By Madla                                               S.B. No. 578
         77R1129 JAT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the provision of emergency communication services.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1. Section 771.001(3), Health and Safety Code, is
 1-5     amended to read as follows:
 1-6                 (3)  "Emergency communication district" means:
 1-7                       (A)  a public agency or group of public agencies
 1-8     acting jointly that provided 9-1-1 service before September 1,
 1-9     1987, or that had voted or contracted before that date to provide
1-10     that service; or
1-11                       (B)  a district created under Subchapter B, C, D,
1-12     [or] F, or G, Chapter 772.
1-13           SECTION 2. Section 771.031(d), Health and Safety Code, is
1-14     amended to read as follows:
1-15           (d)  The governor shall appoint:
1-16                 (1)  one member who serves on the governing body of a
1-17     regional planning commission;
1-18                 (2)  one member who serves as a director of or is on
1-19     the governing body of an emergency communication district;
1-20                 (3)  one member who serves on the governing body of a
1-21     county;
1-22                 (4)  one member who serves on the governing body of an
1-23     emergency communications district formed under Subchapter G [a
1-24     home-rule municipality that operates a 9-1-1 system that is
 2-1     independent of the state's system]; and
 2-2                 (5)  one member as a representative of the general
 2-3     public.
 2-4           SECTION 3.  Section 771.051(a), Health and Safety Code, is
 2-5     amended to read as follows:
 2-6           (a)  The commission is the state's authority on emergency
 2-7     communications. The commission shall:
 2-8                 (1)  administer the implementation of statewide 9-1-1
 2-9     service and the telecommunications requirements for poison control
2-10     centers under Chapter 777;
2-11                 (2)  develop minimum performance standards for
2-12     equipment and operation of 9-1-1 service to be followed in
2-13     developing regional plans under Section 771.055, including
2-14     requirements that the plans provide for:
2-15                       (A)  automatic number identification by which the
2-16     telephone number of the caller is automatically identified at the
2-17     public safety answering point receiving the call; and
2-18                       (B)  other features the commission considers
2-19     appropriate;
2-20                 (3)  examine and approve or disapprove regional plans
2-21     as provided by Section 771.056;
2-22                 (4)  recommend minimum training standards, assist in
2-23     training, and provide assistance in the establishment and operation
2-24     of 9-1-1 service;
2-25                 (5)  allocate money to prepare and operate regional
2-26     plans as provided by Section 771.056;
2-27                 (6)  develop and provide public education materials and
 3-1     training;
 3-2                 (7)  plan, implement, operate, and maintain poison
 3-3     control center databases and assist in planning, supporting, and
 3-4     facilitating 9-1-1 databases, as needed;
 3-5                 (8)  provide grants or contracts for services that
 3-6     enhance the effectiveness of 9-1-1 service;
 3-7                 (9)  coordinate emergency communications services and
 3-8     providers;
 3-9                 (10)  make reasonable efforts to gain voluntary
3-10     cooperation in the commission's activities of emergency
3-11     communications authorities and providers outside the commission's
3-12     jurisdiction, including:
3-13                       (A)  making joint communications to state and
3-14     federal regulators; and
3-15                       (B)  arranging cooperative purchases of equipment
3-16     or services; [and]
3-17                 (11)  accept, receive, and deposit in its account in
3-18     the general revenue fund gifts, grants, and royalties from public
3-19     and private entities. Gifts, grants, and royalties may be used for
3-20     the purposes of the commission;
3-21                 (12)  contract for the purchase of equipment and
3-22     services used in the operation of a 9-1-1 service;
3-23                 (13)  develop and operate an emergency call box system
3-24     as provided under Subchapter E;
3-25                 (14)  develop standards for allowable expenses for
3-26     facilities, equipment, and personnel necessary to establish and
3-27     operate a public safety answering point and 9-1-1 system;
 4-1                 (15)  develop and implement, where feasible, a wireless
 4-2     Phase II service, as defined by the Federal Communications
 4-3     Commission; and
 4-4                 (16)  use the most current technology to ensure that
 4-5     the 9-1-1 service has the most up-to-date network, database, and
 4-6     equipment.
 4-7           SECTION 4. Section 771.055(e), Health and Safety Code, is
 4-8     amended to read as follows:
 4-9           (e)  For each state fiscal biennium, the commission shall
4-10     prepare a strategic plan for statewide 9-1-1 service for the
4-11     following five state fiscal years using information from the
4-12     strategic information contained in the regional plans and provided
4-13     by emergency communication districts [and home-rule municipalities
4-14     that operate 9-1-1 systems independent of the state system].  The
4-15     commission shall present the strategic plan to the governor and the
4-16     Legislative Budget Board, together with the commission's
4-17     legislative appropriations request. The strategic plan must:
4-18                 (1)  include a survey of the current performance,
4-19     efficiency, and degree of implementation of emergency
4-20     communications services throughout the whole state;
4-21                 (2)  provide an assessment of the progress made toward
4-22     meeting the goals and objectives of the previous strategic plan and
4-23     a summary of the total expenditures for emergency communications
4-24     services in this state;
4-25                 (3)  provide a strategic direction for emergency
4-26     communications services in this state;
4-27                 (4)  establish goals and objectives relating to
 5-1     emergency communications in this state;
 5-2                 (5)  provide long-range policy guidelines for emergency
 5-3     communications in this state;
 5-4                 (6)  identify major issues relating to improving
 5-5     emergency communications in this state;
 5-6                 (7)  identify priorities for this state's emergency
 5-7     communications system; and
 5-8                 (8)  detail the financial performance of each regional
 5-9     planning commission in implementing emergency communications
5-10     service including an accounting of administrative expenses.
5-11           SECTION 5. Subchapter C, Chapter 771, Health and Safety Code,
5-12     is amended by adding Section 771.0585 to read as follows:
5-13           Sec. 771.0585.  HOME-RULE MUNICIPALITIES. Notwithstanding
5-14     Section 771.058, a home-rule municipality that operates a 9-1-1
5-15     service shall:
5-16                 (1)  participate in the state administration of
5-17     emergency communications under this subchapter;
5-18                 (2)  become part of an emergency communication district
5-19     under Section 772.205 or 772.305; or
5-20                 (3)  elect to form an emergency communication district
5-21     under Subchapter G, Chapter 772.
5-22           SECTION 6. Sections 771.062(c) and (d), Health and Safety
5-23     Code, are amended to read as follows:
5-24           (c)  An emergency communication district [or home-rule
5-25     municipality] that operates a 9-1-1 system independent of the state
5-26     system shall [may voluntarily] submit strategic planning
5-27     information to the commission for use in preparing the strategic
 6-1     plan for statewide 9-1-1 service. This information as determined by
 6-2     the commission shall[, if reported, may]:
 6-3                 (1)  include a survey of the current performance,
 6-4     efficiency, and degree of implementation of emergency
 6-5     communications services;
 6-6                 (2)  detail the progress made toward meeting the goals
 6-7     and objectives of the previous strategic plan;
 6-8                 (3)  describe the strategic direction, goals, and
 6-9     objectives for emergency communications services;
6-10                 (4)  identify major issues, long-range policy
6-11     guidelines, and priorities relating to improving emergency
6-12     communications services; and
6-13                 (5)  detail the financial performance of each district
6-14     in implementing emergency communications services.
6-15           (d)  The commission shall establish reasonable guidelines for
6-16     use by districts [and home-rule municipalities] in preparing
6-17     information for the strategic plan for statewide 9-1-1 services.
6-18     These guidelines shall include the time frames of information and
6-19     instructions for submission.
6-20           SECTION 7. Subchapter C, Chapter 771, Health and Safety Code,
6-21     is amended by adding Section 771.064 to read as follows:
6-22           Sec. 771.064.  WITHDRAWAL FROM REGIONAL PLAN. Except as
6-23     provided by Section 771.058(d), a public agency that participates
6-24     in a regional plan may not withdraw from a regional plan without
6-25     the consent of the commission.
6-26           SECTION 8. Section 771.0711(g), Health and Safety Code, is
6-27     amended to read as follows:
 7-1           (g)  On receipt of an invoice from a wireless service
 7-2     provider for reasonable expenses for network facilities, including
 7-3     equipment, installation, maintenance, and associated implementation
 7-4     costs, the commission [or an emergency services district of a
 7-5     home-rule municipality] or an emergency communication district
 7-6     created under Chapter 772 shall reimburse the wireless service
 7-7     provider in accordance with state law for all expenses related to
 7-8     9-1-1 service.
 7-9           SECTION 9. Section 771.074, Health and Safety Code, is
7-10     amended to read as follows:
7-11           Sec. 771.074.  EXEMPTION. A fee or surcharge authorized by
7-12     this subchapter[,] or Chapter 772[, or a home-rule municipality]
7-13     may not be imposed on or collected from the state.
7-14           SECTION 10. Section 771.075, Health and Safety Code, is
7-15     amended to read as follows:
7-16           Sec. 771.075.  USE OF REVENUE. Except as provided by Section
7-17     771.072(e), 771.072(f), or 771.073(e), fees and surcharges
7-18     collected under this subchapter may be used, as approved by the
7-19     commission, [only] for planning, designing, developing, and
7-20     providing 9-1-1 service, enhancing [development, provision, and
7-21     enhancement of] the effectiveness of 9-1-1 service, and providing
7-22     facilities, equipment, and personnel necessary to establish and
7-23     operate a public safety answering point and 9-1-1 system [as
7-24     approved by the commission].
7-25           SECTION 11.  Chapter 771, Health and Safety Code, is amended
7-26     by adding Subchapter E to read as follows:
7-27         SUBCHAPTER E.  EMERGENCY HIGHWAY TELEPHONE CALL BOX SYSTEM
 8-1           Sec. 771.101.  EMERGENCY HIGHWAY TELEPHONE CALL BOX SYSTEM.
 8-2     (a)  The commission, in cooperation with the Texas Department of
 8-3     Transportation, shall establish a program to install, operate, and
 8-4     maintain a system of telephone emergency call boxes along those
 8-5     highways in this state that are numbered United States highways,
 8-6     part of the national system of interstate and defense highways, or
 8-7     numbered state highways, that is designed to enable users of those
 8-8     highways to communicate with providers of emergency services.
 8-9           (b)  The commission may take any action to implement the
8-10     emergency call box program that the commission determines to be
8-11     necessary or advisable and may contract for any equipment or
8-12     service that is required to implement the communication system
8-13     under the program.
8-14           Sec. 771.102.  SELECTION AND PLACEMENT. The commission, in
8-15     cooperation with the Texas Department of Transportation, shall
8-16     select or approve the telephone call boxes and other equipment and
8-17     the communication provider services that are necessary for the
8-18     system.  The commission shall determine the placement and spacing
8-19     of the telephone call boxes.  When the program has been fully
8-20     implemented, the distance between two call boxes should not be more
8-21     than two miles.
8-22           Sec. 771.103.  COOPERATION. Each other agency of this state
8-23     and each county and municipality in this state shall cooperate with
8-24     the commission in the establishment, operation, and maintenance of
8-25     the emergency call box program.
8-26           Sec. 771.104.  REPORTS. Not later than November 1 of each
8-27     year, the commission shall file with the lieutenant governor, the
 9-1     speaker of the house of representatives, and the Legislative Budget
 9-2     Board a report on the commission's activities under this subchapter
 9-3     during the preceding fiscal year.
 9-4           SECTION 12. Section 772.110(d), Health and Safety Code, is
 9-5     amended to read as follows:
 9-6           (d)  The district shall recommend minimum standards at least
 9-7     as stringent as commission standards for a 9-1-1 system.  A 9-1-1
 9-8     system in a district under this subchapter must be computerized.
 9-9           SECTION 13. Section 772.117, Health and Safety Code, is
9-10     amended to read as follows:
9-11           Sec. 772.117.  ALLOWABLE EXPENSES. Allowable operating
9-12     expenses of a district include all costs attributable to planning,
9-13     designing, developing, and providing 9-1-1 services, enhancing the
9-14     effectiveness of a 9-1-1 system, and providing [to] all facilities,
9-15     equipment, and personnel necessary to establish and operate a
9-16     public safety answering point and other related answering points
9-17     [that the board considers necessary].
9-18           SECTION 14. Section 772.210(d), Health and Safety Code, is
9-19     amended to read as follows:
9-20           (d)  The district shall recommend minimum standards at least
9-21     as stringent as commission standards for a 9-1-1 system.  A 9-1-1
9-22     system in a district created under this subchapter must be
9-23     computerized.
9-24           SECTION 15. Section 772.217, Health and Safety Code, is
9-25     amended to read as follows:
9-26           Sec. 772.217.  ALLOWABLE EXPENSES. Allowable operating
9-27     expenses of a district include all costs attributable to planning,
 10-1    designing, developing, and providing 9-1-1 services, enhancing the
 10-2    effectiveness of a 9-1-1 system, and providing [to] all facilities,
 10-3    equipment, and personnel necessary to establish and operate a
 10-4    public safety answering point and other related answering points
 10-5    [that the board considers necessary].
 10-6          SECTION 16. Section 772.310(d), Health and Safety Code, is
 10-7    amended to read as follows:
 10-8          (d)  The district shall recommend minimum standards at least
 10-9    as stringent as commission standards for a 9-1-1 system.
10-10          SECTION 17. Section 772.317, Health and Safety Code, is
10-11    amended to read as follows:
10-12          Sec. 772.317.  ALLOWABLE EXPENSES. Allowable operating
10-13    expenses of a district include all costs attributable to planning,
10-14    designing, developing, and providing 9-1-1 services, enhancing the
10-15    effectiveness of a 9-1-1 system, and providing [to] all facilities,
10-16    equipment, and personnel necessary to establish and operate a
10-17    public safety answering point and other related answering points
10-18    [that the board considers necessary].
10-19          SECTION 18. Section 772.403(c), Health and Safety Code, is
10-20    amended to read as follows:
10-21          (c)  Revenue from the fee may be used [only] for [the]
10-22    planning, designing, developing, and providing 9-1-1 services,
10-23    enhancing the effectiveness [development, and provision] of 9-1-1
10-24    service, and providing facilities, equipment, and personnel
10-25    necessary to establish and operate a public safety answering point
10-26    and other related answering points.
10-27          SECTION 19. Chapter 772, Health and Safety Code, is amended
 11-1    by adding Subchapter G to read as follows:
 11-2             SUBCHAPTER G. EMERGENCY COMMUNICATION DISTRICTS:
 11-3                         HOME-RULE MUNICIPALITIES
 11-4          Sec. 772.501.  FORMATION OF DISTRICT. A home-rule
 11-5    municipality may elect to form a district under this subchapter by
 11-6    a resolution of its governing body or by adoption of an ordinance.
 11-7          Sec. 772.502.  DEFINITIONS. In this subchapter:
 11-8                (1)  "Board" means the board of managers of a district.
 11-9                (2)  "District" means a communication district created
11-10    under this subchapter.
11-11          Sec. 772.503.  TERRITORY OF DISTRICT. (a)  The territory of a
11-12    district consists of the territory of the municipality for which
11-13    the district is established.
11-14          (b)  If the municipality that forms the district annexes
11-15    territory that is not part of the district, the annexed territory
11-16    becomes part of the district.
11-17          Sec. 772.504.  BOARD OF MANAGERS. (a)  The district is
11-18    governed by a board of managers consisting of:
11-19                (1)  two members appointed by the governing body of the
11-20    municipality;
11-21                (2)  two members appointed by the mayor of the
11-22    municipality;
11-23                (3)  one member appointed by the fire department
11-24    operating in the municipality; and
11-25                (4)  one member appointed by the principal service
11-26    supplier.
11-27          (b)  The board member appointed by the principal service
 12-1    supplier is a nonvoting member.
 12-2          (c)  Board members are appointed for staggered terms of two
 12-3    years, with three members' terms expiring each year.
 12-4          (d)  A board member may be removed from office at will by the
 12-5    entity that appointed the member.
 12-6          (e)  A vacancy on the board shall be filled for the remainder
 12-7    of the term in the manner provided for the original appointment to
 12-8    that position.
 12-9          (f)  Board members serve without compensation.  The district
12-10    shall pay all expenses necessarily incurred by the board in
12-11    performing its functions under this subchapter.
12-12          (g)  The board may appoint from among its membership a
12-13    presiding officer and any other officers it considers necessary.
12-14          (h)  The director of the district or a board member may be
12-15    appointed as secretary of the board.  The board shall require the
12-16    secretary to keep suitable records of all proceedings of each board
12-17    meeting.  After each meeting the presiding officer or other member
12-18    presiding at the meeting shall read and sign the record and the
12-19    secretary shall attest the record.
12-20          (i)  A majority of the voting members of the board
12-21    constitutes a quorum.
12-22          (j)  Voting members of the board may meet in executive
12-23    session in accordance with Chapter 551, Government Code.
12-24          Sec. 772.505.  POWERS AND DUTIES OF BOARD. (a)  The board
12-25    shall name, control, and manage the district.
12-26          (b)  The board may adopt rules for the operation of the
12-27    district.
 13-1          (c)  The board may contract with any public or private entity
 13-2    to carry out the purposes of this subchapter, including the
 13-3    operation of a 9-1-1 system.
 13-4          Sec. 772.506.  DIRECTOR OF DISTRICT. (a)  The board shall
 13-5    appoint a director of the district and shall establish the
 13-6    director's compensation.  The director must be qualified by
 13-7    training and experience for the position.
 13-8          (b)  The board may remove the director at any time.
 13-9          (c)  With the board's approval, the director may employ any
13-10    experts, employees, or consultants that the board considers
13-11    necessary to carry out the purposes of this subchapter.
13-12          (d)  The director shall perform all duties that the board
13-13    requires and shall supervise as general manager the operations of
13-14    the district subject to any limitations prescribed by the board.
13-15          Sec. 772.507.  BUDGET; ANNUAL REPORT; AUDIT. (a)  The
13-16    director shall prepare under the direction of the board an annual
13-17    budget for the district.  To be effective, the budget must be
13-18    approved by the board and presented to and approved by the
13-19    governing body of the municipality.  A revision of the budget must
13-20    be approved by the same entities in the same manner as the budget.
13-21          (b)  As soon as practicable after the end of each district
13-22    fiscal year, the director shall prepare and present to the board
13-23    and to all participating public agencies in writing a sworn
13-24    statement of all money received by the district and how the money
13-25    was disbursed or otherwise disposed of during the preceding fiscal
13-26    year.  The report must show in detail the operations of the
13-27    district for the period covered by the report.
 14-1          (c)  The board shall perform an independent financial audit
 14-2    of the district annually.
 14-3          Sec. 772.508.  ESTABLISHMENT OF 9-1-1 SERVICE. (a)  A
 14-4    district shall provide 9-1-1 service to the municipality through
 14-5    one or a combination of the following methods and features or
 14-6    equivalent state-of-the-art technology:
 14-7                (1)  the transfer method;
 14-8                (2)  the relay method;
 14-9                (3)  the dispatch method;
14-10                (4)  automatic number identification;
14-11                (5)  automatic location identification; or
14-12                (6)  selective routing.
14-13          (b)  The district shall design, implement, and operate a
14-14    9-1-1 system for the municipality.
14-15          (c)  The district shall recommend minimum standards at least
14-16    as stringent as commission standards for a 9-1-1 system.  A 9-1-1
14-17    system in a district under this subchapter must be computerized.
14-18          (d)  9-1-1 service is mandatory for each individual telephone
14-19    subscriber in the district and is not an optional service under any
14-20    definitions of terms relating to telephone service.
14-21          (e)  A service supplier involved in providing 9-1-1 service,
14-22    a manufacturer of equipment used in providing 9-1-1 service, or an
14-23    officer or employee of a service supplier involved in providing
14-24    9-1-1 service is not liable for any claim, damage, or loss arising
14-25    from the provision of 9-1-1 service unless the act or omission
14-26    proximately causing the claim, damage, or loss constitutes gross
14-27    negligence, recklessness, or intentional misconduct.
 15-1          Sec. 772.509.  PRIMARY EMERGENCY TELEPHONE NUMBER. The digits
 15-2    9-1-1 are the primary emergency telephone number in a district.  A
 15-3    public safety agency whose services are available through a 9-1-1
 15-4    system may maintain a separate number or numbers for emergencies
 15-5    and shall maintain a separate number or numbers for nonemergency
 15-6    telephone calls.
 15-7          Sec. 772.510.  TRANSMITTING REQUESTS FOR EMERGENCY AID. (a)
 15-8    A 9-1-1 system established under this subchapter must be capable of
 15-9    transmitting requests for fire-fighting, law enforcement,
15-10    ambulance, and medical services to a public safety agency or
15-11    agencies that provide the requested service at the place from which
15-12    the call originates.  A 9-1-1 system may also provide for
15-13    transmitting requests for other emergency services such as poison
15-14    control, suicide prevention, and civil defense.
15-15          (b)  A public safety answering point may transmit emergency
15-16    response requests to private safety entities.
15-17          (c)  With the consent of the board, a privately owned
15-18    automatic intrusion alarm or other privately owned automatic
15-19    alerting device may be installed to cause the number 9-1-1 to be
15-20    dialed in order to gain access to emergency services.
15-21          Sec. 772.511.  POWERS OF DISTRICT. (a)  The district is a
15-22    public body corporate and politic, exercising public and essential
15-23    governmental functions and having all the powers necessary or
15-24    convenient to carry out the purposes and provisions of this
15-25    subchapter, including the capacity to sue or be sued.
15-26          (b)  To fund the district, the district may receive federal,
15-27    state, county, or municipal funds and private funds and may spend
 16-1    those funds for the purpose of this subchapter.  The board shall
 16-2    determine the method and sources of funding for the district.
 16-3          Sec. 772.512.  9-1-1 EMERGENCY SERVICE FEE. (a)  The board
 16-4    may impose a 9-1-1 emergency service fee on service users in the
 16-5    district.
 16-6          (b)  The fee may be imposed only on the base rate charge or
 16-7    its equivalent, excluding charges for coin-operated telephone
 16-8    equipment.  The fee may not be imposed on more than 100 local
 16-9    exchange access lines or their equivalent for a single business
16-10    entity at a single location, unless the lines are used by residents
16-11    of the location.  The fee may also not be imposed on any line that
16-12    the Commission on State Emergency Communications excluded from the
16-13    definition of a local exchange access line or an equivalent local
16-14    exchange access line under Section 771.063.  If a business service
16-15    user provides residential facilities, each line that terminates at
16-16    a residential unit and that is a communication link equivalent to a
16-17    residential local exchange access line shall be charged the 9-1-1
16-18    emergency service fee.  The fee must have uniform application.
16-19          (c)  The rate of the fee may not exceed three percent of the
16-20    monthly base rate charged a service user by the principal service
16-21    supplier in the municipality.
16-22          (d)  The board shall set the amount of the fee each year as
16-23    part of the annual budget.  The board shall notify each service
16-24    supplier of a change in the amount of the fee not later than the
16-25    91st day before the date the change takes effect.
16-26          (e)  In imposing the fee, the board shall attempt to match
16-27    the district's revenues to its operating expenditures and to
 17-1    provide reasonable reserves for contingencies and for the purchase
 17-2    and installation of 9-1-1 emergency service equipment.  If the
 17-3    revenue received from the fee exceeds the amount of money needed to
 17-4    fund the district, the board by resolution shall reduce the rate of
 17-5    the fee to an amount adequate to fund the district as required by
 17-6    this subsection or suspend the imposition of the fee.  If the board
 17-7    suspends the imposition of the fee, the board by resolution may
 17-8    reinstitute the fee if money received by the district is not
 17-9    adequate to fund the district.
17-10          (f)  The fee authorized to be charged in a district applies
17-11    to new territory added to the district under Section 772.503(b)
17-12    when the territory becomes part of the district.
17-13          Sec. 772.513.  COLLECTION OF FEE. (a)  Each billed service
17-14    user is liable for the fee imposed under Section 772.512 until the
17-15    fee is paid to the service supplier.  The fee must be added to and
17-16    stated separately in the service user's bill from the service
17-17    supplier.  The service supplier shall collect the fee at the same
17-18    time as the service charge to the service user in accordance with
17-19    the regular billing practice of the service supplier.  A business
17-20    service user that provides residential facilities and owns or
17-21    leases a publicly or privately owned telephone switch used to
17-22    provide telephone service to facility residents shall collect the
17-23    9-1-1 emergency service fee and transmit the fees monthly to the
17-24    district.
17-25          (b)  The amount collected by a service supplier from the fee
17-26    is due monthly.  The service supplier shall remit the amount
17-27    collected in a calendar month to the district not later than the
 18-1    60th day after the last day of the calendar month.  With each
 18-2    payment the service supplier shall file a return in a form
 18-3    prescribed by the board.
 18-4          (c)  Both a service supplier and a business service user
 18-5    under Subsection (a) shall maintain records of the amount of fees
 18-6    it collects for at least two years after the date of collection.
 18-7    The board may require at the board's expense an annual audit of a
 18-8    service supplier's books and records or the books and records of a
 18-9    business service user described by Subsection (a) with respect to
18-10    the collection and remittance of the fees.
18-11          (d)  A business service user that does not collect and remit
18-12    the 9-1-1 emergency service fee as required is subject to a civil
18-13    cause of action under Subsection (g).  A sworn affidavit by the
18-14    district specifying the unremitted fees is prima facie evidence
18-15    that the fees were not remitted and of the amount of the unremitted
18-16    fees.
18-17          (e)  A service supplier is entitled to retain an
18-18    administrative fee from the amount of fees it collects.  The amount
18-19    of the administrative fee is two percent of the amount of fees it
18-20    collects under this section.
18-21          (f)  A service supplier is not required to take any legal
18-22    action to enforce the collection of the 9-1-1 emergency service
18-23    fee.  However, the service supplier shall provide the district with
18-24    an annual certificate of delinquency that includes the amount of
18-25    all delinquent fees and the name and address of each nonpaying
18-26    service user.  The certificate of delinquency is prima facie
18-27    evidence that a fee included in the certificate is delinquent.  A
 19-1    service user account is considered delinquent if the fee is not
 19-2    paid to the service supplier before the 31st day after the payment
 19-3    due date stated on the user's bill from the service supplier.
 19-4          (g)  The district may institute legal proceedings to collect
 19-5    fees not paid and may establish internal collection procedures and
 19-6    recover the cost of collection from the nonpaying service user.  If
 19-7    legal proceedings are established, the court may award the district
 19-8    court costs, attorney's fees, and interest to be paid by the
 19-9    nonpaying service user.  A delinquent fee accrues interest at an
19-10    annual rate of 12 percent beginning on the date the payment becomes
19-11    due.
19-12          Sec. 772.514.  DISTRICT DEPOSITORY. (a)  The board shall
19-13    select a depository for the district in the manner provided by law
19-14    for the selection of a municipal depository.
19-15          (b)  A depository selected by the board is the district's
19-16    depository for two years after the date of its selection and until
19-17    a successor depository is selected and qualified.
19-18          Sec. 772.515.  ALLOWABLE EXPENSES. Allowable operating
19-19    expenses of a district include all costs attributable to planning,
19-20    designing, developing, and providing 9-1-1 services, enhancing the
19-21    effectiveness of a 9-1-1 system, and providing all facilities,
19-22    equipment, and personnel necessary to establish and operate a
19-23    public safety answering point and other related answering points.
19-24          Sec. 772.516.  NUMBER AND LOCATION IDENTIFICATION. (a)  As
19-25    part of computerized 9-1-1 service, a service supplier shall
19-26    furnish for each call the telephone number of the subscribers and
19-27    the address associated with the number.
 20-1          (b)  A business service user that provides residential
 20-2    facilities and owns or leases a publicly or privately owned
 20-3    telephone switch used to provide telephone service to facility
 20-4    residents shall provide to those residential end users the same
 20-5    level of 9-1-1 service that a service supplier is required to
 20-6    provide under Subsection (a) to other residential end users in the
 20-7    district.
 20-8          (c)  Information furnished under this section is confidential
 20-9    and is not available for public inspection.
20-10          (d)  A service supplier or a business service user under
20-11    Subsection (b) is not liable to a person who uses a 9-1-1 system
20-12    created under this subchapter for the release to the district of
20-13    the information specified in Subsections (a) and (b).
20-14          Sec. 772.517.  PUBLIC REVIEW. (a)  Periodically, the board
20-15    shall solicit public comments and hold a public review hearing on
20-16    the continuation of the district and the 9-1-1 emergency service
20-17    fee.  The first hearing shall be held three years after the date
20-18    the order certifying the creation of the district is filed with the
20-19    county clerk.  Subsequent hearings shall be held three years after
20-20    the date each order required by Subsection (d) is adopted.
20-21          (b)  The board shall publish notice of the time and place of
20-22    the hearing once a week for two consecutive weeks in a daily
20-23    newspaper of general circulation published in the district.  The
20-24    first notice must be published not later than the 16th day before
20-25    the date set for the hearing.
20-26          (c)  At the hearing, the board shall also solicit comments on
20-27    the participation of the district in the applicable regional plan
 21-1    for 9-1-1 service under Chapter 771.  After the hearing, the board
 21-2    may choose to participate in the regional plan as provided by that
 21-3    chapter.
 21-4          (d)  After the hearing, the board shall adopt an order on the
 21-5    continuation or dissolution of the district and the 9-1-1 emergency
 21-6    service fee.
 21-7          Sec. 772.518.  DISSOLUTION PROCEDURES. (a)  If a district is
 21-8    dissolved, 9-1-1 service must be discontinued on the date of the
 21-9    dissolution.  The governing body of the municipality shall assume
21-10    the assets of the district and pay the district's debts.  If the
21-11    district's assets are insufficient to retire all existing debts of
21-12    the district on the date of dissolution, the governing body of the
21-13    municipality shall continue to impose the 9-1-1 service fee, and
21-14    each service supplier shall continue to collect the fee for the
21-15    governing body of the municipality.  Proceeds from the imposition
21-16    of the fee by the municipality after dissolution of the district
21-17    may be used only to retire the outstanding debts of the district.
21-18          (b)  The governing body of the municipality shall retire the
21-19    district's debts to the extent practicable according to the terms
21-20    of the instruments creating the debts and the terms of the orders
21-21    and resolutions authorizing creation of the debts.
21-22          (c)  If the district is dissolved, the municipality shall:
21-23                (1)  choose to participate in the state administration
21-24    of emergency communications under Chapter 771; or
21-25                (2)  become part of an emergency communication district
21-26    under Section 772.205 or 772.305.
21-27          (d)  The governing body of the municipality by order may
 22-1    adopt the rules necessary to administer this section.
 22-2          Sec. 772.519.  ISSUANCE OF BONDS. The board may issue and
 22-3    sell bonds in the name of the district to finance:
 22-4                (1)  the acquisition by any method of facilities,
 22-5    equipment, or supplies necessary for the district to begin
 22-6    providing 9-1-1 service; or
 22-7                (2)  the installation of equipment necessary for the
 22-8    district to provide 9-1-1 service.
 22-9          Sec. 772.520.  REPAYMENT OF BONDS. The board may provide for
22-10    the payment of principal of and interest on the bonds by pledging
22-11    all or any part of the district's revenues from the 9-1-1 emergency
22-12    service fee or from other sources.
22-13          Sec. 772.521.  ADDITIONAL SECURITY FOR BONDS. (a)  The bonds
22-14    may be additionally secured by a deed of trust or mortgage lien on
22-15    part or all of the physical properties of the district and rights
22-16    appurtenant to those properties, vesting in the trustee power to
22-17    sell the properties for payment of the indebtedness, power to
22-18    operate the properties, and all other powers necessary for the
22-19    further security of the bonds.
22-20          (b)  The trust indenture, regardless of the existence of the
22-21    deed of trust or mortgage lien on the properties, may contain
22-22    provisions prescribed by the board for the security of the bonds
22-23    and the preservation of the trust estate, may make provisions for
22-24    amendment or modification, and may make provisions for investment
22-25    of funds of the district.
22-26          (c)  A purchaser under a sale under the deed of trust or
22-27    mortgage lien is the absolute owner of the properties and rights
 23-1    purchased and may maintain and operate them.
 23-2          Sec. 772.522.  TAX STATUS OF BONDS. Because a district
 23-3    created under this subchapter is a public entity performing an
 23-4    essential public function, bonds issued by the district, any
 23-5    transaction relating to the bonds, and profits made in the sale of
 23-6    the bonds are exempt from taxation by the state or by any
 23-7    municipality, county, special district, or other political
 23-8    subdivision of the state.
 23-9          SECTION 20.  Subchapter D, Chapter 502, Transportation Code,
23-10    is amended by adding Section 502.1706 to read as follows:
23-11          Sec. 502.1706.  ADDITIONAL FEE FOR EMERGENCY HIGHWAY
23-12    TELEPHONE CALL BOX SYSTEM. (a)  Except as provided by Subsection
23-13    (b), a fee of $1 shall be collected, in addition to other fees
23-14    collected under this chapter, for a license plate or set of license
23-15    plates, or other device used as a registration insignia.
23-16          (b)  Subsection (a) does not apply to a vehicle that is owned
23-17    by and used exclusively in the service of the United States, this
23-18    state, or a county or municipality of this state.
23-19          (c)  The county tax collector shall send each fee collected
23-20    under this section to the comptroller before the 30th day after the
23-21    date it is collected.
23-22          (d)  Money collected under this section shall be deposited to
23-23    the credit of the emergency highway telephone call box account.
23-24    The emergency highway telephone call box account is an account in
23-25    the general revenue fund that may be appropriated only for the
23-26    purpose of implementing or administering the emergency telephone
23-27    call box program established by the Commission on State Emergency
 24-1    Communications under Subchapter E, Chapter 771, Health and Safety
 24-2    Code.
 24-3          SECTION 21.  Chapter 226, Transportation Code, is repealed.
 24-4          SECTION 22. Subchapter A, Chapter 52, Utilities Code, is
 24-5    amended by adding Section 52.007 to read as follows:
 24-6          Sec. 52.007.  AUTHORITY TO ENSURE RELIABILITY OF EMERGENCY
 24-7    COMMUNICATIONS SERVICES. The commission may:
 24-8                (1)  impose administrative penalties in accordance with
 24-9    Chapter 15 on a telecommunications provider that:
24-10                      (A)  does not comply with applicable local,
24-11    state, or federal requirements regarding the provision of 9-1-1
24-12    emergency service; or
24-13                      (B)  unreasonably impedes another
24-14    telecommunications provider from complying with applicable local,
24-15    state, or federal requirements regarding the provision of 9-1-1
24-16    emergency service; and
24-17                (2)  review or investigate 9-1-1 implementation or
24-18    interoperability disputes between telecommunications providers or
24-19    between telecommunications providers and local or state 9-1-1
24-20    authorities operating under Chapter 771 or Chapter 772, Health and
24-21    Safety Code, alleging noncompliance with applicable local, state,
24-22    or federal requirements regarding the provision of 9-1-1 emergency
24-23    service.
24-24          SECTION 23.  (a)  Not later than January 1, 2002, a home-rule
24-25    municipality must enter into a memorandum of understanding with the
24-26    Commission on State Emergency Communications detailing the
24-27    municipality's plan to comply with  Section 771.0585, Health and
 25-1    Safety Code, as added by this Act.
 25-2          (b)  Not later than January 1, 2003, a home-rule municipality
 25-3    must comply with Section 771.0585, Health and Safety Code, as added
 25-4    by this Act by:
 25-5                (1)  joining the state administration  of emergency
 25-6    communications under Chapter 771, Health and Safety Code;
 25-7                (2)  joining an existing emergency communications
 25-8    district under Chapter 772, Health and Safety Code; or
 25-9                (3)  forming its own district under Subchapter G,
25-10    Chapter 772, Health and Safety Code, as added by this Act.
25-11          SECTION 24.  Not later than September 1, 2007, the Commission
25-12    on State Emergency Communications shall implement wireless Phase II
25-13    service to comply with Section 771.051(a)(15), Health and Safety
25-14    Code, as added by this Act.
25-15          SECTION 25. (a)  On September 1, 2001:
25-16                (1)  all of the rights, powers, duties, functions,
25-17    programs, and activities assigned to the Texas Department of
25-18    Transportation or to the department's officers or employees by
25-19    Chapter 226, Transportation Code, are transferred to the Commission
25-20    on State Emergency Communications; and
25-21                (2)  all funds, obligations, contracts, property, and
25-22    records of the department relating to the emergency call box system
25-23    under Chapter 226, Transportation Code, are transferred to the
25-24    commission.
25-25          (b)  A rule or form adopted by the department that relates to
25-26    the emergency call box system under Chapter 226, Transportation
25-27    Code, is a rule or form of the commission and remains in effect
 26-1    until altered by the commission.  The secretary of state is
 26-2    authorized to adopt rules as necessary to expedite the
 26-3    implementation of this subsection.
 26-4          (c)  A reference in law to the Texas Department of
 26-5    Transportation that relates to the emergency call box system means
 26-6    the Commission on State Emergency Communications.
 26-7          SECTION 26. (a)  The transfer of powers, duties, functions,
 26-8    programs, and activities under this Act does not affect or impair
 26-9    any act done, any obligation, right, order, license, permit, rule,
26-10    criterion, standard, or requirement existing, any investigation
26-11    begun, or any penalty accrued under former law, and that law
26-12    remains in effect for any action concerning those matters.
26-13          (b)  An action brought or proceeding commenced before the
26-14    effective date of this Act, including a contested case or a remand
26-15    of an action or proceeding by a reviewing court, is governed by the
26-16    law and rules applicable to the action or proceeding before the
26-17    effective date of this Act.
26-18          SECTION 27. (a)  Except as provided by Subsection (b) of this
26-19    section, this Act takes effect September 1, 2001.
26-20          (b)  Sections 2, 4, 8, and 9 of this Act take effect January
26-21    1, 2003.