1-1     By:  Madla                                             S.B. No. 578
 1-2           (In the Senate - Filed February 7, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on State Affairs;
 1-4     February 13, 2001, rereferred to Committee on Business and
 1-5     Commerce; March 26, 2001, reported adversely, with favorable
 1-6     Committee Substitute by the following vote:  Yeas 4, Nays 2;
 1-7     March 26, 2001, sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR S.B. No. 578                    By:  Lucio
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the provision of emergency communication services.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subdivisions (3) and (7), Section 771.001, Health
1-14     and Safety Code, are amended to read as follows:
1-15                 (3)  "Emergency communication district" means:
1-16                       (A)  a public agency or group of public agencies
1-17     acting jointly that provided 9-1-1 service before September 1,
1-18     1987, or that had voted or contracted before that date to provide
1-19     that service; or
1-20                       (B)  a district created under Subchapter B, C, D,
1-21     [or] F, or G, Chapter 772.
1-22                 (7)  "Public agency" means the state, a municipality, a
1-23     county, an emergency communication district, [a regional planning
1-24     commission,] an appraisal district, or any other political
1-25     subdivision or district that provides, participates in the
1-26     provision of, or has authority to provide fire-fighting, law
1-27     enforcement, ambulance, medical, 9-1-1, or other emergency
1-28     services.
1-29           SECTION 2.  Subsection (d), Section 771.031, Health and
1-30     Safety Code, is amended to read as follows:
1-31           (d)  The governor shall appoint:
1-32                 (1)  [one member who serves on the governing body of a
1-33     regional planning commission;]
1-34                 [(2)]  one member who serves as a director of or is on
1-35     the governing body of an emergency communication district;
1-36                 (2)  two members [(3)  one member] who serve [serves]
1-37     on the governing body of a county;
1-38                 (3) [(4)]  one member who serves on the governing body
1-39     of an emergency communications district formed under Subchapter G,
1-40     Chapter 772 [a home-rule municipality that operates a 9-1-1 system
1-41     that is independent of the state's system]; and
1-42                 (4) [(5)]  one member as a representative of the
1-43     general public.
1-44           SECTION 3.   Subsection (a), Section 771.051, Health and
1-45     Safety Code, is amended to read as follows:
1-46           (a)  The commission is the state's authority on emergency
1-47     communications.  The commission shall:
1-48                 (1)  administer the implementation of statewide 9-1-1
1-49     service and the telecommunications requirements for poison control
1-50     centers under Chapter 777;
1-51                 (2)  develop minimum performance standards for
1-52     equipment and operation of 9-1-1 service [to be followed in
1-53     developing regional plans under Section 771.055], including
1-54     requirements that the plans provide for:
1-55                       (A)  automatic number identification by which the
1-56     telephone number of the caller is automatically identified at the
1-57     public safety answering point receiving the call; and
1-58                       (B)  other features the commission considers
1-59     appropriate;
1-60                 (3)  [examine and approve or disapprove regional plans
1-61     as provided by Section 771.056;]
1-62                 [(4)]  recommend minimum training standards, assist in
1-63     training, and provide assistance in the establishment and operation
1-64     of 9-1-1 service;
 2-1                 (4) [(5)]  allocate money to prepare and operate an
 2-2     integrated  9-1-1 system to public agencies providing 9-1-1 service
 2-3     as defined under Section 771.001 [regional plans as provided by
 2-4     Section 771.056];
 2-5                 (5) [(6)]  develop and provide public education
 2-6     materials and training;
 2-7                 (6) [(7)]  plan, implement, operate, and maintain
 2-8     poison control center databases and assist in planning, supporting,
 2-9     and facilitating 9-1-1 databases, as needed;
2-10                 (7) [(8)]  provide grants or contracts for services
2-11     that enhance the effectiveness of 9-1-1 service;
2-12                 (8) [(9)]  coordinate emergency communications services
2-13     and providers;
2-14                 (9) [(10)]  make reasonable efforts to gain voluntary
2-15     cooperation in the commission's activities of emergency
2-16     communications authorities and providers outside the commission's
2-17     jurisdiction, including:
2-18                       (A)  making joint communications to state and
2-19     federal regulators; and
2-20                       (B)  arranging cooperative purchases of equipment
2-21     or services; [and]
2-22                 (10) [(11)]  accept, receive, and deposit in its
2-23     account in the general revenue fund gifts, grants, and royalties
2-24     from public and private entities.  Gifts, grants, and royalties may
2-25     be used for the purposes of the commission;
2-26                 (11)  contract for the purchase of network, database,
2-27     equipment and services used in the operation of a 9-1-1 system;
2-28                 (12)  develop and operate an emergency call box system
2-29     as provided under Subchapter E consistent with the requirements set
2-30     forth in Chapters 2155, 2156, 2157, 2251, 2252, 2253, and 2254,
2-31     Government Code;
2-32                 (13)  develop standards for allowable expenses for
2-33     facilities, equipment, and personnel necessary to establish and
2-34     operate a public safety answering point and 9-1-1 system;
2-35                 (14)  complete the implementation of a wireless Phase I
2-36     service, as defined by the Federal Communications Commission, by
2-37     December 31, 2001;
2-38                 (15)  request and implement, where feasible, a wireless
2-39     Phase II service, as defined by the Federal Communications
2-40     Commission; and
2-41                 (16)  evaluate and implement, as the commission finds
2-42     appropriate, up-to-date network, database, equipment, and
2-43     technology for 9-1-1 service.
2-44           SECTION 4.  Section 771.052, Health and Safety Code, is
2-45     amended to read as follows:
2-46           Sec. 771.052.  AGENCY COOPERATION.  Each public agency and
2-47     regional planning commission shall cooperate with the commission to
2-48     the fullest extent possible in implementing and operating an
2-49     effective and efficient locally based 9-1-1 system.  Each public
2-50     agency operating within the commission's service area and regional
2-51     planning commission shall provide addressing and other database
2-52     information that the commission considers necessary for the
2-53     operation of a 9-1-1 system.
2-54           SECTION 5.  Section 771.055, Health and Safety Code, is
2-55     amended to read as follows:
2-56           Sec. 771.055.  STRATEGIC PLANNING.  (a)  The [Each regional
2-57     planning] commission shall develop a [regional] plan for the
2-58     establishment and operation of 9-1-1 service throughout the state
2-59     [region] that the [regional planning] commission services.  The
2-60     state plan shall be compiled from the detailed regional plans
2-61     developed in coordination with the public agencies providing 9-1-1
2-62     service under this chapter [serves.  The 9-1-1 service must meet
2-63     the standards established by the commission].
2-64           (b)  The commission's [A regional] plan must describe how the
2-65     9-1-1 service is to be administered.  The 9-1-1 service may be
2-66     administered by an emergency communication district, municipality,
2-67     or county, by a combination formed by interlocal contract, or by
2-68     other appropriate means as determined by the [regional planning]
2-69     commission.  In a region in which one or more emergency
 3-1     communication districts exist, a preference shall be given to
 3-2     administration by those districts and expansion of the area served
 3-3     by those districts.
 3-4           (c)  The commission's [A regional] plan must be updated at
 3-5     least once every state fiscal biennium and must include:
 3-6                 (1)  a description of how money allocated [to the
 3-7     region] under this chapter is to be allocated in the commission's
 3-8     service area [region];
 3-9                 (2)  projected financial operating information for the
3-10     two state fiscal years following the submission of the plan; and
3-11                 (3)  strategic planning information for the five state
3-12     fiscal years following submission of the plan.
3-13           (d)  In a region in which one or more emergency communication
3-14     districts exist, if a district chooses to participate in the
3-15     commission's [regional] plan, the district shall assist in the
3-16     development of the state [regional] plan.
3-17           (e)  In a region in which one or more cities or counties are
3-18     providing 9-1-1 service under this chapter, each city or county
3-19     shall assist in the development of the state plan.
3-20           (f)  For each state fiscal biennium, the commission shall
3-21     prepare a strategic plan for statewide 9-1-1 service for the
3-22     following five state fiscal years using information from the
3-23     strategic information contained in the state's [regional] plans and
3-24     provided by emergency communication districts [and home-rule
3-25     municipalities that operate 9-1-1 systems independent of the state
3-26     system].  The commission shall present the strategic plan to the
3-27     governor and the Legislative Budget Board, together with the
3-28     commission's legislative appropriations request.  The strategic
3-29     plan must:
3-30                 (1)  include a survey of the current performance,
3-31     efficiency, and degree of implementation of emergency
3-32     communications services throughout the whole state;
3-33                 (2)  provide an assessment of the progress made toward
3-34     meeting the goals and objectives of the previous strategic plan and
3-35     a summary of the total expenditures for emergency communications
3-36     services in this state;
3-37                 (3)  provide a strategic direction for emergency
3-38     communications services in this state;
3-39                 (4)  establish goals and objectives relating to
3-40     emergency communications in this state;
3-41                 (5)  provide long-range policy guidelines for emergency
3-42     communications in this state;
3-43                 (6)  identify major issues relating to improving
3-44     emergency communications in this state;
3-45                 (7)  identify priorities for this state's emergency
3-46     communications system; and
3-47                 (8)  detail the financial performance of the [each
3-48     regional planning] commission in implementing emergency
3-49     communications service including an accounting of administrative
3-50     expenses.
3-51           SECTION 6.  Sections 771.057 and 771.058, Health and Safety
3-52     Code, are amended to read as follows:
3-53           Sec. 771.057.  AMENDMENT OF PLAN.  In cases of emergency or
3-54     natural disaster, the state plan may be amended at the regional or
3-55     local level if requested by a public agency operating under this
3-56     chapter.  The commission shall determine the procedural process to
3-57     be used in amending the state plan.  [A regional plan may be
3-58     amended according to the procedure determined by the commission.]
3-59           Sec. 771.058.  OPTIONAL PARTICIPATION IN PLAN.  (a)  [In a
3-60     county with a population of 120,000 or less, the county or another
3-61     public agency, other than the state, located in the county is not
3-62     required to participate in the regional plan applicable to the
3-63     regional planning commission in which it is located, and the fee
3-64     imposed under this chapter may not be charged to a customer in the
3-65     county or territory of the public agency other than the county,
3-66     unless the county or other public agency chooses to participate in
3-67     the plan by resolution of its governing body.]
3-68           [(b)]  On approval by the commission, an emergency
3-69     communication district may choose to participate in the
 4-1     commission's [regional] plan applicable to the [regional planning
 4-2     commission] region in which the district is located.  An emergency
 4-3     communication district described by Section 771.001(3)(A) may
 4-4     choose to participate in the commission's [regional] plan by
 4-5     resolution of its governing body or by adoption of an ordinance.
 4-6     An emergency communication district described by Section
 4-7     771.001(3)(B) may choose to participate in the commission's
 4-8     [regional] plan by order of the district's board after a public
 4-9     hearing held in the manner required for a public hearing on the
4-10     continuation of the district under the law governing the district.
4-11     Following the adoption of the resolution, ordinance, or order and
4-12     approval by the commission, the [regional planning] commission
4-13     shall amend its [the regional] plan to take into account the
4-14     participation of the emergency communication district.
4-15           (b) [(c)]  Participation in the commission's [regional] plan
4-16     by an emergency communication district does not affect the
4-17     organization or operation of the district, except that the district
4-18     may not collect an emergency communication fee or other special fee
4-19     for 9-1-1 service not permitted by this chapter.  Participation by
4-20     the district in the plan does not affect the district's authority
4-21     to set its own fees in the territory under its jurisdiction on
4-22     January 1, 1988.  Participation in the commission's [regional] plan
4-23     by a public agency or group of public agencies operating as an
4-24     emergency communication district as provided by Subsection (c)
4-25     [(d)] does not affect the authority of the public agency or group
4-26     of public agencies to set its own fees in territory:
4-27                 (1)  under its jurisdiction at the time of recognition;
4-28     or
4-29                 (2)  added to the district after the recognition.
4-30           (c) [(d)]  In a county with a population of 120,000 or less,
4-31     a public agency or group of public agencies acting jointly that
4-32     contracted with a service provider before September 1, 1987, to
4-33     provide 9-1-1 service by resolution of its governing body may
4-34     withdraw from the commission's [a regional] plan [in which it
4-35     chooses to participate].  A public agency or group of public
4-36     agencies that withdraws from the commission's [a regional] plan
4-37     under this subsection shall be recognized and operate as an
4-38     emergency communication district in the agency's or group's
4-39     geographic jurisdiction.  As an emergency communication district,
4-40     the public agency or group of agencies:
4-41                 (1)  is governed by Subchapter D, Chapter 772; and
4-42                 (2)  may collect all fees authorized by that subchapter
4-43     or other applicable law.
4-44           SECTION 7.  Subchapter C, Chapter 771, Health and Safety
4-45     Code, is amended by adding Section 771.0585 to read as follows:
4-46           Sec. 771.0585.  HOME-RULE MUNICIPALITIES.  Notwithstanding
4-47     Section 771.058, a home-rule municipality that operates a 9-1-1
4-48     system that is independent of either the state system or an
4-49     existing district authorized under Chapter 772, shall follow the
4-50     operational standards for home-rule municipalities set out in
4-51     Subchapter G, Chapter 772.
4-52           SECTION 8.  Section 771.060, Health and Safety Code, is
4-53     amended to read as follows:
4-54           Sec. 771.060.  BUSINESS PROVIDING RESIDENTIAL TELEPHONE
4-55     SWITCHES.  A business service user that provides residential
4-56     facilities and owns or leases a private telephone switch used to
4-57     provide telephone service to facility residents shall provide to
4-58     those residential end users the same level of 9-1-1 service that a
4-59     service supplier is providing to other residential end users in the
4-60     area participating in the commission's [regional] plan under
4-61     Section 771.051(2).
4-62           SECTION 9.  Subsections (c) and (d), Section 771.062, Health
4-63     and Safety Code, are amended to read as follows:
4-64           (c)  An emergency communication district [or home-rule
4-65     municipality] that operates a 9-1-1 system independent of the state
4-66     system shall [may voluntarily] submit strategic planning
4-67     information to the commission not later than January 31 of each
4-68     year that precedes a year that a regular session of the legislature
4-69     is held for use in preparing the strategic plan for statewide 9-1-1
 5-1     service.  This information as determined by the commission must[,
 5-2     if reported, may]:
 5-3                 (1)  include a survey of the current performance,
 5-4     efficiency, and degree of implementation of emergency
 5-5     communications services;
 5-6                 (2)  detail the progress made toward meeting the goals
 5-7     and objectives of the previous strategic plan;
 5-8                 (3)  describe the strategic direction, goals, and
 5-9     objectives for emergency communications services;
5-10                 (4)  identify major issues, long-range policy
5-11     guidelines, and priorities relating to improving emergency
5-12     communications services; and
5-13                 (5)  detail the financial performance of each district
5-14     in implementing emergency communications services.
5-15           (d)  The commission shall establish reasonable guidelines in
5-16     cooperation with the districts for use by districts [and home-rule
5-17     municipalities] in preparing information for the strategic plan for
5-18     statewide 9-1-1 services.  These guidelines shall include the time
5-19     frames of information and instructions for submission.
5-20           SECTION 10.  Subchapter C, Chapter 771, Health and Safety
5-21     Code, is amended by adding Section 771.064 to read as follows:
5-22           Sec. 771.064.  WITHDRAWAL FROM COMMISSION PLAN.  Except as
5-23     provided by Section 771.058(c), a public agency that participates
5-24     in the commission's plan may not withdraw from the commission's
5-25     plan without the consent of the commission.
5-26           SECTION 11.  Section 771.071, Health and Safety Code, is
5-27     amended to read as follows:
5-28           Sec. 771.071.  EMERGENCY SERVICE FEE.  (a)  Except as
5-29     otherwise provided by this subchapter, the commission may impose a
5-30     9-1-1 emergency service fee on each local exchange access line or
5-31     equivalent local exchange access line, including lines of customers
5-32     in an area served by an emergency communication district
5-33     participating in the applicable commission [regional] plan.  If a
5-34     business service user provides residential facilities, each line
5-35     that terminates at a residential unit, and that is a communication
5-36     link equivalent to a residential local exchange access line, shall
5-37     be charged the 9-1-1 emergency service fee.  The fee may not be
5-38     imposed on a line to coin-operated public telephone equipment or to
5-39     public telephone equipment operated by coin or by card reader.  The
5-40     fee may also not be imposed on any line that the commission
5-41     excluded from the definition of a local exchange access line or an
5-42     equivalent local exchange access line pursuant to Section 771.063.
5-43           (b)  The amount of the fee may not exceed 50 cents a month
5-44     for each line.
5-45           (c)  The commission may set the fee in a different amount in
5-46     each local telephone exchange service area of the state [regional
5-47     planning commission region] based on the cost of providing 9-1-1
5-48     service to each local telephone exchange service area [region].
5-49           (d)  The fee does not apply to an emergency communication
5-50     district not participating in the commission [applicable regional]
5-51     plan.  A customer in an area served by an emergency communication
5-52     district not participating in the commission [regional] plan may
5-53     not be charged a fee under this section.  Money collected under
5-54     this section may not be allocated to an emergency communication
5-55     district not participating in the applicable commission [regional]
5-56     plan.
5-57           (e)  A local exchange service provider shall collect the fees
5-58     imposed on its customers under this section.  Not later than the
5-59     30th day after the last day of the month in which the fees are
5-60     collected, the local exchange service provider shall deliver the
5-61     fees to the commission.  The commission shall deposit money from
5-62     the fees to the credit of the 9-1-1 services fee fund.
5-63           [(f)  The commission shall distribute money appropriated to
5-64     the commission from the 9-1-1 services fee fund to regional
5-65     planning commissions for use in providing 9-1-1 services as
5-66     provided by contracts executed under Section 771.078.  The regional
5-67     planning commissions shall distribute the money to public agencies
5-68     for use in providing those services.]
5-69           SECTION 12.  Subsection (g), Section 771.0711, Health and
 6-1     Safety Code, is amended to read as follows:
 6-2           (g)  On receipt of an invoice from a wireless service
 6-3     provider for reasonable expenses for network facilities, including
 6-4     equipment, installation, maintenance, and associated implementation
 6-5     costs, the commission [or an emergency services district of a
 6-6     home-rule municipality] or an emergency communication district
 6-7     created under Chapter 772 shall reimburse the wireless service
 6-8     provider in accordance with state law for all expenses related to
 6-9     9-1-1 service.
6-10           SECTION 13.  Subsections (d) and (f), Section 771.072, Health
6-11     and Safety Code, are amended to read as follows:
6-12           (d)  From the revenue received from the surcharge imposed
6-13     under this section, the amount derived from the application of the
6-14     surcharge at a rate of not more than .5 percent shall be used by
6-15     the commission as provided for in this chapter or be allocated to
6-16     regions [regional planning commissions] or other public agencies
6-17     designated by the commission [regional planning commissions] for
6-18     use in carrying out the 9-1-1 service [regional plans] provided for
6-19     by this chapter.  The allocations to the region [regional planning
6-20     commissions] are not required to be equal, but should be made to
6-21     carry out the policy of this chapter to implement 9-1-1 service
6-22     statewide.  Money collected under this section may be allocated to
6-23     an emergency communication district regardless of whether the
6-24     district is participating in the applicable state [regional] plan.
6-25           (f)  The commission shall deposit the surcharges and any
6-26     prior balances in an account in the general revenue fund in the
6-27     state treasury until they are allocated to the commission [regional
6-28     planning commissions] and poison control centers in accordance with
6-29     this section.  From that account, the amount necessary for the
6-30     commission to fund approved plans [of regional planning
6-31     commissions] and regional poison control centers and to carry out
6-32     its duties under this chapter shall be appropriated to the
6-33     commission.  Section 403.095, Government Code, does not apply to
6-34     the account established by this subsection.
6-35           SECTION 14.  Sections 771.074 and 771.075, Health and Safety
6-36     Code, are amended to read as follows:
6-37           Sec. 771.074.  EXEMPTION.  A fee or surcharge authorized by
6-38     this subchapter or[,] Chapter 772[, or a home-rule municipality]
6-39     may not be imposed on or collected from the state.
6-40           Sec. 771.075.  USE OF REVENUE.  Except as provided by Section
6-41     771.072(e), 771.072(f), or 771.073(e), fees and surcharges
6-42     collected under this subchapter may be used, as approved by the
6-43     commission, [only] for planning, designing, developing, and
6-44     providing 9-1-1 service, enhancing [development, provision, and
6-45     enhancement of] the effectiveness of 9-1-1 service, and providing
6-46     facilities, equipment, and personnel necessary to establish and
6-47     operate a public safety answering point and 9-1-1 system [as
6-48     approved by the commission].
6-49           SECTION 15.  Section 771.078, Health and Safety Code, is
6-50     amended to read as follows:
6-51           Sec. 771.078.  CONTRACTS FOR SERVICES.  (a)  The commission
6-52     shall contract with public agencies [regional planning commissions]
6-53     for the provision of 9-1-1 service.  The commission by rule shall
6-54     adopt standard provisions for the contracts.
6-55           (b)  [In making contracts under this section, the commission
6-56     shall ensure that each regional planning commission receives money
6-57     for 9-1-1 service in two separately computed amounts as provided by
6-58     this subsection. The commission must provide each regional planning
6-59     commission with:]
6-60                 [(1)  an amount of money equal to the total of the
6-61     revenue from the emergency service fees collected under Section
6-62     771.071 that is deposited in the treasury and appropriated to the
6-63     commission multiplied by a fraction, the numerator of which is the
6-64     amount of those fees collected from the region and the denominator
6-65     of which is the total amount of those fees collected in this state;
6-66     and]
6-67                 [(2)  an amount of money equal to the total of the
6-68     revenue from the emergency service fee for wireless
6-69     telecommunications connections under Section 771.0711 that is
 7-1     deposited in the treasury and appropriated to the commission
 7-2     multiplied by a fraction, the numerator of which is the population
 7-3     of the region and the denominator of which is the population of
 7-4     this state.]
 7-5           [(c)]  Contracts under this section must provide for:
 7-6                 (1)  the reporting of financial information regarding
 7-7     administrative expenses by the local public agency that is the
 7-8     9-1-1 service provider [regional planning commissions] in
 7-9     accordance with generally accepted accounting principles;
7-10                 (2)  the reporting of information regarding the current
7-11     performance, efficiency, and degree of implementation of emergency
7-12     communications services in each regional [planning commission's]
7-13     service area;
7-14                 (3)  the collection of efficiency data on the operation
7-15     of 9-1-1 answering points;
7-16                 (4)  standards for the use of answering points and the
7-17     creation of new answering points;
7-18                 (5)  quarterly disbursements of money due under the
7-19     contract, except as provided by Subdivision (6);
7-20                 (6)  the commission to withhold disbursement to the
7-21     local public agency that is the 9-1-1 service provider or wireless
7-22     telecommunications carrier [a regional planning commission] that
7-23     does not follow a standard imposed by the contract, a commission
7-24     rule, or a statute; and
7-25                 (7)  all funds, obligations, and contracts for 9-1-1
7-26     service shall transfer from the regional planning commissions to
7-27     the commission [a means for the commission to give an advance on a
7-28     quarterly distribution under the contract to a regional planning
7-29     commission that has a financial emergency].
7-30           (d)  [Not more than 10 percent of the money received by a
7-31     regional planning commission under Subsection (b) may be used for
7-32     the regional planning commission's indirect costs.  In this
7-33     subsection, "indirect costs" means costs that are not directly
7-34     attributable to a single action of a commission.  The governor
7-35     shall use the federal Office of Management and Budget circulars
7-36     A-87 and A-122 or use any rules relating to the determination of
7-37     indirect costs adopted under Chapter 783, Government Code, in
7-38     administering this section.]
7-39           [(e)]  The commission may allocate surcharges under Section
7-40     771.072(d) by means of a contract under this section.
7-41           [(f)  Promptly after the commission receives a request from a
7-42     regional planning commission, the commission shall provide the
7-43     regional planning commission with adequate documentation and
7-44     financial records of the amount of money collected in that region
7-45     or of an amount of money allocated to the regional planning
7-46     commission in accordance with this section.]
7-47           SECTION 16.  Subsection (c), Section 771.079, Health and
7-48     Safety Code, is amended to read as follows:
7-49           (c)  Money in the account may be appropriated only to the
7-50     commission for planning, development, provision, or enhancement of
7-51     the effectiveness of 9-1-1 service or for contracts with a public
7-52     agency or 9-1-1 service provider for 9-1-1 service and for the
7-53     implementation and operation of an emergency call box system
7-54     [regional planning commissions for 9-1-1 service].
7-55           SECTION 17.  Chapter 771, Health and Safety Code, is amended
7-56     by adding Subchapter E to read as follows:
7-57              SUBCHAPTER E.  EMERGENCY HIGHWAY CALL BOX SYSTEM
7-58           Sec. 771.101.  EMERGENCY HIGHWAY CALL BOX SYSTEM.  (a)  The
7-59     commission, in cooperation with the Texas Department of
7-60     Transportation, shall establish a program to install, operate, and
7-61     maintain a system of telephone emergency call boxes in areas of the
7-62     state served by the commission.  The emergency highway call box
7-63     system shall be installed, operated, and maintained along those
7-64     highways in this state that are numbered United States highways,
7-65     that are part of the national system of interstate and defense
7-66     highways, or that are numbered state highways to enable users of
7-67     the emergency call boxes to communicate with providers of emergency
7-68     services.  The commission and the Texas Department of
7-69     Transportation shall phase in the implementation of emergency call
 8-1     boxes over a 10-year period.  This section shall not apply to a
 8-2     segment of a highway that has been designated as a farm-to-market
 8-3     or ranch-to-market road.
 8-4           (b)  The commission may take any action to implement the
 8-5     emergency highway call box program that the commission determines
 8-6     to be necessary or advisable and may contract for any equipment or
 8-7     service that is required to implement the communication system
 8-8     under the program.  The commission shall give priority for the
 8-9     implementation of an emergency highway call box system to counties
8-10     with a population of 100,000 or less.
8-11           Sec. 771.102.  SELECTION AND PLACEMENT.  The commission, in
8-12     cooperation with the Texas Department of Transportation, shall
8-13     select or approve the emergency call boxes and other equipment and
8-14     the communication provider services that are necessary for the
8-15     system.  The Texas Department of Transportation shall determine the
8-16     placement and spacing of the emergency call boxes.  When the
8-17     program has been fully implemented, the distance between two
8-18     emergency call boxes should not be more than two miles.
8-19           Sec. 771.103.  COOPERATION.  Each agency, county, and
8-20     municipality in this state shall cooperate with the commission in
8-21     the establishment, operation, and maintenance of the emergency
8-22     highway call box program.
8-23           Sec. 771.104.  REPORTS.  Not later than November 1 of each
8-24     year, the commission shall file with the lieutenant governor, the
8-25     speaker of the house of representatives, and the Legislative Budget
8-26     Board a report on the commission's activities under this subchapter
8-27     during the preceding fiscal year.
8-28           Sec. 771.105.  PROHIBITED FUNDING OPTIONS.  The establishment
8-29     of an emergency highway call box system shall not be funded from
8-30     constitutionally dedicated revenues allocated to the Texas
8-31     Department of Transportation.  The emergency highway call box
8-32     system shall not result in a fee increase or additional item on
8-33     telephone service bills.
8-34           SECTION 18.  Subsection (d), Section 772.110, Health and
8-35     Safety Code, is amended to read as follows:
8-36           (d)  The district shall implement [recommend] minimum levels
8-37     of service at least as stringent as the Commission on State
8-38     Emergency Communications levels of service [standards] for a 9-1-1
8-39     system.  A 9-1-1 system in a district under this subchapter must be
8-40     computerized.
8-41           SECTION 19.  Subsection (c), Section 772.114, Health and
8-42     Safety Code, is amended to read as follows:
8-43           (c) The rate of the fee may not exceed six [three] percent of
8-44     the monthly base rate charged a service user by the principal
8-45     service supplier in the participating jurisdiction.
8-46           SECTION 20.  Section 772.117, Health and Safety Code, is
8-47     amended to read as follows:
8-48           Sec. 772.117.  ALLOWABLE EXPENSES.  Allowable operating
8-49     expenses of a district include all costs approved by the board that
8-50     are attributable to planning, designing, developing, and providing
8-51     9-1-1 service, enhancing the effectiveness of a 9-1-1 system, and
8-52     providing facilities, [to all] equipment, and personnel necessary
8-53     to establish and operate a public safety answering point and 9-1-1
8-54     system, and for other related services [answering points] that the
8-55     board considers necessary.
8-56           SECTION 21.  Subsection (d), Section 772.210, Health and
8-57     Safety Code, is amended to read as follows:
8-58           (d)  The district shall implement [recommend] minimum levels
8-59     of service at least as stringent as the Commission on State
8-60     Emergency Communications levels of service [standards] for a 9-1-1
8-61     system.  A 9-1-1 system in a district created under this subchapter
8-62     must be computerized.
8-63           SECTION 22.  Section 772.217, Health and Safety Code, is
8-64     amended to read as follows:
8-65           Sec. 772.217.  ALLOWABLE EXPENSES.  Allowable operating
8-66     expenses of a district include all costs approved by the board that
8-67     are attributable to planning, designing, developing, and providing
8-68     9-1-1 service, enhancing the effectiveness of a 9-1-1 system, and
8-69     providing facilities, [to all] equipment, and personnel necessary
 9-1     to establish and operate a public safety answering point and 9-1-1
 9-2     system, and for other related services [answering points] that the
 9-3     board considers necessary.
 9-4           SECTION 23.  Subsection (d), Section 772.310, Health and
 9-5     Safety Code, is amended to read as follows:
 9-6           (d)  The district shall implement [recommend] minimum levels
 9-7     of service at least as stringent as the Commission on State
 9-8     Emergency Communications levels of service [standards] for a 9-1-1
 9-9     system.
9-10           SECTION 24.  Section 772.317, Health and Safety Code, is
9-11     amended to read as follows:
9-12           Sec. 772.317.  ALLOWABLE EXPENSES.  Allowable operating
9-13     expenses of a district include all costs approved by the board that
9-14     are attributable to planning, designing, developing, and providing
9-15     9-1-1 service, enhancing the effectiveness of a 9-1-1 system, and
9-16     providing facilities, [to all] equipment, and personnel necessary
9-17     to establish and operate a public safety answering point and 9-1-1
9-18     system, and for other related services [answering points] that the
9-19     board considers necessary.
9-20           SECTION 25.  Subsection (c), Section 772.403, Health and
9-21     Safety Code, is amended to read as follows:
9-22           (c)  Revenue from the fee may be used [only] for [the]
9-23     planning, designing, developing, and providing 9-1-1 services,
9-24     enhancing the effectiveness [development, and provision] of 9-1-1
9-25     service, and providing facilities, equipment, and personnel
9-26     necessary to establish and operate a public safety answering point
9-27     and other related answering points.
9-28           SECTION 26.  Chapter 772, Health and Safety Code, is amended
9-29     by adding Subchapter G to read as follows:
9-30                   SUBCHAPTER G.  HOME-RULE MUNICIPALITIES
9-31           Sec. 772.501.  ESTABLISHMENT OF 9-1-1 SERVICE.  (a)  A
9-32     home-rule municipality shall provide 9-1-1 service to the
9-33     municipality's jurisdiction through one or a combination of the
9-34     following methods and features or equivalent state-of-the-art
9-35     technology:
9-36                 (1)  the transfer method;
9-37                 (2)  the relay method;
9-38                 (3)  the dispatch method;
9-39                 (4)  automatic number identification;
9-40                 (5)  automatic location identification; or
9-41                 (6)  selective routing.
9-42           (b)  The municipality shall design, implement, and operate a
9-43     9-1-1 system for the municipality's jurisdiction.
9-44           (c)  The municipality shall implement minimum levels of
9-45     service at least as stringent as Commission on State Emergency
9-46     Communications levels of service for a 9-1-1 system.  A 9-1-1
9-47     system in a home-rule municipality under this subchapter must be
9-48     computerized.
9-49           (d)  9-1-1 service is mandatory for each individual telephone
9-50     subscriber within the municipality's jurisdiction and is not an
9-51     optional service under any definitions of terms relating to
9-52     telephone service.
9-53           (e)  A service supplier involved in providing 9-1-1 service,
9-54     a manufacturer of equipment used in providing 9-1-1 service, or an
9-55     officer or employee of a service supplier involved in providing
9-56     9-1-1 service is not liable for any claim, damage, or loss arising
9-57     from the provision of 9-1-1 service unless the act or omission
9-58     proximately causing the claim, damage, or loss constitutes gross
9-59     negligence, recklessness, or intentional misconduct.
9-60           Sec. 772.502.  REPORTING OF EXPENSES.  On January 31 of each
9-61     year preceding a legislative session, the municipality shall submit
9-62     to the Commission on State Emergency Communications a detailed
9-63     financial report showing all revenues and expenditures of the 9-1-1
9-64     fund account and showing any balances of the account.
9-65           Sec. 772.503.  ESTABLISHMENT OF 9-1-1 SERVICE FEE.  (a)  The
9-66     municipality may impose a 9-1-1 emergency service fee on service
9-67     users within the municipality's jurisdiction.
9-68           (b)  In imposing the fee, the municipality may provide for
9-69     reasonable reserves for contingencies and for purchases and
 10-1    installation of 9-1-1 emergency service equipment.
 10-2          Sec. 772.504.  COLLECTION OF FEE.  Each billed service user
 10-3    is liable for the fee imposed under Section 772.503 until the fee
 10-4    is paid to the service supplier.  The fee must be added to and
 10-5    stated separately in the service user's bill from the service
 10-6    supplier.  The service supplier shall collect the fee at the same
 10-7    time as the service charge to the service user in accordance with
 10-8    the regular billing practice of the service supplier.  A business
 10-9    service user that provides residential facilities and owns or
10-10    leases a publicly or privately owned telephone switch used to
10-11    provide telephone service to facility residents shall collect the
10-12    9-1-1 emergency service fee and transmit the fees monthly to the
10-13    municipality.
10-14          Sec. 772.505.  ESTABLISHMENT OF 9-1-1 FUND ACCOUNT.  A
10-15    home-rule municipality operating its own emergency communications
10-16    system shall deposit all 9-1-1 emergency service fees collected or
10-17    received by the municipality into a separate account to be known as
10-18    the 9-1-1 fund account.
10-19          Sec. 772.506.  ALLOWABLE EXPENSES.  Allowable expenses from
10-20    the 9-1-1 fund account include all costs attributable to planning,
10-21    designing, developing, and providing 9-1-1 services and
10-22    communication systems directly related to providing 9-1-1 services,
10-23    enhancing the effectiveness of a 9-1-1 system, and providing
10-24    facilities, equipment, and personnel necessary to establish and
10-25    operate a public safety answering point and other related answering
10-26    points.
10-27          SECTION 27.  Chapter 226, Transportation Code, is repealed.
10-28          SECTION 28.  Section 771.056, Health and Safety Code, is
10-29    repealed.
10-30          SECTION 29.  (a)  Not later than January 1, 2002, a home-rule
10-31    municipality must enter into a memorandum of understanding with the
10-32    Commission on State Emergency Communications detailing the
10-33    municipality's plan to comply with Section 771.0585, Health and
10-34    Safety Code, as added by this Act.
10-35          (b)  Not later than January 1, 2003, a home-rule municipality
10-36    must comply with Section 771.0585, Health and Safety Code, as added
10-37    by this Act by:
10-38                (1)  joining the state administration of emergency
10-39    communications under Chapter 771, Health and Safety Code;
10-40                (2)  joining an existing emergency communication
10-41    district under Chapter 772, Health and Safety Code; or
10-42                (3)  operating its own district under Subchapter G,
10-43    Chapter 772, Health and Safety Code, as added by this Act.
10-44          SECTION 30.  Not later than September 1, 2007, the Commission
10-45    on State Emergency Communications shall implement wireless Phase II
10-46    service to comply with Subdivision (15), Subsection (a), Section
10-47    771.051, Health and Safety Code, as added by this Act.
10-48          SECTION 31.  (a)  On September 1, 2001:
10-49                (1)  all of the rights, powers, duties, functions,
10-50    programs, and activities assigned to the Texas Department of
10-51    Transportation or to the department's officers or employees by
10-52    Chapter 226, Transportation Code, are transferred to the Commission
10-53    on State Emergency Communications; and
10-54                (2)  all funds, obligations, contracts, property, and
10-55    records of the Texas Department of Transportation relating to the
10-56    emergency call box system under Chapter 226, Transportation Code,
10-57    are transferred to the Commission on State Emergency
10-58    Communications.
10-59          (b)  A rule or form adopted by the Texas Department of
10-60    Transportation that relates to the emergency highway call box
10-61    system under Chapter 226, Transportation Code, is a rule or form of
10-62    the Commission on State Emergency Communications and remains in
10-63    effect until altered by the commission.  The secretary of state is
10-64    authorized to adopt rules as necessary to expedite the
10-65    implementation of this subsection.
10-66          SECTION 32.  (a)  The transfer of powers, duties, functions,
10-67    programs, and activities under this Act does not affect or impair
10-68    any act done, any obligation, right, order, license, permit, rule,
10-69    criterion, standard, or requirement existing, any investigation
 11-1    begun, or any penalty accrued under former law, and that law
 11-2    remains in effect for any action concerning those matters.
 11-3          (b)  An action brought or proceeding commenced before the
 11-4    effective date of this Act, including a contested case or a remand
 11-5    of an action or proceeding by a reviewing court, is governed by the
 11-6    law and rules applicable to the action or proceeding before the
 11-7    effective date of this Act.
 11-8          SECTION 33.  (a)  Except as provided by Subsection (b) of
 11-9    this section, this Act takes effect September 1, 2001.
11-10          (b)  Sections 2, 12, and 14 of this Act take effect
11-11    January 1, 2003.
11-12                                 * * * * *