stricken= old language to be removed underscored = new language to be added
1.1 A bill for an act 1.2 relating to public safety; providing for a single per 1.3 telephone number fee for certain telecommunications 1.4 programs; providing for regulation of packet-based 1.5 telecommunications systems that provide 911 emergency 1.6 telecommunications services; updating the statutory 1.7 description of the 911 system; increasing 911 1.8 emergency telecommunications service fee; imposing 1.9 certain restrictions on public subsidy to telephone 1.10 companies for providing 911 emergency telephone 1.11 service; increasing distribution to pay costs of 1.12 public safety answering points; authorizing sale of 1.13 state revenue bonds to implement phases two and three 1.14 of the 800-MHz public safety radio system; 1.15 appropriating money; amending Minnesota Statutes 2004, 1.16 sections 237.70, subdivision 7; 403.02, subdivisions 1.17 7, 13, 17, by adding a subdivision; 403.025, 1.18 subdivisions 3, 7; 403.05, subdivisions 1, 3; 403.08, 1.19 subdivision 10; 403.11, subdivisions 1, 3, 3a; 1.20 403.113, subdivision 1; 403.27, subdivisions 1, 3; 1.21 403.30, subdivision 1; proposing coding for new law in 1.22 Minnesota Statutes, chapters 237; 403; repealing 1.23 Minnesota Statutes 2004, section 403.30, subdivision 3. 1.24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.25 Section 1. [237.491] [COMBINED PER NUMBER FEE.] 1.26 Subdivision 1. [DEFINITIONS.] (a) The definitions in this 1.27 subdivision apply to this section. 1.28 (b) "911 emergency and public safety communications program" 1.29 means the program governed by chapter 403. 1.30 (c) "Minnesota telephone number" means a ten-digit 1.31 telephone number being used to connect to the public switched 1.32 telephone network and starting with area code 218, 320, 507, 1.33 612, 651, 763, or 952, or any subsequent area code assigned to 1.34 this state. 2.1 (d) "Service provider" means a provider doing business in 2.2 this state who provides real time, two-way voice service with a 2.3 Minnesota telephone number. 2.4 (e) "Telecommunications access Minnesota program" means the 2.5 program governed by sections 237.50 to 237.55. 2.6 (f) "Telephone assistance program" means the program 2.7 governed by sections 237.69 to 237.711. 2.8 Subd. 2. [PER NUMBER FEE.] (a) By January 15, 2006, the 2.9 commissioner of commerce shall report to the legislature and to 2.10 the senate Committee on Jobs, Energy, and Community Development 2.11 and the house Committee on Regulated Industries, recommendations 2.12 for the amount of and method for assessing a fee that would 2.13 apply to each service provider based upon the number of 2.14 Minnesota telephone numbers in use by current customers of the 2.15 service provider. The fee would be set at a level calculated to 2.16 generate only the amount of revenue necessary to fund: 2.17 (1) the telephone assistance program and the 2.18 telecommunications access Minnesota program at the levels 2.19 established by the commission under sections 237.52, subdivision 2.20 2, and 237.70; and 2.21 (2) the 911 emergency and public safety communications 2.22 program at the levels appropriated by law to the commissioner of 2.23 public safety and the commissioner of finance for purposes of 2.24 sections 403.11, 403.113, 403.27, 403.30, and 403.31 for each 2.25 fiscal year. 2.26 (b) The recommendations must include any changes to 2.27 Minnesota Statutes necessary to establish the procedures whereby 2.28 each service provider, to the extent allowed under federal law, 2.29 would collect and remit the fee proceeds to the commissioner of 2.30 revenue. The commissioner of revenue would allocate the fee 2.31 proceeds to the three funding areas in paragraph (a) and credit 2.32 the allocations to the appropriate accounts. 2.33 (c) The recommendations must be designed to allow the 2.34 combined per telephone number fee to be collected beginning July 2.35 1, 2006. The per access line fee used to collect revenues to 2.36 support the TAP, TAM, and 911 programs remains in effect until 3.1 the statutory changes necessary to implement the per telephone 3.2 number fee have been enacted into law. 3.3 (d) As part of the process of developing the 3.4 recommendations and preparing the report to the legislature 3.5 required under paragraph (a), the commissioner of commerce must, 3.6 at a minimum, consult regularly with the Departments of Public 3.7 Safety, Finance, and Administration, the Public Utilities 3.8 Commission, service providers, the chairs and ranking minority 3.9 members of the senate and house committees, subcommittees, and 3.10 divisions having jurisdiction over telecommunications and public 3.11 safety, and other affected parties. 3.12 Sec. 2. Minnesota Statutes 2004, section 237.70, 3.13 subdivision 7, is amended to read: 3.14 Subd. 7. [APPLICATION, NOTICE, FINANCIAL ADMINISTRATION, 3.15 COMPLAINT INVESTIGATION.] The telephone assistance plan must be 3.16 administered jointly by the commission, the Department of 3.17 Commerce, and the local service providers in accordance with the 3.18 following guidelines: 3.19 (a) The commission and the Department of Commerce shall 3.20 develop an application form that must be completed by the 3.21 subscriber for the purpose of certifying eligibility for 3.22 telephone assistance plan credits to the local service 3.23 provider. The application must contain the applicant's Social 3.24 Security number. Applicants who refuse to provide a Social 3.25 Security number will be denied telephone assistance plan 3.26 credits. The application form must also include a statement 3.27 that the applicant household is currently eligible for one of 3.28 the programs that confers eligibility for the federal Lifeline 3.29 Program. The application must be signed by the applicant, 3.30 certifying, under penalty of perjury, that the information 3.31 provided by the applicant is true. 3.32 (b) Each local service provider shall annually mail a 3.33 notice of the availability of the telephone assistance plan to 3.34 each residential subscriber in a regular billing and shall mail 3.35 the application form to customers when requested. 3.36 The notice must state the following: 4.1 YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 4.2 BILL IF YOU RECEIVE BENEFITS FROM CERTAIN LOW-INCOME ASSISTANCE 4.3 PROGRAMS. FOR MORE INFORMATION OR AN APPLICATION FORM PLEASE 4.4 CONTACT ......... 4.5 (c) An application may be made by the subscriber, the 4.6 subscriber's spouse, or a person authorized by the subscriber to 4.7 act on the subscriber's behalf. On completing the application 4.8 certifying that the statutory criteria for eligibility are 4.9 satisfied, the applicant must return the application to the 4.10 subscriber's local service provider. On receiving a completed 4.11 application from an applicant, the subscriber's local service 4.12 provider shall provide telephone assistance plan credits against 4.13 monthly charges in the earliest possible month following receipt 4.14 of the application. The applicant must receive telephone 4.15 assistance plan credits until the earliest possible month 4.16 following the service provider's receipt of information that the 4.17 applicant is ineligible. 4.18 If the telephone assistance plan credit is not itemized on the 4.19 subscriber's monthly charges bill for local telephone service, 4.20 the local service provider must notify the subscriber of the 4.21 approval for the telephone assistance plan credit. 4.22 (d) The commission shall serve as the coordinator of the 4.23 telephone assistance plan and be reimbursed for its 4.24 administrative expenses from the surcharge revenue pool. As the 4.25 coordinator, the commission shall: 4.26 (1) establish a uniform statewide surcharge in accordance 4.27 with subdivision 6; 4.28 (2) establish a uniform statewide level of telephone 4.29 assistance plan credit that each local service provider shall 4.30 extend to each eligible household in its service area; 4.31 (3) require each local service provider to account to the 4.32 commission on a periodic basis for surcharge revenues collected 4.33 by the provider, expenses incurred by the provider, not to 4.34 include expenses of collecting surcharges, and credits extended 4.35 by the provider under the telephone assistance plan; 4.36 (4) require each local service provider to remit surcharge 5.1 revenues to the Department of
AdministrationPublic Safety for 5.2 deposit in the fund; and 5.3 (5) remit to each local service provider from the surcharge 5.4 revenue pool the amount necessary to compensate the provider for 5.5 expenses, not including expenses of collecting the surcharges, 5.6 and telephone assistance plan credits. When it appears that the 5.7 revenue generated by the maximum surcharge permitted under 5.8 subdivision 6 will be inadequate to fund any particular 5.9 established level of telephone assistance plan credits, the 5.10 commission shall reduce the credits to a level that can be 5.11 adequately funded by the maximum surcharge. Similarly, the 5.12 commission may increase the level of the telephone assistance 5.13 plan credit that is available or reduce the surcharge to a level 5.14 and for a period of time that will prevent an unreasonable 5.15 overcollection of surcharge revenues. 5.16 (e) Each local service provider shall maintain adequate 5.17 records of surcharge revenues, expenses, and credits related to 5.18 the telephone assistance plan and shall, as part of its annual 5.19 report or separately, provide the commission and the Department 5.20 of Commerce with a financial report of its experience under the 5.21 telephone assistance plan for the previous year. That report 5.22 must also be adequate to satisfy the reporting requirements of 5.23 the federal matching plan. 5.24 (f) The Department of Commerce shall investigate complaints 5.25 against local service providers with regard to the telephone 5.26 assistance plan and shall report the results of its 5.27 investigation to the commission. 5.28 Sec. 3. Minnesota Statutes 2004, section 403.02, 5.29 subdivision 7, is amended to read: 5.30 Subd. 7. [AUTOMATIC LOCATION IDENTIFICATION.] "Automatic 5.31 location identification" means the process of electronically 5.32 identifying and displaying on a special viewing screenthe name 5.33 of the subscriber and the location, where available, of the 5.34 calling telephone number to a person answering a 911 emergency 5.35 call. 5.36 Sec. 4. Minnesota Statutes 2004, section 403.02, 6.1 subdivision 13, is amended to read: 6.2 Subd. 13. [ENHANCED 911 SERVICE.] "Enhanced 911 service" 6.3 means the use of selective routing,automatic location 6.4 identification ,or local location identification as part of 6.5 local 911 service provided by an enhanced 911 system consisting 6.6 of a common 911 network and database and customer data and 6.7 network components connecting to the common 911 network and 6.8 database. 6.9 Sec. 5. Minnesota Statutes 2004, section 403.02, 6.10 subdivision 17, is amended to read: 6.11 Subd. 17. [911 SERVICE.] "911 service" means a 6.12 telecommunications service that automatically connects a person 6.13 dialing the digits 911 to an established public safety answering 6.14 point. 911 service includes: 6.15 (1) equipment for connecting and outswitching 911 calls6.16 within a telephone central office, trunking facilities from the6.17 central office to a public safety answering pointcustomer data 6.18 and network components connecting to the common 911 network and 6.19 database; 6.20 (2) common 911 network and database equipment, as 6.21 appropriate, for automatically selectively routing 911 calls in6.22 situations where one telephone central office serves more than6.23 oneto the public safety answering point serving the caller's 6.24 jurisdiction; and 6.25 (3) provision of automatic location identification if the 6.26 public safety answering point has the capability of providing 6.27 that service. 6.28 Sec. 6. Minnesota Statutes 2004, section 403.02, is 6.29 amended by adding a subdivision to read: 6.30 Subd. 17a. [911 EMERGENCY TELECOMMUNICATIONS SERVICE 6.31 PROVIDER.] "911 emergency telecommunications service provider" 6.32 means a telecommunications service provider or other entity, 6.33 determined by the commissioner to be capable of providing 6.34 effective and efficient components of the 911 system, that 6.35 provides all or portions of the network and database for 6.36 automatically selectively routing 911 calls to the public safety 7.1 answering point serving the caller's jurisdiction. 7.2 Sec. 7. Minnesota Statutes 2004, section 403.025, 7.3 subdivision 3, is amended to read: 7.4 Subd. 3. [ WIRE-LINECONNECTED TELECOMMUNICATIONS SERVICE 7.5 PROVIDER REQUIREMENTS.] Every owner and operator of a 7.6 wire-line or wireless circuit switched or packet-based 7.7 telecommunications system connected to the public switched 7.8 telephone network shall design and maintain the system to dial 7.9 the 911 number without charge to the caller. 7.10 Sec. 8. Minnesota Statutes 2004, section 403.025, 7.11 subdivision 7, is amended to read: 7.12 Subd. 7. [CONTRACTUAL REQUIREMENTS.] (a) The state, 7.13 together with the county or other governmental agencies 7.14 operating public safety answering points, shall contract with 7.15 the appropriate wire-line telecommunications service 7.16 providers or other entities determined by the commissioner to be 7.17 capable of providing effective and efficient components of the 7.18 911 system for the operation, maintenance, enhancement, and 7.19 expansion of the 911 system. 7.20 (b) The state shall contract with the appropriate wireless 7.21 telecommunications service providers for maintaining, enhancing, 7.22 and expanding the 911 system. 7.23 (c) The contract language or subsequent amendments to the 7.24 contract must include a description of the services to be 7.25 furnished by wireless and wire-line telecommunications service7.26 providersto the county or other governmental agencies operating 7.27 public safety answering points , as well as compensation based on7.28 the effective tariff or price list approved by the Public7.29 Utilities Commission. The contract language or subsequent 7.30 amendments must include the terms of compensation based on the 7.31 effective tariff or price list filed with the Public Utilities 7.32 Commission or the prices agreed to by the parties. 7.33 (d) The contract language or subsequent amendments to 7.34 contracts between the parties must contain a provision for 7.35 resolving disputes. 7.36 Sec. 9. Minnesota Statutes 2004, section 403.05, 8.1 subdivision 1, is amended to read: 8.2 Subdivision 1. [OPERATE AND MAINTAIN.] Each county or any 8.3 other governmental agency shall operate and maintain its 911 8.4 system to meet the requirements of governmental agencies whose 8.5 services are available through the 911 system and to permit 8.6 future expansion or enhancement of the system. Each county or 8.7 any other governmental agency shall ensurethat has jurisdiction 8.8 over a wire-line 911 emergency call also has primary 8.9 jurisdiction over a 911 emergency call made with a wireless 8.10 access device is automatically connected to and answered by the8.11 appropriate public safety answering point. 8.12 Sec. 10. Minnesota Statutes 2004, section 403.05, 8.13 subdivision 3, is amended to read: 8.14 Subd. 3. [AGREEMENTS FOR SERVICE.] Each county and any 8.15 other governmental agency shall contract with the state and 8.16 wire-line telecommunications service providers or other entities 8.17 determined by the commissioner to be capable of providing 8.18 effective and efficient components of the 911 system for the 8.19 recurring and nonrecurring costs associated with operating and 8.20 maintaining 911 emergency communications systems. 8.21 Sec. 11. Minnesota Statutes 2004, section 403.08, 8.22 subdivision 10, is amended to read: 8.23 Subd. 10. [PLAN INTEGRATION.] Counties shall incorporate 8.24 the statewide design when modifying county 911 plans to provide 8.25 for integrating wireless 911 service into existing county 911 8.26 systems. The commissioner shall contract with the involved 8.27 wireless service providers and 911 emergency telecommunications 8.28 service providers to integrate cellular and other wireless 8.29 services into existing 911 systems where feasible. 8.30 Sec. 12. Minnesota Statutes 2004, section 403.11, 8.31 subdivision 1, is amended to read: 8.32 Subdivision 1. [EMERGENCY TELECOMMUNICATIONS SERVICE FEE; 8.33 ACCOUNT.] (a) Each customer of a wireless or wire-line switched 8.34 or packet-based telecommunications service provider connected to 8.35 the public switched telephone network that furnishes service 8.36 capable of originating a 911 emergency telephone call is 9.1 assessed a fee based upon the number of wired or wireless 9.2 telephone lines, or their equivalent, to cover the costs of 9.3 ongoing maintenance and related improvements for trunking and 9.4 central office switching equipment for 911 emergency 9.5 telecommunications service, plus administrative and staffing 9.6 costs of the commissioner related to managing the 911 emergency 9.7 telecommunications service program. Recurring charges by a 9.8 wire-line telecommunications service provider for updating the 9.9 information required by section 403.07, subdivision 3, must be 9.10 paid by the commissioner if the wire-line telecommunications 9.11 service provider is included in an approved 911 plan and the 9.12 charges are made pursuant to tariff, price list, orcontract. 9.13 The fee assessed under this section must also be used for the 9.14 purpose of offsetting the costs, including administrative and 9.15 staffing costs, incurred by the State Patrol Division of the 9.16 Department of Public Safety in handling 911 emergency calls made 9.17 from wireless phones. 9.18 (b) Money remaining in the 911 emergency telecommunications 9.19 service account after all other obligations are paid must not 9.20 cancel and is carried forward to subsequent years and may be 9.21 appropriated from time to time to the commissioner to provide 9.22 financial assistance to counties for the improvement of local 9.23 emergency telecommunications services. The improvements may 9.24 include providing access to 911 service for telecommunications 9.25 service subscribers currently without access and upgrading 9.26 existing 911 service to include automatic number identification, 9.27 local location identification, automatic location 9.28 identification, and other improvements specified in revised 9.29 county 911 plans approved by the commissioner. 9.30 (c) The fee may not be less than eight cents nor more than 9.31 4065 cents a month for each customer access line or other basic 9.32 access service, including trunk equivalents as designated by the 9.33 Public Utilities Commission for access charge purposes and 9.34 including wireless telecommunications services. With the 9.35 approval of the commissioner of finance, the commissioner of 9.36 public safety shall establish the amount of the fee within the 10.1 limits specified and inform the companies and carriers of the 10.2 amount to be collectedsubmitted. When the revenue bonds 10.3 authorized under section 403.27, subdivision 1, have been fully 10.4 paid or defeased, the commissioner shall reduce the fee to 10.5 reflect that debt service on the bonds is no longer needed. The 10.6 commissioner shall provide companies and carriers a minimum of 10.7 45 days' notice of each fee change. The fee must be the same 10.8 for all customers. 10.9 (d) The fee must be collectedsubmitted by each wireless or 10.10 wire-line telecommunications service provider subject to the 10.11 fee. Fees are payable to and must be submitted to the 10.12 commissioner monthly before the 25th of each month following the 10.13 month of collectioncounted, except that fees may be submitted 10.14 quarterly if less than $250 a month is due, or annually if less 10.15 than $25 a month is due. Receipts must be deposited in the 10.16 state treasury and credited to a 911 emergency 10.17 telecommunications service account in the special revenue fund. 10.18 The money in the account may only be used for 911 10.19 telecommunications services. 10.20 (e) This subdivision does not apply to customers of 10.21 interexchange carriers. 10.22 (f) The installation and recurring charges for integrating 10.23 wireless 911 calls into enhanced 911 systems must be paid by the 10.24 commissioner if the 911 service provider is included in the 10.25 statewide design plan and the charges are made pursuant to 10.26 tariff, price list, orcontract. 10.27 (g) Notwithstanding any provision of this chapter to the 10.28 contrary, the commissioner need not contract for or agree to pay 10.29 for any services that a wire-line or wireless telecommunication 10.30 service provider is required by federal law or federal 10.31 regulation to provide. 10.32 Sec. 13. Minnesota Statutes 2004, section 403.11, 10.33 subdivision 3, is amended to read: 10.34 Subd. 3. [METHOD OF PAYMENT.] (a) Any wireless or 10.35 wire-line telecommunications service provider incurring 10.36 reimbursable costs under subdivision 1 shall submit an invoice 11.1 itemizing rate elements by county or service area to the 11.2 commissioner for 911 services furnished under tariff, price11.3 list, orcontract. Any wireless or wire-line telecommunications 11.4 service provider is eligible to receive payment for 911 services 11.5 rendered according to the terms and conditions specified in the 11.6 contract. Competitive local exchange carriers holding 11.7 certificates of authority from the Public Utilities Commission 11.8 are eligible to receive payment for recurring 911 services 11.9 provided after July 1, 2001. The commissioner shall pay the 11.10 invoice within 30 days following receipt of the invoice unless 11.11 the commissioner notifies the service provider that the 11.12 commissioner disputes the invoice. 11.13 (b) The commissioner shall estimate the amount required to 11.14 reimburse 911 emergency telecommunications service providers and 11.15 wireless and wire-line telecommunications service providers for 11.16 the state's obligations under subdivision 1 and the governor 11.17 shall include the estimated amount in the biennial budget 11.18 request. 11.19 Sec. 14. Minnesota Statutes 2004, section 403.11, 11.20 subdivision 3a, is amended to read: 11.21 Subd. 3a. [TIMELY CERTIFICATION.] A certification must be 11.22 submitted to the commissioner no later than two yearsone year 11.23 after commencing a new or additional eligible 911 service. Any11.24 wireless or wire-line telecommunications service provider11.25 incurring reimbursable costs under this section at any time11.26 before January 1, 2003, may certify those costs for payment to11.27 the commissioner according to this section for a period of 9011.28 days after January 1, 2003. During this period, the11.29 commissioner shall reimburse any wireless or wire-line11.30 telecommunications service provider for approved, certified11.31 costs without regard to any contrary provision of this11.32 subdivisionEach applicable contract must provide that, if 11.33 certified expenses under the contract deviate from estimates in 11.34 the contract by more than ten percent, the commissioner may 11.35 reduce the level of service without incurring any termination 11.36 fees. 12.1 Sec. 15. Minnesota Statutes 2004, section 403.113, 12.2 subdivision 1, is amended to read: 12.3 Subdivision 1. [FEE.] (a) Each customer receiving service 12.4 from a wireless or wire-line switched or packet-based 12.5 telecommunications service provider connected to the public 12.6 telephone network that furnishes service capable of originating 12.7 a 911 emergency telephone call is assessed a fee to fund 12.8 implementation, operation, maintenance, enhancement, and 12.9 expansion of enhanced 911 service, including acquisition of 12.10 necessary equipment and the costs of the commissioner to 12.11 administer the program. The actual fee assessed under section 12.12 403.11 and the enhanced 911 service fee must be collected12.13 submitted as one amount and may not exceed the amount specified 12.14 in section 403.11, subdivision 1, paragraph (c). 12.15 (b) The enhanced 911 service fee must be collected and 12.16 deposited in the same manner as the fee in section 403.11 and 12.17 used solely for the purposes of paragraph (a) and subdivision 3. 12.18 (c) The commissioner, in consultation with counties and 911 12.19 system users, shall determine the amount of the enhanced 911 12.20 service fee. The fee must include at least ten cents per month12.21 to be distributed under subdivision 2.The commissioner shall 12.22 inform wireless and wire-line telecommunications service 12.23 providers that provide service capable of originating a 911 12.24 emergency telephone call of the total amount of the 911 service 12.25 fees in the same manner as provided in section 403.11. 12.26 Sec. 16. Minnesota Statutes 2004, section 403.27, 12.27 subdivision 1, is amended to read: 12.28 Subdivision 1. [AUTHORIZATION.] (a)After consulting with 12.29 the commissioner of finance, the council, if requested by a vote 12.30 of at least two-thirds of all of the members of the Metropolitan 12.31 Radio Board, may, by resolution, authorize the issuance of its 12.32 revenue bonds for any of the following purposes to: 12.33 (1) provide funds for regionwide mutual aid and emergency 12.34 medical services communications; 12.35 (2) provide funds for the elements of the first phase of 12.36 the regionwide public safety radio communication system that the 13.1 board determines are of regionwide benefit and support mutual 13.2 aid and emergency medical services communication including, but 13.3 not limited to, costs of master controllers of the backbone; 13.4 (3) provide money for the second phase of the public safety 13.5 radio communication system; 13.6 (4) to the extent money is available after meeting the 13.7 needs described in clauses (1) to (3), provide money to 13.8 reimburse local units of government for amounts expended for 13.9 capital improvements to the first phase system previously paid 13.10 for by the local government units; or 13.11 (5) refund bonds issued under this section. 13.12 (b) After consulting with the commissioner of finance, the13.13 council, if requested by a vote of at least two-thirds of all of13.14 the members of the Statewide Radio Board, may, by resolution,13.15 authorize the issuance of its revenue bonds to provide money for13.16 the third phase of the public safety radio communication system.13.17 Sec. 17. Minnesota Statutes 2004, section 403.27, 13.18 subdivision 3, is amended to read: 13.19 Subd. 3. [LIMITATIONS.] (a) The principal amount of the 13.20 bonds issued pursuant to subdivision 1, exclusive of any 13.21 original issue discount, shall not exceed the amount of 13.22 $10,000,000 plus the amount the council determines necessary to 13.23 pay the costs of issuance, fund reserves, debt service, and pay 13.24 for any bond insurance or other credit enhancement. 13.25 (b) In addition to the amount authorized under paragraph 13.26 (a), the council may issue bonds under subdivision 1 in a 13.27 principal amount of $3,306,300, plus the amount the council 13.28 determines necessary to pay the cost of issuance, fund reserves, 13.29 debt service, and any bond insurance or other credit 13.30 enhancement. The proceeds of bonds issued under this paragraph 13.31 may not be used to finance portable or subscriber radio sets. 13.32 (c) In addition to the amount authorized under paragraphs13.33 (a) and (b), the council may issue bonds under subdivision 1 in13.34 a principal amount of $18,000,000, plus the amount the council13.35 determines necessary to pay the costs of issuance, fund13.36 reserves, debt service, and any bond insurance or other credit14.1 enhancement. The proceeds of bonds issued under this paragraph14.2 must be used to pay up to 50 percent of the cost to a local14.3 government unit of building a subsystem and may not be used to14.4 finance portable or subscriber radio sets. The bond proceeds14.5 may be used to make improvements to an existing 800 MHz radio14.6 system that will interoperate with the regionwide public safety14.7 radio communication system, provided that the improvements14.8 conform to the board's plan and technical standards. The14.9 council must time the sale and issuance of the bonds so that the14.10 debt service on the bonds can be covered by the additional14.11 revenue that will become available in the fiscal year ending14.12 June 30, 2005, generated under section 403.11 and appropriated14.13 under section 403.30.14.14 (d) In addition to the amount authorized under paragraphs14.15 (a) to (c), the council may issue bonds under subdivision 1 in a14.16 principal amount of up to $27,000,000, plus the amount the14.17 council determines necessary to pay the costs of issuance, fund14.18 reserves, debt service, and any bond insurance or other credit14.19 enhancement. The proceeds of bonds issued under this paragraph14.20 are appropriated to the commissioner of public safety for phase14.21 three of the public safety radio communication system. In14.22 anticipation of the receipt by the commissioner of public safety14.23 of the bond proceeds, the Metropolitan Radio Board may advance14.24 money from its operating appropriation to the commissioner of14.25 public safety to pay for design and preliminary engineering for14.26 phase three. The commissioner of public safety must return14.27 these amounts to the Metropolitan Radio Board when the bond14.28 proceeds are received.14.29 Sec. 18. [403.275] [STATE 911 REVENUE BONDS.] 14.30 Subdivision 1. [BONDING AUTHORITY.] (a) The commissioner 14.31 of finance, if requested by a vote of at least two-thirds of all 14.32 the members of the Statewide Radio Board, shall sell and issue 14.33 state revenue bonds for the following purposes: 14.34 (1) to pay the costs of the statewide public safety radio 14.35 communication system that the board determines are of regional 14.36 or statewide benefit and support mutual aid and emergency 15.1 medical services communication, including, but not limited to, 15.2 costs of master controllers of the backbone; 15.3 (2) to pay the costs of issuance, debt service, and bond 15.4 insurance or other credit enhancements, and to fund reserves; 15.5 and 15.6 (3) to refund bonds issued under this section. 15.7 (b) The amount of bonds that may be issued for the purposes 15.8 of clause (1) will be set from time to time by law; the amount 15.9 of bonds that may be issued for the purposes of clauses (2) and 15.10 (3) is not limited. 15.11 (c) The bond proceeds may be used to to pay up to 50 15.12 percent of the cost to a local government unit of building a 15.13 subsystem. The bond proceeds may be used to make improvements 15.14 to an existing 800 MHz radio system that will interoperate with 15.15 the regionwide public safety radio communication system, 15.16 provided that the improvements conform to the board's plan and 15.17 technical standards. The bond proceeds may not be used to pay 15.18 for portable or subscriber radio sets. 15.19 Subd. 2. [PROCEDURE.] (a) The commissioner may sell and 15.20 issue the bonds on the terms and conditions the commissioner 15.21 determines to be in the best interests of the state. The bonds 15.22 may be sold at public or private sale. The commissioner may 15.23 enter any agreements or pledges the commissioner determines 15.24 necessary or useful to sell the bonds that are not inconsistent 15.25 with sections 403.21 to 403.40. Sections 16A.672 to 16A.675 15.26 apply to the bonds. The proceeds of the bonds issued under this 15.27 section must be credited to a special 911 revenue bond proceeds 15.28 account in the state treasury. 15.29 (b) Before the proceeds are received in the 911 revenue 15.30 bond proceeds account, the commissioner of finance may transfer 15.31 to the account from the 911 emergency telecommunications service 15.32 account amounts not exceeding the expected proceeds from the 15.33 next bond sale. The commissioner of finance shall return these 15.34 amounts to the 911 emergency telecommunications service account 15.35 by transferring proceeds when received. The amounts of these 15.36 transfers are appropriated from the 911 emergency 16.1 telecommunications service account and from the 911 revenue bond 16.2 proceeds account. 16.3 Subd. 3. [REVENUE SOURCES.] The debt service on the bonds 16.4 is payable only from the following sources: 16.5 (1) revenue credited to the 911 emergency 16.6 telecommunications service account from the fee imposed and 16.7 collected under section 237.491 or 403.11, subdivision 1, or 16.8 from any other source; and 16.9 (2) other revenues pledged to the payment of the bonds. 16.10 Subd. 4. [REFUNDING BONDS.] The commissioner may issue 16.11 bonds to refund outstanding bonds issued under subdivision 1, 16.12 including the payment of any redemption premiums on the bonds 16.13 and any interest accrued or to accrue to the first redemption 16.14 date after delivery of the refunding bonds. The proceeds of the 16.15 refunding bonds may, in the discretion of the commissioner, be 16.16 applied to the purchases or payment at maturity of the bonds to 16.17 be refunded, or the redemption of the outstanding bonds on the 16.18 first redemption date after delivery of the refunding bonds and 16.19 may, until so used, be placed in escrow to be applied to the 16.20 purchase, retirement, or redemption. Refunding bonds issued 16.21 under this subdivision must be issued and secured in the manner 16.22 provided by the commissioner. 16.23 Subd. 5. [NOT A GENERAL OR MORAL OBLIGATION.] Bonds issued 16.24 under this section are not public debt, and the full faith, 16.25 credit, and taxing powers of the state are not pledged for their 16.26 payment. The bonds may not be paid, directly in whole or in 16.27 part from a tax of statewide application on any class of 16.28 property, income, transaction, or privilege. Payment of the 16.29 bonds is limited to the revenues explicitly authorized to be 16.30 pledged under this section. The state neither makes nor has a 16.31 moral obligation to pay the bonds if the pledged revenues and 16.32 other legal security for them is insufficient. 16.33 Subd. 6. [TRUSTEE.] The commissioner may contract with and 16.34 appoint a trustee for bond holders. The trustee has the powers 16.35 and authority vested in it by the commissioner under the bond 16.36 and trust indentures. 17.1 Subd. 7. [PLEDGES.] Any pledge made by the commissioner is 17.2 valid and binding from the time the pledge is made. The money 17.3 or property pledged and later received by the commissioner is 17.4 immediately subject to the lien of the pledge without any 17.5 physical delivery of the property or money or further act, and 17.6 the lien of any pledge is valid and binding as against all 17.7 parties having claims of any kind in tort, contract, or 17.8 otherwise against the commissioner, whether or not those parties 17.9 have notice of the lien or pledge. Neither the order nor any 17.10 other instrument by which a pledge is created need be recorded. 17.11 Subd. 8. [BONDS; PURCHASE AND CANCELLATION.] The 17.12 commissioner, subject to agreements with bondholders that may 17.13 then exist, may, out of any money available for the purpose, 17.14 purchase bonds of the commissioner at a price not exceeding (1) 17.15 if the bonds are then redeemable, the redemption price then 17.16 applicable plus accrued interest to the next interest payment 17.17 date thereon, or (2) if the bonds are not redeemable, the 17.18 redemption price applicable on the first date after the purchase 17.19 upon which the bonds become subject to redemption plus accrued 17.20 interest to that date. 17.21 Subd. 9. [STATE PLEDGE AGAINST IMPAIRMENT OF CONTRACTS.] 17.22 The state pledges and agrees with the holders of any bonds that 17.23 the state will not limit or alter the rights vested in the 17.24 commissioner to fulfill the terms of any agreements made with 17.25 the bondholders, or in any way impair the rights and remedies of 17.26 the holders until the bonds, together with interest on them, 17.27 with interest on any unpaid installments of interest, and all 17.28 costs and expenses in connection with any action or proceeding 17.29 by or on behalf of the bondholders, are fully met and 17.30 discharged. The commissioner may include this pledge and 17.31 agreement of the state in any agreement with the holders of 17.32 bonds issued under this section. 17.33 Sec. 19. Minnesota Statutes 2004, section 403.30, 17.34 subdivision 1, is amended to read: 17.35 Subdivision 1. [STANDING APPROPRIATION; COSTS COVERED.] 17.36 For each fiscal year beginning with the fiscal year commencing18.1 July 1, 1997,The amount necessary to pay the followingdebt 18.2 service costs and reserves for bonds issued by the Metropolitan 18.3 Council under section 403.27 or by the commissioner of finance 18.4 under section 403.275 is appropriated to the commissioner of18.5 public safetyfrom the 911 emergency telecommunications service 18.6 account established under section 403.11 :18.7 (1) debt service costs and reserves for bonds issued18.8 pursuant to section 403.27;18.9 (2) repayment of the right-of-way acquisition loans;18.10 (3) costs of design, construction, maintenance of, and18.11 improvements to those elements of the first, second, and third18.12 phases that support mutual aid communications and emergency18.13 medical services;18.14 (4) recurring charges for leased sites and equipment for18.15 those elements of the first, second, and third phases that18.16 support mutual aid and emergency medical communication services;18.17 or18.18 (5) aid to local units of government for sites and18.19 equipment in support of mutual aid and emergency medical18.20 communications servicesto the commissioner of finance. The 18.21 commissioner of finance shall transmit the necessary amounts to 18.22 the Metropolitan Council as requested by the council. 18.23 This appropriation shall be used to pay annual debt service 18.24 costs and reserves for bonds issued pursuant to section 18.25 403.27 or 403.275 prior to use of fee money to pay other 18.26 costs eligible under this subdivision. In no event shall the18.27 appropriation for each fiscal year exceed an amount equal to18.28 four cents a month for each customer access line or other basic18.29 access service, including trunk equivalents as designated by the18.30 Public Utilities Commission for access charge purposes and18.31 including cellular and other nonwire access services, in the18.32 fiscal year. Beginning July 1, 2004, this amount will increase18.33 to 13 cents a month. 18.34 Sec. 20. [APPROPRIATIONS; 911 SPECIAL REVENUE ACCOUNT.] 18.35 The sums set forth in this section are appropriated from 18.36 the 911 emergency telecommunications service account in the 19.1 special revenue fund to the commissioner of public safety for 19.2 the purposes indicated in this section, to be available for the 19.3 fiscal year ending June 30 in the years indicated. 19.4 2006 2007 19.5 (a) Prior Year Obligations $3,442,000 $3,064,000 19.6 To fund a deficiency due to prior year 19.7 obligations under Minnesota Statutes, 19.8 section 403.11, that were estimated in 19.9 the December 2004 911 fund statement to 19.10 be $6,504,700 on July 1, 2005. "Prior 19.11 year obligations" means reimbursable 19.12 costs under Minnesota Statutes, section 19.13 403.11, subdivision 1, incurred under 19.14 the terms and conditions of a contract 19.15 with the state for a fiscal year 19.16 preceding fiscal year 2004, that have 19.17 been certified in a timely manner in 19.18 accordance with Minnesota Statutes, 19.19 section 403.11, subdivision 3a, and 19.20 that are not barred by statute of 19.21 limitation or other defense. The 19.22 appropriations needed for this purpose 19.23 are estimated to be none in fiscal year 19.24 2008 and thereafter. 19.25 (b) Public Safety Answering Points 13,640,000 13,664,000 19.26 To be distributed as provided in 19.27 Minnesota Statutes, section 403.113, 19.28 subdivision 2. 19.29 This appropriation may only be used for 19.30 public safety answering points that 19.31 have implemented phase two wireless 19.32 enhanced 911 service or whose 19.33 governmental agency has made a binding 19.34 commitment to the commissioner of 19.35 public safety to implement phase two 19.36 wireless enhanced 911 service by 19.37 January 1, 2008. If revenue to the 19.38 account is insufficient to support all 19.39 appropriations from the account for a 19.40 fiscal year, this appropriation takes 19.41 priority over other appropriations, 19.42 except the open appropriation in 19.43 Minnesota Statutes, section 403.30, 19.44 subdivision 1, for debt service on 19.45 bonds previously sold. 19.46 (c) Medical Resource 19.47 Communication Centers 682,000 683,000 19.48 For grants to the Minnesota Emergency 19.49 Medical Services Regulatory Board for 19.50 the Metro East and Metro West Medical 19.51 Resource Communication Centers that 19.52 were in operation before January 1, 19.53 2000. 19.54 (d) Debt Service and 19.55 Capital Improvements 6,138,000 6,149,000 19.56 To pay debt service on revenue bonds 19.57 issued under new Minnesota Statutes, 19.58 section 403.275. Any portion of this 19.59 appropriation not needed to pay debt 20.1 service in a fiscal year may be used to 20.2 pay cash for any of the capital 20.3 improvements for which bond proceeds 20.4 have been appropriated in section 21. 20.5 Sec. 21. [APPROPRIATIONS; BOND PROCEEDS.] 20.6 Subdivision 1. [APPROPRIATIONS.] The sums set forth in 20.7 this subdivision are appropriated from the 911 revenue bond 20.8 proceeds account to the commissioner of public safety for the 20.9 purposes indicated, to be available until the project is 20.10 completed or abandoned, subject to Minnesota Statutes, section 20.11 16A.642. 20.12 (a) Phase 2 Subsystems $8,000,000 20.13 For a grant to the Metropolitan 20.14 Emergency Services Board to pay up to 20.15 50 percent of the cost to a local 20.16 government unit of building a subsystem 20.17 as part of the second phase of the 20.18 public safety radio and communication 20.19 system plan under Minnesota Statutes, 20.20 section 403.36. 20.21 (b) Phase 3 System Backbone 45,000,000 20.22 For the Statewide Radio Board to 20.23 construct the system backbone in the 20.24 third phase of the public safety radio 20.25 and communication system plan under 20.26 Minnesota Statutes, section 403.36. 20.27 (c) Phase 3 Subsystems 9,500,000 20.28 To reimburse local units of government 20.29 for up to 50 percent of the cost of 20.30 building a subsystem of the public 20.31 safety radio and communication system 20.32 established under Minnesota Statutes, 20.33 section 403.36, in the southeast or 20.34 central district of the State Patrol. 20.35 Subd. 2. [BOND SALE AUTHORIZATION.] To provide the money 20.36 appropriated in this section, the commissioner of finance shall 20.37 sell and issue bonds of the state in an amount up to $62,500,000 20.38 in the manner, upon the terms, and with the effect prescribed by 20.39 Minnesota Statutes, section 403.275. 20.40 Sec. 22. [REPEALER.] 20.41 Minnesota Statutes 2004, section 403.30, subdivision 3, is 20.42 repealed. 20.43 Sec. 23. [EFFECTIVE DATE.] 20.44 This act is effective the day following final enactment and 20.45 apply to contracts entered into on or after that date.