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  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 Administration Public 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 screen the 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 calls 
  6.16  within a telephone central office, trunking facilities from the 
  6.17  central office to a public safety answering point customer 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 in 
  6.22  situations where one telephone central office serves more than 
  6.23  one to 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-LINE CONNECTED 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 service 
  7.26  providers to the county or other governmental agencies operating 
  7.27  public safety answering points, as well as compensation based on 
  7.28  the effective tariff or price list approved by the Public 
  7.29  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 ensure that 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 the 
  8.11  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, or contract.  
  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  40 65 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 collected submitted.  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 collected submitted 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 collection counted, 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, or contract. 
 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, price 
 11.3   list, or contract.  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 years one year 
 11.23  after commencing a new or additional eligible 911 service.  Any 
 11.24  wireless or wire-line telecommunications service provider 
 11.25  incurring reimbursable costs under this section at any time 
 11.26  before January 1, 2003, may certify those costs for payment to 
 11.27  the commissioner according to this section for a period of 90 
 11.28  days after January 1, 2003.  During this period, the 
 11.29  commissioner shall reimburse any wireless or wire-line 
 11.30  telecommunications service provider for approved, certified 
 11.31  costs without regard to any contrary provision of this 
 11.32  subdivision Each 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 collected 
 12.13  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 month 
 12.21  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, the 
 13.13  council, if requested by a vote of at least two-thirds of all of 
 13.14  the members of the Statewide Radio Board, may, by resolution, 
 13.15  authorize the issuance of its revenue bonds to provide money for 
 13.16  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 paragraphs 
 13.33  (a) and (b), the council may issue bonds under subdivision 1 in 
 13.34  a principal amount of $18,000,000, plus the amount the council 
 13.35  determines necessary to pay the costs of issuance, fund 
 13.36  reserves, debt service, and any bond insurance or other credit 
 14.1   enhancement.  The proceeds of bonds issued under this paragraph 
 14.2   must be used to pay up to 50 percent of the cost to a local 
 14.3   government unit of building a subsystem and may not be used to 
 14.4   finance portable or subscriber radio sets.  The bond proceeds 
 14.5   may be used to make improvements to an existing 800 MHz radio 
 14.6   system that will interoperate with the regionwide public safety 
 14.7   radio communication system, provided that the improvements 
 14.8   conform to the board's plan and technical standards.  The 
 14.9   council must time the sale and issuance of the bonds so that the 
 14.10  debt service on the bonds can be covered by the additional 
 14.11  revenue that will become available in the fiscal year ending 
 14.12  June 30, 2005, generated under section 403.11 and appropriated 
 14.13  under section 403.30.  
 14.14     (d) In addition to the amount authorized under paragraphs 
 14.15  (a) to (c), the council may issue bonds under subdivision 1 in a 
 14.16  principal amount of up to $27,000,000, plus the amount the 
 14.17  council determines necessary to pay the costs of issuance, fund 
 14.18  reserves, debt service, and any bond insurance or other credit 
 14.19  enhancement.  The proceeds of bonds issued under this paragraph 
 14.20  are appropriated to the commissioner of public safety for phase 
 14.21  three of the public safety radio communication system.  In 
 14.22  anticipation of the receipt by the commissioner of public safety 
 14.23  of the bond proceeds, the Metropolitan Radio Board may advance 
 14.24  money from its operating appropriation to the commissioner of 
 14.25  public safety to pay for design and preliminary engineering for 
 14.26  phase three.  The commissioner of public safety must return 
 14.27  these amounts to the Metropolitan Radio Board when the bond 
 14.28  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 commencing 
 18.1   July 1, 1997, The amount necessary to pay the following debt 
 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 of 
 18.5   public safety from the 911 emergency telecommunications service 
 18.6   account established under section 403.11: 
 18.7      (1) debt service costs and reserves for bonds issued 
 18.8   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, and 
 18.11  improvements to those elements of the first, second, and third 
 18.12  phases that support mutual aid communications and emergency 
 18.13  medical services; 
 18.14     (4) recurring charges for leased sites and equipment for 
 18.15  those elements of the first, second, and third phases that 
 18.16  support mutual aid and emergency medical communication services; 
 18.17  or 
 18.18     (5) aid to local units of government for sites and 
 18.19  equipment in support of mutual aid and emergency medical 
 18.20  communications services to 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 the 
 18.27  appropriation for each fiscal year exceed an amount equal to 
 18.28  four cents a month for each customer access line or other basic 
 18.29  access service, including trunk equivalents as designated by the 
 18.30  Public Utilities Commission for access charge purposes and 
 18.31  including cellular and other nonwire access services, in the 
 18.32  fiscal year.  Beginning July 1, 2004, this amount will increase 
 18.33  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.