HB1629 (2010) Detail

Repealing the dedicated enhanced 911 system fund.


HB 1629-FN – AS INTRODUCED

2010 SESSION

10-2575

09/04

HOUSE BILL 1629-FN

AN ACT repealing the dedicated enhanced 911 system fund.

SPONSORS: Rep. Kurk, Hills 7

COMMITTEE: Ways and Means

ANALYSIS

This bill repeals the dedicated enhanced 911 system fund and directs 911 system surcharges to be deposited in the general fund.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

10-2575

09/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT repealing the dedicated enhanced 911 system fund.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Powers and Duties; Reference to Dedicated Fund Deleted. Amend RSA 106-H:6, VII to read as follows:

VII. In conjunction with the operating budget of the department of safety, the department shall submit a budget for each biennium, which shall include financial responsibility for and the costs of all programs offered or contracted by the division of emergency services, communications and management[, and all revenues and expenditures of the dedicated fund established in RSA 106-H:9].

2 Enhanced 911 System Funding. Amend RSA 106-H:9, I to read as follows:

I. The enhanced 911 system shall be funded through a surcharge to be levied upon each residence and business telephone exchange line, including PBX trunks and Centrex lines, each individual commercial mobile radio service number, and each semi-public and public coin and public access line. No such surcharge shall be imposed upon more than 25 business telephone exchange lines, including PBX trunks and Centrex lines, or more than 25 commercial mobile radio service exchange lines per customer billing account. In the case of local exchange telephone companies, the surcharge shall be contained within tariffs or rate schedules filed with the public utilities commission and shall be billed on a monthly basis by each local exchange telephone company. In the case of an entity which provides commercial mobile radio service the surcharge shall be billed to each customer on a monthly basis and shall not be subject to any state or local tax; the surcharge shall be collected by the commercial mobile radio service provider, and may be identified on the customer's bill. Each local exchange telephone company or entity which provides commercial mobile radio service shall remit the surcharge amounts on a monthly basis to the enhanced 911 services bureau, which shall be forwarded to the state treasurer for deposit in the [enhanced 911 system] general fund. [The state treasurer shall pay expenses incurred in the administration of the enhanced 911 system from such fund. Such fund shall not lapse.] If the expenditure of additional funds over budget estimates is necessary for the proper functioning of the enhanced 911 system, the department of safety may request, with prior approval of the fiscal committee of the general court, the transfer of funds from the [enhanced 911 system] general fund to the department of safety for such purposes. [The moneys in the account shall not be used for any purpose other than the development and operation of enhanced 911 services, in accordance with the terms of this chapter.] Surcharge amounts shall be reviewed after the budget has been approved or modified, and if appropriate, new tariffs or rate schedules shall be filed with the public utilities commission reflecting the surcharge amount.

3 Penalty for Late Payment of Surcharge; Reference to Fund Changed. Amend RSA 106-H:9-a to read as follows:

106-H:9-a Penalty for Late Payment of Surcharge. The commissioner is authorized to charge a penalty not to exceed $1,000, plus interest of 18 percent per year, on surcharge receipts that are more than 90 days in arrears, which penalty and interest shall be forwarded to the state treasurer for deposit in the [enhanced 911 system] general fund.

4 Repeal. RSA 6:12, I(b)(40), relative to the enhanced 911 system fund, is repealed.

5 Effective Date. This act shall take effect July 1, 2010.

LBAO

10-2575

12/14/09

HB 1629-FN - FISCAL NOTE

AN ACT repealing the dedicated enhanced 911 system fund.

FISCAL IMPACT:

      The Department of Safety states this bill would decrease state restricted revenue and expenditures, and increase state general fund revenue and expenditures by an indeterminable amount in FY 2011 and each year thereafter. This bill would have no fiscal impact on county and local revenue and expenditures.

METHODOLOGY:

    The Department of Safety states this bill would repeal the enhanced 911 system fund (E911) and direct E911 system surcharge revenue to the state general fund. There would be no net state fiscal impact on revenue and expenditures, but there would be an equal change in funding from state restricted funds to state general funds. The Department estimates the E911 fund balance at $6,751,325 for the beginning of FY 2011. Annual E911 revenues are estimated at approximately $10,600,000 in FY 2010 and each year thereafter, and annual E911 expenditures are estimated at $11,084,388 in FY 2011, $11,749,451 in FY 2012, $12,454, 419 in FY 2013, and $13,201,684 in FY 2014. State restricted revenue and expenditures of the E911 fund will decrease by the amounts above, as state general fund revenues and expenditures will increase by these amounts. Additionally, the Department states Division of Emergency Communications and Services would lose federal funds from an expected United States Department of Transportation (USDOT) grant of $600,000 since the grant prohibits E911 surcharge funds to be used for purposes other than E911. The Department states this bill would have no fiscal impact on county and local revenue and expenditures.