North Carolina 911 Board George Bakolia, Chair Joseph K. Durham, Vice Chair www.nc911.nc.gov P.O. Box 17209 Raleigh, North Carolina 27619-7209 Tel: (919) 754-2942 Fax: (919) 754-2964 State Courier MSC 4101 An Equal Opportunity/Affirmative Action Employer March 18, 2010 Marlene H. Dortch Office of the Secretary Federal Communications Commission 445 12 th Street, SW Washington, DC 20554 Re: PS Docket No. 09-14: Initial Information Collection Mandated By the New and Emerging Technologies Improvement Act of 2008 Dear Ms. Dortch, James A. Barnett, Rear Admiral (Ret), Chief, Public Safety and Homeland Security Bureau addressed a letter to Governor Beverly Perdue in regard to information collection under Section 6(f)(2) of the NET 911 Act. On behalf of Governor Perdue and the State of North Carolina, the North Carolina 911 Board provides the following information in regards to Section 6(f)(2) of the NET 911 Act: 1. The State of North Carolina established a funding mechanism for the support and implementation of 911 and E911 in Session Law 2007-383, codified as N.C.G.S. §62A, Article 3. Administration is governed by the N.C. 911 Board. The statutes expressly incorporate the FCC Order (94-102, 1 December 1997) and subsequent modifications. 2. A fee not to exceed $.70/month is imposed on each voice communications service connection (includes wireline, wireless and VoIP providers) that can access the 911 system. N.C.G.S. §62A-43 A moratorium on collection of such fees from or by prepaid CMRS providers extends through December 2010. The 911 Board received $ 87,367,015 for the 2009 calendar year. Voice communication providers collect fees from their subscribers and remit the fees, less 1% for their administrative costs, to the 911 Board. N.C.G.S. §62A-43(c) The 911 Board may allocate up to 1% of the fees received from the Voice communication providers for the administrative expenses of the Board. N.C.G.S. §62A-44(b) The 911 Board establishes a percentage of the fees received for CMRS provider cost recovery of deploying E911. As of December 31, 2009, the percentage was set at .5%. N.C.G.S. §62A-44(b)(1) The 911 Board establishes a percentage of the fees received for distribution to Primary PSAPs. As of December 31, 2009 the percentage designation was set at 99.5%. In addition to the percentage designation from CMRS providers, all fees collected by all other voice communication providers are designated for distribution to Primary PSAPs. N.C.G.S. §62A-44(b)(2) Funds are distributed monthly to all Primary PSAPs based on their reported Fiscal Year 2007 revenues. Funds received in excess of the “base” amount may be distributed to Primary PSAPs on a per capita basis. N.C.G.S. §62A- 46(a) The State limits uses of 911 fees collected and distributed to CMRS Providers for their cost recovery and Primary PSAPs. Only the actual costs incurred for the compliance with the requirements of enhanced 911 service are reimbursable. N.C.G.S. §62A-45(a) Primary PSAPs may use 911 Funds for the lease, purchase, or maintenance of emergency telephone equipment, including necessary computer hardware, software, and database provisioning, addressing, nonrecurring costs of establishing a 911 system and training for 911 personnel. N.C.G.S. §62A- 46(c) 3. The North Carolina 911 Board has been designated as the entity to receive 911 fees collected, distribute and provide oversight on all 911 fees. The 911 Board established an “Eligible Expenditure List” to aid Primary PSAPs receiving 911 funds, and makes available 911 Board staff to assist PSAPs with any questions. As of 31 December 2009, there are 129 Primary PSAPs in North Carolina. The 911 Board conducts an annual Revenue/Expenditure Report on each Primary PSAP to ensure compliance with the use of all 911 fees. N.C.G.S. §62A-42(a)(5) Each CMRS Provider seeking cost recovery is required to submit a plan detailing technical and operational aspects of its system together with cost projections. Providers must deliver sworn invoices in compliance with their plans and allowable expenditures. Funds are released to CMRS providers upon staff approval. N.C.G.S. §62A-45(a) 4. For the reporting period of calendar year 2009, all funds received by the 911 Board for 911 or E911 have been made available and used for the authorized purposes of implementing or supporting of 911 or E911. On behalf of the State of North Carolina, thank you for the opportunity to respond and offer no additional comments regarding 911 funding at this time. I verify under penalty of perjury that the foregoing is true and correct. Executed on March 18, 2010. __________________________ George Bakolia Ted Strickland, Governor Alan R. Schriber, Chairman 180 East Broad Street (614) 466-3016 Columbus, Ohio 43215-3793 www.PUCO.ohio.gov Commissioners Ronda Hartman Fergus Valerie A. Lemmie Paul A. Centolella Cheryl Roberto March 2, 2010 James Arden Barnett, Jr. Chief, Public Safety and Homeland Security Bureau Federal Communications Commission 445 12th Street, SW Washington, DC 20554 Mr. Barnett, The Federal Communication Commission, in accordance with the New and Emerging Technologies 911 Improvement Act of 2008, has requested specific information related to the 9- 1-1 funding mechanisms in Ohio. The Ohio 9-1-1 Service Program, housed within the Public Utilities Commission of Ohio (PUCO), respectfully submits the attached responses to the questions provided. Please contact me at 614-644-8950 with any clarifying questions which may arise. Sincerely, Shawn S. Smith, CGFM Ohio 9-1-1 Coordinator, Ohio 9-1-1 Service Program Encl. 180 East Broad Street (614) 466-3016 Columbus, Ohio 43215-3793 www.PUCO.ohio.gov 1. A statement as to whether or not the state or other entity as defined by Section 6(f)(1) of the NET 911 Act has established a funding mechanism designated for or imposed for the purposes of 911 or E911 support or implementation (including a citation to the legal authority for such mechanism). Wireline E9-1-1 Funding Funding for wireline enhanced 9-1-1 (E9-1-1) is organized under Section 4931.47 of the Ohio Revised Code (ORC). This statute defines a bill and keep system for wireline 9-1-1. Currently in Ohio, each incumbent local exchange carrier directly charges their individual subscribers a tariffed fee to cover the recurring 9-1-1 costs unique to that carrier for the maintenance and operation of the company’s portion of the wireline telephone network. Nonrecurring costs are directly recovered under ORC 5733.55 through a tax credit. As a result, local 9-1-1 public safety answering points are not billed for base wireline 9-1-1 services. The tariffed rates range from a low of $.12 to a high of $.25 per month. A wireline service provider may only begin charging this tariffed fee in a specific county upon PUCO approval. Generally, the county must have passed a countywide 9-1-1 plan and be positioned to begin taking wireline E9-1-1 calls. Wireless E9-1-1 Funding Sections 4931.61 through 4931.651 of the ORC prescribe the funding mechanism for wireless E9-1-1. Each month a $.28 surcharge is imposed upon each wireless phone number belonging to a subscriber with an Ohio billing address. Prepaid providers are permitted three options under ORC 4931.61 to calculate the amount due. Wireless service providers remit the collected surcharges to the Ohio 9-1-1 Service Program, housed within the PUCO, on a monthly basis. The wireless service providers and PUCO are each permitted to retain up to 2% of the collected funds. The remaining 96% is distributed monthly to each of the 88 counties in Ohio. County disbursements are calculated based upon a ratio of the number of wireless numbers with billing addresses in the individual county over the total number of wireless numbers with billing addresses in the state. Each county is guaranteed a minimum of $90,000 per year. Upon receipt, individual county treasurers internally allocate the funds in accordance with that county’s unique countywide 9-1-1 plan. Funds may only be utilized by the local governmental entities for the implementation and maintenance of wireless E9-1-1. The Ohio wireless 9-1-1 surcharge is set to expire December 31, 2012. Other Local Funding Options Sections 4931.51 through 4931.54, 5705.19, and 5739.026 of the ORC provide various options for counties to obtain general local funding for their E9-1-1 system. These options include charges on improved realty, monthly telephone bill charge, monthly telephone access line charge, property tax, and local sales tax. 180 East Broad Street (614) 466-3016 Columbus, Ohio 43215-3793 www.PUCO.ohio.gov 2. The amount of the fees or charges imposed for the implementation and support of 911 and E911 services, and the total amount collected pursuant to the assessed fees or charges, for the annual period ending December 31, 2008. The amounts of 9-1-1 fees in Ohio vary as follows: ? Tariffed charges appearing on wireline subscribers’ monthly bills to cover the individual incumbent local exchange carrier’s wireline E9-1-1 costs range between $.12 and $.25 per month. ? The wireless E9-1-1 surcharge is currently statutorily set at $.28 per billed wireless phone number belonging to a subscriber with an Ohio billing address. Legislative action lowered this surcharge from $.32 as of January 1, 2009. ? Incumbent wireline service providers incur incremental costs over and above wireline 9-1-1 to carry wireless 9-1-1 traffic and associated information. As such, each incumbent local exchange carrier which acts as a 9-1-1 host in Ohio has received PUCO approval to recover a tariffed charge for these costs. The charges and billing methodology found within these tariffs are unique to the individual carrier. Ohio law also permits governmental entities and carriers to enter into unique negotiated arrangements outside of these tariffs. A summary of the charges may be found in the table below. Company  Nonrecurring Charge  Recurring Charge   Billing Unit  Defined  AT&T $119.32 per billing unit $7.90 per billing unit 1 Billing Unit= 1000 population Sprint $3,500 per PSAP $250 per PSAP 1 Billing Unit= 1 PSAP Verizon N/A $36.66 per billing unit 1 Billing Unit= 1000 Call Units CBT $92.01 per billing unit $16.05 per billing unit (maintenance) 1 Billing Unit = 100 Call Blocks New Knoxville Negotiated contract with Auglaize County Negotiated contract with Auglaize County N/A Windstream Ohio $100.50 per billing unit (Phase I) $107.00 per billing unit (Phase II) $10.75 per billing unit for Phase I, $1.05 per billing unit for Phase II 1 Billing Unit= 1000 population Windstream Western Reserve $100.50 per billing unit (Phase I) $107.00 per billing unit (Phase II) $10.75 per billing unit for Phase I, $1.05 per billing unit for Phase II 1 Billing Unit= 1000 population ? Under ORC 4931.51, county voters may approve a charge on improved realty to cover the costs of establishing, equipping, and furnishing one or more public safety answering points within the county. ? ORC Sections 4931.52 and 4931.53 permit county voters to approve a county fee to be placed on local wireline telephone bills. The monthly charge may not exceed $.50. Under ORC 4931.54, a telephone company which collects this charge on behalf of the county may retain 3 percent of the charge it collects as compensation for the costs of such collection. The collected funds are remitted to the county on a quarterly basis. 180 East Broad Street (614) 466-3016 Columbus, Ohio 43215-3793 www.PUCO.ohio.gov ? Section 5705.19 of the ORC permits county electors to approve a tax in excess of the 10 mill limitation to fund the establishment of a 9-1-1 system. ? A county sales tax, not exceeding one half of one percent, is permitted to be used for 9-1-1 under Section 5739.026 of the ORC. If the county is utilizing all of the sales tax solely to fund 9-1-1, the tax may not be levied for more than five years. A total of $28,164,049.54 in wireless surcharge fees were remitted to the Ohio 9-1-1 Service Program by wireless service providers in calendar year 2009. The Ohio 9-1-1 Service program does not hold regulatory or audit authority over local 9-1-1 or taxing jurisdictions and cannot speak as to the total funds collected at this level. 3. A statement describing how the funds collected are made available to localities, and whether the state has established written criteria regarding the allowable uses of the collected funds, including the legal citation to such criteria. November 1 of each year the Ohio 9-1-1 Service Program collects, directly from each wireless service provider, the number of wireless phone numbers tied to billing addresses in each county. This data is tabulated for each county. A percentage is calculated for each individual county based upon the total number of wireless numbers within that county, divided by the total amount of wireless numbers in the state. This same percentage is utilized through the rest of the calendar year. Each month the wireless remittances received are multiplied by the individual county allocation percentages to determine the amount due to each county that month. Once certified by the Ohio 9-1-1 Coordinator, the funds are distributed to the individual county treasurers. Under ORC 4931.64 (D) the county treasurer then internally allocates the funds as defined by that county’s 9-1-1 plan. Section 4931.65 of the ORC dictates the purposes for which the wireless funds may be expended at the local level. On March 21, 2007, under case number 05-1114-TP-EMG, the PUCO issued guidance regarding appropriate expenditures for which the wireless funds could be utilized. This entry may be obtained at: http://dis.puc.state.oh.us/TiffToPDf/A1001001A07C21B43448J57876.pdf 4. A statement identifying any entity in the state that has the authority to approve the expenditure of funds collected for 911 or E911 purposes, and a description of any oversight procedures established to determine that collected funds have been made available or used for the purposes designated by the funding mechanism, or otherwise used to implement or support 911 or E911. Neither the Ohio 9-1-1 Service Program nor the PUCO hold regulatory or audit authority over how local entities utilize 9-1-1 funding. Decisions regarding the use of 9-1-1 funding are made at the local level. The Auditor of State may enter into an audit engagement to determine the appropriate use of these funds and the Ohio attorney general may bring suit against a telephone 180 East Broad Street (614) 466-3016 Columbus, Ohio 43215-3793 www.PUCO.ohio.gov company service provider or a local subdivision to enforce compliance with the Ohio 9-1- 1service program. 5. A statement whether all the funds collected for 911 or E911 purposes have been made available or used for the purposes designated by the funding mechanism, or otherwise used for the implementation or support of 911 or E911. Neither the Ohio 9-1-1 Service Program nor the PUCO hold regulatory or audit authority over how local entities utilize 9-1-1 funding. Decisions regarding the use of 9-1-1 funding are made at the local level. The Auditor of State may enter into an audit engagement to determine the appropriate use of these funds and the Ohio attorney general may bring suit against a telephone company service provider or a local subdivision to enforce compliance with the Ohio 9-1- 1service program. 6. A statement identifying what amount of funds collected for 911 or E911 purposes were made available or used for any purposes other than the ones designated by the funding mechanism or used for purposes otherwise unrelated to 911 or E911 implementation or support, including a statement identifying the unrelated purposes for which the funds collected for 911 or E911 purposes were made available or used. Neither the Ohio 9-1-1 Service Program nor the PUCO hold regulatory or audit authority over how local entities utilize 9-1-1 funding. Decisions regarding the use of 9-1-1 funding are made at the local level. The Auditor of State may enter into an audit engagement to determine the appropriate use of these funds and the Ohio attorney general may bring suit against a telephone company service provider or a local subdivision to enforce compliance with the Ohio 9-1- 1service program. 7. Any other comments the respondent may wish to provide regarding the applicable funding mechanism for 911 and E911. None.