ANNUAL USE OF 911 FEES                                                                            H.B. 4671:

                                                                                               COMMITTEE SUMMARY

House Bill 4671 (as passed by the House)

Sponsor:  Representative Earl Poleski

House Committee:  Appropriations

Senate Committee:  Appropriations

Date Completed:  6-6-13

CONTENT

The bill would amend the Emergency 9-1-1 Service Enabling Act to allow the Department of Treasury to use up to $150,000 annually from Emergency 9-1-1 Fund for administration of the program.  This revenue would come from the 7.75% of revenue that is set aside to reimburse local exchange providers for the costs related to wireless emergency services.  The funds would be available to the Department of Treasury only if there were a balance in the portion of the Fund that was not paid to reimburse local exchange providers.

The Department of Treasury was authorized to use up to $150,000 of available revenue from the Emergency 9-1-1 Fund for administration of the program in FY 2011-12 only. 

MCL 484.1408                                                                                                         

FISCAL IMPACT

The bill would allow the Department of Treasury to use up to $150,000 annually from the Emergency 9-1-1 Fund to administer the distribution of revenue among statutory recipients.   This would implement the FY 2012-13 and FY 2013-14 budgets for the Department of Treasury.  Public Act 200 of 2012 appropriated $148,800 in FY 2012-13 from the Emergency 9-1-1 Fund to Department of Treasury.  This funds a portion of the line item for Tax and Economic Policy, which pays for the administration of the program.  The budget for FY 2013-14 (enrolled House Bill 4328) appropriated $152,900 from the Emergency 9-1-1 Fund for administration of the program.  Without a statutory change such as that included in the bill, the appropriations will not be effective. 

The funds to support administration would come from the portion of the Emergency 9-1-1 Fund that is reserved by statute to reimburse local exchange providers for costs related to emergency services for wireless customers.  The State Budget Office reports that the closing balance in the Fund was approximately $3.0 million in FY 2011-12 and projects an estimated closing balance of $4.0 million in FY 2012-13.  Unused funds in the Emergency 9-1-1 Fund carry forward and do not lapse to the General Fund.

                                                                                     Fiscal Analyst:  Elizabeth Pratt

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.