Be it enacted by the General Assembly of the Commonwealth of Kentucky: The General Assembly hereby finds and declares that:

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1 AN ACT relating to 911 emergency services and making an appropriation therefor. Be it enacted by the General Assembly of the Commonwealth of Kentucky: SECTION 1. A NEW SECTION OF KRS TO IS CREATED TO READ AS FOLLOWS: The General Assembly hereby finds and declares that: (1) The general welfare and safety of the citizens of the Commonwealth of Kentucky in emergency situations depend in large measure upon a fully functional 911 emergency services system; (2) It is in the best interests of the Commonwealth to provide adequate resources to local governments for the effective delivery of life-saving 911 emergency services; (3) The authority granted and the purposes to be accomplished by KRS to and to are proper governmental and public purposes necessary for the provision of 911 emergency services to the citizens of the Commonwealth; and (4) The CMRS service charges, as defined in subsection (10) of Section 4 of this Act, are vital to the provision of 911 emergency services to the citizens of the Commonwealth and are intended to apply to each CMRS connection regardless of whether that connection is prepaid, postpaid, or uses free minutes. Section 2. KRS is amended to read as follows: As used in this section to KRS : (1) "911 emergency[ telephone] service" means a system that provides the end user of a service connection with emergency services by dialing 9-1-1, directs 911 calls to the appropriate public safety answering points based on the geographic location from which the call originated, and provides the capability for automatic number identification and automatic location identification features in accordance with the FCC order[telephone service which provides the user of the public telephone system the ability to place calls to a public safety answering point on a twenty-four Page 1 of 56

2 (24) hour basis and reach local emergency service agencies by dialing the digits Such a service is capable, at minimum, of transmitting requests for law enforcement, firefighting, and emergency medical and ambulance services to a public safety agency or other provider that provides the requested service at the place where the call originates. A 911 emergency telephone service may also provide for other emergency services. The term "911 emergency telephone service" includes the term wireline "enhanced 911 system," which means an emergency telephone system that provides the caller with wireline emergency 911 system service and, in addition, directs 911 calls to appropriate public safety answering points based on the geographical location from which the call originated and may provide the capability for automatic number identification, pseudo-automatic number identification, selective routing, and automatic location identification features]. As used in KRS , the term "911 emergency[ telephone] service" includes[does not include] the terms[term] "wireless enhanced 911 system," "wireless enhanced 911 service," and[or] "wireless E911 service" as used in KRS to ; (2) "Automatic call distribution" or "ACD" means a system that automatically distributes incoming calls to PSAP attendants in the order the calls are received; (3) "Automatic number identification[ (ANI)]" or "ANI" means a feature that allows for the automatic display of the 911 caller's ten (10) digit number, or equivalent, in accordance with applicable FCC rules and regulations[used to place a 911 call]; (4)[(3)] "Automatic location identification[ (ALI)]" or "ALI" means a feature by which the location or estimated location of the calling party[name and address associated with the calling party's telephone number] is made available to a PSAP in accordance with applicable FCC rules and regulations; (5)[(4)] "Automatic location identification data management system[ (ALI/DBS)]" or "ALI/DBS" means a system of manual procedures and computer programs used to Page 2 of 56

3 create, store, and update the data required for ALI in support of enhanced 911; (6) "Automatic vehicle location" or "AVL" means a system used to track emergency responder vehicles; (7)[(5)] "Dispersed private telephone system[ (DPTS)]" or "DPTS" means a multiline, shared tenant system or PBX used for the purpose of reselling telephone service to residential customers and whose connection to a telephone network is capable of carrying emergency calls from more than one (1) specific location within a structure or structures but does not mean a multiline, shared tenant system or PBX owned and operated by a state agency or used in providing service within a hotel or motel; (8) "FCC order" means the Order of the Federal Communications Commission, FCC Docket No , adopted effective October 1, 1996, including any subsequent amendments or modifications thereof; (9)[(6)] "Fully enhanced 911 emergency telephone service" means a telephone network feature that selectively routes calls placed to the national 911 emergency number to the proper public service answering points (PSAPs) and provides the PSAP with a voice connection and ANI and ALI information; (10) "Geographic information systems" or "GIS" means a system for capturing, storing, displaying, analyzing, and managing data, and associated attributes which are spatially referenced; (11) "Law Enforcement Information Network of Kentucky and the National Crime Information Center" or "LINK/NCIC" means two (2) systems used by law enforcement and emergency communications personnel for short messaging between agencies and to request vehicle, driver, and criminal history checks; (12) "Local government" means any city, county, urban-county government, consolidated local government, unified local government, or charter county government; Page 3 of 56

4 (13) "Master street address guide" or "MSAG" means a database of street names and house number ranges within their associated communities defining emergency services zones and their associated emergency service numbers used by PSAPs to enable proper routing of 911 calls; (14)[(7)] "Private branch exchange[ (PBX)]" or "PBX" means a privately owned switch system that connects calls to a telephone company; (15)[(8]) "Public safety answering point" or "PSAP" means a communications facility that is assigned the responsibility to receive 911 calls originating in a given area and, as appropriate, to dispatch public safety services or to extend, transfer, or relay 911 calls to appropriate public safety agencies; (16) "Service connection" means the transmission, conveyance, or routing of voice, data, video, text, or any other information signal of the purchaser's choosing by any medium or method now in existence or later devised with the ability to directly connect the user to 911 emergency services; (17)[(9)] "Service supplier" means a person or entity that administers, maintains, and operates the ALI/DBS and may include telephone companies that provide local exchange telephone service to a telephone subscriber;[ and] (18)[(10)] "Station identification number[ (SIN)]" or "SIN" means a number that a DPTS uses to identify a specific station on the switch; and (19) "Interconnected Voice over Internet Protocol" or "VoIP" means a service that: (a) (c) (d) Enables real-time, two-way voice communications; Requires a broadband connection from the user's location; Requires Internet protocol-compatible customer premises equipment; and Permits users generally to receive calls that originate on the public switched telephone network and terminate calls to the public switched telephone network. Section 3. KRS is amended to read as follows: Page 4 of 56

5 (1) Any local[city, county, or urban-county] government may establish 911 emergency[ telephone] service upon approval of the governing body of the city, county, or urban-county government and may adopt regulations concerning the provision of this service by ordinance. (2) Any local[city, county, or urban-county] government, or any combination thereof, may with the approval of their governing bodies enter into an interlocal cooperation agreement creating a joint 911 emergency [telephone ]service. (3) (a) The funds required by a local[city, county, or urban-county] government to establish and operate 911 emergency [telephone ]service, or to participate in joint service with other local governments, may be obtained through the levy of any special tax, license, or fee not in conflict with the Constitution and statutes of this state. The special tax, license, or fee may include a subscriber charge for 911 emergency[ telephone] service that shall be levied on an individual exchange-line basis, limited to a maximum of twenty-five (25) exchange lines per account per government entity. Any private commercial telephone service or owner of a dispersed private telephone system (DPTS) that provides local and 911 emergency service to subscribers for compensation shall collect and remit the subscriber charge to the local government on the same basis as the primary local exchange carrier, except that this requirement shall not apply to a state agency that currently maintains an independent 911 system with its own public safety answering point. (c) Any provider of interconnected VoIP local and 911 emergency services to subscribers for compensation shall collect and remit any special tax, license, or fee levied under paragraph (a) of this subsection to the local government, except that the special tax, license, or fee levied under paragraph (a) of this subsection shall not apply to a commercial mobile Page 5 of 56

6 radio service subject to a fee imposed under Section 8 or 15 of this Act[ All revenues from a tax or fee expressly levied to fund 911 emergency services shall be expended solely for the establishment, operation, and maintenance of a 911 emergency communications system; this may include expenditures to train communications personnel and to inform the public of the availability and proper use of 911 service]. (4) All revenues raised from any special tax, license, or fee levied under subsection (3) of this section shall be expended only as provided in this subsection and only to the extent that the expenditure is directly attributable to the establishment, operation, or maintenance of a PSAP, the delivery of 911 emergency services, or the provision of wireless enhanced 911 services, as follows: (a) The hiring of personnel; The following costs for employees: 1. Salaries; 2. Fringe benefits; 3. MSAG coordination; 4. Uniforms; and 5. Addressing and database development and management; (c) Facility costs for the following expenses: 1. Capital improvements for construction, remodeling, or expansion; 2. Lease or rental payments; 3. Utilities; 4. Heating and air conditioning; 5. Fire suppression systems; 6. Security systems; 7. Cleaning and maintenance; 8. Emergency power and uninterruptable power equipment; Page 6 of 56

7 9. Insurance; 10. Office supplies; 11. Printing and copying services; and 12. Furniture; (d) Training and memberships in professional associations, including: 1. Vendor-provided training; 2. Conferences; 3. Necessary travel and lodging; 4. On-the-job training; and 5. Memberships in 911-related associations; (e) Costs for the following equipment shall be allowed to the extent its function is directly attributable to the provision of 911 emergency services, whether on the premises or remotely located: controllers, equipment, or software; trunks or administrative lines for the 911 center; 3. Remote 911 hardware or modems; 4. ACD systems or other call management facilities and software; 5. Call-time stamping or other clock functions; 6. Computer workstations; 7. Telephone and related services to support the receipt of 911 contact from the deaf and hard of hearing community; 8. Voice and data recording systems; 9. Radio systems, including consoles and any fixed radio asset that is not mobile or portable and that is used for 911 and emergency response; 10. CAD, GIS mapping, paging, mobile data, LINK/NCIC, or AVL systems and associated databases; 11. Network connectivity; Page 7 of 56

8 12. Software licenses; and 13. Maintenance or service agreements for equipment or software listed in this subsection; (f) Vehicle costs for the following, either as reimbursement to an employee for the use of a private vehicle or direct costs for a vehicle assigned to the agency: 1. MSAG development and maintenance; 2. GIS data development, verification, and testing; and 3. Public education; (g) Costs for the following professional services: 1. Legal; 2. Architectural; 3. Auditing; and 4. Consultation; and (h) Costs for public education regarding the proper use of 911 emergency services. (5) A local government shall not use revenues from any special tax, license, or fee levied under subsection (3) of this section for personnel costs, facility costs, training and membership costs, equipment costs, vehicle costs, professional services costs, public education costs, nor any of the following costs, unless the expense is directly attributable to the delivery of 911 emergency services: (a) Personnel costs for the following personnel, unless directly functioning as PSAP staff: 1. Law enforcement; 2. Emergency medical services personnel; 3. Fire protection personnel; 4. Emergency management staff; and Page 8 of 56

9 5. Shared support or technical staff; Facility costs for the following purposes and facilities, except for that portion used for the delivery of 911 emergency services: 1. Capital and furnishing costs for facilities whose primary purpose is not the delivery of 911 emergency services; 2. Facilities primarily intended for use by police, fire, emergency medical services, or other emergency management personnel; and 3. Facilities providing general offices for local government operations; (c) Training and membership costs for the following purposes: 1. Costs for training for staff not directly involved in the delivery of 911 emergency services or courses whose content is not intended to increase the knowledge, skills, and abilities of 911 personnel with regard to delivery of 911 emergency services; and 2. Costs for memberships in organizations or associations whose primary purpose is not public safety communications or the delivery of 911 emergency services; (d) The following hardware, software, or peripheral costs: 1. Law enforcement, fire protection, emergency medical services, or jail record management systems; 2. Word processing and other general computer applications; 3. GIS applications providing data layers not needed for the location of emergency calls or other general mapping and locations services for government operations; 4. Court information systems; 5. Field equipment used outside of the PSAP by emergency responders or other government personnel for radio, paging, mobile data, LINK/NCIC, ACD, or AVL systems; Page 9 of 56

10 6. Internet connectivity for an application listed in this subsection; 7. A maintenance or service agreement for an application listed in this subsection; and 8. A software license for an application listed in this subsection; (e) (f) (g) The cost of an emergency response or other government vehicle; Costs for professional services; and Costs for public education. (6) The governing body may apply for and accept federal moneys and may accept contributions and donations from any source for the purpose of funding 911 emergency[ telephone] service. (7)[(5)] Nothing in this section shall preclude other means of establishing or funding a 911 emergency[ telephone] service within any local area or exchange, nor require the operation of such service by any local government. Section 4. KRS is amended to read as follows: As used in KRS to , unless the context requires otherwise: (1) "Administrator" means the person who serves as the state 911 coordinator, the executive director of the Kentucky 911 Services Board, and the state administrator of CMRS emergency telecommunications under KRS ; (2) "Automatic location identification", or "ALI" means a feature by which the location or estimated location of the calling party is made available to a PSAP in accordance with applicable FCC rules and regulations[an enhanced 911 service capability that enables the automatic display of information defining the approximate geographic location of the wireless telephone used to place a 911 call and includes the term "pseudo-automatic number identification];["] (3) "Automatic number identification", or "ANI" means a feature that allows for[an enhanced 911 service capability that enables] the automatic display of the 911 caller's[on an ALI screen of the] ten-digit number, or equivalent, in accordance Page 10 of 56

11 with applicable FCC rules and regulations[wireless telephone number used to place a 911 call]; (4) "CMRS" means commercial mobile radio service under Sections 3(27) and 332(d) of the Federal Telecommunications Act of 1996, 47 U.S.C. secs. 151 et seq., and the Omnibus Budget Reconciliation Act of 1993, as it existed on August 10, The term includes the term "wireless" and service provided by any wireless real time two-way voice communication device, including radio-telephone communications used in cellular telephone service, personal communications service, and the functional or competitive equivalent of a radio-telephone communications line used in cellular telephone service, a personal communications service, or a network radio access line; (5) "[CMRS ]Board"[ or "board"] means the[ Commercial Mobile Radio Service Emergency Telecommunications Board of] Kentucky 911 Services Board; (6) "CMRS connection" means a mobile handset telephone number assigned to a CMRS customer; (7) "CMRS customer" means an end user to whom a mobile handset telephone number is assigned and to whom CMRS is provided in return for compensation; (8) "CMRS Fund" means the commercial mobile radio service emergency telecommunications fund; (9) "CMRS provider" means a person or entity who provides CMRS to an end user. The term includes both facilities-based resellers and nonfacilities-based resellers; (10) "CMRS service charges" means the CMRS postpaid service charge, the CMRS prepaid service charge, and the CMRS service charge fee levied under Section 29 of this Act; (11) "CMRS postpaid service charge" means the CMRS emergency telephone service charge fee levied under KRS (3) and collected under KRS ; (12) "CMRS prepaid service charge" means the fee imposed on prepaid wireless Page 11 of 56

12 telecommunications service under Section 15 of this Act and collected under Sections 16 to 23 of this Act; (13)[(11)] "FCC order" means the Order of the Federal Communications Commission, FCC Docket No , adopted effective October 1, 1996, including any subsequent amendments or modifications thereof; (14)[(12)] "Local exchange carrier" or "LEC" means any person or entity who is authorized to provide telephone exchange service or exchange access in the Commonwealth; (15)[(13)] "Local government" means any city, county, charter county, or urban-county government of the Commonwealth, or any other governmental entity maintaining a PSAP; (16)[(14)] "Mobile telephone handset telephone number" means the ten (10) digit number assigned to a CMRS connection; (17) "Next generation 911" means a 911 system where any device capable of making a 911 emergency request uses digital technology through managed emergency services Internet protocol networks composed of functional elements and databases that replicate enhanced 911 features and functions while providing additional multimedia capabilities for the PSAP. "Next generation 911" includes any technology, functions, capabilities, best practices, or processes, either currently existing or later developed, that will be used during and after the transition of the delivery of 911 services from analog to digital technology; (18) "Prepaid wireless telecommunications service" means a wireless telecommunications service that: (a) If purchased, must be paid for in advance; Is sold or provided in predetermined units of time or dollars that decline in a known amount of use or time; and (c) Provides the user with access to 911 emergency service; Page 12 of 56

13 "Prepaid wireless telecommunications service" includes service provided by prepaid wireless providers approved as eligible telecommunications companies by the Kentucky Public Service Commission to participate in the wireless lowincome Lifeline program; (19) "Prepaid wireless telecommunications service provider" means a person or entity that provides prepaid wireless telecommunications service as authorized by a license issued by the FCC; (20)[(15)] "Proprietary information" means information[ held as private property], including customer lists and other related information, technology descriptions, technical information, or trade secrets; (21)[(16)] "Pseudo-automatic number identification" means a wireless enhanced 911 service capability that enables the automatic display of the number of the cell site or cell face; (22)[(17)] "Public safety answering point" or "PSAP" means a communications facility that is assigned the responsibility to receive 911 calls originating in a given area and, as appropriate, to dispatch public safety services or to extend, transfer, or relay 911 calls to appropriate public safety agencies; (23) "Purchaser" means a person who purchases prepaid wireless telecommunications service in a retail transaction; (24) "Retail transaction" means the purchase of prepaid wireless telecommunications service from a retailer for any purpose other than resale; (25) "Retailer" means a person who sells prepaid wireless telecommunications service to any person for a purpose other than resale; (26) "Service connection" means the transmission, conveyance, or routing of voice, data, video, text, or any other information signal of the purchaser's choosing by any medium or method now in existence or later devised with the ability to directly connect the user to 911 emergency services; Page 13 of 56

14 (27)[(18)] "Service supplier" means a person or entity who provides local exchange telephone service to a telephone subscriber; (28)[(19)] "Wireless enhanced 911 system," "wireless E911 system," "wireless enhanced 911 service," or "wireless E911 service" means an emergency telephone system that provides the end user of the CMRS connection with wireless 911 service and, in addition, directs 911 calls to appropriate public safety answering points based on the geographical location from which the call originated and provides the capability for automatic number identification and automatic location identification features in accordance with the requirements of the FCC order; and (29)[(20)] "Tier III CMRS provider" means a non-nationwide Commercial Mobile Radio Service provider with no more than five hundred thousand (500,000) subscribers as of December 31, Section 5. KRS is amended to read as follows: (1) There is hereby created the[ Commercial Mobile Radio Service Emergency Telecommunications Board of] Kentucky 911 Services Board, the "[CMRS ]board," consisting of fifteen (15)[ten (10)] members, eleven (11) of whom shall be voting members appointed by the Governor, two (2) of whom shall be voting members who shall serve by virtue of their offices, and two (2) shall be nonvoting legislative members, as follows: two (2) members shall be employed by or representative of the interest of CMRS providers, of which, one (1) shall be a representative of a Tier III CMRS provider; two (2) members serving as city officials, one (1) of which shall be an elected city official, from a list of four (4) nominees submitted by the Kentucky League of Cities; two (2) members serving as county officials, both of which shall be elected county officials, from a list of four (4) nominees submitted by the Kentucky Association of Counties[one (1) member shall be a mayor of a city or urban-county government or his or her designee containing a public safety answering point]; one (1) member shall be Page 14 of 56

15 appointed from a list of local exchange landline telephone companies' representatives submitted by the Kentucky Telephone Association; one (1) member shall be a director of a certified public safety answering point operated by a local governmental entity or a consolidated group of local governmental entities appointed from lists of candidates submitted to the Governor by the Kentucky Firefighters Association, the State Association of Chiefs of Police, the Kentucky Sheriff's Association, and the Kentucky Ambulance Providers Association; two (2) members shall be appointed from lists of candidates submitted to the Governor by the Kentucky Emergency Number Association and the Association of Public Communications Officials;[ and] one (1) member shall be a director of a certified public safety answering point operated by a local government entity or a consolidated group of local governmental entities; and two (2) nonvoting legislative members to serve solely in advisory capacities for terms of two (2) years, one (1) of whom shall be a member of the House of Representatives to be appointed by the Speaker of the House of Representatives and one (1) of whom shall be a member of the Senate to be appointed by the President of the Senate. The commissioner of the Department of Kentucky State Police, or the commissioner's designee, and the executive director of the Office of Homeland Security, or the executive director's designee,[cmrs emergency telecommunications administrator] also shall be voting members of the board. Any vacancy on the board shall be filled in the same manner as the original appointment. (2) The commissioner of the Department of Kentucky State Police and the executive director of the Office of Homeland Security[and administrator] shall serve by virtue of their offices[office]. The other non legislative members shall be appointed by the Governor[no later than August 15, 1998,] for a term of four (4) years and until their successors are appointed and qualified, except that of the first appointments, one (1) shall be for a term of one (1) year, one (1) shall be for a term Page 15 of 56

16 of two (2) years, one (1) for a term of three (3) years, and two (2) shall be for a term of four (4) years. Any member missing three (3) consecutive meetings may be removed by a majority vote of the remaining voting members. (3) The board shall elect a chair from among its voting members to preside over meetings of the board, which shall be conducted at least four (4) times each year. The board shall be subject to the provisions of the Kentucky Open Meetings Act, KRS to The board shall establish a regular meeting schedule for each calendar year. The board shall hold at least two (2) meetings per calendar year in congressional districts other than the one in which Frankfort is located, and shall rotate its traveling meeting locations among the congressional districts before holding another traveling meeting in the same congressional district. A majority of the voting members appointed to the board shall constitute a quorum. (4) In addition to the administrator appointed by the board under Section 6 of this Act, the Kentucky Office of Homeland Security shall provide staff services and carry out administrative duties and functions as directed by the board. The board shall be attached to the Kentucky Office of Homeland Security for administrative purposes only and shall operate as an independent entity within state government. (5)[(4)] The board members shall serve without compensation but shall be reimbursed in accordance with KRS for expenses incurred in connection with their official duties as members of the board. (6)[(5)] All administrative costs and expenses incurred in the operation of the board, including payments under subsection (5)[(4)] of this section, shall be paid from that portion of the CMRS fund that is authorized under subsection (2) of Section 10 of this Act[KRS ] to be used by the board for administrative purposes. Section 6. KRS is amended to read as follows: (1) The Kentucky 911 Services[CMRS] Board shall appoint a state administrator of commercial mobile radio service emergency telecommunications. The[ CMRS] Page 16 of 56

17 board shall set the administrator's compensation, which shall be paid from that portion of the CMRS fund that is authorized under KRS (2)[(1)] to be used by the board for administrative purposes. (2) The administrator of CMRS emergency telecommunications shall serve as[ a member of the CMRS Board and, as] the coordinator and administrator on behalf[administrative head] of the board, and shall conduct the day-to-day operations of the board. (3) The administrator shall, with the advice of the board, coordinate and direct a statewide effort to expand and improve enhanced emergency telecommunications capabilities and responses throughout the state, including but not limited to the implementation of wireless E911 service requirements of the FCC order and rules and regulations adopted in carrying out that order. In this regard, the administrator shall: (a) Obtain, maintain, and disseminate information relating to emergency telecommunications technology, advances, capabilities, and techniques; Coordinate and assist in the implementation of advancements and new technology in the operation of emergency telecommunications in the state, including the development and implementation of next generation 911 service;[ and] (c) Implement compliance throughout the state with the wireless E911 service requirements established by the FCC order and any rules or regulations which are or may be adopted by the Federal Communications Commission in carrying out the FCC order; and (d) Perform all functions and duties assigned by the board in carrying out the purposes of KRS to , including but not limited to making a full report to the board at each meeting of the activities in which the administrator has engaged in the discharge of his or her duties since the Page 17 of 56

18 previous meeting. Section 7. KRS is amended to read as follows: There is established the commercial mobile radio service emergency telecommunications fund, the "CMRS fund," an insured, interest-bearing account to be administered and maintained by the Kentucky 911 Services[CMRS] Board. The CMRS service charges levied under Sections 8, 15, and 29 of this Act[charge] shall generate revenue equitably from prepaid and postpaid CMRS connections[have uniform application] within the boundaries of the Commonwealth. No charges[charge] other than the CMRS service charges levied under Sections 8, 15, and 29 of this Act are[charge is] authorized to be levied by any person or entity for providing wireless[ 911] service.[ or wireless E911 service. The board shall deposit] All revenues collected[derived] under KRS and Sections 15, 16 to 23, and 29 of this Act shall be deposited directly into the fund, and the board shall direct disbursements from the fund according to the provisions of KRS Moneys in the CMRS fund shall not be the property of the Commonwealth and shall not be subject to appropriation by the General Assembly. Moneys deposited or to be deposited into the CMRS fund shall not: (1) Be loaned to the Commonwealth or to any instrumentality or agency thereof; (2) Be subject to transfer to the Commonwealth or any agency or instrumentality thereof, except for purposes specifically authorized by KRS to ; or (3) Be expended for any purpose other than a purpose authorized by KRS to Section 8. KRS is amended to read as follows: The board shall administer the provisions of KRS to , and shall have the following powers and duties: (1) To review, evaluate, and approve or disapprove the plans or plan modifications that are submitted to the board for complying with the wireless E911 service requirements established by the FCC order and by any rules or regulations which Page 18 of 56

19 are or may be adopted by the Federal Communications Commission in carrying out the FCC order; (2) To develop standards to be followed by the board in reviewing, evaluating, approving, or disapproving the plans or plan modifications that are submitted to the board; (3) (a) To collect the CMRS service charge from each CMRS connection: 1.[(a)] With a place of primary use, as defined in 4 U.S.C. sec. 124, within the Commonwealth; or 2.[] For prepaid CMRS connections, until January 1, 2017, at which time the CMRS prepaid service charge imposed under Section 15 of this Act and collected under Sections 16 to 23 of this Act shall take effect and this subparagraph shall no longer be in force: a.[1.] With a place of primary use, as defined in 4 U.S.C. sec. 124, within the Commonwealth; or b.[2.] With a geographical location associated with the first six (6) digits, or NPA/NXX, of the mobile telephone number is inside the geographic boundaries of the Commonwealth. The CMRS postpaid service charge, and until January 1, 2017, the CMRS prepaid service charge, shall be seventy cents ($0.70) per month per CMRS connection, to[and shall] be calculated, collected, and remitted in accordance with KRS [ beginning August 15, 1998]. The amount of the CMRS service charge shall not be increased except by act of the General Assembly; (4) To deposit the proceeds of the CMRS prepaid service charge levied under Section 15 of this Act that are collected by the Department of Revenue into the CMRS fund established by Section 7 of this Act and to distribute those revenues in accordance with Section 10 of this Act. The CMRS prepaid service charge shall be calculated, collected, and remitted in accordance with Sections 15 and 16 to 23 Page 19 of 56

20 of this Act[To review the rate of the CMRS service charge at least once every twenty-four (24) months and, at its discretion, to decrease the rate or recommend that the General Assembly increase the rate if the board determines that changing the rate is necessary to achieve the purposes of KRS to The first cost study shall be completed on or before July 1, 1999, and shall be submitted to the Governor, the President of the Senate, and the Speaker of the House of Representatives, and the board shall recommend, on the basis of the cost study, whether legislation to increase the CMRS service charge should be proposed during the 2000 Regular Session of the General Assembly]; (5) To administer and maintain the CMRS fund according to the provisions of KRS , and promptly to deposit all revenues from the CMRS service charges[charge] into the CMRS fund; (6) To make disbursements from the CMRS fund, according to the allocations and requirements established in KRS ; (7) To establish procedures and guidelines to be followed by the board in reviewing, evaluating, and approving or disapproving disbursements from the CMRS fund and requests for disbursements made in accordance with KRS ; (8) To resolve conflicts regarding reimbursable costs and expenses under KRS [ (3) and ](4); (9) To submit annual reports to the Auditor of Public Accounts no later than sixty (60) days after the close of each fiscal year, which shall provide an accounting for all CMRS service charges deposited into the CMRS fund during the preceding fiscal year and all disbursements to CMRS providers and PSAPs during the preceding fiscal year; (10) To employ consultants, engineers, and other persons and employees as may be, in the judgment of the board, essential to the board's operations, functions, and responsibilities, and to fix and pay their compensation from funds available to the[ Page 20 of 56

21 CMRS] board; (11) To acquire, by gift, purchase, installment purchase, or lease, any equipment necessary to carry out the board's purposes and duties; (12) To retain any and all information, including all proprietary information, that is submitted to the board by CMRS providers and PSAPs, for the purposes of maintaining it and verifying its accuracy; (13) To retain, with approval by the Auditor of Public Accounts, an independent certified public accountant who shall audit, once every twenty-four (24) months, the books of the board, CMRS providers, and PSAPs eligible to request or receive disbursements from the CMRS fund under KRS for the following purposes: (a) To verify the accuracy of collection, receipts, and disbursements of all revenues derived from the CMRS service charges[charge] and the number of wireless E911 calls received by each PSAP eligible to request or receive disbursements from the CMRS fund; To determine whether the revenues generated by the CMRS service charges[charge] equal, exceed, or are less than the costs incurred in order to comply with the FCC order;[ and] (c) To determine the sufficiency of the funds currently being withheld for administrative purposes under KRS (2)[(1)]; and d) To verify the accuracy of CMRS customer count information reported to the board by CMRS providers. The independent certified public accountant shall make a report of the audits to the board and to the appropriate chief executive officer or officers of the CMRS providers and PSAPs, and to the local governments responsible for the formation of the PSAP. The independent certified public accountant shall also forward a copy of the audits conducted pursuant to this subsection to the Legislative Page 21 of 56

22 Research Commission for referral to the appropriate committee or committees and to the Auditor of Public Accounts. Upon request, the independent certified accountant shall send any work papers related to the audits to the Auditor of Public Accounts.[ The board shall incorporate the auditor's findings in its studies of the CMRS service charge required by subsection (4) of this section.] All information with respect to the audits shall be released to the public or published only in aggregate amounts which do not identify or allow identification of numbers of subscribers or revenues attributable to individual CMRS providers; (14) To ensure that all carriers have an equal opportunity to participate in the wireless E911 system; (15) To ensure that wireless E911 systems are compatible with wireline E911 systems; (16) To determine the appropriate method for disbursing funds to PSAP's based on wireless workload under subsection (5) of Section 10 of this Act[KRS (3)]; (17) To develop standards and protocols for the improvement and increased efficiency of 911 services in Kentucky;[ and] (18) To provide direct grants or state matches for federal, state, or private grants for the establishment or improvement of the 911 emergency telecommunications system in the Commonwealth; and (19) To develop and implement standards for advancements and new technology in the operation of emergency telecommunications in the state, including the development and implementation of next generation 911 service. Section 9. KRS is amended to read as follows: (1) The[ CMRS] board shall gather and report data and information regarding 911 emergency communications funding procedures and costs on or before November 1 of each year[august 1, 2011, and each August 1 thereafter]. (2) The[ CMRS] board shall determine the information it needs to evaluate 911 Page 22 of 56

23 funding, collection of the CMRS service charges[charge collections], and expenditures, and each local government[governmental agency], state governmental agency, wireless or wireline provider of technology capable of transmitting voice or text traffic for an emergency 911 request to a PSAP, and/or private citizen in possession of that information shall provide the information to the board within the time frames established by the board. The board may hire a consultant to gather and analyze the information required by this section. (3) Each local governmental agency and state governmental agency having jurisdiction over one (1) or more public safety answering points (PSAPs) shall provide at least the following information to the board each fiscal year: (a) The amount of revenue available or budgeted for 911 services from the following sources[for each PSAP for fiscal years , , , and ]: 1. The state general fund[wireline 911 fees]; 2. CMRS funds received through the distribution formula under Section 10 of this Act[Board fund money dispersed to the PSAP]; 3. City and county general funds[direct grants or state matches for federal, state, or private grants; and] 4. CMRS grant funds[gifts or other amounts not otherwise reported in this paragraph; and] 5. Other grant funds and their sources; and 6. Any other funds received for 911 service and their sources; and How the revenue described in this paragraph was spent by the PSAPs. (4) Each CMRS[wireless or wireline] provider shall submit at least the following to the board:[of technology capable of transmitting voice traffic for an emergency 911 request to a PSAP shall report to the board the amount of reimbursements received in fiscal years , , , and ] Page 23 of 56

24 (a) One (1) annual report each calendar year of the total number of active CMRS connections in each zip code within Kentucky served by the provider for each month during the year. The report shall be in the form and manner prescribed by the board and shall be submitted no later than thirty (30) days after the end of each year. Each CMRS provider shall include in its report separate counts of the numbers of active CMRS connections attributable to prepaid customers, postpaid customers, and wireless low-income Lifeline customers served by the CMRS provider for each month. For the purposes of this subsection, "active CMRS connection" means all CMRS connections that have an account balance of units of time or dollars greater than zero on any day of the month and includes every Lifeline end user for whom the CMRS provider received reimbursement from the universal service fund during the month under the wireless low-income Lifeline program; and Upon request of the board, any other information needed to evaluate CMRS service charge remittances to the board. (5) Each local governmental agency, state governmental agency, or wireless or wireline provider of technology capable of transmitting voice traffic for an emergency 911 request to a PSAP that fails to provide the information required by this section shall not be eligible to receive distributions of state funds from the CMRS Board. (6) The CMRS Board shall promulgate administrative regulations in accordance with KRS Chapter 13A to establish annual reporting requirements so that the board has the information needed to monitor the use of 911 funds and the rate of the 911 service charge. (7) All information received by the CMRS Board pursuant to this section shall be subject to disclosure under KRS to Proprietary information given to the board by any wireless or wireline provider of technology capable of transmitting Page 24 of 56

25 voice or text traffic for an emergency 911 request to a PSAP pursuant to this section shall be subject to the same confidentiality as provided for proprietary information under KRS and shall only be released or published in aggregate amounts which do not identify or allow identification of numbers of CMRS customers or revenues attributable to an individual CMRS provider. (8) The CMRS Board shall ensure that the Legislative Research Commission has access to all data collected under this section and shall report this information to the Legislative Research Commission's Interim Joint Committee on Veterans, Military Affairs, and Public Protection by November[August] 1 of each year. Upon request, the board shall also report this information to any public entity as defined in KRS Section 10. KRS is amended to read as follows: (1) The moneys in the CMRS fund shall be apportioned among the approved uses of the fund as specified in this section. The board shall make individual disbursements from the fund upon such terms and conditions necessary in view of the amount of revenues on deposit at the time each request for disbursement is reviewed and approved. (2)[(1)] Not more than two and one-half percent (2.5%) of the total monthly revenues deposited into the CMRS fund shall be disbursed or reserved for disbursement by the board to pay the administrative costs and expenses incurred in the operation of the board in carrying out the functions and duties set forth in KRS to [, including the compensation of the administrator and expenses incurred pursuant to KRS (10), (11), (13), (16), (17), and (18). An additional sum, not to exceed two hundred fifty thousand dollars ($250,000), shall be available to the board from the fund to implement the wireless workload formula under subsection (3) of this section]. (3)[(2)] (a) Two and one-half percent (2.5%) of the total monthly revenues Page 25 of 56

26 deposited into the CMRS fund shall be used solely for the purpose of reimbursing the actual expenses incurred by tier III CMRS providers from June 30, 2011 to January 1, 2016 for complying with requirements established by the FCC order. Reimbursement under this subsection is only available to tier III CMRS providers that: 1. Have a cost recovery plan that was approved by the CMRS Board, predecessor in name to the Kentucky 911 Services Board, prior to June 30, 2011; and 2. Had received approval for reimbursement from the CMRS Board, predecessor in name to the Kentucky 911 Services Board, prior to the effective date of this section. When all reimbursements approved under this subsection have been paid, the two and one-half percent (2.5%) apportioned under this subsection shall be used solely for the purposes specified in subsection (5) of this section[not more than ten percent (10%) of the total monthly revenues deposited into the CMRS fund shall be disbursed or reserved for disbursement by the board to provide direct grants or matching money: 1. For the establishment and improvement of E911 services in the Commonwealth; 2. For incentives to create more efficient delivery of E911 services by local governments receiving funding under subsection (3) of this section; 3. For improvement of 911 infrastructure by wireless carriers receiving funding under subsection (4) of this section; and 4. For consolidation reimbursement of one hundred thousand dollars ($100,000) per PSAP, not to exceed two hundred thousand dollars ($200,000) per county, to any PSAP that consolidates with a CMRS-certified PSAP, or creates a newly consolidated Phase II compliant PSAP. Funds shall be applied toward Page 26 of 56

27 the cost of consolidating. If a PSAP consolidates and receives reimbursement, the CMRS Board shall not certify a new PSAP within the same county for a period of ten (10) years. When the balance of money collected under paragraph (a) of this subsection and not yet disbursed for direct grants or matching moneys exceeds two million dollars ($2,000,000), the excess amount shall be allocated under the provisions of subsections (3) and (4) of this section]. (4)[(3)] Ten percent (10%) of the total monthly revenues deposited into the CMRS fund shall be disbursed or reserved for disbursement to provide direct grants, matching money, or funds to PSAPs as determined by the Kentucky 911 Services Board: (a) For the establishment and improvement of 911 services in the Commonwealth, including the implementation of next generation 911 capacity; For incentives to create more efficient delivery of 911 services by local governments receiving funding under subsection (5) of this section; (c) For improvement of 911 infrastructure by Tier III wireless providers receiving funding under this section; and (d) For consolidation reimbursement of two hundred thousand dollars ($200,000) per PSAP, not to exceed four hundred thousand dollars ($400,000) per county, to any PSAP that consolidates with a CMRScertified PSAP, or creates a newly consolidated Phase II compliant PSAP. Funds shall be applied toward the cost of consolidating. If a PSAP consolidates and receives reimbursement, the Kentucky 911 Services Board shall not certify a new PSAP within the same county for a period of ten (10) years. When the balance of money collected under this paragraph and not yet Page 27 of 56

28 obligated for permitted uses exceeds two million dollars ($2,000,000) in any fiscal year, the excess amount shall be allocated under subsection (5) of this section. (5) [From ]The balance of the total monthly revenues deposited into the CMRS fund after the amounts disbursed or reserved for disbursement under subsections (2), (3), and (4)[(1) and (2)] of this section have been subtracted[, eighty percent (80%)] shall be distributed to PSAPs eligible to receive disbursement from the CMRS fund under subsection (6)[(5)] of this section who actually request disbursement, as follows: (a) Fifty percent (50%) of the remaining balance to be allocated under this subsection[forty percent (40%)] shall be distributed according to the "PSAP pro rata formula," whereby each receives a percentage determined by dividing one (1) by the total number of PSAPs eligible to request and actually requesting disbursements under subsection (6)[(5)] of this section. Any PSAPs certified before January 1, 2004, or for more than three (3) years, that choose to consolidate their operations shall continue to receive pro-rata shares as if they remained separate and distinct entities. The consolidated entity must be certified to receive funds under subsection (6)[(5)] of this section; and Fifty percent (50%) of the remaining balance to be allocated under this subsection[forty percent (40%)] shall be distributed according to a method chosen by the board and based on the wireless workload of the PSAP. Methods to be considered may be based on the number of wireless 911 calls answered by each PSAP, the number of wireless phone users served by each PSAP, or any other method deemed by the board to be reasonable and equitable. The method chosen by the board shall be promulgated as a regulation under KRS All amounts distributed to PSAPs under this subsection shall be used by the PSAPs Page 28 of 56