1.1 	A bill for an act
1.2 	relating to public safety; increasing 911 emergency
1.3 	telecommunications service fee; imposing certain
1.4 	restrictions on public subsidy to telephone companies
1.5 	for providing 911 emergency telephone service;
1.6 	increasing distribution to pay costs of public safety
1.7 	answering points; authorizing sale of Metropolitan
1.8 	Council bonds to implement phases two and three of the
1.9 	800-MHz public safety radio system; providing for levy
1.10 	of property taxes to secure payment of system
1.11 	operating costs; appropriating money; amending
1.12 	Minnesota Statutes 2004, sections 403.11, subdivisions
1.13 	1, 3, 3a; 403.113, subdivision 1; 403.27, subdivisions
1.14 	1, 3; 403.30, subdivisions 1, 3; 403.31, subdivision 6.
1.15 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.16 	Section 1. Minnesota Statutes 2004, section 403.11,
1.17 	subdivision 1, is amended to read:
1.18 		Subdivision 1.Emergency telecommunications service fee.
 1.19 	(a) Each customer of a wireless or wire-line telecommunications
1.20 	service provider that furnishes service capable of originating a
1.21 	911 emergency telephone call is assessed a fee to cover the
1.22 	costs of ongoing maintenance and related improvements for
1.23 	trunking and central office switching equipment for 911
1.24 	emergency telecommunications service, plus administrative and
1.25 	staffing costs of the commissioner related to managing the 911
1.26 	emergency telecommunications service program.  Recurring charges
1.27 	by a wire-line telecommunications service provider for updating
1.28 	the information required by section 403.07, subdivision 3, must
1.29 	be paid by the commissioner if the wire-line telecommunications
1.30 	service provider is included in an approved 911 plan and the
2.1 	charges are made pursuant to tariff, price list, or contract.
2.2 	The fee assessed under this section must also be used for the
2.3 	purpose of offsetting the costs, including administrative and
2.4 	staffing costs, incurred by the State Patrol Division of the
2.5 	Department of Public Safety in handling 911 emergency calls made
2.6 	from wireless phones.
2.7 	(b) Money remaining in the 911 emergency telecommunications
2.8 	service account after all other obligations are paid must not
2.9 	cancel and is carried forward to subsequent years and may be
2.10 	appropriated from time to time to the commissioner to provide
2.11 	financial assistance to counties for the improvement of local
2.12 	emergency telecommunications services.  The improvements may
2.13 	include providing access to 911 service for telecommunications
2.14 	service subscribers currently without access and upgrading
2.15 	existing 911 service to include automatic number identification,
2.16 	local location identification, automatic location
2.17 	identification, and other improvements specified in revised
2.18 	county 911 plans approved by the commissioner.
2.19 	(c) The fee may not be less than eight cents nor more than
2.20 	40 cents a month for each customer access line or other basic
2.21 	access service, including trunk equivalents as designated by the
2.22 	Public Utilities Commission for access charge purposes and
2.23 	including wireless telecommunications services.  With the
2.24 	approval of the commissioner of finance, the commissioner of
2.25 	public safety shall establish the amount of the fee within the
2.26 	limits specified and inform the companies and carriers of the
2.27 	amount to be collected.  When the revenue bonds authorized under
2.28 	section 403.27, subdivision 1, have been fully paid or defeased,
2.29 	the commissioner shall reduce the fee to reflect that debt
2.30 	service on the bonds is no longer needed.  The commissioner
2.31 	shall provide companies and carriers a minimum of 45 days'
2.32 	notice of each fee change.  The fee must be the same for all
2.33 	customers.
2.34 	(d) The fee must be collected by each wireless or wire-line
2.35 	telecommunications service provider subject to the fee.  Fees
2.36 	are payable to and must be submitted to the commissioner monthly
3.1 	before the 25th of each month following the month of collection,
3.2 	except that fees may be submitted quarterly if less than $250 a
3.3 	month is due, or annually if less than $25 a month is due.
3.4 	Receipts must be deposited in the state treasury and credited to
3.5 	a 911 emergency telecommunications service account in the
3.6 	special revenue fund.  The money in the account may only be used
3.7 	for 911 telecommunications services.
3.8 	(e) This subdivision does not apply to customers of
3.9 	interexchange carriers.
3.10 	(f) The installation and recurring charges for integrating
3.11 	wireless 911 calls into enhanced 911 systems must be paid by the
3.12 	commissioner if the 911 service provider is included in the
3.13 	statewide design plan and the charges are made pursuant to
3.14 	tariff, price list, or contract.
3.15 	(g) Notwithstanding any provision of this chapter to the
3.16 	contrary, the commissioner need not contract for or agree to pay
3.17 	for any services that a wire-line or wireless telecommunication
3.18 	service provider is required by federal law or federal
3.19 	regulation to provide.

3.20 	Sec. 2. Minnesota Statutes 2004, section 403.11,
3.21 	subdivision 3, is amended to read:
3.22 		Subd. 3.Method of payment.  (a) Any wireless or
3.23 	wire-line telecommunications service provider incurring
3.24 	reimbursable costs under subdivision 1 shall submit an invoice
3.25 	itemizing rate elements by county or service area to the
3.26 	commissioner for 911 services furnished under tariff, price
3.27 	list, or contract.  Any wireless or wire-line telecommunications
3.28 	service provider is eligible to receive payment for 911 services
3.29 	rendered according to the terms and conditions specified in the
3.30 	contract.  Competitive local exchange carriers holding
3.31 	certificates of authority from the Public Utilities Commission
3.32 	are eligible to receive payment for recurring 911 services
3.33 	provided after July 1, 2001.  The commissioner shall pay the
3.34 	invoice within 30 days following receipt of the invoice unless
3.35 	the commissioner notifies the service provider that the
3.36 	commissioner disputes the invoice.
4.1 	(b) The commissioner shall estimate the amount required to
4.2 	reimburse wireless and wire-line telecommunications service
4.3 	providers for the state's obligations under subdivision 1 and
4.4 	the governor shall include the estimated amount in the biennial
4.5 	budget request.

4.6 	Sec. 3. Minnesota Statutes 2004, section 403.11,
4.7 	subdivision 3a, is amended to read:
4.8 		Subd. 3a.Timely certification.  A certification must be
4.9 	submitted to the commissioner no later than two years after
4.10 	commencing a new or additional eligible 911 service. Any
4.11 	wireless or wire-line telecommunications service provider
4.12 	incurring reimbursable costs under this section at any time
4.13 	before January 1, 2003, may certify those costs for payment to
4.14 	the commissioner according to this section for a period of 90
4.15 	days after January 1, 2003.  During this period, the
4.16 	commissioner shall reimburse any wireless or wire-line
4.17 	telecommunications service provider for approved, certified
4.18 	costs without regard to any contrary provision of this
4.19 	subdivision Each applicable contract must provide that, if
4.20 	certified expenses under the contract deviate from estimates in
4.21 	the contract by more than ten percent, the commissioner may
4.22 	reduce the level of service without incurring any termination
4.23 	fees.

4.24 	Sec. 4. Minnesota Statutes 2004, section 403.113,
4.25 	subdivision 1, is amended to read:
4.26 		Subdivision 1.Fee.  (a) Each customer receiving service
4.27 	from a wireless or wire-line telecommunications service provider
4.28 	is assessed a fee to fund implementation, operation,
4.29 	maintenance, enhancement, and expansion of enhanced 911 service,
4.30 	including acquisition of necessary equipment and the costs of
4.31 	the commissioner to administer the program.  The actual fee
4.32 	assessed under section 403.11 and the enhanced 911 service fee
4.33 	must be collected as one amount and may not exceed the amount
4.34 	specified in section 403.11, subdivision 1, paragraph (c).
4.35 	(b) The enhanced 911 service fee must be collected and
4.36 	deposited in the same manner as the fee in section 403.11 and
5.1 	used solely for the purposes of paragraph (a) and subdivision 3.
5.2 	(c) The commissioner, in consultation with counties and 911
5.3 	system users, shall determine the amount of the enhanced 911
5.4 	service fee.  The fee must include at least ten 20 cents per
5.5 	month to be distributed under subdivision 2. If a greater
5.6 	amount is appropriated, the greater amount must be distributed.
5.7 	The commissioner shall inform wireless and wire-line
5.8 	telecommunications service providers that provide service
5.9 	capable of originating a 911 emergency telephone call of the
5.10 	total amount of the 911 service fees in the same manner as
5.11 	provided in section 403.11.

5.12 	Sec. 5. Minnesota Statutes 2004, section 403.27,
5.13 	subdivision 1, is amended to read:
5.14 		Subdivision 1.Authorization.  (a) After consulting with
5.15 	the commissioner of finance, the council, if requested by a vote
5.16 	of at least two-thirds of all of the members of the Metropolitan
5.17 	Radio Board, may, by resolution, authorize the issuance of its
5.18 	revenue bonds for any of the following purposes to:
5.19 	(1) provide funds for regionwide mutual aid and emergency
5.20 	medical services communications;
5.21 	(2) provide funds for the elements of the first phase of
5.22 	the regionwide public safety radio communication system that the
5.23 	board determines are of regionwide benefit and support mutual
5.24 	aid and emergency medical services communication including, but
5.25 	not limited to, costs of master controllers of the backbone;
5.26 	(3) provide money for the second phase of the public safety
5.27 	radio communication system;
5.28 	(4) to the extent money is available after meeting the
5.29 	needs described in clauses (1) to (3), provide money to
5.30 	reimburse local units of government for amounts expended for
5.31 	capital improvements to the first phase system previously paid
5.32 	for by the local government units; or 
5.33 	(5) to the extent money is available after meeting the
5.34 	needs described in clauses (1) to (4), provide money to
5.35 	reimburse local units of government for up to 50 percent of the
5.36 	cost of building a subsystem in the southeast or central
6.1 	district of the State Patrol; or 
6.2 	(6) refund bonds issued under this section.
6.3 	(b) After consulting with the commissioner of finance, the
6.4 	council, if requested by a vote of at least two-thirds of all of
6.5 	the members of the Statewide Radio Board, may, by resolution,
6.6 	authorize the issuance of its revenue bonds to provide money for
6.7 	the third phase of the public safety radio communication system.

6.8 	Sec. 6. Minnesota Statutes 2004, section 403.27,
6.9 	subdivision 3, is amended to read:
6.10 		Subd. 3.Limitations.  (a) The principal amount of the
6.11 	bonds issued pursuant to subdivision 1, exclusive of any
6.12 	original issue discount, shall not exceed the amount of
6.13 	$10,000,000 plus the amount the council determines necessary to
6.14 	pay the costs of issuance, fund reserves, debt service, and pay
6.15 	for any bond insurance or other credit enhancement.
6.16 	(b) In addition to the amount authorized under paragraph
6.17 	(a), the council may issue bonds under subdivision 1 in a
6.18 	principal amount of $3,306,300, plus the amount the council
6.19 	determines necessary to pay the cost of issuance, fund reserves,
6.20 	debt service, and any bond insurance or other credit
6.21 	enhancement.  The proceeds of bonds issued under this paragraph
6.22 	may not be used to finance portable or subscriber radio sets.
6.23 	(c) In addition to the amount authorized under paragraphs
6.24 	(a) and (b), the council may issue bonds under subdivision 1 in
6.25 	a principal amount of $18,000,000 $8,000,000, plus the amount
6.26 	the council determines necessary to pay the costs of issuance,
6.27 	fund reserves, debt service, and any bond insurance or other
6.28 	credit enhancement.  The proceeds of bonds issued under this
6.29 	paragraph must be used to pay up to 50 percent of the cost to a
6.30 	local government unit of building a subsystem and may not be
6.31 	used to finance portable or subscriber radio sets.  The bond
6.32 	proceeds may be used to make improvements to an existing 800-MHz
6.33 	radio system that will interoperate with the regionwide public
6.34 	safety radio communication system, provided that the
6.35 	improvements conform to the board's plan and technical
6.36 	standards.  The council must time the sale and issuance of the
7.1 	bonds so that the debt service on the bonds can be covered by
7.2 	the additional revenue that will become available in the fiscal
7.3 	year ending June 30, 2005,generated under section 403.11 and
7.4 	appropriated under section 403.30.
7.5 	(d) In addition to the amount authorized under paragraphs
7.6 	(a) to (c), the council may issue bonds under subdivision 1 in a
7.7 	principal amount of up to $27,000,000 $44,000,000, plus the
7.8 	amount the council determines necessary to pay the costs of
7.9 	issuance, fund reserves, debt service, and any bond insurance or
7.10 	other credit enhancement.  The proceeds of bonds issued under
7.11 	this paragraph are appropriated to the commissioner of public
7.12 	safety for phase three of the public safety radio communication
7.13 	system.  In anticipation of the receipt by the commissioner of
7.14 	public safety of the bond proceeds, the Metropolitan Radio Board
7.15 	may advance money from its operating appropriation to the
7.16 	commissioner of public safety to pay for design and preliminary
7.17 	engineering for phase three.  The commissioner of public safety
7.18 	must return these amounts to the Metropolitan Radio Board when
7.19 	the bond proceeds are received. The council must time the sale
7.20 	and issuance of the bonds so that the debt service on the bonds
7.21 	can be covered by the revenue generated under section 403.11 and
7.22 	appropriated under section 403.30.
7.23 	(e) In addition to the amount authorized under paragraphs
7.24 	(a) to (d), the council may issue bonds under subdivision 1 in a
7.25 	principal amount of up to $9,500,000, plus the amount the
7.26 	council determines necessary to pay the costs of issuance, fund
7.27 	reserves, debt service, and any bond insurance or other credit
7.28 	enhancement.  The proceeds of bonds issued under this paragraph
7.29 	are appropriated to the commissioner of public safety for the
7.30 	purpose of subdivision 1, paragraph (a), clause (5), provided
7.31 	that the proceeds may not be used to finance portable or
7.32 	subscriber radio sets.  The council must time the sale and
7.33 	issuance of the bonds so that the debt service on the bonds can
7.34 	be covered by the revenue generated under section 403.11 and
7.35 	appropriated under section 403.30.

7.36 	Sec. 7. Minnesota Statutes 2004, section 403.30,
8.1 	subdivision 1, is amended to read:
8.2 		Subdivision 1.standing open appropriation; costs
8.3 	covered. For each fiscal year beginning with the fiscal year
8.4 	commencing July 1, 1997,The amount necessary to pay the
8.5 	following costs is appropriated to the commissioner of public
8.6 	safety from the 911 emergency telecommunications service account
8.7 	established under section 403.11:
8.8 	(1) debt service costs and reserves for bonds issued
8.9 	pursuant to section 403.27;
8.10 	(2) repayment of the right-of-way acquisition loans;
8.11 	(3) costs of design, construction, maintenance of, and
8.12 	improvements to those elements of the first, second, and third
8.13 	phases that support mutual aid communications and emergency
8.14 	medical communication services;
8.15 	(4) recurring charges for leased sites and equipment for
8.16 	those elements of the first, second, and third phases that
8.17 	support mutual aid and emergency medical communication services;
8.18 	or
8.19 	(5) aid to local units of government for sites and
8.20 	equipment in support of mutual aid and emergency medical
8.21 	communications services.
8.22 	A portion of this appropriation equal to 13 cents a month
8.23 	for each customer access line or other basic access service,
8.24 	including trunk equivalents as designated by the Public
8.25 	Utilities Commission for access charge purposes and including
8.26 	cellular and other nonwire access services,shall only be used
8.27 	to pay annual debt service costs and fund reserves for bonds
8.28 	issued pursuant to section 403.27prior to use of fee money to
8.29 	pay other costs eligible under this subdivision. In no event
8.30 	shall The balance of this appropriation may be used to pay
8.31 	annual debt service costs if the portion equal to 13 cents a
8.32 	month is insufficient.  If a direct appropriation for these
8.33 	purposes is insufficient to pay all debt service as it comes
8.34 	due, the commissioner shall notify the Committee on Finance of
8.35 	the senate and the Committee on Ways and Means of the house of
8.36 	representatives of the amount of the deficiency and shall then
9.1 	pay the necessary amount under the open appropriation in this
9.2 	subdivision.
9.3 	Before each sale of bonds under section 403.27, the council
9.4 	shall calculate the amount of debt service payments that will be
9.5 	needed on bonds previously issued and shall estimate the amount
9.6 	of debt service payments that will be needed on the bonds
9.7 	scheduled to be sold.  The council shall adjust the amount of
9.8 	bonds scheduled to be sold so that the appropriation for each
9.9 	fiscal year for the life of the bonds will not exceed an amount
9.10 	equal to four 13 cents a month for each customer access line or
9.11 	other basic access service, including trunk equivalents as
9.12 	designated by the Public Utilities Commission for access charge
9.13 	purposes and including cellular and other nonwire access
9.14 	services, in the fiscal year.  Beginning July 1, 2004, this
9.15 	amount will increase to 13 cents a month.

9.16 	Sec. 8. Minnesota Statutes 2004, section 403.30,
9.17 	subdivision 3, is amended to read:
9.18 		Subd. 3.monthly appropriation transfers. Each month,
9.19 	before the 25th day of the month,The commissioner shall
9.20 	transmit to the Metropolitan Council 1/12 of its total approved
9.21 	appropriation for the regionwide public safety communication
9.22 	system the amount needed to cover debt service costs and
9.23 	reserves for bonds issued under section 403.27.

9.24 	Sec. 9. Minnesota Statutes 2004, section 403.31,
9.25 	subdivision 6, is amended to read:
9.26 		Subd. 6.Operating costs of phases three to six.  (a) The
9.27 	ongoing costs of the commissioner in operating phases three to
9.28 	six of the statewide public safety radio communication system
9.29 	shall be allocated among and paid by the following users, all in
9.30 	accordance with the statewide public safety radio communication
9.31 	system plan developed by the planning committee under section
9.32 	403.36:
9.33 	(1) the state of Minnesota for its operations using the
9.34 	system;
9.35 	(2) all local government units using the system; and
9.36 	(3) other eligible users of the system.
10.1 	(b) Each local government and other eligible users of
10.2 	phases three to six of the system shall pay to the commissioner
10.3 	all sums charged under this section, at the times and in the
10.4 	manner determined by the commissioner.  The governing body of
10.5 	each local government shall take all action that may be
10.6 	necessary to provide the funds required for these payments and
10.7 	to make the payments when due.
10.8 	(c) If the governing body of any local government using
10.9 	phase three, four, five, or six of the system fails to meet any
10.10 	payment to the commissioner under this subdivision when due, the
10.11 	commissioner may certify to the auditor of the county in which
10.12 	the government unit is located the amount required for payment
10.13 	of the amount due with interest at six percent per year.  The
10.14 	auditor shall levy and extend the amount due, with interest, as
10.15 	a tax upon all taxable property in the government unit for the
10.16 	next calendar year, free from any existing limitations imposed
10.17 	by law or charter.  This tax shall be collected in the same
10.18 	manner as the general taxes of the government unit, and the
10.19 	proceeds of the tax, when collected, shall be paid by the county
10.20 	treasurer to the commissioner and credited to the government
10.21 	unit for which the tax was levied.

10.22 	Sec. 10. APPROPRIATION.
 10.23 	The sums set forth in this section are appropriated from
10.24 	the 911 emergency telecommunications service account in the
10.25 	special revenue fund to the commissioner of public safety for
10.26 	the purposes indicated in this section, to be available for the
10.27 	fiscal year ending June 30 in the years indicated.
10.28 	2006 2007 
10.29 	(a) Prior Year Obligations $3,442,000 $3,064,000 
10.30 	To fund a deficiency due to prior year
10.31 	obligations under Minnesota Statutes,
10.32 	section 403.11, that were estimated in
10.33 	the December 2004 911 fund statement to
10.34 	be $6,504,700 on July 1, 2005.  "Prior
10.35 	year obligations" means reimbursable
10.36 	costs under Minnesota Statutes, section
10.37 	403.11, subdivision 1, incurred under
10.38 	the terms and conditions of a contract
10.39 	with the state for a fiscal year
10.40 	preceding fiscal year 2004, that have
10.41 	been certified in a timely manner in
10.42 	accordance with Minnesota Statutes,
11.1 	section 403.11, subdivision 3a, and
11.2 	that are not barred by statute of
11.3 	limitation or other defense.  The
11.4 	appropriations needed for this purpose
11.5 	are estimated to be none in fiscal year
11.6 	2008 and thereafter.
11.7 	(b) Public Safety Answering Points 6,884,000 7,087,000 
11.8 	To be distributed as provided in
11.9 	Minnesota Statutes, section 403.113,
11.10 	subdivision 2.
11.11 	This appropriation may only be used for
11.12 	public safety answering points that
11.13 	have implemented phase two wireless
11.14 	enhanced 911 service or whose
11.15 	governmental agency has made a binding
11.16 	commitment to the commissioner of
11.17 	public safety to implement phase two
11.18 	wireless enhanced 911 service by
11.19 	January 1, 2008.
11.20 	(c) Medical Resource
11.21 	Communication Centers 688,000 709,000 
11.22 	For grants to the Minnesota Emergency
11.23 	Medical Services Regulatory Board for
11.24 	the Metro East and Metro West Medical
11.25 	Resource Communication Centers that
11.26 	were in operation before January 1,
11.27 	2000.

11.28 	Sec. 11. EFFECTIVE DATE.
 11.29 	Sections 1 to 10 are effective the day following final
11.30 	enactment and apply to contracts entered into on or after that
11.31 	date.