Bill Text: IA SF421 | 2013-2014 | 85th General Assembly | Introduced

---

Bill Title: A bill for an act relating to enhanced E911 emergency communication systems, and providing penalties. (Formerly SSB 1172.)

Spectrum: Committee Bill

Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF421 Detail]

Download: Iowa-2013-SF421-Introduced.html

---

Senate File 421 - Introduced
SENATE FILE 421
BY COMMITTEE ON WAYS AND MEANS
(SUCCESSOR TO SSB 1172)
(COMPANION TO HF 510 BY
COMMITTEE ON COMMERCE)
A BILL FOR
An Act relating to enhanced E911 emergency communication
systems, and providing penalties.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
TLSB 1422SV (2) 85
rn/nh

S.F. 421
Section 1. Section 34A.7, subsection 1, paragraph a, Code
2013, is amended by striking the paragraph and inserting in
lieu thereof the following:
a. To encourage local implementation of E911 service, one
source of funding for E911 emergency communication systems
shall come from a surcharge per month, per access line on each
access line subscriber, of one dollar.
Sec. 2. Section 34A.7, subsection 1, paragraph b,
subparagraph (1), Code 2013, is amended to read as follows:
(1) The program manager shall notify a local exchange
service provider scheduled to provide exchange access line
service to an E911 service area that implementation of an E911
service plan has been approved by the joint E911 service board
and by the service area referendum and that collection of the
surcharge is to begin within sixty days.
Sec. 3. Section 34A.7, subsection 5, Code 2013, is amended
to read as follows:
5. Use of moneys in fund —— priority and limitations on
expenditure.
a. Moneys deposited in the E911 service fund shall be
used for the repayment of any bonds issued for the benefit
of or loan made to the joint E911 service board pursuant to
sections 34A.20 through 34A.22 , and as long as any such bond
or loan remains unpaid the surcharge shall not be reduced or
eliminated. Moneys deposited in the fund shall be subject to
such terms and conditions as may be contained in the relevant
bond documents, trust indenture, resolution, loan agreement, or
other instrument pursuant to which bonds are issued or a loan
is made, without regard to any limitation otherwise provided
by law. The surcharge may be increased, but shall not exceed
the maximum allowed in subsection 1 , upon approval of the
authority upon such terms and conditions as may be contained
in the relevant bond documents, trust indenture, resolution,
loan agreement, or other instrument pursuant to which bonds are
issued or a loan is made, as deemed necessary or prudent by the
-1-
LSB 1422SV (2) 85
rn/nh 1/ 6

S.F. 421
authority to secure repayment and assure marketability or a
reasonable interest rate.
b. Moneys deposited in the E911 service fund shall be used
for the following, in order of priority if paragraph “a” does
not apply:
(1) Money shall first be spent for actual recurring costs of
operating the E911 service plan.
(2) If money remains in the fund after fully paying for
recurring costs incurred in the preceding year, the remainder
may be spent to pay for nonrecurring costs, not to exceed
actual nonrecurring costs as approved by the program manager.
(3) If money remains in the fund after fully paying
obligations under subparagraphs (1) and (2), the remainder may
be accumulated in the fund as a carryover operating surplus.
If the surplus is greater than twenty-five percent of the
approved annual operating budget for the next year, the program
manager shall reduce the surcharge by an amount calculated to
result in a surplus of no more than twenty-five percent of the
planned annual operating budget. After nonrecurring costs have
been paid, if the surcharge is less than the maximum allowed
and the fund surplus is less than twenty-five percent of the
approved annual operating budget, the program manager shall,
upon application of the joint E911 service board, increase the
surcharge in an amount calculated to result in a surplus of
twenty-five percent of the approved annual operating budget.
The surcharge may only be adjusted once in a single year, upon
sixty days’ prior notice to the provider.
Sec. 4. Section 34A.7, subsection 7, Code 2013, is amended
by striking the subsection.
Sec. 5. Section 34A.7A, subsection 1, paragraphs a and b,
Code 2013, are amended to read as follows:
a. Notwithstanding section 34A.6 , the The administrator
shall adopt by rule a monthly surcharge of up to sixty-five
cents one dollar to be imposed on each communications service
number provided in this state. The surcharge shall be
-2-
LSB 1422SV (2) 85
rn/nh 2/ 6

S.F. 421
imposed uniformly on a statewide basis and simultaneously
on all communications service numbers as provided by rule
of the administrator. The surcharge shall not be imposed
on wire-line-based communications or prepaid wireless
telecommunications service.
b. The program manager shall provide no less than
sixty days’ notice of the surcharge to be imposed to each
communications service provider. The program manager, subject
to the sixty-five cent limit in paragraph “a” , may adjust the
amount of the surcharge as necessary, but no more than once in
any calendar year.
Sec. 6. Section 34A.7A, subsection 2, Code 2013, is amended
by adding the following new paragraph:
NEW PARAGRAPH . 0b. The program manager shall allocate
thirteen percent of the total amount of surcharge generated
to wireless carriers to recover their costs to deliver 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.
Sec. 7. Section 34A.7A, subsection 2, paragraph e, Code
2013, is amended to read as follows:
e. If moneys remain in the fund after fully paying all
obligations under paragraphs “a” through , “0b” , “b” , “c” ,
and “d” , the remainder may be accumulated in the fund as a
carryover operating surplus. This surplus shall be used
to fund future network and public safety answering point
improvements, including hardware and software for an internet
protocol-enabled next generation network, and wireless
-3-
LSB 1422SV (2) 85
rn/nh 3/ 6

S.F. 421
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 in consultation with the E911 communications
council . 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.
Sec. 8. Section 34A.7A, Code 2013, is amended by adding the
following new subsection:
NEW SUBSECTION . 5. a. The program manager, in consultation
with the E911 communications council, shall establish a
methodology for determining and collecting comprehensive public
safety answering point cost and expense data through the county
joint E911 service boards. The methodology shall include
the collection of data for all costs and expenses related to
the operation of a public safety answering point and account
for the extent to which identified costs and expenses are
compensated for or addressed through E911 surcharges versus
other sources of funding.
b. Data collection pursuant to paragraph “a” shall commence
no later than January 1, 2014. The program manager shall
prepare a report detailing the methodology developed and
the data collected after such data has been collected for a
two-year period. The report shall be submitted to the general
assembly by March 1, 2016, and every two years thereafter.
c. A county joint E911 service board which fails to submit
expenses and costs pursuant to the methodology developed
pursuant to paragraph “a” by March 31 of each year shall be
allocated sixty-five cents out of the one dollar emergency
communications service surcharge until March 31 of the
following year. Remaining funds shall be held in the carryover
operating surplus fund until the expenses and cost report is
submitted by the county joint E911 service board. If the
county joint E911 service board submits the expense and cost
-4-
LSB 1422SV (2) 85
rn/nh 4/ 6

S.F. 421
report before March 30 of the following year, the set aside
funds shall be provided to the county joint E911 service board.
If the county joint E911 service board fails to submit the
expense and cost report within one year, funds shall revert to
the carryover operating surplus fund and be used in accordance
with section 34A.7A, subsection 2, paragraph “e” .
Sec. 9. REPEAL. Sections 34A.6 and 34A.6A, Code 2013, are
repealed.
EXPLANATION
This bill modifies provisions applicable to the
administration and funding of enhanced E911 emergency
communication systems.
The bill eliminates existing voter referendum requirements
regarding imposition of the local wire-line E911 service
surcharge and the alternative surcharge applicable to wire-line
communications contained in Code sections 34A.6 and 34A.6A,
respectively. The bill replaces current provisions authorizing
imposition of the wire-line E911 service surcharge in an amount
up to $1 per access line with a requirement that the surcharge
be imposed at the $1 level. The bill increases the level of
the emergency communications service surcharge from the current
level of up to 65 cents per communications service number to
$1 per service number.
The bill reinstates provisions authorizing wireless carriers
to recover their E911 service delivery costs which were
eliminated during the 2012 legislative session. However, the
bill specifies that the program manager shall allocate 13
percent of the total amount of emergency communications service
surcharge revenue for such cost recovery. Further, the bill
requires the E911 program manager to consult with the E911
communications council regarding how revenue accumulated in the
emergency communications fund as carryover operating surplus
shall be allocated. Currently, this determination is made
strictly with the approval of the program manager.
Additionally, the bill directs the program manager, in
-5-
LSB 1422SV (2) 85
rn/nh 5/ 6

S.F. 421
consultation with the council, to establish a methodology
for determining and collecting comprehensive public safety
answering point cost and expense data through the county
joint E911 service boards. The bill states that data
collection shall commence no later than January 1, 2014, and
that the program manager shall prepare a report detailing
the methodology and the data collected after the data has
been collected for two years. The report is required to be
submitted to the general assembly by March 1, 2016, and every
two years thereafter. The bill provides that a county joint
E911 service board which fails to submit expenses and costs
pursuant to the methodology by March 31 of each year shall
be allocated 65 cents out of the $1 emergency communications
service surcharge until March 31 of the following year. The
remaining funds shall be held in the carryover operating
surplus fund until the expenses and cost report is submitted
by the county joint E911 service board. Further, the bill
provides that if the county joint E911 service board submits
the expense report prior to March 30 of the following year,
the set aside funds shall be provided to the board, but if
the board fails to submit the report within one year, the
funds shall revert to the carryover operating surplus fund
and be used in accordance with Code section 34A.7A. That
Code section states that carryover surplus funds shall be
used to fund future 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.
-6-
LSB 1422SV (2) 85
rn/nh 6/ 6