GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 2009

H                                                                                                                                                    2

HOUSE BILL 1691

Corrected Copy 5/17/10

 

Short Title:        Use of 911 Funds.

(Public)

Sponsors:

Representatives Bryant, Faison, Sager, West (Primary Sponsors);  M. Alexander, Bordsen, Braxton, Brown, Burr, Cole, Cotham, Crawford, England, Farmer-Butterfield, Fisher, E. Floyd, Glazier, Goodwin, Hughes, Insko, Johnson, Justice, Love, Luebke, Mackey, May, McLawhorn, Michaux, Owens, Pierce, Setzer, Spear, Tarleton, Tolson, Wainwright, E. Warren, R. Warren, Weiss, Wilkins, and Wray.

Referred to:

Public Utilities, if favorable, Finance.

May 13, 2010

 

A BILL TO BE ENTITLED

AN ACT to amend the statutes governing emergency telephone service as recommended by the house select committee on the use of 911 funds.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 62A-41 reads as rewritten:

"(a)       Membership. - The 911 Board is established in the Office of Information Technology Services. Neither a local government unit that receives a distribution from the fund under G.S. 62A-46 nor a telecommunication service provider may have more than one representative on the 911 Board. The 911 Board consists of 17 members as follows:

(1)        Four members appointed by the Governor as follows:

a.         An individual who represents municipalities appointed upon the recommendation of the North Carolina League of Municipalities.

b.         An individual who represents counties appointed upon the recommendation of the North Carolina Association of County Commissioners.

c.         An individual who represents a VoIP provider.

d.         An individual who represents the North Carolina chapter of the National Emergency Number Association (NENA).

(2)        Six members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives as follows:

a.         An individual who is a sheriff.

b.         Two individualsAn individual who represent represents CMRS providers operating in North Carolina.

c.         An individual who represents the North Carolina chapter of the Association of Public Safety Communications Officials (APCO).

d.         Two individuals who represent local exchange carriers operating in North Carolina, one of whom represents a local exchange carrier with less than 50,000 access lines.

e.         A fire chief upon the recommendation of the North Carolina Firemen's Association.

(3)        Six members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate as follows:

a.         An individual who is a chief of police.

b.         Two individuals who represent CMRS providers operating in North Carolina.

c.         An individual who represents the North Carolina chapter of the National Emergency Number Association (NENA). An emergency management director upon the recommendation of the North Carolina Association of Rescue and Emergency Management Services.

d.         Two individuals who represent local exchange carriers operating in North Carolina, one of whom represents a local exchange carrier with less than 200,000 access lines.

(4)        The State Chief Information Officer or the State Chief Information Officer's designee, who serves as the chair.

(b)        Term. - A member's term is four three years. No member may serve more than two terms. Members remain in office until their successors are appointed and qualified. Vacancies are filled in the same manner as the original appointment. The Governor may remove any member for misfeasance, malfeasance, or nonfeasance in accordance with G.S. 143B-13(d).

.…"

SECTION 1.(b)  Other than the position removed by this act or individuals prohibited from serving on the Board due to duplicate representation prohibited by this act, the existing members of the 911 Board shall continue to serve until the expiration of their original terms. An existing member may not be reappointed to the Board if he or she has served two terms on the 911 Board.

SECTION 2.(a)  G.S. 62A-42(a) reads as rewritten:

"(a)       Duties. - The 911 Board has the following powers and duties:

(4)        To establish policies and procedurespolicies, procedures, and primary PSAP operating standards to fund advisory services and training for PSAPs and to provide funds in accordance with these policies and procedures.policies, procedures, and standards for PSAP operations.

(9)        To adopt rules to implement this Article. This authority does not include the regulation of any enhanced 911 service, such as the establishment of technical standards.standards for telecommunications service providers to deliver 911 voice and data.

…"

SECTION 2.(b)  G.S. 62A-46(c) is amended by adding a new subdivision to read:

"(5)      A PSAP must comply with the rules, policies, procedures, and operating standards for primary PSAPs adopted by the Board."

SECTION 2.(c)  Subsection (b) of this section becomes effective July 1, 2011.

SECTION 3.  G.S. 62A-42(b) reads as rewritten:

"(b)      Prohibition. - In no event shall the 911 Board or any other State agency lease, construct, operate, or own a communications network for the purpose of providing 911 service. The 911 Board may pay private sector vendors for provisioning a network for the purpose of providing 911 service."

SECTION 4.(a)  G.S. 62A-42(a)(6) reads as rewritten:

"(6)      To make and enter into contracts and agreements necessary or incidental to the performance of its powers and duties under this Article and to use revenue available to the 911 Board under G.S. 62A-44 for administrative expenses to pay its obligations under the contracts and agreements. The Board may use funds available to the Board under G.S. 62A-47 to pay its obligations incurred for statewide 911 Projects."

SECTION 4.(b)  G.S. 62A-45(c) reads as rewritten:

"(c)       Grant Reallocation. - If the amount of reimbursements to CMRS providers by the 911 Board for a fiscal year is less than the amount of funds allocated for reimbursements to CMRS providers for that fiscal year, the 911 Board may reallocate part or all of the excess amount to the PSAP Grant and 911 Statewide Projects Account established under G.S. 62A-47. The 911 Board may reallocate funds under this subsection only once each calendar year and may do so only within the three-month period that follows the end of the fiscal year. If the 911 Board reallocates more than a total of three million dollars ($3,000,000) to the PSAP Grant and 911 Statewide Projects Account in a calendar year, it must consider reducing the amount of the service charge in G.S. 62A-44 to reflect more accurately the underlying costs of providing 911 system services.

The 911 Board must make the following findings before it reallocates funds to the PSAP Grant and 911 Statewide Projects Account:

(1)        There is a critical need for additional funding for PSAPs in rural or high-cost areas to ensure that enhanced 911 service is deployed throughout the State.

(2)        The reallocation will not impair cost recovery by CMRS providers.

(3)        The reallocation will not result in the insolvency of the 911 Fund."

SECTION 4.(c)  G.S. 62A-47 reads as rewritten:

"§ 62A-47.  PSAP Grant and Statewide 911 Projects Account.

(b)        Grant Application. - A PSAP may apply to the 911 Board for a grant from the PSAP Grant Account. An application must be submitted in the manner prescribed by the 911 Board. The 911 Board may approve a grant application and enter into a grant agreement with a PSAP if it determines all of the following:

(1)        The costs estimated in the application are reasonable and have been or will be incurred for the purpose of promoting a cost-effective and efficient 911 system.

(2)        The expenses to be incurred by the applicant are consistent with the 911 State Plan.

(3)        There are sufficient funds available in the fiscal year in which the grant funds will be distributed.

(4)        The costs are authorized PSAP costs under G.S. 62A-46(c).G.S. 62A-46(c) or (c1).

(c)        Grant Agreement. - A grant agreement between the 911 Board and a PSAP must include the purpose of the grant, the time frame for implementing the project or program funded by the grant, the amount of the grant, and a provision for repaying grant funds if the PSAP fails to comply with any of the terms of the grant. The amount of the grant may vary among grantees. If the grant is intended to promote the deployment of enhanced 911 service in a rural area of the State, the grant agreement must specify how the funds will assist with this goal. The 911 Board must publish one or more notices each fiscal year advertising the availability of grants from the PSAP Grant Account and detailing the application process, including the deadline for submitting applications, any required documents specifying costs, either incurred or anticipated, and evidence demonstrating the need for the grant. Any grant funds awarded to PSAPs under this section are in addition to any funds reimbursed under G.S. 62A-46.

(d)        Statewide 911 Projects. - The Board may use funds from the Account for statewide projects if the Board determines the project meets all of the following requirements:

(1)        The project is consistent with the 911 plan.

(2)        The project is cost effective and efficient when compared to the aggregated costs incurred by primary PSAPs for implementing individual projects.

(3)        The project is an eligible expense under G.S. 62A-46(c) or (c1).

(4)        The project will have statewide benefit for 911 service."

SECTION 4.(d)  G.S. 62A-43(d) reads as rewritten:

"(d)      Adjustment of Charge. - The 911 Board must monitor the revenues generated by the service charge. If the 911 Board determines that the rate produces revenue in excess of or insufficient for the amount needed, the 911 Board must reducemay adjust the rate. The reduced rate must ensure full cost recovery for voice communications service providers and for primary PSAPs over a reasonable period of time. A change in the amount of the rate becomes effective only on July 1 of an even-numberedany year. The 911 Board must notify providers of a change in the rate at least 90 days before the change becomes effective."

SECTION 5.  G.S. 62A-44(b) reads as rewritten:

"(b)      Allocation of Revenues. - The percentage of the funds remitted under G.S. 62A-43 which The the 911 Board may deduct and retain for its administrative expenses is initially set at one percent (1%) of the total service charges collected. The 911 Board must monitor the amount of funds required to meet its financial commitment to providing technical assistance to primary PSAPs and may, if costs warrant, adjust the percentage up to two percent (2%).up to one percent (1%) of the total service charges remitted to it under G.S. 62A-43 for deposit in the 911 Fund. The remaining revenues remitted to the 911 Board for deposit in the 911 Fund are allocated as follows:

..."

SECTION 6.(a)  G.S. 62A-46(a) reads as rewritten:

"(a)       Monthly Distribution. - The 911 Board must make monthly distributions to primary PSAPs from the amount allocated to the 911 Fund for PSAPs. The amount to be distributed to each primary PSAP is the sum of the following:

(1)        The PSAP's base amount. - The PSAP's base amount is the amount the PSAP received in the fiscal year ending June 30, 2007, and deposited in the Emergency Telephone System Fund of its local governing entity, as reported to the State Treasurer's Office, Local Government Division.

(2)        The PSAP's per capita amount. - The PSAP's per capita amount is the PSAP's per capita share of the amount designated by the Board under subsection (b) of this section for the per capita distribution. The 911 Board must use the most recent population estimates certified by the State Budget Officer in making the per capita distribution under this subdivision. A PSAP is not eligible for a distribution under this subdivision unless it provides enhanced 911 service A PSAP is not eligible for a distribution under this subsection unless it provides enhanced 911 service and received distributions from the 911 Board in the prior fiscal year. The Board must notify PSAPs of the estimated distributions no later than December 31 of each year. The Board must determine actual distributions no later than June 1 of each year. The Board must determine a method for establishing distributions that is equitable and sustainable, and that ensures distributions for eligible operating costs and anticipated increases for all funded PSAPs. The Board must establish a formula to determine each PSAP's base amount. The formula must be determined and published to PSAPs in the first quarter of the fiscal year preceding the fiscal year in which the formula is used. The Board must not change the funding formula for the base amount more than once every year. In establishing the funding formula, the Board must consider information including population of the area served by a PSAP, PSAP reports and budgets, disbursement histories, historical costs, PSAP operations, 911 technologies used by the PSAP, compliance with operating standards of the 911 Board, level of service a PSAP delivers dispatching fire, Emergency Medical Services, law enforcement, Emergency Medical dispatch, and the tier designation of the county in which the PSAP is located as designated in G.S. 143B-437.08, and any other information deemed proper by the Board. In the first quarter of the Board's fiscal year, the Board must determine whether payments to PSAPs during the preceding fiscal year exceeded or were less than the eligible costs incurred by each PSAP during the fiscal year. If a PSAP receives less than its eligible costs in any fiscal year, the Board may increase a PSAP's distribution in the following fiscal year above the base amount as determined by the formula to meet the estimated eligible costs of the PSAP as determined by the Board. The Board may not distribute less than the base amount to each PSAP. The Board must provide a procedure for a PSAP to request a reconsideration of its distribution or eligible expenses."

SECTION 6.(b)  G.S. 62A-46 is amended by adding a new subsection to read:

"(b1)    Carryforward. - A PSAP may carry forward up to twenty percent  (20%) of the total funds disbursed by the Board during a fiscal year for eligible expenditures for capital outlay, capital improvements, or equipment replacement. The twenty percent (20%) limitation does not apply to funds awarded as a grant. Neither the carryforward under this section nor any grant amount may be used in the funding formula to reduce the PSAP base amount."

SECTION 6.(c)  This section becomes effective July 1, 2010, but shall not apply to distributions by the Board in fiscal year beginning in 2010.

SECTION 7.(a)  G.S. 62A-40 reads as rewritten:

"§ 62A-40.  Definitions.

The following definitions apply in this Article.

(5)        Call taking. - The act of processing a 911 call for emergency assistance up to the point that the call is ready for dispatch,by a primary PSAP including the use of 911 system equipment, call classification, location of a caller, and determination of the appropriate response level for emergency responders.responders, and dispatching 911 call information to the appropriate responder.

(8a)      Dispatch. - The broadcast, transfer, or other retransmittal of emergency call information by a primary PSAP to responders including the equipment or services required for responders to receive information and the equipment to be used by responders to intercommunicate among themselves.

(9)        Enhanced 911 service. - Directing a 911 call to an appropriate PSAP by selective routing or other means based on the geographical location from which the call originated and providing information defining the approximate geographic location and the telephone number of a 911 caller, in accordance with the FCC Order.

.…"

SECTION 7.(b)  G.S. 62A-46(c) reads as rewritten:

"(c)       Use of Funds. - A PSAP that receives a distribution from the 911 Fund may not use the amount received to pay for the lease or purchase of real estate, cosmetic remodeling of emergency dispatch centers, hiring or compensating telecommunicators, or the purchase of mobile communications vehicles, ambulances, fire engines, or other emergency vehicles. Distributions received by a PSAP may be used only to pay for the following:

(1)        The lease, purchase, or maintenance of emergency telephone equipment, including necessary computer hardware, software, and database provisioning, addressing, telecommunicator furniture, and nonrecurring costs of establishing a 911 system.

(4)        The lease, purchase, or maintenance of radio communications equipment including necessary hardware and software, towers, base station transmitters, microwave links and antennae used to dispatch emergency calls from the PSAP, and the radio communications equipment used by the first provider of emergency services to receive the emergency dispatch."

SECTION 8.  G.S. 62A-47(a) reads as rewritten:

"(a)       Account Established. - A PSAP Grant and Statewide 911 Projects Account is established within the 911 Fund for the purpose of making grants to PSAPs in rural and other high-cost areas. areas and funding projects that provide statewide benefits for 911service. The 911 Board may approve grants for the non-eligible expenses of consolidating one or more PSAPs with a primary PSAP and the relocation costs of primary PSAPs, including construction costs. The Account consists of revenue allocated by the 911 Board under G.S. 62A-45(c) and G.S. 62A-46."

SECTION 9.  Unless otherwise provided, this act becomes effective July 1, 2010.