House of Representatives

HB 2625

emergency 911 services; revenue

Sponsors: May, Giffords: Carpenter, et al

DPA	Committee on Energy Utilities & Technology
DPA	Committee on Ways & Means
X	Caucus and COW	This bill as introduced contains a PROP 108 clause.
	As Passed the House

House Bill 2625 provides an increase in the telecommunications service excise tax in order to update equipment used for the emergency telecommunication services.

History

Local and regional 9-1-1 committees work with the telecommunications industry to address emergency communications. The DOA is the administrator of the fund for emergency communications and all funding for emergency communications infrastructure must be approved by DOA. Since 1983 the State has funded the statewide 9-1-1 telecommunications services with an excise tax on telephone service. Currently this excise tax stands at about $.16 for landlines and at $.10 for wireless phones. In recent years these rates have not created enough revenues to fund the new equipment necessary to provide the 9-1-1 telecommunications services. New equipment is necessary due to the increase of wireless phone use. In Arizona, when wireless phones are used to call 9-1-1, the 9-1-1 operators can not get a location of the caller nor can they return the call if disconnection occurs because the wireless phone does not register a phone number in the system.

The rate increase in this bill addresses the cost of the new equipment and the corresponding FCC requirements for 9-1-1 telecommunications, which comes in two phases. The first phase requires the Wireless vendor to deliver to the Public Safety Answering Point (PSAP) data, which represents the complete 10-digit telephone number of the wireless handset, the street address of the Wireless tower, and the antenna face on that tower being utilized for the 9-1-1 call. This information would allow a call-talker at the PSAP to reasonably define a geographic area from which the call has originated and have the telephone number for callback purposes in case of disconnect.

The second phase requires the delivery of the 10-digit number of the Wireless handset, but, the cell tower address and antenna face are replaced with a requirement to provide the actual latitude and longitude coordinates of the Wireless device within 125 meters (400 feet) with a minimum 67% accuracy. Also included in this data stream sent to PSAP is the confidence level of the accuracy of the location data provided, the direction of travel, speed of travel, and height above sea level.

Attached to the summary are two charts. One chart shows a state-by-state comparison of 9-1-1 tax rates. The second chart shows projected costs of equipment and estimates of the tax revenues produced by the rate increase. Both charts were supplied by DOA.

Provisions

· Increases the time period between telecommunication services excise tax recommendations from a one-year period to a two-year period.

· Requires the legislature to review and take action on the recommendation.

· Outlines the levy of tax:

- Twenty cents per month for each activated residential wire service account

- Fifty cents per month for each activated business wire service.

- Forty-seven cents per month for each activated wireless service

· This bill as introduced contains a PROP 108 clause

House Bill 2625 passed the Energy Utilities & Technology Committee amended as follows:

· Adds a technical change

HB 2625 passed the Ways & Means Committee amended as follows:

· Reinstates that DOA can only use three per cent, instead of five per cent for administration costs. Beginning with fiscal year 2002, DOA can use up to 1.75% of their administration costs and the remainder may be allocated to PSAP contracts.

· Changes the rate structure so that in fiscal year 2007, all users will pay a flat fee of 28 cents per month for emergency 9-1-1 services and in fiscal year 2008 and thereafter, the flat fee will be 20 cents per month for all users.

· Provides that state or local governments will not prevent a telecommunications service provider from construction and operating a reliable network of emergency 9-1-1 services.

· Expands the use of the Emergency Telecommunication Services Revolving Fund to allow a wireless carrier’s one-time costs associated with the emergency 9-1-1 network if not otherwise funded.

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45th Legislature

First Regular Session 3 March 7, 2001

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