1.1 	A bill for an act
1.2 	relating to public safety; changing a requirement concerning combined 
1.3 	local access surcharges; modifying requirements for 911 system service 
1.4 	contracts; modifying reporting requirement of wireless 911 service providers; 
1.5 	modifying provisions relating to payments for recurring 911 system costs; 
1.6 	modifying provisions relating to 911 system cost accounting requirements;
1.7 	amending Minnesota Statutes 2004, sections 237.49; 403.08, subdivision 7; 
1.8 	403.11, subdivisions 3b, 3c; 403.113, subdivision 3; Minnesota Statutes 2005 
1.9 	Supplement, sections 403.025, subdivision 7; 403.05, subdivision 3; 403.11, 
1.10 	subdivisions 1, 3, 3a; 403.113, subdivision 1; repealing Minnesota Statutes 2004, 
1.11 	section 403.08, subdivision 8.
1.12 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.13 	Section 1. Minnesota Statutes 2004, section 237.49, is amended to read:
1.14 	237.49 COMBINED LOCAL ACCESS SURCHARGE.
1.15 	Each local telephone company shall collect from each subscriber an amount per 
1.16 	telephone access line representing the total of the surcharges required under sections  
1.17 	237.52,  237.70, and  403.11. Amounts collected must be remitted to the commissioner 
1.18 	of public safety in the manner prescribed in section  403.11. The commissioner of public 
1.19 	safety shall divide the amounts received proportional to the individual surcharges and 
1.20 	deposit them in the appropriate accounts. The commissioner of public safety may recover 
1.21 	from the agencies receiving the surcharges the personnel and administrative costs to 
1.22 	collect and distribute the surcharge. A company or the billing agent for a company shall 
1.23 	list the surcharges as one amount on a billing statement sent to a subscriber. 

1.24 	Sec. 2. Minnesota Statutes 2005 Supplement, section 403.025, subdivision 7, is 
1.25 	amended to read:
2.1 		Subd. 7.Contractual requirements. (a) The state, together shall contract with 
2.2 	the county or other governmental agencies operating public safety answering points, 
2.3 	shall contract and with the appropriate wire-line telecommunications service providers or 
2.4 	other entities determined by the commissioner to be capable of providing effective and 
2.5 	efficient components of the 911 system for the operation, maintenance, enhancement, 
2.6 	and expansion of the 911 system.
2.7 	(b) The state shall contract with the appropriate wireless telecommunications service 
2.8 	providers for maintaining, enhancing, and expanding the 911 system.
2.9 	(c) The contract language or subsequent amendments to the contract must include 
2.10 	a description of the services to be furnished to the county or other governmental 
2.11 	agencies operating public safety answering points. The contract language or subsequent 
2.12 	amendments must include the terms of compensation based on the effective tariff or price 
2.13 	list filed with the Public Utilities Commission or the prices agreed to by the parties.
2.14 	(d) The contract language or subsequent amendments to contracts between the 
2.15 	parties must contain a provision for resolving disputes.

2.16 	Sec. 3. Minnesota Statutes 2005 Supplement, section 403.05, subdivision 3, is 
2.17 	amended to read:
2.18 		Subd. 3.Agreements for service. Each county and or any other governmental 
2.19 	agency shall contract with the state and wire-line telecommunications service providers or 
2.20 	other entities determined by the commissioner to be capable of providing effective and 
2.21 	efficient components of the 911 system for the recurring and nonrecurring costs associated 
2.22 	with operating and maintaining 911 emergency communications systems. If requested by 
2.23 	the county or other governmental agency, the county or agency is entitled to be a party to 
2.24 	any contract between the state and any wire-line telecommunications service provider or 
2.25 	911 emergency telecommunications service provider providing components of the 911 
2.26 	system within the county.

2.27 	Sec. 4. Minnesota Statutes 2004, section 403.08, subdivision 7, is amended to read:
2.28 		Subd. 7.Duties. Each wireless telecommunications service provider shall cooperate 
2.29 	in planning and implementing integration with enhanced 911 systems operating in 
2.30 	their service territories to meet Federal Communications Commission-enhanced 911 
2.31 	standards. By August 1, 1997, each 911 emergency telecommunications service 
2.32 	provider operating enhanced 911 systems, in cooperation with each involved Each
2.33 	wireless telecommunications service provider, shall annually develop and provide to the 
2.34 	commissioner good-faith estimates of installation and recurring expenses to integrate 
3.1 	wireless 911 service into the enhanced 911 networks to meet Federal Communications 
3.2 	Commission phase one wireless enhanced 911 standards. The commissioner shall 
3.3 	coordinate with counties and affected public safety agency representatives in developing a 
3.4 	statewide design and plan for implementation.

3.5 	Sec. 5. Minnesota Statutes 2005 Supplement, section 403.11, subdivision 1, is 
3.6 	amended to read:
3.7 		Subdivision 1.Emergency telecommunications service fee; account. (a) Each 
3.8 	customer of a wireless or wire-line switched or packet-based telecommunications service 
3.9 	provider connected to the public switched telephone network that furnishes service capable 
3.10 	of originating a 911 emergency telephone call is assessed a fee based upon the number 
3.11 	of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing 
3.12 	maintenance and related improvements for trunking and central office switching equipment 
3.13 	for 911 emergency telecommunications service, plus to offset administrative and staffing 
3.14 	costs of the commissioner related to managing the 911 emergency telecommunications 
3.15 	service program. Recurring charges by a wire-line telecommunications service provider 
3.16 	for updating the information required by section 403.07, subdivision 3, must be paid by 
3.17 	the commissioner if the wire-line telecommunications service provider is included in an 
3.18 	approved 911 plan and the charges are made pursuant to contract. The fee assessed under 
3.19 	this section must also be used for the purpose of offsetting, to make distributions provided 
3.20 	for in section 403.113, and to offset  the costs, including administrative and staffing costs, 
3.21 	incurred by the State Patrol Division of the Department of Public Safety in handling 911 
3.22 	emergency calls made from wireless phones.
3.23 	(b) Money remaining in the 911 emergency telecommunications service account 
3.24 	after all other obligations are paid must not cancel and is carried forward to subsequent 
3.25 	years and may be appropriated from time to time to the commissioner to provide financial 
3.26 	assistance to counties for the improvement of local emergency telecommunications 
3.27 	services. The improvements may include providing access to 911 service for 
3.28 	telecommunications service subscribers currently without access and upgrading existing 
3.29 	911 service to include automatic number identification, local location identification, 
3.30 	automatic location identification, and other improvements specified in revised county 
3.31 	911 plans approved by the commissioner.
3.32 	(c) The fee may not be less than eight cents nor more than 65 cents a month for 
3.33 	each customer access line or other basic access service, including trunk equivalents as 
3.34 	designated by the Public Utilities Commission for access charge purposes and including 
3.35 	wireless telecommunications services. With the approval of the commissioner of finance, 
4.1 	the commissioner of public safety shall establish the amount of the fee within the limits 
4.2 	specified and inform the companies and carriers of the amount to be collected. When the 
4.3 	revenue bonds authorized under section 403.27, subdivision 1, have been fully paid or 
4.4 	defeased, the commissioner shall reduce the fee to reflect that debt service on the bonds is 
4.5 	no longer needed. The commissioner shall provide companies and carriers a minimum of 
4.6 	45 days' notice of each fee change. The fee must be the same for all customers.
4.7 	(d) The fee must be collected by each wireless or wire-line telecommunications 
4.8 	service provider subject to the fee. Fees are payable to and must be submitted to the 
4.9 	commissioner monthly before the 25th of each month following the month of collection, 
4.10 	except that fees may be submitted quarterly if less than $250 a month is due, or annually if 
4.11 	less than $25 a month is due. Receipts must be deposited in the state treasury and credited 
4.12 	to a 911 emergency telecommunications service account in the special revenue fund. The 
4.13 	money in the account may only be used for 911 telecommunications services.
4.14 	(e) This subdivision does not apply to customers of interexchange carriers.
4.15 	(f) The installation and recurring charges for integrating wireless 911 calls into 
4.16 	enhanced 911 systems must be paid are eligible for payment by the commissioner if the 
4.17 	911 service provider is included in the statewide design plan and the charges are made 
4.18 	pursuant to contract.
4.19 	(g) Competitive local exchanges carriers holding certificates of authority from the 
4.20 	Public Utilities Commission are eligible to receive payment for recurring 911 services.

4.21 	Sec. 6. Minnesota Statutes 2005 Supplement, section 403.11, subdivision 3, is 
4.22 	amended to read:
4.23 		Subd. 3.Method of payment. (a) Any wireless or wire-line telecommunications 
4.24 	service provider incurring reimbursable costs under subdivision 1 shall submit an 
4.25 	invoice itemizing rate elements by county or service area to the commissioner for 911 
4.26 	services furnished under contract. Any wireless or wire-line telecommunications service 
4.27 	provider is eligible to receive payment for 911 services rendered according to the terms 
4.28 	and conditions specified in the contract. Competitive local exchange carriers holding 
4.29 	certificates of authority from the Public Utilities Commission are eligible to receive 
4.30 	payment for recurring 911 services provided after July 1, 2001. The commissioner shall 
4.31 	pay the invoice within 30 days following receipt of the invoice unless the commissioner 
4.32 	notifies the service provider that the commissioner disputes the invoice.
4.33 	(b) The commissioner shall estimate the amount required to reimburse 
4.34 	911 emergency telecommunications service providers and wireless and wire-line 
5.1 	telecommunications service providers for the state's obligations under subdivision 1 and 
5.2 	the governor shall include the estimated amount in the biennial budget request.

5.3 	Sec. 7. Minnesota Statutes 2005 Supplement, section 403.11, subdivision 3a, is 
5.4 	amended to read:
5.5 		Subd. 3a.Timely certification invoices. A certification An invoice for services 
5.6 	provided for in the contract with a wireless or wire-line telecommunications service 
5.7 	provider must be submitted to the commissioner no later than one year 90 days after 
5.8 	commencing a new or additional eligible 911 service. Each applicable contract must 
5.9 	provide that, if certified expenses under the contract deviate from estimates in the contract 
5.10 	by more than ten percent, the commissioner may reduce the level of service without 
5.11 	incurring any termination fees.

5.12 	Sec. 8. Minnesota Statutes 2004, section 403.11, subdivision 3b, is amended to read:
5.13 		Subd. 3b.Certification Declaration. All If the commissioner disputes an 
5.14 	invoice, the wireless and wire-line telecommunications service providers shall submit 
5.15 	a self-certification form declaration under section 16A.41 signed by an officer of the 
5.16 	company to the commissioner with the invoices for payment of an initial or changed
5.17 	service described in the service provider's 911 contract. The self-certification shallsworn 
5.18 	declaration must specifically describe and affirm that the 911 service contracted for is being 
5.19 	provided and the costs invoiced for the service are true and correct. All certifications are 
5.20 	subject to verification and audit. When a wireless or wire-line telecommunications service 
5.21 	provider fails to provide a sworn declaration within 60 days of notice by the commissioner 
5.22 	that the invoice is disputed, the disputed amount of the invoice must be disallowed.

5.23 	Sec. 9. Minnesota Statutes 2004, section 403.11, subdivision 3c, is amended to read:
5.24 		Subd. 3c.Audit. If the commissioner determines that an audit is necessary to 
5.25 	document the certification described invoice and sworn declaration in subdivision 3b, 
5.26 	the wireless or wire-line telecommunications service provider must contract with an 
5.27 	independent certified public accountant to conduct the audit. The audit must be conducted 
5.28 	according to generally accepted accounting principles. The wireless or wire-line 
5.29 	telecommunications service provider is responsible for any costs associated with the audit.

5.30 	Sec. 10. Minnesota Statutes 2005 Supplement, section 403.113, subdivision 1, is 
5.31 	amended to read:
6.1 		Subdivision 1.Fee. (a) Each customer receiving service from a wireless or 
6.2 	wire-line switched or packet-based telecommunications service provider connected to the 
6.3 	public telephone network that furnishes service capable of originating a 911 emergency 
6.4 	telephone call is assessed a feeA portion of the fee collected under section 403.11 must be 
6.5 	used to fund implementation, operation, maintenance, enhancement, and expansion of 
6.6 	enhanced 911 service, including acquisition of necessary equipment and the costs of the 
6.7 	commissioner to administer the program. The actual fee assessed under section 403.11
6.8 	and the enhanced 911 service fee must be collected as one amount and may not exceed the 
6.9 	amount specified in section 403.11, subdivision 1, paragraph (c).
6.10 	(b) The enhanced 911 service fee must be collected and deposited in the same 
6.11 	manner as the fee in section 403.11 and used solely for the purposes of paragraph (a) 
6.12 	and subdivision 3.
6.13 	(c) The commissioner, in consultation with counties and 911 system users, shall 
6.14 	determine the amount of the enhanced 911 service fee. The commissioner shall inform 
6.15 	wireless and wire-line telecommunications service providers that provide service capable 
6.16 	of originating a 911 emergency telephone call of the total amount of the 911 service fees 
6.17 	in the same manner as provided in section 403.11.

6.18 	Sec. 11. Minnesota Statutes 2004, section 403.113, subdivision 3, is amended to read:
6.19 		Subd. 3.Local expenditures. (a) Money distributed under subdivision 2 for 
6.20 	enhanced 911 service may be spent on enhanced 911 system costs for the purposes 
6.21 	stated in subdivision 1, paragraph (a). In addition, money may be spent to lease, 
6.22 	purchase, lease-purchase, or maintain enhanced 911 equipment, including telephone 
6.23 	equipment; recording equipment; computer hardware; computer software for database 
6.24 	provisioning, addressing, mapping, and any other software necessary for automatic 
6.25 	location identification or local location identification; trunk lines; selective routing 
6.26 	equipment; the master street address guide; dispatcher public safety answering point 
6.27 	equipment proficiency and operational skills; pay for long-distance charges incurred due 
6.28 	to transferring 911 calls to other jurisdictions; and the equipment necessary within the 
6.29 	public safety answering point for community alert systems and to notify and communicate 
6.30 	with the emergency services requested by the 911 caller.
6.31 	(b) Money distributed for enhanced 911 service may not be spent on:
6.32 	(1) purchasing or leasing of real estate or cosmetic additions to or remodeling of 
6.33 	communications centers;
6.34 	(2) mobile communications vehicles, fire engines, ambulances, law enforcement 
6.35 	vehicles, or other emergency vehicles;
7.1 	(3) signs, posts, or other markers related to addressing or any costs associated with 
7.2 	the installation or maintenance of signs, posts, or markers.

7.3 	Sec. 12.  REPEALER.
 7.4 	Minnesota Statutes 2004, section 403.08, subdivision 8, is repealed.