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.