HOUSE BILL No. 5653 March 11, 1998, Introduced by Rep. Scranton and referred to the Committee on Public Utilities. A bill to amend 1986 PA 32, entitled "Emergency telephone service enabling act," by amending section 201 (MCL 484.1201), as amended by 1994 PA 29, and by adding sections 407, 408, 409, 410, 411, and 412. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 Sec. 201.A UniversalEXCEPT AS PROVIDED IN SECTIONS 407 2 TO 412, A UNIVERSAL emergency number service system shall not be 3 implemented pursuant to this act unless a tariff exists for each 4 service supplier designated by the final 9-1-1 service plan to 5 provide 9-1-1 service in the universal emergency number system. 6 SEC. 407. (1) THE STATE CMRS EMERGENCY TELEPHONE FUND IS 7 CREATED WITHIN THE STATE TREASURY. 8 (2) THE STATE TREASURER MAY RECEIVE MONEY OR OTHER ASSETS 9 FROM ANY SOURCE FOR DEPOSIT INTO THE FUND. THE STATE TREASURER 10 SHALL DIRECT THE INVESTMENT OF THE FUND. THE STATE TREASURER 05646'98 JJG 2 1 SHALL CREDIT TO THE FUND INTEREST AND EARNINGS FROM FUND 2 INVESTMENTS. 3 (3) MONEY IN THE FUND AT THE CLOSE OF THE FISCAL YEAR SHALL 4 REMAIN IN THE FUND AND SHALL NOT LAPSE TO THE GENERAL FUND. 5 (4) THE DEPARTMENT OF TREASURY SHALL EXPEND MONEY FROM THE 6 FUND, UPON APPROPRIATION, ONLY AS PROVIDED IN SECTION 409. 7 SEC. 408. (1) A CMRS SUPPLIER SHALL INCLUDE A SERVICE 8 CHARGE OF $.65 PER MONTH FOR EACH CMRS CONNECTION THAT HAS A 9 BILLING ADDRESS IN THIS STATE. THE CMRS SUPPLIER SHALL LIST THE 10 SERVICE CHARGE AS A SEPARATE LINE ITEM ON EACH BILL. 11 (2) EXCEPT AS PROVIDED IN THIS SECTION, THE MONEY COLLECTED 12 AS THE SERVICE CHARGE SHALL BE DEPOSITED IN THE CMRS EMERGENCY 13 TELEPHONE FUND CREATED IN SECTION 407 NOT LATER THAN 30 DAYS 14 AFTER THE END OF THE QUARTER IN WHICH THE SERVICE CHARGE WAS 15 COLLECTED. 16 (3) EACH CMRS SUPPLIER SHALL RETAIN 1% OF THE TOTAL SERVICE 17 CHARGES COLLECTED TO COVER THE COSTS OF BILLING AND COLLECTION. 18 (4) A CMRS SUPPLIER IS NOT LIABLE FOR AN UNCOLLECTED SERVICE 19 CHARGE FOR WHICH THE CMRS SUPPLIER HAS BILLED THE CMRS USER. 20 UNLESS OTHERWISE SPECIFIED BY THE CMRS USER, IF ONLY A PARTIAL 21 PAYMENT OF A BILL IS RECEIVED BY A CMRS SUPPLIER, THE CMRS SUP- 22 PLIER SHALL FIRST CREDIT THE PARTIAL PAYMENT TO THE BALANCE DUE 23 TO THE CMRS SUPPLIER. THE SERVICE CHARGE PAID BY A CMRS USER IS 24 NOT SUBJECT TO A STATE OR LOCAL TAX. 25 (5) A CMRS SUPPLIER SHALL IMPLEMENT THE BILLING PROVISIONS 26 OF THIS SECTION NOT LATER THAN 120 DAYS AFTER THE EFFECTIVE DATE 27 OF THE AMENDATORY ACT THAT ADDED THIS SECTION. 05646'98 3 1 SEC. 409. (1) ALL MONEY COLLECTED AND DEPOSITED IN THE CMRS 2 EMERGENCY TELEPHONE FUND SHALL BE DISTRIBUTED AS FOLLOWS: 3 (A) TWENTY PERCENT OF THE TOTAL MONTHLY SERVICE CHARGES 4 SHALL BE DISBURSED EQUALLY TO EACH COUNTY THAT HAS A FINAL 9-1-1 5 PLAN IN PLACE. THE COUNTY SHALL DISTRIBUTE THE FUNDS PURSUANT TO 6 SECTION 401(12) OF THIS ACT. 7 (B) TWENTY-FIVE PERCENT OF THE TOTAL MONTHLY SERVICE CHARGES 8 SHALL BE DISBURSED TO EACH COUNTY THAT HAS A FINAL 9-1-1 PLAN IN 9 PLACE ON A PER CAPITA BASIS. THE ETSC SHALL CERTIFY TO THE 10 DEPARTMENT OF TREASURY ANNUALLY WHICH COUNTIES HAVE A FINAL 9-1-1 11 PLAN IN PLACE. THE MOST RECENT CENSUS CONDUCTED BY THE UNITED 12 STATES CENSUS BUREAU SHALL BE USED TO DETERMINE THE POPULATION OF 13 EACH COUNTY IN DETERMINING THE PER CAPITA BASIS IN THIS 14 SUBDIVISION. THE COUNTY SHALL DISTRIBUTE THE FUNDS PURSUANT TO 15 SECTION 401(12) OF THIS ACT. 16 (C) FIVE PERCENT OF THE TOTAL MONTHLY SERVICE CHARGES SHALL 17 BE AVAILABLE TO PSAPS FOR TRAINING PERSONNEL ASSIGNED TO 9-1-1 18 CENTERS. A REQUEST FOR MONEY FROM THE CMRS EMERGENCY TELEPHONE 19 FUND SHALL BE MADE TO THE EMERGENCY TELEPHONE SERVICE COMMITTEE. 20 THE MICHIGAN LAW ENFORCEMENT OFFICERS TRAINING COUNCIL SHALL 21 ESTABLISH TRAINING PROGRAMS AND ADMINISTER TRAINING WITH THE 22 MONEY RECEIVED UNDER THIS SUBDIVISION. 23 (D) FIFTY PERCENT OF THE TOTAL MONTHLY SERVICE CHARGES 24 DEPOSITED INTO THE CMRS EMERGENCY TELEPHONE FUND SHALL BE USED BY 25 CMRS SUPPLIERS TO PROVIDE AND INSTALL EQUIPMENT THAT IMPLEMENTS 26 THE WIRELESS EMERGENCY SERVICE ORDER. 05646'98 4 1 (2) IN THE EVENT THAT A COUNTY WITH A FINAL 9-1-1 PLAN IN 2 PLACE DOES NOT ACCEPT 9-1-1 CALLS THROUGH THE DIRECT DISPATCH 3 METHOD, RELAY METHOD, OR TRANSFER METHOD FROM A CMRS USER, THE 4 REVENUES COLLECTED SHALL BE DISBURSED TO THE ENTITY OR COUNTY 5 RESPONSIBLE FOR ACCEPTING AND RESPONDING TO THOSE CALLS. 6 SEC. 410. (1) THE EMERGENCY TELEPHONE SERVICE COMMITTEE 7 SHALL APPOINT A SUBCOMMITTEE TO REVIEW EXPENDITURES AUTHORIZED 8 UNDER THIS ACT COMPOSED OF THE CHAIRPERSON OF THE EMERGENCY TELE- 9 PHONE SERVICE COMMITTEE CREATED IN SECTION 703 AND ALL OF THE 10 FOLLOWING: 11 (A) ONE MEMBER OF THE COMMITTEE WHO REPRESENTS A COMMERCIAL 12 MOBILE RADIO SERVICE PROVIDER AS PROVIDED IN SECTION 703(1)(Q). 13 (B) TWO MEMBERS OF THE COMMITTEE WHO REPRESENT AN ENTITY NOT 14 ASSOCIATED WITH THE SERVICE SUPPLIER INDUSTRY. 15 (C) ONE MEMBER OF THE PUBLIC APPOINTED BY THE CHAIRPERSON OF 16 THE ETSC WHO REPRESENTS THE COMMERCIAL MOBILE RADIO SERVICE 17 INDUSTRY AND WHO IS NOT A MEMBER OF THE EMERGENCY TELEPHONE SERV- 18 ICE COMMITTEE. 19 (2) THE CHAIRPERSON OF THE SUBCOMMITTEE CREATED UNDER SUB- 20 SECTION (1) SHALL NOT HAVE A VOTE UNLESS THE OTHER MEMBERS OF THE 21 SUBCOMMITTEE CAST A TIE VOTE. 22 (3) THE SUBCOMMITTEE CREATED IN SUBSECTION (1) SHALL REVIEW 23 INVOICES SUBMITTED BY CMRS SUPPLIERS FOR REIMBURSEMENT FROM THE 24 CMRS EMERGENCY TELEPHONE FUND. BEFORE REVIEW BY THE SUBCOMMIT- 25 TEE, THE STAFF ASSIGNED BY THE DEPARTMENT OF STATE POLICE TO 26 ASSIST THE COMMITTEE, AS PROVIDED FOR UNDER SECTION 704, SHALL 27 REMOVE ALL INFORMATION THAT IDENTIFIES THE CMRS SUPPLIER 05646'98 5 1 SUBMITTING THE INVOICE. THE SUBCOMMITTEE SHALL REVIEW THE 2 VALIDITY OF THE INVOICES AND RECOMMEND PAYMENT TO THE STATE TREA- 3 SURER OF ALL APPROVED INVOICES. APPROVAL OF THE INVOICES SHALL 4 BE BY A MAJORITY VOTE OF THE SUBCOMMITTEE. 5 (4) AN INVOICE SHALL NOT BE APPROVED FOR PAYMENT OF EITHER 6 OF THE FOLLOWING: 7 (A) AN EXPENSE THAT IS NOT RELATED TO COMPLYING WITH THE 8 WIRELESS EMERGENCY SERVICE ORDER. 9 (B) AN EXPENSE THAT EXCEEDS 125% OF THE CMRS EMERGENCY TELE- 10 PHONE CHARGES SUBMITTED BY A CMRS SUPPLIER UNLESS APPROVAL OF THE 11 CHARGES WAS OBTAINED FROM THE SUBCOMMITTEE CREATED IN THIS SEC- 12 TION BEFORE THE EXPENSE WAS INCURRED. 13 (5) NOTWITHSTANDING SECTION 706, INFORMATION SUBMITTED BY A 14 CMRS SUPPLIER UNDER THIS SECTION IS EXEMPT FROM ANY PROVISION OF 15 THE FREEDOM OF INFORMATION ACT, 1976 PA 442, MCL 15.231 TO 16 15.246, AND SHALL NOT BE RELEASED BY THE CHAIRPERSON OF THE EMER- 17 GENCY TELEPHONE SERVICE COMMITTEE WITHOUT THE PERMISSION OF THE 18 CMRS SUPPLIER THAT SUBMITTED THE INFORMATION. INFORMATION SUB- 19 MITTED BY CMRS SUPPLIERS UNDER THIS SECTION MAY ONLY BE RELEASED 20 IN THE AGGREGATE SO THAT THE NUMBER OF CMRS USERS OR THE EXPENSES 21 AND REVENUES OF A CMRS SUPPLIER CANNOT BE IDENTIFIED. 22 SEC. 411. (1) A CMRS SUPPLIER MAY USE MONEY IN THE FUND FOR 23 MONTHLY RECURRING COSTS AND START-UP COSTS, INCLUDING, WITHOUT 24 LIMITATION, NONRECURRING COSTS ASSOCIATED WITH INSTALLATION, 25 SERVICE, SOFTWARE, AND HARDWARE NECESSARY TO COMPLY WITH THE 26 WIRELESS EMERGENCY SERVICES ORDER. THE NONRECURRING COSTS SHALL 27 BE AMORTIZED AT THE PRIME RATE PLUS 1% OVER A PERIOD, NOT TO 05646'98 6 1 EXCEED 3 YEARS, UNTIL THE AMOUNTS ARE FULLY RECOUPED BY THE CMRS 2 SUPPLIER. 3 (2) IF THE TOTAL AMOUNT FROM THE INVOICES APPROVED FOR PAY- 4 MENT EXCEEDS THE AMOUNT REMAINING IN THE CMRS EMERGENCY TELEPHONE 5 FUND IN ANY QUARTER, ALL CMRS SUPPLIERS THAT HAVE SUBMITTED 6 INVOICES AND THAT ARE RECOMMENDED BY THE ETSC TO RECEIVE PAYMENT 7 SHALL RECEIVE A PRO RATA SHARE OF THE FUND AVAILABLE IN THAT 8 QUARTER. ANY UNPAID BALANCE SHALL BE CARRIED OVER TO THE FOLLOW- 9 ING QUARTER UNTIL ALL OF THE RECOMMENDED PAYMENTS ARE MADE. ON 10 ANY UNPAID BALANCE CARRIED OVER, INTEREST AT THE PRIME RATE SHALL 11 BE CREDITED TO THE CMRS SUPPLIER. 12 SEC. 412. (1) THE EMERGENCY TELEPHONE SERVICE COMMITTEE 13 SHALL CONDUCT AND COMPLETE A COST STUDY AND MAKE A REPORT ON THE 14 SERVICE CHARGE AUTHORIZED IN SECTION 408 NOT LATER THAN AUGUST 15 31, 1999 AND AUGUST 31 BIENNIALLY AFTER 1999. THE REPORT OF THE 16 STUDY SHALL INCLUDE AT LEAST ALL OF THE FOLLOWING: 17 (A) THE EXTENT OF EMERGENCY TELEPHONE SERVICE IMPLEMENTATION 18 IN THIS STATE BY CMRS SUPPLIERS UNDER THE WIRELESS EMERGENCY 19 SERVICE ORDER. 20 (B) THE ACTUAL COSTS INCURRED BY PSAPS AND CMRS SUPPLIERS IN 21 COMPLYING WITH THE APPLICABLE REQUIREMENTS PRESCRIBED IN THE 22 WIRELESS EMERGENCY SERVICE ORDER. 23 (C) THE ADEQUACY OF THE SERVICE CHARGE IMPOSED UNDER THIS 24 ACT ON CMRS USERS AND A RECOMMENDATION TO CHANGE THE SERVICE 25 CHARGE AMOUNT IF NEEDED TO ADEQUATELY FUND THE COSTS OF MEETING 26 THE TIME FRAMES IN THE WIRELESS EMERGENCY SERVICE ORDER. 05646'98 7 1 (2) THE REPORT OF THE STUDY SHALL BE DELIVERED TO THE 2 SECRETARY OF THE SENATE AND THE CLERK OF THE HOUSE OF 3 REPRESENTATIVES. 4 Enacting section 1. This amendatory act does not take 5 effect unless all of the following bills of the 89th Legislature 6 are enacted into law: 7 (a) Senate Bill No. _____ or House Bill No. _____ (request 8 no. 02251'97). 9 (b) Senate Bill No. _____ or House Bill No. _____ (request 10 no. 05594'98). 11 (c) House Bill No. 5289. 12 Enacting section 2. This amendatory act takes effect 120 13 days after the date this amendatory act is enacted. 05646'98 Final page. JJG