NORTH CAROLINA GENERAL ASSEMBLY
HOUSE SELECT COMMITTEE ON THE USE
OF 911 FUNDS.
REPORT TO THE
2010 SESSION
of the
2009 GENERAL ASSEMBLY
APRIL 26,201 0
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House Select Committee on the Use of 911 Funds. Page 2
TABLE OF CONTENTS
Letter of Transmittal ...................................................................................................................... 4
Committee Proceedings ................................................................................................................. 5
Findings and Recommendations .................................................................................................. 7
Proposed Legislation: .......... . ... ... .. .. .. .. . .. .... .... .. .. .. ...... ... .. ... .. .. .. .. .. .. ... .. .. ........ .. ... ... .. .. .. . .. .. .. .... .. . .. - 9
A. Authorization and Membership. .. .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . - 16
B. MeetingAgendas ................................................................................................................... 19
1 All of the meeting handouts, including Power Point presentations, may be accessed online at the
House Select Committee on the Use of 911 Funds website:
http:/ / www. ncleg. net/ committees/
House Select Committee on the Use of 911 Funds. Page 3
TRANSMITTAL LETTER
The House Select Committee on the Use of 911 Funds respectfully submits to you for
your consideration
House Select Committee on the Use of 911 Funds. Page 4
COMMITTEE PROCEEDINGS
The House Select Committee on the Use of 91 1 Funds, met five times from January
16,2010 until April 26,201 0.
January 16,2010
After introductions of the Committee members and staff were made, staff to the
Committee reviewed the charge of the Committee. Heather Fennell and Steve Rose
of the Research Division reviewed the history of 91 1 service and legislation in North
Carolina. Gayle Moses of the Bill Drafting Division presented information on past
legislation to expand the uses of the 91 1 Fund. Richard Taylor, Executive Director of
the 91 1 Board gave a presentation on the power and duties of the 91 1 Board. Mr.
Taylor also presented information on the distribution and uses of the revenues in the
91 1 Fund.
February 23,201 0
Richard Taylor, Executive Director of the 9 1 1 Board provided information to the
Committee regarding the fund balances of PSAPs. Jim Blackburn, General Counsel
of the North Carolina Association of County Commissioners introduced several local
government representatives who presented on the administration of 91 1 service. Lee
Worsley, Catawba County Assistant County Manager, provided an actual 91 1 call
and described the emergency response provided from the taking of the call to the
dispatch of the emergency responders. Christy Shearin, Director of Franklin County
Emergency Communications presented information on the equipment in a 91 1Center
She also presented information on the funding for each piece of equipment. Randy
Keaton, Pasquotank County Manager reviewed the findings of the 91 1 Study
Committee organized by the 91 1 Board. Dwight Allen, representing
telecommunication providers, presented the perspective of the telecommunications
industry on the expansion of the use of the 91 1 Fund. Tonya Pierce, representative of
the National Emergency Number Association presented information on the need for
standards to be determined for PSAP operations. Richard Taylor presented legislative
changes proposed by the 91 1 Board.
March 16,201 0
Paul Meyer, Chief Legislative Counsel for the North Carolina League of
Municipalities presented his organization's position on the proposals discussed by the
Committee. Kevin Leonard, Director of Governmental Relations for the North
Carolina Association of County Commissioners presented his organization's proposal
for changes to the statutes governing 91 1 service. Heather Fennell of the Research
Division reviewed the two draft proposals submitted by the 91 1 Board and the NC
Association of County Commissioners. The Committee discussed the proposed
changes.
House Select Committee on the Use of 911 Funds. Page 5
April 19,20 10
Chair Bryant reviewed proposed legislation that resulted from the previous meeting's
discussion by the Committee. Kevin Leonard, Director of Governmental Relations
for the North Carolina Association of County Commissioners presented information
on the make- up of the 9 1 1 Board. Richard Taylor, Executive Director of the 9 1 1
Board presented information on the study conducted by ECU titled " Findings and
Recommendations on 91 1 Costs and Funding Model for the NC 91 1 System." Tonya
Pearce of NC NENA provided information to the Committee on her organization's
position on proposed legislation. Dwight Allen, representing telecommunication
providers, presented the perspective of the telecommunications industry on the
proposed legislation. Chair Bryant reviewed the outstanding issues with the
Committee.
April 26,2010
The Committee reviewed the draft report and adopted the Findings and
Recommendations. The Committee reviewed and adopted the draft proposed
legislation. The Committee adopted the final report, including the proposed
legislation, and voted to allow the Chair to approve and sign the final bill for
submission to the Speaker of the House.
House Select Committee on the Use of 911 Funds. Page 6
FINDINGS AND RECOMMENDATIONS
FINDING 1 : The representation of the 91 1 Board is not evenly distributed between the
local government representatives and private telecommunications representatives and
shorter terms and term limits will allow the Board to maintain updated expertise with
changing technology.
RECOMMENDATION 1 : Some members of the 91 1 Board should be removed to
create an even distribution. The members to be removed are one private
telecommunications representative and one representative of the National Emergency
Number Association ( NENA) because they have multiple representatives on the Board.
Two members should be added to the 91 1Board. The members added are a fire chief and
an emergency management director. As a result, there are eight local government
representatives and 9 private telecommunications representatives on the Board, along
with the State Chief Information Officer who serves as Chair.
FINDING 2: Uniform operating standards for the public safety answering points
( PSAPs) that receive distributions fiom the 9 1 1 Fund are necessary to provide adequate
91 1 service across the State.
RECOMMEND ATION 2: The 91 1 Board must adopt operating standards for the
public safety answering points ( PSAPs) that receive distributions from the 91 1Fund.
FINDING 3 : A private network for providing 9 1 1 service would benefit the PSAPs
throughout the State.
RECOMMEND AT ION 3 : The 91 1 Board should be authorized to pay private
vendors for provisioning a network for the purpose of providing 91 1 service.
FINDING 4: Certain projects conducted by individual PSAPs would better be
addressed by a conducting the project on a statewide level.
RECOMMENDATION 4: The 91 1 Board should be authorized to administer
statewide 91 1 Projects.
FINDING 5: The administrative expenses of the Board may increase with the new
duties of the 9 1 1 Board.
House Select Committee on the Use of 911 Funds. Page 7
RECOMMENDATION 5: The percentage of funds the 91 1 Board may retain fiom
the funds remitted to it may be increased fiom 1% to 2% if warranted.
FINDING 6: The use of the 91 1 Fund is too restrictive and should be expanded to
allow for additional uses by PSAPs.
RECOMMENDATION 6: The911 Fundshouldbeexpandedtoallow distributions
fiom the Fund to be used for radio communications equipment including radios for first
responders.
FINDING 7: The distribution of funds fiom the 91 1 Fund is inequitable and should be
amended.
RECOMMEND AT10 N 7: The 9 1 1 Board should determine a method for establishing
distributions fiom the Fund that allows for adequate distributions to pay for eligible
expenses and anticipated increases in expenses.
FINDING 8: Allowing PSAPs to voluntarily consolidate into primary PSAPs would be
beneficial for the provision of 9 1 1 service.
RECOMMEND ATION 8 : The 91 1 Board should be authorized to provide grants for
the voluntary consolidation of PSAPs into a primary PSAP.
House Select Committee on the Use of 911 Funds Page 8
PROPOSED LEGISLATION
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
BILL DRAFT 2009- TD- 28 [~. 17] ( 03129)
( THIS IS A DRAFT AND IS NOT READY FOR INTRODUCTION)
4/ 29/ 2010 1: 45: 39 PM
Short Title: Use of 91 1 Funds. ( Public)
Sponsors: Representatives Bryant, Faison, Sager, and West ( Primary Sponsors).
Referred to:
A BILL TO BE ENTITLED
AN ACT TO AMEND THE STATUTES GOVERNING EMERGENCY TELEPHONE
SERVICE AS RECOMMENDED BY THE HOUSE SELECT COMMITTEE ON
THE USE OF 91 1 FUNDS.
The General Assembly of North Carolina enacts:
SECTION 1. G. S. 62A- 41 reads as rewritten:
"( a) Membership. - The 911 Board is established in the Office of Information
Technology Services. Neither a local government unit that receives a distribution from
the fund under G. S. 62A- 46 nor a telecommunication service provider may have more
than 1 representative on the 9 1 1 Board. The 9 1 1 Board consists of 17 members as
follows:
( 1) Four members appointed by the Governor as follows:
a. An individual who represents municipalities appointed upon
the recommendation of the North Carolina League of
Municipalities.
b. An individual who represents counties appointed upon the
recommendation of the North Carolina Association of County
Commissioners.
c. An individual who represents a Vow provider.
d. An individual who represents 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 as
follows:
House Select Committee on the Use of 911 Funds. Page 9
a. An individual who is a sheriff.
b. . . . - An individual who qwem+ rwresents CMRS
providers operating in North Carolina.
c. An individual who represents the North Carolina chapter of the
Association of Public Safety Communications Officials
( APCO).
d. Two individuals who represent local exchange carriers
operating in North Carolina, one of whom represents a local
exchange carrier with less than 50,000 access lines.
- e. A fire chief upon the recommendation of the North Carolina
Firemen's Assocation.
Six members appointed by the General Assembly upon the
recommendation of the President Pro Tempore of the Senate as
follows:
a. An individual who is a chief of police.
b. Two individuals who represent CNIRS providers operating in
North Carolina.
C.
emergency management director upon the recommendation of
the North Carolina Association of Rescue and Emergency
Management Services.
d. Two individuals who represent local exchange carriers
operating in North Carolina, one of whom represents a local
exchange carrier with less than 200,000 access lines.
( 4) The State Chief Information Officer or the State Chief Information
Officer's designee, who serves as the chair.
( b) Term. - A member's term is & w= three years. No member may serve more
than two terms. Members remain in office until their successors are appointed and
qualified. Vacancies are filled in the same manner as the original appointment. The
Governor may remove any member for misfeasance, malfeasance, or nonfeasance in
accordance with G. S. 143B- 13( d).
.. . I '
SECTION l.( b) Other than the position removed by this Act or individuals
prohibited fiom serving on the Board due to duplicate representation prohibited by this
Act, the existing members of the 91 1 Board shall continue to serve until the expiration of
their original terms. Existing members may not be reappointed to the Board if he or she
has served two terms on the 9 1 1 Board.
SECTION 2.( a) G. S. 62A- 42( a) reads as rewritten:
"( a) Duties. - The 91 1 Board has the following powers and duties:
. . .
( 4) To establish - policies, procedures, and primary
PSAP operating standards, to h d advisory services and training for
PSAPs and to provide h d s in accordance with these pc&& s+ d
~ p o l i c i e spr. oc edures. and standards for PSAP operations..
House Select Committee on the Use of 911 Funds. Page I0
...
( 9) To adopt rules to implement this Article. This authority does not
include the regulation of any enhanced 91 1 service, such as the
establishment of technical o'n--' n--' ostandards for telecommunications
service providers to deliver 91 1 voice and data.
.. . I I
SECTION 2.( b) G. S. 62A- 46( c) is amended by adding a new subdivision to
read:
"( 5) A PSAP must comply with the rules. volicies. procedures. and
operating; standards for primary PSAPs adopted by the Board."
SECTION 2.( c) Section ( b) of this section is effective July 1,201 1.
SECTION 3. G. S. 62A- 42( b) reads as rewritten:
"( b) Prohibition. - In no event shall the 91 1 Board or any other State agency lease,
construct, operate, or own a communications network for the purpose of providing 91 1
service. The 91 1 Board mav pay private sector vendors for provisioning; a network for the
purpose of providing 9 1 1 service."
SECTION 4.( a) G. S. 62A- 42( a)( 6) reads as rewritten:
"( 6) To make and enter into contracts and agreements necessary or
incidental to the performance of its powers and duties under this
Article and to use revenue available to the 911 Board under
G. S. 62A- 44 for administrative expenses to pay its obligations under
the contracts and agreements. The Board may use funds available to
the Board under G. S. 62A- 47 to vav its obligations incurred for
statewide 91 1 Proiects. "
SECTION 4.( b) G. S. 62A- 45( c) reads as rewritten:
"( c) Grant Reallocation. - If the amount of reimbursements to CMRS providers by
the 911 Board for a fiscal year is less than the amount of funds allocated for
reimbursements to CMRS providers for that fiscal year, the 91 1 Board may reallocate
part & f the excess amount to the PSAP Grant and 91 1 Statewide Projects Account
established under G. S. 62A- 47. The 911 Board may reallocate funds under this
subsection only once each calendar year and may do so only within the three- month
period that follows the end of the fiscal year. If the 91 1 Board reallocates more than 3
total of three million dollars ($ 3,000,000) to the PSAP Grant and 91 1 Statewide Projects
Account in a calendar year, it must consider reducing the amount of the service charge in
G. S. 62A- 44 to reflect more accurately the underlying costs of providing 91 1 system
services.
The 911 Board must make the following findings before it reallocates funds to the
PSAP Grant and 91 1 Statewide Proiects Account:
( 1) There is a critical need for additional funding for PSAPs in rural or
high- cost areas to ensure that enhanced 911 service is deployed
throughout the State.
( 2) The reallocation will not impair cost recovery by CMRS providers.
( 3) The reallocation will not result in the insolvency of the 91 1 Fund."
SECTION 4.( c) G. S. 62A- 47 reads as rewritten:
8 62A- 47. PSAP Grant and Statewide 911 Proiects Account.
House Select Committee on the Use of 911 Funds. Page I I
! I . . .
( b) Grant Application. - A PSAP may apply to the 91 1 Board for a grant from the
- Account. An application must be submitted in the manner prescribed by the
91 1 Board. The 91 1 Board may approve a grant application and enter into a grant
agreement with a PSAP if it determines all of the following:
( 1) The costs estimated in the application are reasonable and have been or
will be incurred for the of promoting a cost- effective and
efficient 9 1 1 system.
( 2) The expenses to be incurred by the applicant are consistent with the
91 1 State Plan.
( 3) There are sufficient h d s available in the fiscal year in which the
grant h d s will be distributed.
( 4) The costs are authorized PSAP costs under
C-- S. B - S.. . 62A- 46( c) or ( cl).
( c) Grant Agreement. - A grant agreement between the 91 1 Board and a PSAP
must include the purpose of the grant, the time frame for implementing the project or
program funded by the grant, the & ount of the grant, and a for repaying grant
h d s if the PSAP fails to comply with any of the terms of the grant. The amount of the
grant may vary among grantees. If the grant is intended to promote the deployment of
enhanced 91 1 service in a rural area of the State, the grant agreement must specie how
the h d s will assist with this goal. The 91 1 Board must publish one or more notices each
fiscal year advertising the availability of grants from the PSAP Grant Account and
detailing the application process, including the deadline for submitting applications, any
required documents specifying costs, ither incurred or anticipated, and evidence
demonstrating the need for the grant. Any grant h d s awarded to PSAPs under this
section are in addition to any h d s reimbursed under G. S. 62A- 46.
( d) Statewide 911 Proiects. - The Board may use h d s from the Account for
statewide ~ roiects if the Board determines the proiect meets all of the following
requirements:
( 1) The proiect is consistent with the 91 1 plan.
( 2) The project is cost effective and efficient when comvared to the
- ed by prima. PSAPs for implementing
individual projects.
( 3) The project is an eligible expense under G. S. 62A- 46( c) or ( cl).
( 4) The project will have statewide benefit for 91 1 service."
SECTION 4.( d) G. S. 62A- 43( d) reads as rewritten:
"( d) Adjustment of Charge. - The 91 1 Board must monitor the revenues generated
by the service charge. If the 911 Board determines that the rate produces r& ue in
excess of or insufficient for the amount needed, the 91 1 Board - ay adjust the
rate. The wikeed- rate must ensure full cost recovery for voice communications service
providers and for primary PSAPs over a reasonable period of time. A change in the
amount of the rate becomes effective only on July 1 of On= year. T he
91 1 Board must notie providers of a change in the rate at least 90 days before the change
becomes effective."
SECTION 5. G. S. 62A- 44( b) reads as rewritten:
House Select Committee on the Use of 911 Funds. Page 12
"( b) Allocation of Revenues. - The percentage of the funds remitted under
G. S. 62A- 43 which * the91 1 Board may deduct and retain for its administrative
expenses is initially set at one percent ( 1%) of the total service charges collected. The 91 1
Board must monitor the amount of funds reauired to meet its financial commitment to
providing technical assistance to primary PSAPs and may, if costs warrant, adiust the
percentage up to two percent 2(% ).) 0
The remaining revenues
remitted to the 91 1 Board for deposit in the 91 1 Fund are allocated as follows:
.. . I '
SECTION 6.( a) G. S. 62A- 46( a) reads as rewritten:
"( a) Monthly Distribution. - The 9 11 Board must make monthly distributions to
primary PSAPs fiom the amount allocated to the 91 1 Fund for PSAPs.--
- nll& A PSAP is not eligible for a distribution under this
subdivision unless it provides enhanced 91 1 service and received distributions fiom the
91 1 Board in the prior fiscal year. The Board must notifv PSAPs of the estimated
distributions no later than December 3 1 of each year. The Board must determine actual
distributions no later than June 1 of each year. The Board must determine a method for
establishing distributions that is wuitable and sustainable. and that ensures distributions
for eligible operating costs and anticipated increases for all funded PSAPs. The Board
must establish a formula to determine each PSAP's base amount. The formula must be
determined and published to PSAPs in the first quarter of the fiscal year preceding the
fiscal year in which the formula is used. The Board must not change the funding formula
for the base amount more than once every year. In establishing the funding formula, the
Board must consider information including population of the area served by a PSAP,
PSAP reports and budgets, disbursement histories. historical costs, PSAP operations. 91 1
technologies used by the PSAP, compliance with operating standards of the 91 1 Board ,
level of service a PSAP delivers dispatching fire. Emergency Medical Services. law
enforcement, Emergency Medical dispatch. and the tier designation of the county in
which the PSAP is located as designated in G. S. 143B- 437.08, and anv other information
deemed proper by the Board. In the first quarter of the Board's fiscal year. the Board must
determine whether payments to PSAPs during the preceding fiscal year exceeded or were
less than the eliible costs incurred by each PSAP during; the fiscal vear. If a PSAP
receives less than its eligible costs in anv fiscal vear, the Board may increase a PSAP's
distribution in the following fiscal vear above the base amount as determined by the
House Select Committee on the Use of 911 Funds. Page 13
formula to meet the estimated eligible costs of the PSAP as determined by the Board. The
Board may not distribute less than the base amount to each PSAP. The Board must
provide a procedure for a PSAP to request a reconsideration of its distribution or eligible
expenses."
SECTION 6.00) G. S. 62A- 46 is amended by adding a new subsection to
read:
" fi 1 ) Carrvforward. - A PSAP may carry forward up to twenty percent ( 20%) of the
total funds disbursed by the Board during a fiscal year for eligible expenditures for
capital outlay, capital improvements. or equipment rmlacement. The twenty percent
( 20%) limitation does not apply to funds awarded as a grant. Neither the caqdorward
under this section nor any grant amount may be used in the funding formula to reduce the
PSAP base amount."
SECTION 6.( c) This section is effective July 1, 2010, but shall not apply to
distributions by the Board in fiscal year beginning in 2010.
SECTION 7.( a) G. S. 62A- 40 reads as rewritten:
" 9 62A- 40. Defmitions.
The following definitions apply in this Article.
. . .
( 5) Call taking. - The act of processing a 91 1 call for emergency
assistance m ba primary PSAP including the use of 91 lsystem equipment, call
classification, location of a caller, determination of the appropriate
response level for emergency wqmidm- responders. and dispatching a
91 1 call information to the appropriate responder.
. . .
( 8a) Dispatch. - The broadcast. transfer, or other re- transmittal of
emergency call information by a primary PSAP to resvonda
including the eauipment or services required for responders to receive
information and the a- uipment to used by responders to
intercommunicate among themselves.
( 9) Enhanced 91 1 service. - Directing a 91 1 call to an appropriate PSAP
by selective routing or other means based on the geographical location
fiom which the call originated and providing information defining the
approximate geographic location and the telephone number of a 91 1
caller, in accordance with the FCC Order.
.. . I I
SECTION 7.00) G. S. 62A- 46( c) reads as rewritten:
"( c) Use of Funds. - A PSAP that receives a distribution fiom the 91 1 Fund may . .
not use the amount received to pay for the lease or purchase of real estate, cosmetic
remodeling of emergqcy dispatch centers, hiring or compensating telecommunicators, or
the purchase of mobile communications vehicles, ambulances, fire engines, or other
emergency vehicles. Distributions received by a PSAP may be used only to pay for the
following: -
( 1) The lease, purchase, or maintenance of emergency telephone
equipment, including necessary computer hardware, software, and
House Select Committee on the Use of 911 Funds. Page 14
database provisioning, addressing, telecommunicator furniture, and
nonrecurring costs of establishing a 91 1 system.
. . .
( 4) The lease. purchase, or maintenance of radio communications
equipment including necessary hardware and software, towers, base
station transmitters, microwave links and antennae used to dis~ atch
emergency calls fkom the PSAP and the radio communications
eauipment used by the first provider of emergency services to receive
the emergency dispatch. "
SECTION 8. G. S. 62A- 47( a) reads as rewritten:
"( a) Account Established. - A PSAP Grant and Statewide 91 1 Projects Account is
established within the 91 1 Fund for the purpose of making grants to PSAPs in rural and
other high- cost m. areas and funding projects that provide statewide benefits for
9llservice. The 911 Board may approve grants for the non- eligible expenses of
consolidating one or more PSAPs with a primarv PSAP and the relocation costs of
primary PSAPs. including construction costs. The Account consists of revenue allocated
by the 9 1 1 Board under G. S. 62A- 45( c) and G. S. 62A- 46."
SECTION 9. Unless otherwise provided, this act is effective July 1,2010.
House Select Committee on the Use of 91 1 Funds. Page 15
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