7-86-108 - Emergency telephone service charge Legislative levy decrease Date service and billing begins. - Tennessee Statutes

7-86-108. Emergency telephone service charge Legislative levy decrease Date service and billing begins.

(a)  (1)  (A)  The board of directors of the district may levy an emergency telephone service charge in an amount not to exceed sixty-five cents (65¢) per month for residence-classification service users, and not to exceed two dollars ($2.00) per month for business-classification service users, to be used to fund the 911 emergency telephone service. Any such service charge shall have uniform application and shall be imposed throughout the entire district to the greatest extent possible in conformity with the availability of such service within the district. No such service charge shall be imposed upon more than one hundred (100) exchange access facilities per service user per location.

          (B)  (i)  (a)  Effective April 1, 1999, commercial mobile radio service (CMRS) subscribers and users shall be subject to the emergency telephone service charge, a flat statewide rate, not to exceed the business classification rate established in subdivision (a)(2)(A). The specific amount of such emergency telephone service charge, and any subsequent increase in such charge, shall be determined by the board, but must be ratified by a joint resolution of the general assembly prior to implementation. It is the intent of the general assembly that such rate be established at the lowest rate practicable consistent with the purposes of this section. The board shall report annually to the finance, ways and means committees of the senate and the house of representatives on the status of statewide implementation of wireless enhanced 911 service and compliance with the federal communications commission order, the status and level of the emergency telephone service charge for CMRS subscribers and users, and the status, level, and solvency of the 911 Emergency Communications Fund. At such time that the requirements of the federal communications commission order and the provisions of this subdivision (a)(1)(B)(i)(a) have been met, the board may reduce the amount of the emergency telephone service charge for CMRS; provided, that such reduced amount must be adequate to cover all reasonable and necessary administrative and operating costs of the board, provide for the long-term solvency of the 911 Emergency Communications Fund, which shall include compliance with the federal communications commission order, and those purposes stated in this subdivision (a)(1)(B)(i)(a) .

                     (b)  The board shall notify each CMRS provider of such rate, or any rate change, within seven (7) business days of the effective date of the ratification resolution. Each CMRS provider shall implement the emergency telephone service charge not later than sixty (60) days after being notified of the rate, or rate change, by the board. The charge shall be assessed on all CMRS subscribers and users whose place of primary use, as defined in § 67-6-102, is in Tennessee. No such service charge shall be levied on the trunks or service lines used to supply such service to CMRS systems. Such proceeds shall be paid to the board, and shall be deposited in the 911 Emergency Communications Fund. No other state agency or local governmental entity may levy an additional surcharge relating to the provision of wireless enhanced 911 service.

                (ii)  (a)  Each CMRS provider shall remit the funds collected as the service charge to the board every two (2) months. Such funds shall be remitted to the board no later than thirty (30) days after the last business day of such two-month period. The commercial mobile radio service provider shall be entitled to retain as an administrative fee an amount equal to three percent (3%) of its collections of the service charge. The CMRS provider shall be authorized to demand payment from any service user who fails to pay any proper service charge, and may take legal action, if necessary, to collect the service charge from such service user, or may, in the alternative, and without any liability whatsoever to such service user for any losses or damages that result from termination, terminate all service to such CMRS provider; provided, that any service user so terminated shall have the right to resume service from the CMRS provider, as long as the service user is otherwise in compliance with the regulation of the CMRS provider, upon full payment of all past due service charges and any other costs or expenses, including reasonable interest, or normal costs or charges of the CMRS provider for the resumption of service, incurred by the CMRS provider as the result of any nonpayment.

                     (b)  Each CMRS provider shall annually provide to the board an accounting of the amounts billed and collected and of the disposition of such amounts. Such accounting shall be subject to audit or review by the comptroller of the treasury.

                (iii)  For customers who are billed retrospectively, known as standard customers, (CMRS) providers shall collect the service charge on behalf of the board as part of their monthly billing process and as a separate line item within that billing process.

                (iv)  The service charge shall also be imposed upon customers who pay for service prospectively, known as prepaid customers. CMRS providers shall remit to the board the service charge under one of two methods:

                     (a)  The CMRS provider shall collect, on a monthly basis, the service charge from each active prepaid customer whose account balance is equal to or greater than the amount of the service charge; or

                     (b)  The CMRS provider shall divide the total earned prepaid wireless telephone revenue received by the CMRS provider within the monthly 911 reporting period by fifty dollars ($50.00), and multiply the quotient by the service charge amount.

                (v)  The service charges imposed under this subsection (a) shall not be subject to taxes or charges levied on or by the CMRS provider, nor shall such service charges be considered revenue of the CMRS provider for any purposes. Collection of the wireless 911 surcharge shall not reduce the sales price for purposes of taxes that are collected at point of sale.

                (vi)  Effective July 1, 2006, the provisions of this subdivision (a)(1)(B) shall apply to all subscribers and users of non-wireline service, to the extent such application is not inconsistent with the orders, rules and regulations of the federal communications commission.

          (C)  The board shall also use such funds created in subdivision (a)(1)(B) for the purposes described in § 7-86-303.

     (2)  (A)  Notwithstanding the provisions of subdivision (a)(1), the board of directors of a district may vote to submit to the people of the district the question of whether to increase the emergency telephone service charge. In no event shall the charge exceed one dollar fifty cents ($1.50) per month for residence-classification service users, nor exceed three dollars ($3.00) per month for business-classification service users, to be used to fund the 911 emergency telephone service.

          (B)  If the chair of the board of directors conveys a certified copy of the vote of the board to submit such question to the people to the county election commission not less than sixty (60) days before the date on which a regular election is scheduled to be held, the county election commission shall include the referendum question contained in subdivision (a)(2)(C) on the ballot.

          (C)  At any such election, the only question submitted to the voters shall be in the following form:

For the increase in emergency telephone service charges (here insert the amounts).

Against the increase in emergency telephone service charges (here insert the amounts).

          (D)  The county election commission shall certify the results of the election to the county mayor and to the chair of the board of directors of the emergency communications district.

          (E)  Not more than one (1) election in any county shall be held under the provisions of this section within any period of twenty-four (24) months.

(b)  Before any initial levy or increase to an existing levy that is approved by the board of directors as provided in subsection (a) becomes effective, the district shall provide a thirty-day notice prior to the next scheduled meeting of the legislative body that created the district, and request a hearing before the legislative body of the appropriate county or municipality regarding such levy. The district shall present to the legislative body the amount of the levy and the justification for such levy, including a plan for the use of the funds. The legislative body may make recommendations to the district regarding such levy for consideration by the district before the levy is imposed upon the user. The provisions of this subsection (b) shall not apply when the initial levy or any increase to an existing levy has been approved by a public referendum.

(c)  The legislative body of the appropriate county or municipality may, by its own two-thirds (2/3) vote, adopt an ordinance or resolution that would reduce the levy established by the board of directors of the district; provided, that no such ordinance or resolution shall reduce such levy below the level reasonably required to fund the authorized activities of the emergency communications district. Such decreased levy shall be in effect until the legislative body, by majority vote, rescinds the ordinance or resolution calling for the decreased levy.

(d)  (1)  The board of directors shall pass a resolution specifying the date on which the 911 service is to begin and the date on which the service supplier will begin to bill service users for such service.

     (2)  The board of directors may authorize the service supplier to begin billing service users for such service prior to the date on which the 911 service is to begin.

(e)  Revenues from the tariffs authorized in this section shall be used for the operation of the district and for the purchases of necessary equipment for the district.

(f)  Notwithstanding the provisions of § 7-86-303(d)(1), the board may withhold such distribution to an emergency communications district, if the district is operating in, or fails to correct a specific violation of state law. This may include, but not be limited to, the failure to submit an annual budget or audit, operating contrary to the open meeting requirements of title 8, chapter 44, part 1, or failure to comply with any part or parts required by this chapter. Further, the board may also withhold such distribution if it deems that the district is not taking sufficient actions or acting in good faith to establish, maintain or advance wireline or wireless E-911 service for the citizens of an emergency communications district.

[Acts 1984, ch. 867, § 8; 1985, ch. 271, §§ 2, 3; 1987, ch. 94, § 4; 1989, ch. 9, § 1; 1993, ch. 419, § 1; 1993, ch. 479, § 3; 1994, ch. 778, § 2; 1995, ch. 68, § 1; 1998, ch. 1108, § 6; 2002, ch. 719, § 7; 2003, ch. 90, § 2; 2003, ch. 205, §§ 1, 2; 2006, ch. 925, § 5.]