PAK C.S.H.B. 2129 75(R) BILL ANALYSIS STATE AFFAIRS C.S.H.B. 2129 By: Carter 4-25-97 Committee Report (Substituted) BACKGROUND Currently, home-rule cities, councils of governments, and emergency communications districts set monthly fees to pay for 9-1-1 services in their areas. These areas typically charge different fees for residential, business, and large-scale (trunk) customers. 9-1-1 fees vary throughout the state from roughly $0.18 per month to nearly $2 per month. These districts also charge wireless customers a 9-1-1 service fee. 9-1-1 fees are typically equal with the residential fees, since wireless companies do not discern business and residential customers. Wireless service providers would like to change the process to establish a single 9-1-1 service fee for all wireless customers throughout the state. This proposal would no longer allow home-rule cities to set their own 9-1-1 fees. Many wireless telecommunications companies charge their customers one rate, no matter where they live or where the phone is purchased. It is, therefore, difficult for the companies to charge their customers the different service fees required by different cities, COGS, and emergency communications districts. On the other hand, municipalities base their fees on the 9-1-1 needs of their areas. Many communities 9-1-1 needs are different due to land area and population. Cities contend that they need the flexibility to set appropriate fees to address their differing 9-1-1 needs. PURPOSE As proposed, C.S.H.B. 2129 would require the Advisory Commission on State Emergency Communications to set a state-wide 9-1-1 access charge for 9-1-1 calls made from cellular phones. The rate could not exceed $0.50. The bill would also require wireless service providers to remit those charges to the advisory commission which would then distribute the funds to municipalities, councils of government and, emergency districts by population proportion. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 771.001 of the Health and Safety Code by adding Subdivisions (12) and (13) as follows: Section 771.001 (12) defines "Wireless service provider" with the same definition as federal law. The definition does not include any service which does not have access to 91-1, data transmission services, wireless roaming service, or a private telecommunications service. Section 771.001 (13) defines "Wireless telecommunication connection." SECTION 2. Amends Subchapter D, Chapter 771 of the Health and Safety code by adding Section 771.0711 as follows: Section 771.0711 (a) requires the Advisory Commission on State Emergency Communications to impose a 9-1-1 emergency service fee on every wireless account. This subsection also prohibits a political subdivision from imposing a 9-1-1 fee on wireless service. Section 771.0711 (b) requires the advisory commission to set the 9-1-1 emergency service fee at 50 cents and allows providers to retain a 1 percent administrative fee. The section also requires that the wireless service provider to collect the fee from its subscribers and pay the advisory commission the fees owed at least 30 days after the month in which the fees were charged Section 771.0711 (c) provides that money collected under this section may only be used fro 9-1-1 related services and requires the advisory commission to distribute the collected funds to regional planning commissions emergency planning commissions within 15 days of receipt based on the districts population in relation to the state population. Section 771.0711 (d) provides that wireless 9-1-1 service providers are not liable for any claim or damage arising from the provision of 9-1-1 service. Section 771.0711 (e) provides that a member of the advisory commission, a governing body of a public agency, of the General Service Commission is not liable for any claim or damage arising from the provision of 9-1-1 service. Section 771.0711 (f) provides that a wireless provider is not required to take legal action to collect the emergency service fee. The subsection allows the 9-1-1 advisory commission to institute legal proceedings to collect delinquent payment of fees. Section 771.0711 (g) provides that home-rule municipalities or an emergency communications district shall reimburse wireless communications providers for expenses for network facilities and administration. Section 771.0711 (h) states that information a wireless service provider is required to furnish to a government entity is confidential and exempt from open records law. Section 771.0711 (i) provides that this section does not apply to wireline 9-1-1 service. SECTION 3. Effective date; September 1, 1997. SECTION 4. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute raises the fee charged to wireless telephone customers to 50 cents from 35 cents to equalize the fee with the fee for wireline customers. The substitute sets the administrative fee allowed to wireless providers at 1 percent of fees collected. The substitute also removes the express liability protections provided in the original and the initial fee of 25 cents. Unlike the original, the substitute does not require a cost of service study to be performed.