Chapter 740 Oregon Laws 2001

AN ACT

HB 3977

Relating to emergency communications; creating new provisions; amending sections 10, 17, 18 and 20, chapter 533, Oregon Laws 1981; appropriating money; limiting expenditures; prescribing an effective date; and providing for revenue raising that requires approval by a three-fifths majority.

Be It Enacted by the People of the State of Oregon:

SECTION 1. (1) In the biennium beginning July 1, 2001, the Division of Audits of the office of the Secretary of State shall conduct compliance audits on a sample of cities and counties constituting not less than 10 percent of cities and counties to determine whether emergency communications funds allocated to cities and counties from revenues collected under section 10, chapter 533, Oregon Laws 1981, are being used as directed in sections 17 and 18, chapter 533, Oregon Laws 1981.

(2)(a) By September 1, 2002, in a county with more than one primary public safety answering point, the primary public safety answering points shall jointly submit to the Office of Emergency Management a written plan for the consolidation of the primary public safety answering points including, but not limited to, requirements for the consolidation of facilities, equipment and personnel.

(b) The Office of Emergency Management shall submit the written plans of counties with more than one primary public safety answering point to the Seventy-second Legislative Assembly to assist in the determination of how funds in the Primary Public Safety Answering Points Consolidation Incentive Fund will be allocated.

(c) If the primary public safety answering points, in a county with more than one primary public safety answering point, fail to submit a written plan for consolidation under this subsection, the Office of Emergency Management shall prepare and submit a written plan to the Seventy-second Legislative Assembly on behalf of the county.

SECTION 2. Section 10, chapter 533, Oregon Laws 1981, as amended by section 1, chapter 793, Oregon Laws 1989, section 12, chapter 743, Oregon Laws 1991, section 1, chapter 808, Oregon Laws 1993, and section 2, chapter 276, Oregon Laws 1995, is amended to read:

Sec. 10. (1) There is imposed on each paying retail subscriber who has telecommunication services with access to the 9-1-1 emergency reporting system a tax equal to 75 cents per month. The tax shall be applied on a telecommunications circuit designated for a particular subscriber. One subscriber line shall be counted for each circuit that is capable of generating usage on the line side of the switched network regardless of the quantity or ownership of customer premise equipment connected to each circuit. For providers of central office based services, the tax shall be applied to each line that has unrestricted connection to the switched network. Those central office based service lines that have restricted connection to the switched network shall be charged based on software design in the central office that restricts the number of station calls to and from the network. For cellular, wireless or other radio common carriers, the tax shall apply on a per instrument basis and only if the subscriber's place of primary use, as defined and determined under 4 U.S.C. 116 to 126, is within this state.

(2) The subscriber shall be liable for the tax imposed by this section.

(3) The amounts of tax collected by the provider shall be considered as payment by the subscriber for that amount of tax.

(4) Any return made by the provider collecting the tax shall be accepted by the Department of Revenue as evidence of payments by the subscriber of amounts of tax so indicated upon the return.

(5) The tax shall continue until December 31, [2001] 2003.

SECTION 2a. Section 17, chapter 533, Oregon Laws 1981, as amended by section 18, chapter 743, Oregon Laws 1991, section 4, chapter 808, Oregon Laws 1993, and section 9, chapter 276, Oregon Laws 1995, is amended to read:

Sec. 17. (1) The Emergency Communications Account is established separate and distinct from the General Fund in the State Treasury. All moneys received by the Department of Revenue pursuant to sections 10 to 16, chapter 533, Oregon Laws 1981, and interest thereon shall be paid to the State Treasurer to be held in a suspense account established under ORS 293.445. After payment of refunds, the balance of the moneys received shall be paid into the State Treasury and credited to the Emergency Communications Account. All earnings on investment of moneys in the Emergency Communications Account shall accrue to that account. All moneys in the account are appropriated continuously to the Office of Emergency Management and shall be used for the purposes described in section 18, chapter 533, Oregon Laws 1981.

(2) The Enhanced 9-1-1 Subaccount is established as a subaccount of the Emergency Communications Account. Thirty-five percent of the amount in the Emergency Communications Account on the date of distribution shall be credited to the Enhanced 9-1-1 Subaccount. All moneys in the account are continuously appropriated to the Office of Emergency Management and shall be used for the purposes described in section 18 (3), [and] (4) and (5), chapter 533, Oregon Laws 1981.

(3) The Enhanced 9-1-1 Equipment Replacement Subaccount is established as a subaccount of the Emergency Communications Account. Two and one-half percent of the amount in the Emergency Communications Account shall be credited to the Enhanced 9-1-1 Equipment Replacement Subaccount. All moneys in the account are continuously appropriated to the Office of Emergency Management and shall be used for the purposes described in section 18 [(6)] (7), chapter 533, Oregon Laws 1981.

SECTION 2b. Section 18, chapter 533, Oregon Laws 1981, as amended by section 1, chapter 218, Oregon Laws 1987, section 14, chapter 793, Oregon Laws 1989, section 19, chapter 743, Oregon Laws 1991, section 11, chapter 707, Oregon Laws 1993, and section 10, chapter 276, Oregon Laws 1995, is amended to read:

Sec. 18. The Office of Emergency Management shall distribute quarterly the entire amount of the moneys in the Emergency Communications Account beginning in June 1982. The office shall pay the following amounts from the account:

(1) Administrative costs incurred during the preceding calendar quarter by the Department of Revenue in carrying out sections 10 to 16, chapter 533, Oregon Laws 1981. The amount paid to the department shall not exceed one-half of one percent of the amount in the account on the date of distribution, or actual expenses incurred by the department, whichever is less.

(2) Administrative costs incurred during the preceding calendar quarter by the Office of Emergency Management in carrying out its duties under chapter 533, Oregon Laws 1981. The amount paid to the office shall not exceed four percent of the amount in the account on the date of distribution, or actual expenses incurred by the office, whichever is less. The office may provide funding under this subsection for the Oregon Emergency Response System in an amount not to exceed 15 percent of the legislatively approved budget for the Oregon Emergency Response System. Funding provided to the Oregon Emergency Response System under this subsection shall be in the manner prescribed by the office and shall be subject to the availability of funds for such funding.

(3) Funds in the Enhanced 9-1-1 Subaccount shall be used to pay for costs incurred during the preceding calendar quarter for enhanced 9-1-1 telephone service established pursuant to ORS 401.720. Enhanced 9-1-1 subaccount funds shall not be disbursed to a 9-1-1 jurisdiction which does not have an approved final plan as required in section 7, chapter 743, Oregon Laws 1991. Payments shall be made only after a reimbursement request has been submitted to the Office of Emergency Management in the manner prescribed by the office. Reimbursement requests for recurring and nonrecurring charges necessary to enable the 9-1-1 jurisdiction to comply with ORS 401.720 shall be submitted directly to the Office of Emergency Management. The costs payable under this section are only those incurred for:

(a) Modification of central office switching and trunking equipment;

(b) Network development, operation and maintenance;

(d) On-premise equipment procurement, maintenance and replacement;

(e) Conversion of pay station telephones required by ORS 401.770;

(f) Collection of the tax imposed by sections 10 to 16, chapter 533, Oregon Laws 1981; and

(g) Addressing if the reimbursement request is consistent with rules adopted by the office.

(4) 9-1-1 jurisdictions who have enhanced 9-1-1 telephone service operational prior to December 31, 1991, shall receive funding based on cost information provided in their final plan required in section 7, chapter 743, Oregon Laws 1991. Plans submitted which meet the minimum requirements set forth in ORS 401.720 (2) and (4) shall be approved. Funding for costs incurred prior to the preceding calendar quarter shall be limited to charges associated with database development, network and on-premise equipment which satisfy the requirements of ORS 401.720 (2) and (4). Funding under this section shall be in the manner prescribed by the office and subject to the availability of funds therefor.

(5) 9-1-1 jurisdictions may use funds distributed to the jurisdiction from any account described in section 17, chapter 533, Oregon Laws 1981, to repay loans from the Special Public Works Fund if the loans were used for purposes that are allowable under ORS 401.710 to 401.790.

[(5)] (6) Any amounts remaining in the Enhanced 9-1-1 Subaccount shall be retained by the Office of Emergency Management and may be distributed in any subsequent quarter for those purposes set forth in subsections (3), [and] (4) and (5) of this section.

[(6)] (7) The Enhanced 9-1-1 Equipment Replacement Subaccount shall be used by the Office of Emergency Management to provide funds to replace and upgrade equipment to carry out the provisions of ORS 401.710 to 401.790 and sections 10 to 20, chapter 533, Oregon Laws 1981. If at any time unexpended and unobligated balances in the subaccount exceed $500,000, such excess amount shall be transferred and credited to the Emergency Communications Account and shall be used for the purposes otherwise provided by law.

[(7)] (8) The office shall review reimbursement requests for modification of central office switching and trunking equipment, conversion of pay station telephones, and network development, operation and maintenance costs necessary to comply with ORS 401.720 for the appropriateness of the costs claimed. The office shall approve or disapprove the reimbursement requests.

[(8)] (9) The office shall review reimbursement requests for database development, operation and maintenance, and on-premise equipment procurement, maintenance and replacement costs necessary to comply with ORS 401.720 for the appropriateness of the costs claimed.

[(9)] (10) After all amounts under subsections (1) and (2) of this section and section 17 (2) and (3), chapter 533, Oregon Laws 1981, have been paid, the balance of the Emergency Communications Account shall be distributed to cities on a per capita basis and to counties on a per capita basis of each county's unincorporated area, for distribution to 9-1-1 jurisdictions within the city or county, but each county shall receive a minimum of one percent of the balance of the account after the amounts under subsections (1) and (2) of this section and section 17 (2) and (3), chapter 533, Oregon Laws 1981, have been paid. A 9-1-1 jurisdiction whose 9-1-1 service area includes more than one city or county shall receive funds from each city or county involved.

[(10)] (11) Notwithstanding subsection [(9)] (10) of this section, a city or county may have its quarterly distribution made payable and sent to the 9-1-1 jurisdiction responsible for providing the services required in ORS 401.720.

[(11)] (12) 9-1-1 jurisdictions shall submit an accounting report to the office annually. The report shall be provided in the manner prescribed by the office, and shall include but not be limited to:

(a) Funds received and expended under subsection [(9) or] (10) or (11) of this section for the purposes of fulfilling the requirements of ORS 401.720;

(b) Local funds received and expended for the purposes of fulfilling the requirements of ORS 401.720; and

SECTION 2c. Section 20, chapter 533, Oregon Laws 1981, as amended by section 16, chapter 793, Oregon Laws 1989, and section 21, chapter 743, Oregon Laws 1991, is amended to read:

Sec. 20. (1) Except as provided in subsection (2) of this section and rules adopted under ORS 401.730 (1)(a), moneys received under section 18 [(9)] (10), chapter 533, Oregon Laws 1981, may be used only to pay for planning, installation, maintenance, operation and improvement of a 9-1-1 emergency reporting system as it relates to getting the call from the citizen to the primary public safety answering point and in transmitting the information from the primary public safety answering point to the secondary public safety answering point or responding police, fire, medical or other emergency unit by telephone, radio or computerized means.

(2) Moneys not then being used may be invested by a city or county. The income from the investments shall be used for the purposes described in subsection (1) of this section.

SECTION 3. Notwithstanding the direction in sections 17 and 18, chapter 533, Oregon Laws 1981, in the biennium beginning July 1, 2001, the Office of Emergency Management shall provide $1,754,101 from the moneys in the Enhanced 9-1-1 Subaccount to be used solely to assist in the purchase of communications equipment, including computer, radio and dispatch equipment, required for the operation by the Oregon State Police of the Central Communications and Coordination Center.

SECTION 4. (1) Notwithstanding the direction in section 18, chapter 533, Oregon Laws 1981, to distribute the entire amount of the moneys in the Emergency Communications Account, the amount of $56 million is established for the biennium beginning July 1, 2001, as the amount of funds to be distributed as described in sections 17 and 18, chapter 533, Oregon Laws 1981.

(2) In addition to and not in lieu of any other law limiting the expenditures of the Department of State Police, including the limit on expenditures established by section 2 (5), chapter 776, Oregon Laws 2001 (Enrolled Senate Bill 5538), the amount of $39.5 million is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by the Office of Emergency Management for the amount of the credits and payments described in sections 17 and 18, chapter 533, Oregon Laws 1981.

SECTION 5. (1) The Primary Public Safety Answering Points Consolidation Incentive Fund is established separate and distinct from the General Fund. Moneys in the fund are continuously appropriated to the Office of Emergency Management. Interest earned by the fund shall be credited to the fund. Moneys credited to the Primary Public Safety Answering Points Consolidation Incentive Fund shall be available for the purpose of consolidating emergency communications operations and improving efficiency as directed by the Seventy-second Legislative Assembly.

(2) Moneys remaining in the Emergency Communications Account after the payments required under sections 3 and 4 of this 2001 Act shall be transferred to the Primary Public Safety Answering Points Consolidation Incentive Fund established under subsection (1) of this section.

SECTION 6. (1) The Director of the Office of Emergency Management shall establish by administrative rule the minimum standards for a primary public safety answering point.

(2) If a primary public safety answering point does not meet the minimum standards established under subsection (1) of this section within 45 days after receipt of written notice from the Office of Emergency Management, the office shall designate an alternate primary public safety answering point that meets the minimum standards and cause calls to be rerouted to the designated primary public safety answering point.

SECTION 7. It is the intent of the Seventy-first Legislative Assembly that, in biennia beyond the 2001-2003 biennium, revenues generated by the tax imposed under section 10, chapter 533, Oregon Laws 1981, shall be used to support only one primary public safety answering point in each county.

SECTION 8. Sections 1 and 5 to 7 of this 2001 Act are added to and made a part of sections 10 to 20, chapter 533, Oregon Laws 1981.

SECTION 9. The Office of Emergency Management may not expend moneys from the Primary Public Safety Answering Points Consolidation Incentive Fund without authorization from the Seventy-second Legislative Assembly.

SECTION 10. The amendments to sections 10, 17, 18 and 20, chapter 533, Oregon Laws 1981, by sections 2 to 2c of this 2001 Act apply to subscriber bills issued on or after August 1, 2002.

SECTION 11. This 2001 Act takes effect on the 91st day after the date on which the regular session of the Seventy-first Legislative Assembly adjourns sine die.

Approved by the Governor July 3, 2001

Filed in the office of Secretary of State July 3, 2001

Effective date October 6, 2001

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