A BILL TO BE ENTITLED
AN ACT to modernize and improve the administration of the state's 911 system through a statewide 911 emergency locating board, ensuring that all voice services contribute to the 911 system, and providing parity in the quality of service and the level of 911 charges across voice communications service providers.
Whereas, maintaining an efficient Enhanced 911 system across the State benefits all citizens and not just certain localities; and
Whereas, the Wireless 911 Board has successfully administered the statewide wireless Enhanced 911 system for many years; and
Whereas, local governments have administered a similar wireline Enhanced 911 system for their local jurisdictions; and
Whereas, the average monthly 911 service charges paid to local governments by local exchange company customers exceeds the average monthly 911 service charges paid to the Wireless 911 Board by wireless company customers, thereby creating an unfair competitive advantage for wireless companies; and
Whereas, some VoIP‑enabled providers do not currently support the Enhanced 911 system by collecting 911 service charges; and
Whereas, the consolidation of the State's Enhanced 911 system under a single board with a uniform 911 service charge will improve the integration of the State's 911 system, enhance efficiency and accountability, and create a level competitive playing field among voice communications technologies; Now, therefore,
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 62A‑1 through G.S. 62A‑12 are repealed.
SECTION 2.  G.S. 62A‑21 reads as rewritten:
"§ 62A‑21.  Definitions.
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(6)	"Eligible PSAPs" means those public safety answering points that provide or operate Enhanced 911 systems.
(6a)	"Enhanced 911 State plan" means a document prepared, maintained, and updated by the 911 Board that provides for all aspects of the State's integrated Enhanced 911 system, including the Board's determination of permitted uses of moneys from the 911 Fund and the amounts disbursed from the Fund to voice communications service providers and PSAPs.
(6b)	"Enhanced 911 system" means an emergency telephone system that provides the user of the voice communications service connection with 911 system service and, in addition, with respect to wireless 911 service, directs 911 calls to appropriate PSAPs by selective routing based on the geographical location from which the call originated and provides the capability for ANI (or Pseudo‑ANI) and ALI features, in accordance with the requirements of the FCC Order.
(6c)	"Exchange access facility" means the access from a subscriber's premises to the telephone system of a service supplier. The term includes service supplier provided access lines, PBX trunks, and centrex network access registers, as defined by tariffs of telephone companies as approved by the North Carolina Utilities Commission. The term does not include service supplier owned and operated telephone pay station lines, or Wide Area Telecommunications Service (WATS), Foreign Exchange (FX), or incoming only lines.
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(10)	"Proprietary information" means customer lists and other related information, technology descriptions, technical information, or trade secrets, including the term "trade secrets" as defined by the North Carolina Trade Secrets Protection Act, G.S. 66‑152, and the actual or developmental costs of Enhanced 911 systems that are developed, produced, or received internally by a voice communications service provider or by a voice communications service provider's employees, directors, officers, or agents.
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(13b)	"Subscriber" means a person who subscribes to a voice communications service or prepaid wireless service.
(13c)	"Voice communications service" means a service that includes: (i) the transmission, conveyance, or routing of real‑time, two‑way communications to a point or between or among points by or through any electronic, radio, satellite, cable, optical, microwave, wireline, wireless, or other medium or method now in existence or hereafter devised, regardless of the protocol used for the transmission or conveyance, and (ii) the ability to receive and terminate voice calls to and from the public switched telephone network. The term also includes the transmission, conveyance, or routing of voice communications services in which computer processing applications are used to act on the form, code, or protocol of the content for purposes of transmission, conveyance, or routing without regard to whether the service is referred to as voice‑over‑Internet‑protocol service or is classified by the Federal Communications Commission as enhanced or value‑added.
(13d)	"Voice communications service provider" means any person or entity that provides voice communications service as defined in this Article. The term does not include any person or entity that resells voice communications service and was assessed the 911 service charge by its resale supplier.
(13e)	"VoIP provider" means a voice communications service provider that enables voice messages to be sent over the Internet.
(14)	"911 system" means an emergency telephone system that provides the user of a voice communications service connection the ability to reach a PSAP by dialing the digits 911 and complements an  Enhanced 911 system.

(16)	"911 Fund" means the North Carolina 911 Fund required to be established and maintained pursuant to G.S. 62A‑22(c)."
SECTION 3.  G.S. 62A‑22 reads as rewritten:
"§ 62A‑22.  Wireless 911 Board.
(a)	There is created a 911 Emergency Locating Board ("Board"), consisting of 17 members as follows:
(1)	Four members appointed by the Governor, one upon the recommendation of the North Carolina League of Municipalities, one upon the recommendation of the North Carolina Association of County Commissioners, one representing a VoIP provider, and one representing the North Carolina chapter of the National Emergency Number Association (NENA);
(2)	Six members appointed by the General Assembly upon the recommendation of the Speaker of the House of Representatives, one of whom shall be a sheriff, two representing CMRS providers licensed to do business in North Carolina, one representing the North Carolina Chapter of the Association of Public Safety Communications Officials (APCO), and two representing local exchange carriers licensed to do business in North Carolina, one of whom shall represent a local exchange carrier with less than 50,000 access lines;
(3)	Six members appointed by the General Assembly upon the recommendation of the President Pro Tempore of the Senate, one of whom shall be a chief of police, two representing CMRS providers licensed to do business in North Carolina, two representing local exchange carriers licensed to do business in North Carolina, one of whom shall represent a local exchange carrier with less than 200,000 access lines, and one representing the North Carolina Chapter of the National Emergency Number Association (NENA); and
(4)	The State Chief Information Officer or the Chief Information Officer's designee, who shall serve as the chair.
A quorum of the Board shall consist of nine members. The Board shall meet upon the call of the chair.
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(c)	There is established with the Treasurer the 911 Fund into which the Board shall deposit all revenues derived from the service charge levied on exchange access facility, VoIP, and CMRS connections in the State and collected pursuant to G.S. 62A‑23. The 911 Fund shall be a separate fund restricted to the uses set forth in this Article.
(d)	(Effective until July 1, 2007) Consistent with the provisions of G.S. 143‑3.2, the Board shall disburse the revenues remitted to the 911 Fund in the manner set forth in G.S. 62A‑25. The Board shall establish procedures for disbursement of these revenues and advise the voice communications service providers and eligible PSAPs of the procedures within 60 days after all members are appointed pursuant to G.S. 62A‑22(a).
(d)	(Effective July 1, 2007) Consistent with the provisions of G.S. 143B‑426.40G, the Board shall disburse the revenues remitted to the 911 Fund in the manner set forth in G.S. 62A‑25. The Board shall establish procedures for disbursement of these revenues and advise the voice communications service providers and eligible PSAPs of the procedures within 60 days after all members are appointed pursuant to G.S. 62A‑22(a).
…."
SECTION 4.  G.S. 62A‑22.1 reads as rewritten:
"§ 62A‑22.1.  Powers and duties of the Board.
The 911 Board shall have the following powers and duties:
(1)	To levy a monthly Enhanced 911 service charge on each voice communications service connection in the amount provided in G.S. 62A‑23. The service charge is not a tax.
(2)	To make and enter into contracts and agreements necessary or incidental to the performance of its duties and powers under this Article, including purchase agreements that are paid with funds from the administrative fee allowed under G.S. 62A‑26 and other moneys appropriated to or received by the Board for the Enhanced 911 system.
(3)	To accept gifts, grants, or other moneys, and to make grants for purposes of furthering the intent of this Article.
(4)	To develop a comprehensive Enhanced 911 State plan for communicating Enhanced 911 call information across networks and among PSAPs. In constructing and periodically updating the plan, the Board shall monitor trends and advances in Enhanced 911 voice communications service technology, investigate and utilize development of other resources within the State as part of the Enhanced 911 State plan, including GIS mapping and Voice over Internet Protocol (VoIP), and formulate strategies for the efficient and effective delivery of Enhanced 911 voice communications service.
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(6)	To advocate for issues related to Enhanced 911 system functions, features, and operations to improve the delivery of Enhanced 911 services to residents of and visitors to the State.
(6a)	To audit PSAPs to ensure that revenues received from the 911 Fund are being used in accordance with the provisions of this Article.
(6b)	To undertake its duties in a manner that is competitively and technologically neutral as to all voice communications service providers.
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SECTION 5.  G.S. 62A‑23 reads as rewritten:
"§ 62A‑23.  Amount of service charge.
(a)	The rate of the monthly Enhanced 911 service charge shall be set at seventy cents (70¢) per month per each voice communications service provider connection beginning October 1, 2007. The service charge shall have uniform application and shall be imposed throughout the State as a charge to end user customers.
(b)	The Board may adjust the service charge on July 1 of every even‑numbered year, but the service charge shall not exceed the amount set in subsection (a) of this section. The Board is to set the service charge at such a rate as to ensure full recovery for voice communications service providers and for primary PSAPs, over a reasonable period of time, of the costs allowed in G.S. 62A‑25(a) and (e) and associated with developing and maintaining an Enhanced 911 system. If necessary to ensure full recovery of costs for both voice communications service providers and eligible primary PSAPs over a reasonable period of time, the Board may annually adjust the allocation percentages set forth in G.S. 62A‑25(a) and G.S. 62A‑25(b), or reallocate funds comprising the 911 Fund, provided, however, that any adjustment or reallocation shall be consistent with the requirements of the FCC Order.
(b1)	The service charge shall also be imposed upon prepaid wireless telephone service subscribers. Voice communications service providers of prepaid wireless telephone service shall collect and remit to the Board the service charge under one of the following methods:
(1)	The voice communications service provider shall collect, on a monthly basis, the service charge from each active prepaid wireless telephone service customer whose account balance is equal to or greater than the amount of the service charge; or
(2)	The voice communications service provider shall divide the total earned prepaid wireless telephone service revenue received by the voice communications service provider with respect to each active prepaid wireless telephone service customer in the State within the monthly 911 reporting period by fifty dollars ($50.00) and multiply the quotient by the service charge amount.
	
(d)	The Board may adopt other rules and procedures as may be necessary to effect the provisions of this act but may not regulate any other aspect of the provision of Enhanced 911 service, such as technical standards.
(e)	No other State agency or local government may levy any additional surcharge or fee relating to the provision of 911 service or Enhanced 911 service."
SECTION 6.  G.S. 62A‑24 reads as rewritten:
"§ 62A‑24.  Management of funds.
(a)	Except for prepaid wireless telephone service, each voice communications service provider, as a part of its monthly billing process, shall collect from its subscribers the Enhanced 911 service charge described in G.S. 62A‑23(a). The voice communications service provider may list the service charge as a separate entry on each bill. If a voice communications service provider receives a partial payment for a monthly bill from a subscriber, the provider shall apply the payment first against the amount the subscriber owes the provider.
(b)	A voice communications service provider has no obligation to take any legal action to enforce the collection of the service charges for which any subscriber is billed. However, a collection action may be initiated by the Board or a local governmental unit, and reasonable costs and attorneys' fees associated with that collection action may be assessed against the subscriber. Upon the request of a PSAP or the 911 Board, the voice communications service provider shall provide to the 911 Board the name, address, and telephone number of any telephone subscriber who has disclosed to the voice communications service provider their refusal to pay the 911 service charge.
(c)	Each voice communications service provider shall be entitled to deduct an administrative fee from the total service charges collected that is equal to one percent (1%) or fifty dollars ($50.00) per month, whichever is greater.
(d)	All service charges collected by the voice communications service providers, less the administrative fee described in subsection (c) of this section, are to be remitted to the 911 Fund, not later than 30 days after the end of the calendar month in which such service charges are collected.
(e)	The fiscal officer to whom 911 distributions are made under G.S. 62A‑25 shall deposit the funds in a special revenue fund, as defined in G.S. 159‑26(b)(2). The special revenue fund shall be known as the Emergency Telephone System Fund, and the fiscal officer may invest money in the Fund in the same manner that other money of the local government may be invested. The fiscal officer shall deposit any income earned from the invested money in the Emergency Telephone System Fund. Moneys deposited into the Fund shall be used only as permitted in G.S. 62A‑25."
SECTION 7.  Article 2 of Chapter 62A of the General Statutes is amended by adding the following new section to read:
"§ 62A‑24.1.  Nature of funds.
The General Assembly finds that for purposes of Section 5(3) of Article III of the North Carolina Constitution the funds maintained in and distributed from the 911 Fund is local revenue and not a State expenditure, and therefore the Governor may not reduce or withhold distributions from the 911 Fund."
SECTION 8.  G.S. 62A‑25 reads as rewritten:
"§ 62A‑25.  911 Fund; uses.
(a)	Fifty‑three percent (53%) of the funds remitted by CMRS providers to the 911 Fund established in G.S. 62A‑22(c) shall be used to reimburse CMRS providers, in response to sworn invoices submitted to the Board, for the actual costs incurred by the CMRS providers in complying with the wireless 911 requirements established by the FCC Order and any rules and regulations which are or may be adopted by the FCC pursuant to the FCC Order, including costs and expenses incurred for designing, upgrading, purchasing, leasing, programming, installing, testing, or maintaining all necessary data, hardware, and software required in order to provide such service as well as the recurring and nonrecurring costs of operating such service. All costs and expenses must be commercially reasonable.
(a1)	Sworn invoices shall be presented by CMRS providers in connection with any request for reimbursement under this section. In no event shall any invoice for reimbursement be approved for the payment of costs that are not related to compliance with the wireless Enhanced 911 service requirements established by the FCC Order and any rules and regulations which are or may be adopted by the FCC pursuant to the FCC Order.
(a2)	In no event shall any invoice for reimbursement be approved for payment of costs of any CMRS provider exceeding the lesser of one hundred percent (100%) of the eligible costs allowed under G.S. 62A‑25(e) or one hundred twenty‑five percent (125%) of the service charges remitted by the CMRS provider unless prior approval for the expenditures is received from the Board. If the total amount of invoices submitted to the Board and approved for payment exceeds the amount in the 911 Fund in any month, CMRS providers that have invoices approved for payment shall receive a pro rata share of the 911 Fund, based on the relative amount of their approved invoices available that month, and the balance of the payments will be carried over to the following month or months and shall include interest at a rate equal to the rate earned by the 911 Fund until all of the approved payments are made.
(b)	Forty‑seven percent (47%) of the funds remitted by CMRS providers to the 911 Fund established in G.S. 62A‑22(c) shall be used to make monthly distributions to eligible primary PSAPs (the "PSAP Fund"), as provided in subsection (d) of this section. 		
(b1)	The funds remitted by exchange access facility providers and VoIP providers to the 911 Fund shall be used to make monthly distributions to primary eligible PSAPs as provided in subsection (b2) of this section.
(b2)	The 911 Fund shall distribute funds remitted under subsection (b) of this section by CMRS providers, under subsection (b1) by exchange access facility providers and VoIP providers, and under this Article by other voice communications service providers only as follows:
(1)	Each eligible primary PSAP shall receive the same amount of funds the PSAP collected in the previous fiscal year from the total funds available for distribution to PSAPs that was reported to the State Treasurer, Local Government Division, as being in the special revenue fund known as the Emergency Telephone System Fund.
(2)	A percentage of any additional funds remitted by voice communications service providers shall be divided pro rata among eligible primary PSAPs based upon the population served by the PSAPs, and a percentage shall be distributed to primary eligible PSAPs in rural and other high‑cost areas to provide facility and service enhancements.
(b3)	Funds in the 911 Fund available for primary eligible PSAPs (the "PSAP Fund") shall be used only to pay for:
(1)	The lease, purchase, or maintenance of emergency telephone equipment, including necessary computer hardware, software and database provisioning, addressing, and nonrecurring costs of establishing a 911 system.
(2)	Reasonable expenditures required to provide in‑State training of 911 personnel regarding the maintenance and operation of the 911 system. Allowable training expenses include the cost of instructors, initial certifications, quality assurance and improvement programs, including emergency medical, fire, or law enforcement. Training shall be provided within the State of North Carolina unless the training is unavailable in the State, or the PSAP is able to document that the training costs would be less by traveling out-of-state. Training specific to the receipt of 911 calls shall be allowed only for intake and related call taking quality assurance and improvement. Instructor certification costs and course required prerequisites, including physicals, psychological exams, and drug testing are not allowable expenditures.
(3)	Rates associated with the service supplier's 911 service and other service supplier recurring charges. The PSAP providing 911 service shall be responsible to the voice communications service provider for all 911 installation, service, equipment, operation, and maintenance charges owed to the voice communications service provider, and any taxes due on 911 service provided by a voice communications service provider shall be billed to the PSAP providing the service. A PSAP may contract with a service supplier on terms agreed to by the PSAP and the service supplier.
(b4)	Funds in the PSAP Fund shall not be used to pay for the lease or purchase of real estate, cosmetic remodeling of emergency dispatch centers, hiring or compensating dispatchers, or the purchase of mobile communications vehicles, ambulances, fire engines, or other emergency vehicles.
		
(e)	In July of each year every participating PSAP will submit to the Board a copy of its governing agency's approved budget detailing the PSAP's revenues and expenditures associated with the operation of its wireless Enhanced 911 system. PSAPs must comply with all requests by the Board for financial information related to the operation of the wireless Enhanced 911 system. The PSAP budget shall identify revenues and expenditures for eligible expense reimbursements as provided in this Article and rules adopted by the 911 Board.
(f)	On February 15, 2009, and every two years thereafter the 911 Board shall report to the Joint Legislative Commission on Governmental Operations and the Revenue Laws Study Committee. The report shall contain complete information regarding receipts and expenditures of all funds received by the 911 Board during the period covered by the report as well as the status of the 911 systems in North Carolina at the time of the report. Each succeeding report shall cover the two‑year period of time from the ending date of the previous report.
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SECTION 9.  G.S. 62A‑25.1 reads as rewritten:
"§ 62A‑25.1.  Unauthorized use of funds.
The Board shall give written notice of violation to any voice communications service provider or PSAP found by the Board to be using moneys from the 911 Fund for purposes not authorized by this Article. Upon receipt of notice, the voice communications service provider or PSAP shall cease making any unauthorized expenditures. The voice communications service provider or PSAP may petition the Board for a hearing on the question of whether the expenditures were unauthorized, and the Board shall grant the request within a reasonable period of time. If, after the hearing, the Board concludes the expenditures were in fact unauthorized, the Board may require the voice communications service provider or PSAP to refund the moneys improperly spent within 90 days, and the moneys shall be deposited into the 911 Fund. If a voice communications service provider or PSAP does not cease making unauthorized expenditures or refuses to refund improperly spent moneys, the Board may suspend funding to the provider or PSAP until corrective action is taken."
SECTION 10.  G.S. 62A‑26 reads as rewritten:
"§ 62A‑26.  Administrative fee.
The Board shall be entitled to deduct a one percent (1%) administrative fee from the total service charges remitted by the voice communications service providers for its expenses."
SECTION 11.  G.S. 62A‑27 reads as rewritten:
"§ 62A‑27.  Provision of wireless services.
In accordance with the FCC Order, no CMRS provider shall be required to provide wireless Enhanced 911 service until such time as (i) the provider receives a request for such service from the administrator of a PSAP that is capable of receiving and utilizing the data elements associated with the service; (ii) funds are available pursuant to G.S. 62A‑24; and (iii) the local exchange carrier is able to support the wireless Enhanced 911 system."
SECTION 12.  G.S. 62A‑28 reads as rewritten:
"§ 62A‑28.  Audit.
The State Auditor may perform audits pursuant to Article 5A of Chapter 147 of the General Statutes to ensure that funds in the 911 Fund are being managed in accordance with the provisions of this Article and shall perform an audit at least every two years. The State Auditor shall provide the audit to the Board when it meets to consider adjusting the service charge pursuant to G.S. 62A‑23. The cost of audits shall be reimbursed to the State Auditor by the Board."
SECTION 13.  G.S. 62A‑29 reads as rewritten:
"§ 62A‑29.  Customer records.
Each CMRS provider shall provide its 10,000 number groups to the PSAPs upon request. This information shall remain the property of the disclosing CMRS provider and shall be used only in providing emergency response services to 911 calls. Voice communications service provider connection information obtained by PSAP personnel for public safety purposes is not public information under Chapter 132 of the General Statutes. No person shall disclose or use, for any purpose other than for the 911 calling system, information contained in the database of the telephone network portion of a 911 calling system established pursuant to this Article."
SECTION 14. G.S. 62A‑30 reads as rewritten:
"§ 62A‑30.  Proprietary information.
All proprietary information submitted to the Board or the State Auditor shall be retained in confidence. Proprietary information submitted pursuant to this Article shall not be subject to disclosure under Chapter 132 of the General Statutes, or otherwise released to any person other than to the submitting voice communications service provider, the Board, and the independent, third‑party auditor retained pursuant to G.S. 62A‑22.1 and G.S. 62A‑28 without the express permission of the submitting voice communications service provider. Further, proprietary information shall constitute trade secrets as defined by the North Carolina Trade Secrets Protection Act, Article 24 of Chapter 66 of the General Statutes. General information collected by the Board or the State Auditor shall be released or published only in aggregate amounts that do not identify or allow identification of numbers of subscribers or revenues attributable to an individual voice communications service provider."
SECTION 15.  G.S. 62A‑31 reads as rewritten:
"§ 62A‑31.  Limitation of liability.
A CMRS provider, local exchange company, VoIP provider, service supplier, or their employees, directors, officers, or agents, except in cases of wanton or willful misconduct, shall not be liable for any damages in a civil action resulting from death or injury to any person or from damage to property incurred by any person in connection with developing, adopting, implementing, maintaining, or operating any 911 system or Enhanced 911 system. This section shall not apply to actions arising out of the operation or ownership of a motor vehicle."
SECTION 16.  G.S. 62A‑32 reads as rewritten:
"§ 62A‑32.  Misuse of 911 system; penalty.
911 emergency telephone service shall be used solely for emergency communications by the public. Any person who knowingly uses or attempts to use wireless emergency telephone service or information for a purpose other than obtaining public safety assistance, or who knowingly uses or attempts to use 911 emergency telephone service in an effort to avoid any voice communications service charges, is guilty of a Class 3 misdemeanor. If the value of the voice communications service charge or service obtained in a manner prohibited by this section exceeds one hundred dollars ($100.00), the person is guilty of a Class 1 misdemeanor."
SECTION 17.  This act is effective when it becomes law.