HOUSE BILL 456

44TH LEGISLATURE - STATE OF NEW MEXICO - FIRST SESSION, 1999

INTRODUCED BY

Joe Stell





FOR THE UTILITIES AND TELECOMMUNICATIONS REVIEW COMMITTEE



AN ACT

RELATING TO PUBLIC SAFETY; EXPANDING THE PURPOSES FOR WHICH THE 911 EMERGENCY SURCHARGES MAY BE USED; PROVIDING FOR PAYMENTS OF THE SURCHARGES ON WIRELESS COMMUNICATIONS; AMENDING SECTIONS OF THE NMSA 1978.



BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. Section 63-9D-3 NMSA 1978 (being Laws 1989, Chapter 25, Section 3, as amended) is amended to read:

"63-9D-3. DEFINITIONS.--As used in the Enhanced 911 Act:

A. "911 emergency surcharge" means the monthly uniform charge assessed on each [local exchange service customer in the state for each local exchange access line to pay for the purchase, lease, installation and maintenance of equipment necessary for the establishment of a 911 system, including the repayment of bonds issued pursuant to the Enhanced 911 Bond Act] subscriber of a telecommunications company;

B. "911 service area" means the area within a local governing body's jurisdiction that has been designated by the local governing body or the division to receive enhanced 911 service;

C. "911 system" means the basic 911 system or the enhanced 911 system;

D. "access line" means a line of a telecommunications company that has the capability of reaching local public safety service agencies, but does not include any line used by a carrier for the provision of interexchange services;

[D.] E. "basic 911 system" means a telephone service that automatically connects a person dialing the single three-digit number 911 to an established public safety answering point through normal telephone service facilities;

[E.] F. "commission" means the public regulation commission;

[F.] G. "department" means the taxation and revenue department;

[G.] H. "division" means the local government division of the department of finance and administration;

[H.] I. "enhanced 911 system" means a telephone system consisting of network, database and on-premises equipment that uses the single three-digit number 911 for reporting police, fire, medical or other emergency situations, thereby enabling the users of a public telephone system to reach a public safety answering point to report emergencies by dialing 911, and includes the capability to:

(1) selectively route incoming 911 calls to the appropriate public safety answering point operating in a 911 service area; and

(2) automatically display the name, address and telephone number of an incoming 911 call on a video monitor at the appropriate public safety answering point;

[I.] J. "enhanced 911 equipment" means the [customer premises] public safety answering point equipment directly related to the operation of an enhanced 911 system, including automatic number identification or automatic location identification controllers and display units, printers, cathode ray tubes and software associated with call detail recording;

[J.] K. "equipment supplier" means a person who provides or offers to provide telecommunications equipment necessary for the establishment of enhanced 911 services;

[K. "local 911 surcharge" means the additional charge imposed by a local governing body of a community served by a local exchange telephone company that has not otherwise provided for enhanced 911 capability in its network in order to provide funding for the local governing body to pay for development of the network and database;

L. "local exchange access line" means a telephone line that connects a local exchange service customer to the local switching office and has the capability of reaching local public safety service agencies, but does not include any line used by a carrier for the provision of interexchange services;

M. "local exchange area" means a geographic area encompassing one or more local communities, as described in maps, tariffs or rate schedules filed with the commission, where local exchange rates apply;

N.] L. "local exchange service" means the transmission of two-way interactive switched voice communications furnished by a local exchange telephone company within a local exchange area, including access to enhanced 911 systems;

[O.] M. "local exchange telephone company" means a telecommunications company [as defined by Subsection M of Section 63-9A-3 NMSA 1978] certified to provide local exchange service;

[P.] N. "local governing body" means the board of county commissioners of a county or the governing body of a municipality as defined in the Municipal Code;

[Q.] O. "network" means a system designed to provide one or more access paths for communications between users at different geographic locations; provided that a system may be designed for voice, data or both and may feature limited or open access and may employ appropriate analog, digital switching or transmission technologies;

[R.] P. "network and database surcharge" means the monthly uniform charge assessed on each [local exchange service customer in the state for each local exchange access line] subscriber to pay [for] the costs of developing and maintaining a network and database for a 911 emergency system; [and

S.] Q. "public safety answering point" means a twenty-four-hour local jurisdiction communications facility that receives 911 service calls and directly dispatches emergency response services or that relays calls to the appropriate public or private safety agency;

R. "subscriber" means a person who is a retail purchaser of telecommunications services that are capable of originating a 911 call; and

S. "telecommunications company" means a person who provides wire or wireless telecommunications services that are capable of originating a 911 emergency call."

Section 2. Section 63-9D-4 NMSA 1978 (being Laws 1989, Chapter 25, Section 4, as amended) is amended to read:

"63-9D-4. PROVISION FOR 911 SERVICES BY LOCAL GOVERNING BODIES--911 SYSTEM COSTS AND NETWORK AND DATABASE COSTS--PAYMENT OF COSTS--JOINT POWERS AGREEMENTS--AID OUTSIDE JURISDICTIONAL BOUNDARIES.--

A. A local governing body may incur costs for [the purchase or lease, installation and maintenance of equipment] 911 call reception training; addressing; purchasing, leasing, installing and maintaining 911 voice call reception and recording equipment; hardware and software for automatic number identification and automatic location identification processing; and developing and maintaining a network and database necessary for the establishment of a 911 system at public safety answering points and may pay such costs through disbursements from the enhanced 911 fund. Necessary network and database costs may:

(1) be recovered by a local governing body from the network and database surcharge fund in amounts approved by the state board of finance; or

(2) be disbursed from the network and database surcharge fund and paid directly to a vendor pursuant to a state price agreement or to a telecommunications company on behalf of a local governing body. The amount of the payment shall be approved by the state board of finance.

B. If the enhanced 911 system is to be provided for territory that is included in whole or in part in the jurisdiction of the local governing bodies of two or more public agencies that are the primary providers of emergency fire fighting, law enforcement, ambulance, emergency medical or other emergency services, the agreement for the procurement of the necessary equipment for a 911 system shall be entered into by each local governing body, unless a local governing body expressly excludes itself from the agreement. Any agreement shall provide that each local governing body not excluded from the agreement shall make payment [therefor] for the enhanced 911 system from general revenues. Nothing in this subsection shall be construed to prevent two or more such local governing bodies from entering into a [contract] joint powers agreement pursuant to the Joint Powers Agreement Act to establish a separate legal entity [that is, separate governing body, and thereunder to] that can enter into an agreement as the enhanced 911 customer.

C. All public agencies in a 911 system shall provide that once an emergency unit is dispatched in response to a request for aid through the 911 system, the emergency unit shall render services to the requester without regard to whether the unit is operating outside its normal jurisdictional boundaries."

Section 3. Section 63-9D-5 NMSA 1978 (being Laws 1989, Chapter 25, Section 5, as amended) is amended to read:

"63-9D-5. IMPOSITION OF SURCHARGE--NOTIFICATION.-- There is imposed a 911 emergency surcharge in the amount of twenty-five cents ($.25) and a network and database surcharge in the amount of twenty-six cents ($.26) to be billed [by local exchange telephone companies on all local exchange access lines in the state] to each subscriber by a telecommunications company; provided, however, that [a] the 911 emergency surcharge and the network and database surcharge shall not be imposed upon [local exchange service customers] subscribers receiving reduced rates pursuant to the Low Income Telephone Service Assistance Act. The 911 emergency surcharge shall commence with the first billing period of each customer on or following ninety days after the effective date of the Enhanced 911 Act. The network and database surcharge shall commence with the first billing period of each [customer] subscriber on or following ninety days after July 1, 1993. Each local governing body shall notify the division and the [local exchange telephone] telecommunications company providing local exchange service to the 911 service area of the boundaries of the 911 service area and the costs to the local governing body of purchasing or leasing, installing and maintaining the equipment necessary to provide 911 emergency services in the 911 service area. Each local governing body that seeks funding for its 911 system shall file an application with the division requesting approval of the state board of finance for disbursement from the enhanced 911 fund and the network and database fund."

Section 4. Section 63-9D-6 NMSA 1978 (being Laws 1989, Chapter 25, Section 6, as amended) is amended to read:

"63-9D-6. PARTICIPATION IN FUNDS--LIABILITY OF USER FOR SURCHARGE--COLLECTION--UNCOLLECTED AMOUNTS.--

A. The local governing body may, by ordinance or resolution, recover from the enhanced 911 fund and the network and database surcharge fund an amount necessary to recover the costs of [purchasing, leasing, installing and maintaining equipment and the costs of] 911 call reception training; addressing; purchasing, leasing, installing and maintaining 911 voice call reception and recording equipment; hardware and software for automatic number identification and automatic location identification processing; and developing and maintaining a network and database necessary to provide a 911 [emergency] system in its designated 911 service area.

B. [Local exchange telephone] telecommunications companies shall be required to bill and collect the 911 emergency surcharge and the network and database surcharge from their [local exchange service customers] subscribers. The 911 emergency surcharge and the network and database surcharge required to be collected by the [local exchange telephone] telecommunications company shall be added to and [shall be] stated clearly and separately in the billings to the [local exchange service customer] subscriber. The money collected by the [local exchange telephone] telecommunications company as the 911 emergency surcharge and the network and database surcharge shall not be considered as revenues of the [local exchange telephone] telecommunications company.

C. Every billed [local exchange service customer] subscriber is liable for payment of the 911 emergency surcharge and the network and database surcharge until they have been paid to the [local exchange telephone] telecommunications company.

D. The [local exchange telephone] telecommunications company has no obligation to take any legal action to enforce the collection of the 911 emergency surcharge or the network and database surcharge. An action may be brought by or on behalf of the department. The [local exchange telephone] telecommunications company shall annually provide the department a list of the amounts uncollected along with the names and addresses of [those local exchange service customers] subscribers who carry a balance that can be determined by the [local exchange telephone] telecommunications company to be the nonpayment of the 911 emergency surcharge and the network and database surcharge. The [local exchange telephone] telecommunications company shall not be held liable for uncollected amounts."

Section 5. Section 63-9D-7 NMSA 1978 (being Laws 1989, Chapter 25, Section 7, as amended) is amended to read:

"63-9D-7. REMITTANCE OF CHARGES--ADMINISTRATIVE FEE--AUDITS.--

A. Amounts collected by reason of the 911 emergency surcharge and the network and database surcharge shall be remitted monthly to the department, which shall administer and enforce collection of each surcharge in accordance with the Tax Administration Act. The amount of the 911 emergency surcharge and the network and database surcharge shall be remitted to the department no later than the twenty-fifth day of the month following the month in which the surcharge was imposed. At that time, a return for the preceding month shall be filed with the department in such form as the department and [local exchange telephone] telecommunications company shall agree upon. The [local exchange telephone] telecommunications company required to file the return shall deliver the return together with a remittance of the amount of the 911 emergency surcharge and the network and database surcharge payable to the department. The [local exchange telephone] telecommunications company shall maintain a record of the amount of each charge collected pursuant to the Enhanced 911 Act. The record shall be maintained for a period of three years after the time the charges were collected.

B. From every remittance to the department made on or before the date when it becomes due, the [local exchange telephone] telecommunications company required to make a remittance shall be entitled to deduct and retain one percent of the collected amount or fifty dollars ($50.00), whichever is greater, as the cost of administration for collecting the 911 emergency surcharge and the network and database surcharge."

Section 6. Section 63-9D-8 NMSA 1978 (being Laws 1989, Chapter 25, Section 8, as amended) is amended to read:

"63-9D-8. ENHANCED 911 FUND--CREATION--ADMINISTRATION--

DISBURSEMENT--REPORTS TO LEGISLATURE.--

A. There is created in the state treasury a fund, which shall be known as the "enhanced 911 fund". The enhanced 911 fund shall be administered by the division.

B. All money remitted to the department as a result of collection of the 911 emergency surcharge shall be deposited in the enhanced 911 fund.

C. All money deposited in the enhanced 911 fund and all income earned by investment of the fund are [hereby] appropriated for expenditure in accordance with the Enhanced 911 Act and shall not revert to the general fund.

D. Payments shall be made from the enhanced 911 fund to participating local governing bodies upon vouchers signed by the director of the division.

E. Money in the enhanced 911 fund may be used for the [purchase, lease, installation or maintenance of equipment] 911 call reception training; addressing; purchasing, leasing, installing and maintaining 911 voice call reception and recording equipment; hardware and software for automatic number identification; and automatic location identification processing; necessary for a 911 system, including the repayment of bonds issued pursuant to the Enhanced 911 Bond Act. [Annually] The division may expend no more than five percent of all money deposited annually in the enhanced 911 fund for the purpose of [administrating] administering and coordinating activities associated with implementation of the Enhanced 911 Act.

F. The division shall report to the legislature each session as to the status of the enhanced 911 fund and whether the current level of the 911 emergency surcharge is adequate, excessive or insufficient to fund the anticipated needs for the next year."

Section 7. Section 63-9D-8.1 NMSA 1978 (being Laws 1990, Chapter 87, Section 3, as amended) is amended to read:

"63-9D-8.1. DIVISION POWERS.--

A. The division may adopt such reasonable rules as [are deemed] necessary to carry out the provisions of the Enhanced 911 Act.

B. The division [shall have the authority to] may fund basic 911 systems pursuant to the provisions of the Enhanced 911 Act.

C. The division and the local governing body [shall have the authority to] may establish 911 service areas.

D. Unless otherwise provided by law, no rule affecting any person, agency, local governing body or [local exchange telephone] telecommunications company shall be adopted, amended or repealed without a public hearing on the proposed action before the director of the division or a hearing officer designated by him. The public hearing shall be held in Santa Fe unless otherwise permitted by statute. Notice of the subject matter of the rule, the action proposed to be taken, the time and place of the hearing, the manner in which interested persons may present their views and the method by which copies of the proposed rule or proposed amendment or repeal of an existing rule may be obtained shall be published once at least thirty days prior to the hearing in a newspaper of general circulation and mailed at least thirty days prior to the hearing date to all persons or agencies who have made a written request for advance notice of the hearing and to all local governing bodies and [local exchange telephone] telecommunications companies.

E. All rules shall be filed in accordance with the State Rules Act."

Section 8. Section 63-9D-8.2 NMSA 1978 (being Laws 1993, Chapter 48, Section 11) is amended to read:

"63-9D-8.2. NETWORK AND DATABASE SURCHARGE FUND--CREATION--ADMINISTRATION--DISBURSEMENT.--

A. There is created in the state treasury the "network and database surcharge fund". The network and database surcharge fund shall be administered by the division.

B. All money remitted to the department as a result of the network and database surcharge shall be deposited in the network and database surcharge fund.

C. All money deposited in the network and database surcharge fund and all income earned by investment of the network and database surcharge fund are [hereby] appropriated for expenditure in accordance with the provisions of the Enhanced 911 Act and shall not revert to the general fund.

D. Payments shall be made from the network and database surcharge fund to participating local governing bodies upon vouchers signed by the director of the division.

E. [Annually] The division may expend no more than two and one-half percent of all money deposited annually in the network and database surcharge fund for the purpose of administering and coordinating activities associated with implementation of the network and database surcharge fund.

F. Money in the network and database surcharge fund may be awarded as grant assistance upon application of local governing bodies to the division and approval by the state board of finance. If it is anticipated that insufficient funds will be available to pay all requests for grants, the state board of finance may reduce the percentage of assistance to be awarded. In the event of such a reduction, the state board of finance may award supplemental grants to local governing bodies that can demonstrate financial hardship."

Section 9. Section 63-9D-9 NMSA 1978 (being Laws 1989, Chapter 25, Section 9, as amended) is amended to read:

"63-9D-9. AGREEMENTS OR CONTRACTS FOR 911 SYSTEMS--USE OF FUNDS COLLECTED [TRANSFER OF FUNDS].--[A.] Money received by a local governing body from the enhanced 911 fund shall be spent solely to pay for [911 equipment costs, associated installation costs and maintenance costs necessary to provide enhanced 911 services. Money received as a result of the network and database surcharge shall be spent solely to pay for the network capability and database for an enhanced 911 system.

B. Money received by a local governing body from the local 911 surcharge shall be credited to separate cash funds, apart from the general fund of the local governing body, for network and database payments. Any local 911 surcharge money remaining on July 1, 1993 shall be transferred to the network and database surcharge fund] 911 call reception training; addressing; purchasing, leasing, installing and maintaining 911 voice call reception and recording equipment; hardware and software for automatic number identification; and automatic location identification processing. Money received by a local governing body from the network and database surcharge fund shall be spent solely to pay for developing and maintaining a network and database necessary for the establishment of a 911 system."

Section 10. EFFECTIVE DATE.-- The effective date of the provisions of this act is July 1, 1999.

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