling act,"

by amending sections 301, 401, and 717 (MCL 484.1301, 484.1401, and

484.1717), section 301 as amended by 1994 PA 29, section 401 as

amended by 1999 PA 81, and section 717 as added by 1999 PA 79, and

by adding section 413.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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

establish an emergency telephone district within all or part of the

county and may cause 9-1-1 service to be implemented within ~~such~~

the emergency telephone district ~~pursuant to~~ under this act.

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

which is operating an existing emergency telephone service may

modify the existing emergency telephone service or may alter the

scope or method of financing of 9-1-1 service within all or part of

the county by establishing an emergency telephone district and

causing 9-1-1 service to be implemented within ~~such~~ the emergency

telephone district ~~pursuant to~~ under this act.

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

emergency telephone district board and delegate certain powers to

the board.

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

multiple emergency telephone districts ~~prior to the effective date~~

~~of this subsection~~ before March 2, 1994, the emergency telephone

districts created shall receive all operational funds collected by

the service supplier of the district and operate the systems as

provided by this act.

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.

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~~ 2007. ~~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. 413. (1) The state 9-1-1 director shall issue a report to

the legislature and the governor no later than December 1, 2006,

providing recommendations for stable, equitable long-term funding

of the 9-1-1 system in this state and recommendations, if any, for

the establishment of standards for the training and response time

of 9-1-1 personnel.