Presentation-Legislation v2

9-1-1 Funding and the Florida Legislature

Rolf Preuss, ENP, FPEM9-1-1 Coordinator/Radio Systems Manager

Flagler County

2

Objectives

• How legislation is created• Challenge to Collect 9-1-1 Fees on Prepaid

Wireless in Florida• Proposed Legislative Funding Changes• Funding and resulting Revenues• Awareness for current Legislative Issues

3

How is Legislation made?

• Do we really want to know the details?

4


• A Citizen, a group or a legislator may have concerns, issues or an idea

• A Representative (member) introduces a bill(bills can be introduced in House or Senate)

• Bill is “Drafted” by staff, Numbered and Filed• Bill is “Read” in “First Reading”

(usually by publication in the journal)

5


• Bill is referred to one or more “Committees” or “Subcommittees”

• Chair of Committee places bill on committee agenda to be “heard” publically

• Many bills “die” without ever being heard• Once heard and voted favorably by committees,

it is placed on calendar for “Second Reading” on the “Floor” (the entire body)

6


• A special Committee decides when bill is actually introduced for “Second Reading”

• Bill is explained, questions answered and “Amendments” considered

• At “Third Reading”, bill receives final vote • When voted favorably, bill is passed

from House to Senate with a “Message”

7


Senate Options:1. Vote to pass without amendments and return2. Vote to pass with amendments and return3. Refer bill to committee for consideration4. Defeat bill on floor

8


1. Received by House without amendments: Bill in final form (“Enrolled”) is sent to Governor for consideration

2. Received by House with amendments:Returned to floor for further consideration

– or – Assigned to conference committee (to work out the details)

9


Governor’s consideration:

1. Sign bill into Law2. Allow bill to become law without signature3. Veto bill (Legislature may override veto during next session)

Key Point:At any point of “consideration” the bill may die

10

How does this affect us?2013Legislative Session

Currently no mechanism for collection of 9-1-1 fees on prepaid wireless identified

The big argument:• Collection by Dealer (at Point of Sale)?• Collection by Service Provider?

Industry agreed on collection practice and HB 807 and SB 1070 were created by Legislature

11


Florida HB 807 was filed on Feb. 14, 2013

Emergency Communication System: Revises provisions relating to Emergency Communications Number E911 System; revises provisions for administration, distribution, & use of E911 fee; provides for prepaid wireless E911 fee; revises provisions for accounting, distribution, use, & auditing of Emergency Communications Number E911 System Fund.

12


• Passed House Energy & Utilities Subcommittee (Mar. 12, 2013)

• Passed House Finance & Tax Subcommittee With Committee Substitute (Mar. 20, 2013)

• Passed House Regulatory Affairs Committee with Committee Substitute (Apr. 4, 2013)

• Died in Senate Communications, Energy and Public Utilities Committee (May 3, 2013)

13


Florida SB 1070 was filed on Feb. 21, 2013

Emergency Communication Systems; Extending the date for which the E911 fee may not be collected for prepaid calling arrangements and from prepaid wireless service providers, etc.

14


• Passed Communications, Energy and Public Utilities Committee with Committee Substitute (Apr. 1, 2013)

• Died in Appropriations Subcommittee on Finance and Tax (May 3, 2013)

How does this affect us?Proposed Funding Levels - 2013 Legislative Session

43.0 cents Wireline 43.0 cents Prepaid 43.0 cents Wireless

15Proposed Legislation and it’s Effect on Local 9-1-1 Revenues

50.0 cents Wireline 0 cents Prepaid 50.0 cents WirelessCurrent Fee Collection

Under HB 807 – Committee Substitute 2

46.0 cents Wireline 46.0 cents Prepaid 46.0 cents WirelessUnder HB 807 – Committee Substitute 1


Under HB 807 (original) and SB 1070 (original)

50.0 cents Wireline 0 cents Prepaid 50.0 cents WirelessUnder SB 1070 – Committee Substitute 1

16

How does this affect us?2014 Legislative Session

Florida HB 175 was filed on Oct. 11, 2013

Emergency Communication System: Revises provisions relating to Emergency Communications Number E911 System; revises provisions for administration, distribution, & use of E911 fee; provides for prepaid wireless E911 fee; revises provisions for accounting, distribution, use, & auditing of Emergency Communications Number E911 System Fund.

17


Florida HB 177 was filed on Oct. 11, 2013 (linked to HB 175)

Pub. Rec./Prepaid Wireless E911 Fee: Provides exemption from public records requirements for specified information received by DOR relating to prepaid wireless E911 fee; authorizes DOR to share such information with Secretary of Management Services & E911 Board; including DOR as additional recipient of specified confidential information relating to wireless service; provides for future legislative review & repeal; provides statements of public necessity; provides for contingent effect.

18


Florida SB 294 was filed on Oct. 18, 2013 (identical to HB 175)

Emergency Communication System: Revising provisions relating to oversight of certain fees by the Technology Program within the Department of Management Services; revising provisions for administration, distribution, and use of the E911 fee; providing that fees collected may not be included in the base for measuring any tax, fee, surcharge, or other charge; providing that the Department of Revenue is the agent for the E911 Board for purposes of collecting the prepaid wireless E911 fee; revising provisions for accounting, distribution, use, and auditing of the Emergency Communications Number E911 System Fund, etc.

19


Florida SB 292 was filed on Oct. 18, 2013 (linked to SB 294)

Public Records/Prepaid Wireless E911 Fee: Providing an exemption from public records requirements for specified information received by the Department of Revenue relating to the prepaid wireless E911 fee; authorizing the department to share such information with the Secretary of Management Services and the E911 Board; including the Department of Revenue as an additional recipient of specified confidential information relating to wireless service; providing for future legislative review and repeal; providing statements of public necessity, etc.

20


HB 175 – Collection of Prepaid WirelessSB 294 – Collection of Prepaid Wireless

HB 177 – Public Records/Prepaid Wireless SB 292 – Public Records/Prepaid Wireless

21

The Funding Models

Current Fee Collection: • 50 cents for Wireline (or Non-Wireless)• 50 cents for Wireless • No provision for Prepaid Wireless

Proposed Fee Collection (HB 175 and SB 294):• 46 cents for Wireline (or Non-Wireless)• 46 cents for Wireless • 46 cents for Prepaid Wireless

Current 9-1-1 Funding Model

50 cents for Wireline 50 cents for Wireless

F.S. § 365.172(8)(f) and (i) F.S. § 365.172(8)(f) and (i)

22

Current Distribution

50 cents for Wireline 50 cents for Wireless48.5

23

Current Distribution

50 cents for Wireline 50 cents for Wireless48.5 35.5

24

Resulting County RevenueCurrent Funding Model


F.S. § 365.172(8)(f) and (i) F.S. § 365.172(8)(f) and (i)

48.5 35.5

25

Proposed Funding Model HB 175; SB 294


F.S. § 365.172(8)(f) (HB 175) F.S. § 365.172(8)(f) (HB 175)

26


46 cents for Prepaid Wireless

F.S. § 365.172(8)(f) (HB 175)

27

And:

Proposed DistributionHB 175; SB 294

50 cents for Wireline 50 cents for Wireless48.5 46

28

44.2


50 cents for Wireline 50 cents for Wireless48.5 35.0

29

44.2


28.0 cents for Prepaid Wireless

30

31


These numbers do not allow for:• Up to 3.2 percent for DoH collection efforts• 5.0 percent retailer collection allowance

Taking these numbers into consideration, the final revenue forcollection of Prepaid Wireless Fees for the counties could be as low as*

25.8 cents for Prepaid Wireless

* Not including Grant Program and extra Distribution for Rural Counties

Proposed County RevenueHB 175 and SB 294

32

50 cents for Prepaid Wireless(0.0 cents currently)

25.8

44.2 cents for Wireline 35.0 cents for Wireless

(48.5 cents currently) (35.5 cents currently)

33

Current vs. Proposed County Revenue

Non-Wireless Revenues Current Funding Wireless Revenues

$215,723 FY 12/13 $255,441

$471,164 Total

Non-Wireless Revenues Proposed Funding* Wireless Revenues

$196,597 FY12/13 $251,843

-9.7% $448,440 Total-4.8%

(without Prepaid)

-1.4%

The BIG Question:What is the Percentage of Prepaid Wireless?

* As in HB 175 and SB 294 (as introduced)

What is the Percentage of Prepaid Wireless?

Source: CTIA's "50 Wireless Quick Facts“, CTIA

#20. "Prepaid/Pay-As-You-Go services' share of overall wireless market (penetration) is 23.4%, equal to more than 76.4 million wireless prepaid/pay-as-you-go subscribers as of December 2012"

Source: US Mobile Data Market Update Q2 2012, Chetan Sharma

“Driven largely by the economy, the prepaid subscriptions went past 100 M for the first time in the US market.”

[based on above, this is equivalent of 31.1%]

34


23.4% (CTIA) + 31.1% (Sharma) = 27.25% 2

Unfortunately, 27.25% is not the absolute answer

Past Events in Florida have shown a large variation in the Distribution of Prepaid Wireless

In the absence of more accurate data, we will have to make assumptions and allow for ample variances

35


Source: 2012 Florida E911 Board Annual Report

36

Historic data shows a loss of 8.5% of Wireless Revenue for Flagler County*

* As result of two Prepaid Wireless Providers lack of payment submission

37

Current vs. Proposed RevenueNon-Wireless Revenues Wireless Revenues

$215,723 FY 12/13 $255,441

$471,164 Total

With Proposed Funding: $251,843

Prepaid Wireless* - $17,680

$196,597 -9.7%

$17,680 est. $234,163-9.1%

$448,440 Total

-4.8%

With Non-Wireless, Prepaid Wireless and Wireless collected at 50 cents:

$487,435 Total

+3.4%

* Based on past loss of 8.5% Wireless Revenue for Flagler County

Previously Proposed Funding Levels


39Proposed Legislation and it’s Effect on Local 9-1-1 Revenues

50.0 cents Wireline 0 cents Prepaid 50.0 cents WirelessCurrent Fee Collection

Under HB 807 – Committee Substitute 2

46.0 cents Wireline 46.0 cents Prepaid 46.0 cents WirelessUnder HB 807 – Committee Substitute 1


Under HB 807 (original) and SB 1070 (original)

50.0 cents Wireline 0 cents Prepaid 50.0 cents WirelessUnder SB 1070 – Committee Substitute 1

Different Funding Models = Different RevenuesCurrent Funding

50.0 cents for Wireline No Prepaid 50.0 cents for Wireless

Current Revenue

48.5 cents for Wireline No Prepaid 35.5 cents for Wireless

40

Proposed Funding*

46.0 cents for Wireline 46.0 cents for Prepaid 46.0 cents for Wireless

Proposed Revenue*

44.2 cents for Wireline 25.8 cents for Prepaid 35.0 cents for Wireless

* As in HB 175 and SB 294 (as introduced)

41

Exactly How does this affect me?

Remember the BIG Question:


Time will tell us.

42

What to do

• Monitor Legislative Progress• Sign up for APCO/NENA emails• Sign up for APCO/NENA Legislative Updates• Follow Legislative Updates (Blog, Twitter, LinkedIn)• Raise Awareness amongst Your Peers,

Managers and Elected Officials• If Legislation takes a really Bad Turn,

We may need Your Help

43

News4911.BlogSpot.com

Questions

Rolf Preuss386-313-4265 (o)386-569-2150 (c)[email protected]

44DRAFT Radio System Enhancement Plan

News4911.BlogSpot.com

Documents

Presentation-Legislation v2