EMERGENCY 9-1-1 FUND DISBURSEMENT                                                        S.B. 452:

                                                                                                    SUMMARY OF BILL

                                                                                     REPORTED FROM COMMITTEE

Senate Bill 452 (as reported without amendment)

Sponsor:  Senator Jim Stamas

Committee:  Appropriations

CONTENT

The bill would amend the Emergency 9-1-1 Service Enabling Act to require that funds generated from a 5.0% surcharge on prepaid wireless communication services be added with the State 9-1-1 fee collected from postpaid communication devices to make up a total that together, when in excess of $37.0 million annually within the Emergency 9-1-1 Fund, must be reserved for reimbursing local exchange providers for costs related to wireless emergency service and to reimburse internet protocol (IP) based 9-1-1 providers for the costs related to the transport, routing, or delivery to primary public safety answering points (PSAPs) of IP-based 9-1-1 emergency service.

MCL 484.1408

FISCAL IMPACT

The bill would have no fiscal impact on State or local government. The bill would address 9-1-1 fee collections that exceeded $37.0 million. Under the Act, the first $37.0 million in 9-1-1 surcharges are distributed strictly by formula, as noted below.

Emergency 9-1-1 Fund Formula Allocations (Dollar amounts in millions)
Program/Item	Percent Distribution
County 9-1-1 Providers	65.0%
Local Exchange Providers (Wireless Emergency Service) and Approved Costs for Internet Protocol Based 9-1-1 Projects	25.56
PSAP Training	5.5
State Police Regional Dispatch	1.5
State Police Administration	2.44
TOTAL	100.0%
^1Statute limits the amount disbursed through the formula to $37.0 million.

The bill would amend recent legislation to ensure that both sources of revenue (prepaid service and standard billing) designated for deposit in the Emergency 9-1-1 fund are used to calculate when the $37.0 million fund cap is achieved. Recent quarterly revenue figures indicate that approximately $4.2 million is generated from prepaid surcharges and between $6.5 million and $8.0 million is generated from monthly telephone service surcharges, suggesting that annually those revenue totals would exceed the $37.0 million cap by an amount over $5.0 million, thus providing those funds over the cap exclusively to providers.

Date Completed:  8-28-19                                                    Fiscal Analyst:  Bruce Baker

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.