SF 1045

1st Engrossment - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to public safety; increasing 911 emergency
telecommunications service fee; imposing certain
restrictions on public subsidy to telephone companies
for providing 911 emergency telephone service;
increasing distribution to pay costs of public safety
answering points; authorizing sale of Metropolitan
Council bonds to implement phases two and three of the
800-MHz public safety radio system; providing for levy
of property taxes to secure payment of system
operating costs; appropriating money; amending
Minnesota Statutes 2004, sections 403.11, subdivisions
1, 3, 3a; 403.113, subdivision 1; 403.27, subdivisions
1, 3; 403.30, subdivisions 1, 3; 403.31, subdivision 6.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2004, section 403.11,
subdivision 1, is amended to read:

Subdivision 1.

Emergency telecommunications service fee.

(a) Each customer of a wireless or wire-line telecommunications
service provider that furnishes service capable of originating a
911 emergency telephone call is assessed a fee to cover the
costs of ongoing maintenance and related improvements for
trunking and central office switching equipment for 911
emergency telecommunications service, plus administrative and
staffing costs of the commissioner related to managing the 911
emergency telecommunications service program. Recurring charges
by a wire-line telecommunications service provider for updating
the information required by section 403.07, subdivision 3, must
be paid by the commissioner if the wire-line telecommunications
service provider is included in an approved 911 plan and the
charges are made pursuant to deleted text begin tariff, price list, or deleted text end contract.
The fee assessed under this section must also be used for the
purpose of offsetting the costs, including administrative and
staffing costs, incurred by the State Patrol Division of the
Department of Public Safety in handling 911 emergency calls made
from wireless phones.

(b) Money remaining in the 911 emergency telecommunications
service account after all other obligations are paid must not
cancel and is carried forward to subsequent years and may be
appropriated from time to time to the commissioner to provide
financial assistance to counties for the improvement of local
emergency telecommunications services. The improvements may
include providing access to 911 service for telecommunications
service subscribers currently without access and upgrading
existing 911 service to include automatic number identification,
local location identification, automatic location
identification, and other improvements specified in revised
county 911 plans approved by the commissioner.

(c) The fee may not be less than eight cents nor more than
40 cents a month for each customer access line or other basic
access service, including trunk equivalents as designated by the
Public Utilities Commission for access charge purposes and
including wireless telecommunications services. With the
approval of the commissioner of finance, the commissioner of
public safety shall establish the amount of the fee within the
limits specified and inform the companies and carriers of the
amount to be collected. When the revenue bonds authorized under
section 403.27, subdivision 1, have been fully paid or defeased,
the commissioner shall reduce the fee to reflect that debt
service on the bonds is no longer needed. The commissioner
shall provide companies and carriers a minimum of 45 days'
notice of each fee change. The fee must be the same for all
customers.

(d) The fee must be collected by each wireless or wire-line
telecommunications service provider subject to the fee. Fees
are payable to and must be submitted to the commissioner monthly
before the 25th of each month following the month of collection,
except that fees may be submitted quarterly if less than $250 a
month is due, or annually if less than $25 a month is due.
Receipts must be deposited in the state treasury and credited to
a 911 emergency telecommunications service account in the
special revenue fund. The money in the account may only be used
for 911 telecommunications services.

(e) This subdivision does not apply to customers of
interexchange carriers.

(f) The installation and recurring charges for integrating
wireless 911 calls into enhanced 911 systems must be paid by the
commissioner if the 911 service provider is included in the
statewide design plan and the charges are made pursuant to
deleted text begin tariff, price list, or deleted text end contract.

new text begin (g) Notwithstanding any provision of this chapter to the
contrary, the commissioner need not contract for or agree to pay
for any services that a wire-line or wireless telecommunication
service provider is required by federal law or federal
regulation to provide.
new text end

Sec. 2.

Minnesota Statutes 2004, section 403.11,
subdivision 3, is amended to read:

Subd. 3.

Method of payment.

(a) Any wireless or
wire-line telecommunications service provider incurring
reimbursable costs under subdivision 1 shall submit an invoice
itemizing rate elements by county or service area to the
commissioner for 911 services furnished under deleted text begin tariff, price
list, or deleted text end contract. Any wireless or wire-line telecommunications
service provider is eligible to receive payment for 911 services
rendered according to the terms and conditions specified in the
contract. Competitive local exchange carriers holding
certificates of authority from the Public Utilities Commission
are eligible to receive payment for recurring 911 services
provided after July 1, 2001. The commissioner shall pay the
invoice within 30 days following receipt of the invoice unless
the commissioner notifies the service provider that the
commissioner disputes the invoice.

(b) The commissioner shall estimate the amount required to
reimburse wireless and wire-line telecommunications service
providers for the state's obligations under subdivision 1 and
the governor shall include the estimated amount in the biennial
budget request.

Sec. 3.

Minnesota Statutes 2004, section 403.11,
subdivision 3a, is amended to read:

Subd. 3a.

Timely certification.

A certification must be
submitted to the commissioner no later than two years after
commencing a new or additional eligible 911 service. deleted text begin Any
wireless or wire-line telecommunications service provider
incurring reimbursable costs under this section at any time
before January 1, 2003, may certify those costs for payment to
the commissioner according to this section for a period of 90
days after January 1, 2003. During this period, the
commissioner shall reimburse any wireless or wire-line
telecommunications service provider for approved, certified
costs without regard to any contrary provision of this
subdivision deleted text end new text begin Each applicable contract must provide that, if
certified expenses under the contract deviate from estimates in
the contract by more than ten percent, the commissioner may
reduce the level of service without incurring any termination
fees new text end .

Sec. 4.

Minnesota Statutes 2004, section 403.113,
subdivision 1, is amended to read:

Subdivision 1.

Fee.

(a) Each customer receiving service
from a wireless or wire-line telecommunications service provider
is assessed a fee to fund implementation, operation,
maintenance, enhancement, and expansion of enhanced 911 service,
including acquisition of necessary equipment and the costs of
the commissioner to administer the program. The actual fee
assessed under section 403.11 and the enhanced 911 service fee
must be collected as one amount and may not exceed the amount
specified in section 403.11, subdivision 1, paragraph (c).

(b) The enhanced 911 service fee must be collected and
deposited in the same manner as the fee in section 403.11 and
used solely for the purposes of paragraph (a) and subdivision 3.

(c) The commissioner, in consultation with counties and 911
system users, shall determine the amount of the enhanced 911
service fee. The fee must include at least deleted text begin ten deleted text end new text begin 20 new text end cents per
month to be distributed under subdivision 2. new text begin If a greater
amount is appropriated, the greater amount must be distributed.
new text end The commissioner shall inform wireless and wire-line
telecommunications service providers that provide service
capable of originating a 911 emergency telephone call of the
total amount of the 911 service fees in the same manner as
provided in section 403.11.

Sec. 5.

Minnesota Statutes 2004, section 403.27,
subdivision 1, is amended to read:

Subdivision 1.

Authorization.

(a) After consulting with
the commissioner of finance, the council, if requested by a vote
of at least two-thirds of all of the members of the Metropolitan
Radio Board, may, by resolution, authorize the issuance of its
revenue bonds for any of the following purposes to:

(1) provide funds for regionwide mutual aid and emergency
medical services communications;

(2) provide funds for the elements of the first phase of
the regionwide public safety radio communication system that the
board determines are of regionwide benefit and support mutual
aid and emergency medical services communication including, but
not limited to, costs of master controllers of the backbone;

(3) provide money for the second phase of the public safety
radio communication system;

(4) to the extent money is available after meeting the
needs described in clauses (1) to (3), provide money to
reimburse local units of government for amounts expended for
capital improvements to the first phase system previously paid
for by the local government units; deleted text begin or
deleted text end

(5) new text begin to the extent money is available after meeting the
needs described in clauses (1) to (4), provide money to
reimburse local units of government for up to 50 percent of the
cost of building a subsystem in the southeast or central
district of the State Patrol; or
new text end

new text begin (6) new text end refund bonds issued under this section.

(b) After consulting with the commissioner of finance, the
council, if requested by a vote of at least two-thirds of all of
the members of the Statewide Radio Board, may, by resolution,
authorize the issuance of its revenue bonds to provide money for
the third phase of the public safety radio communication system.

Sec. 6.

Minnesota Statutes 2004, section 403.27,
subdivision 3, is amended to read:

Subd. 3.

Limitations.

(a) The principal amount of the
bonds issued pursuant to subdivision 1, exclusive of any
original issue discount, shall not exceed the amount of
$10,000,000 plus the amount the council determines necessary to
pay the costs of issuance, fund reserves, debt service, and pay
for any bond insurance or other credit enhancement.

(b) In addition to the amount authorized under paragraph
(a), the council may issue bonds under subdivision 1 in a
principal amount of $3,306,300, plus the amount the council
determines necessary to pay the cost of issuance, fund reserves,
debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
may not be used to finance portable or subscriber radio sets.

(c) In addition to the amount authorized under paragraphs
(a) and (b), the council may issue bonds under subdivision 1 in
a principal amount of deleted text begin $18,000,000 deleted text end new text begin $8,000,000 new text end , plus the amount
the council determines necessary to pay the costs of issuance,
fund reserves, debt service, and any bond insurance or other
credit enhancement. The proceeds of bonds issued under this
paragraph must be used to pay up to 50 percent of the cost to a
local government unit of building a subsystem and may not be
used to finance portable or subscriber radio sets. The bond
proceeds may be used to make improvements to an existing 800 new text begin - new text end MHz
radio system that will interoperate with the regionwide public
safety radio communication system, provided that the
improvements conform to the board's plan and technical
standards. The council must time the sale and issuance of the
bonds so that the debt service on the bonds can be covered by
the deleted text begin additional deleted text end revenue deleted text begin that will become available in the fiscal
year ending June 30, 2005, deleted text end generated under section 403.11 and
appropriated under section 403.30.

(d) In addition to the amount authorized under paragraphs
(a) to (c), the council may issue bonds under subdivision 1 in a
principal amount of up to deleted text begin $27,000,000 deleted text end new text begin $44,000,000 new text end , plus the
amount the council determines necessary to pay the costs of
issuance, fund reserves, debt service, and any bond insurance or
other credit enhancement. The proceeds of bonds issued under
this paragraph are appropriated to the commissioner of public
safety for phase three of the public safety radio communication
system. In anticipation of the receipt by the commissioner of
public safety of the bond proceeds, the Metropolitan Radio Board
may advance money from its operating appropriation to the
commissioner of public safety to pay for design and preliminary
engineering for phase three. The commissioner of public safety
must return these amounts to the Metropolitan Radio Board when
the bond proceeds are received. new text begin The council must time the sale
and issuance of the bonds so that the debt service on the bonds
can be covered by the revenue generated under section 403.11 and
appropriated under section 403.30.
new text end

new text begin (e) In addition to the amount authorized under paragraphs
(a) to (d), the council may issue bonds under subdivision 1 in a
principal amount of up to $9,500,000, plus the amount the
council determines necessary to pay the costs of issuance, fund
reserves, debt service, and any bond insurance or other credit
enhancement. The proceeds of bonds issued under this paragraph
are appropriated to the commissioner of public safety for the
purpose of subdivision 1, paragraph (a), clause (5), provided
that the proceeds may not be used to finance portable or
subscriber radio sets. The council must time the sale and
issuance of the bonds so that the debt service on the bonds can
be covered by the revenue generated under section 403.11 and
appropriated under section 403.30.
new text end

Sec. 7.

Minnesota Statutes 2004, section 403.30,
subdivision 1, is amended to read:

Subdivision 1.

deleted text begin standing deleted text end new text begin open new text end appropriation; costs
covered.

deleted text begin For each fiscal year beginning with the fiscal year
commencing July 1, 1997, deleted text end The amount necessary to pay the
following costs is appropriated to the commissioner of public
safety from the 911 emergency telecommunications service account
established under section 403.11:

(1) debt service costs and reserves for bonds issued
pursuant to section 403.27;

(2) repayment of the right-of-way acquisition loans;

(3) costs of design, construction, maintenance of, and
improvements to those elements of the first, second, and third
phases that support mutual aid communications and emergency
medical new text begin communication new text end services;

(4) recurring charges for leased sites and equipment for
those elements of the first, second, and third phases that
support mutual aid and emergency medical communication services;
or

(5) aid to local units of government for sites and
equipment in support of mutual aid and emergency medical
communications services.

new text begin A portion of new text end this appropriation new text begin equal to 13 cents a month
for each customer access line or other basic access service,
including trunk equivalents as designated by the Public
Utilities Commission for access charge purposes and including
cellular and other nonwire access services, new text end shall new text begin only new text end be used
to pay annual debt service costs and new text begin fund new text end reserves for bonds
issued pursuant to section 403.27 deleted text begin prior to use of fee money to
pay other costs eligible under this subdivision deleted text end . deleted text begin In no event
shall deleted text end new text begin The balance of this appropriation may be used to pay
annual debt service costs if the portion equal to 13 cents a
month is insufficient. If a direct appropriation for these
purposes is insufficient to pay all debt service as it comes
due, the commissioner shall notify the Committee on Finance of
the senate and the Committee on Ways and Means of the house of
representatives of the amount of the deficiency and shall then
pay the necessary amount under the open appropriation in this
subdivision.
new text end

new text begin Before each sale of bonds under section 403.27, the council
shall calculate the amount of debt service payments that will be
needed on bonds previously issued and shall estimate the amount
of debt service payments that will be needed on the bonds
scheduled to be sold. The council shall adjust the amount of
bonds scheduled to be sold so that new text end the appropriation for each
fiscal year new text begin for the life of the bonds will not new text end exceed an amount
equal to deleted text begin four deleted text end new text begin 13 new text end cents a month for each customer access line or
other basic access service, including trunk equivalents as
designated by the Public Utilities Commission for access charge
purposes and including cellular and other nonwire access
services deleted text begin , in the fiscal year. Beginning July 1, 2004, this
amount will increase to 13 cents a month deleted text end .

Sec. 8.

Minnesota Statutes 2004, section 403.30,
subdivision 3, is amended to read:

Subd. 3.

deleted text begin monthly deleted text end appropriation transfers.

deleted text begin Each month,
before the 25th day of the month, deleted text end The commissioner shall
transmit to the Metropolitan Council deleted text begin 1/12 of its total approved
appropriation for the regionwide public safety communication
system deleted text end new text begin the amount needed to cover debt service costs and
reserves for bonds issued under section 403.27 new text end .

Sec. 9.

Minnesota Statutes 2004, section 403.31,
subdivision 6, is amended to read:

Subd. 6.

Operating costs of phases three to six.

(a) The
ongoing costs of the commissioner in operating phases three to
six of the statewide public safety radio communication system
shall be allocated among and paid by the following users, all in
accordance with the statewide public safety radio communication
system plan developed by the planning committee under section
403.36:

(1) the state of Minnesota for its operations using the
system;

(2) all local government units using the system; and

(3) other eligible users of the system.

(b) Each local government and other eligible users of
phases three to six of the system shall pay to the commissioner
all sums charged under this section, at the times and in the
manner determined by the commissioner. The governing body of
each local government shall take all action that may be
necessary to provide the funds required for these payments and
to make the payments when due.

new text begin (c) If the governing body of any local government using
phase three, four, five, or six of the system fails to meet any
payment to the commissioner under this subdivision when due, the
commissioner may certify to the auditor of the county in which
the government unit is located the amount required for payment
of the amount due with interest at six percent per year. The
auditor shall levy and extend the amount due, with interest, as
a tax upon all taxable property in the government unit for the
next calendar year, free from any existing limitations imposed
by law or charter. This tax shall be collected in the same
manner as the general taxes of the government unit, and the
proceeds of the tax, when collected, shall be paid by the county
treasurer to the commissioner and credited to the government
unit for which the tax was levied.
new text end

Sec. 10. new text begin APPROPRIATION.
new text end

new text begin The sums set forth in this section are appropriated from
the 911 emergency telecommunications service account in the
special revenue fund to the commissioner of public safety for
the purposes indicated in this section, to be available for the
fiscal year ending June 30 in the years indicated.
new text end

new text begin 2006 new text end new text begin 2007
new text end

new text begin (a) Prior Year Obligations new text end new text begin $3,442,000 new text end new text begin $3,064,000
new text end

new text begin To fund a deficiency due to prior year
obligations under Minnesota Statutes,
section 403.11, that were estimated in
the December 2004 911 fund statement to
be $6,504,700 on July 1, 2005. "Prior
year obligations" means reimbursable
costs under Minnesota Statutes, section
403.11, subdivision 1, incurred under
the terms and conditions of a contract
with the state for a fiscal year
preceding fiscal year 2004, that have
been certified in a timely manner in
accordance with Minnesota Statutes,
section 403.11, subdivision 3a, and
that are not barred by statute of
limitation or other defense. The
appropriations needed for this purpose
are estimated to be none in fiscal year
2008 and thereafter.
new text end

new text begin (b) Public Safety Answering Points new text end new text begin 6,884,000 new text end new text begin 7,087,000
new text end

new text begin To be distributed as provided in
Minnesota Statutes, section 403.113,
subdivision 2.
new text end

new text begin This appropriation may only be used for
public safety answering points that
have implemented phase two wireless
enhanced 911 service or whose
governmental agency has made a binding
commitment to the commissioner of
public safety to implement phase two
wireless enhanced 911 service by
January 1, 2008.
new text end

new text begin (c) Medical Resource
Communication Centers new text end new text begin 688,000 new text end new text begin 709,000
new text end

new text begin For grants to the Minnesota Emergency
Medical Services Regulatory Board for
the Metro East and Metro West Medical
Resource Communication Centers that
were in operation before January 1,
2000.
new text end

Sec. 11. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 10 are effective the day following final
enactment and apply to contracts entered into on or after that
date.
new text end