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[Editorial Note: A summary of the HJR 251 Emergency Telecommunications Study findings was distributed at the Virginia State Crime Commission meeting on Wednesday, December 8, 1999. Scanning that summary created this web document. However, the graphics included with the summary were not reproduced. Wherever they were present, an editorial note similar to this one has been inserted describing the graphic. If you wish to receive a copy of either the full report (over 200 pages long) or the actual summary document distributed at the meeting, please contact the Virginia Crime Commission via the contact information shown underneath the agenda. All spelling errors and other deviations from the original summary document are entirely the fault of the editor.]

Virginia State Crime Commission
Meeting Agenda
Wednesday, December 8, 1999
General Assembly Building, House Room D
Richmond, VA

1:00 p.m. Call to order/Approval of minutes
Senator Ken Stolle, Chairman

SJR 332
Civil Commitment of Violent Sexual Predators
Herschel V. Keller, Staff Attorney

HJR 551
Chronic Traffic Offenders
Herschel V. Keller, Staff Attorney

2:00 p.m. Letter Study
Photo Radar
Herschel V. Keller, Staff Attorney

HJR 215
Emergency Telecommunications
Lawrence W. Schack, Principal Legislative Methodologist

SJR 240
Crime & Violence Survey
Lawrence W. Schack, Principal Legislative Methodologist

4:00 p.m. Legislative Public Hearing 

Virginia State Crime Commission
General Assembly Building
910 Capitol St., Suite 915
Richmond, VA 23219
Phone: (804) 225-4534
Fax (804) 786-7872

Virginia State Crime Commission
HJR 215
Enhanced 911 Systems
8 December 1999
Agenda

• General Overview of HJR 215

• Wireline E-911 in Virginia (Code of Virginia, § 58.1-3813)

• Wireline E-911 in Other States

• Wireless E-911 in Virginia (Code of Virginia, §§ 56-484.8 to 56484.11)

• Wireless E-911 in Other States

• Managing and Promoting Enhanced Emergency Telecommunications Services in Virginia

• Funding Wireline and Wireless E-911 in Virginia

• Funding Wireline E-911 in Virginia

• Funding Wireless E-911 in Virginia

• Wireline and Wireless E-911 Tax Rates

• Non-Emergency #77

• The Virginia Department of State Police and Wireless E-911

• A Retrospective Summing Up

General Overview of HJR 215

House Joint Resolution 215 (1998), directed the Virginia State Crime Commission to make recommendations for the most efficient and cost effective manner to first improve upon, and then manage and deliver wireline and wireless E-911 services to Virginia's citizenry. Additionally, the Virginia General Assembly asked that the Crime Commission comment on ways to promote the use of #77 among citizens for non-emergency services.  The final report is due January 1, 2000.

The options for legislative consideration discussed below proceed from a basic assumption: That improved public safety remains an important objective of Virginia State and local governments. As Virginia prepares to face increasingly complex challenges in the area of emergency telecommunications generally, planning, communication, and coordination become increasingly critical. By endorsing the following options for legislative consideration, the Commonwealth will be able to more efficiently and effectively deliver enhanced emergency telecommunications services to all the Commonwealth's citizens. Further, these moves will help to establish Virginia as the nationwide leader in the provision of these services.

In the Commonwealth of Virginia there are an estimated 150 Public Safety Answering Points (PSAPS) serving 135 local jurisdictions (cities and counties). Evidence collected indicates that as of the fall of 1999, 97% of Virginia's population (but only 89% of the land area) is served by at least basic 911, and 95% of Virginia's population (but only 77% of the land area) is served by wireline enhanced 911 (E-911).

In 1982, the Virginia General Assembly passed legislation creating a local tax for enhanced emergency telephone service. Code of Virginia, § 58.1-3813 allows wireline E-911 taxes to fund the following: (1) the initial capital, installation, and maintenance costs of an E-911 emergency telephone system, (2) recurring maintenance, repair, and system upgrade costs, and (3) salaries or portions of salaries of dispatchers or call-takers, and - in some localities - the Director or Coordinator of that area's E-911 program.

Additionally, the enabling statutory language includes an expectation that this special tax would be reduced over time, and allows for compensation of the telephone company for collecting the tax (3%).

Looking more closely at the wireline E-911 tax, assessed on each telephone line monthly, the local tax for enhanced emergency telephone service generated an estimated $67 million during fiscal year 1999, a 123% increase in local revenue generated from the local tax since fiscal year 1994 ($30 million). (Editorial Note: This text accompanied a line graph comparing the percentage increase of Local Revenue, Expenditure, and E-911 Tax compared to a Base Year (1994) for the years 1994-95; 1995-96; 1996-97; 1997-98; 1998-99. Percentages on the X axis ranged from 0 to 140%, with the highest percentage reported being 123% for Wireline E-911 Taxes in 1998-99.)

The average rate of the E-911 wireline tax in Virginia is $1.30. Compared to three national measures developed from a review of all 50 states' 911 laws, Virginia's wireline E-911 tax rate is .63-cents above the national average of .67-cents. [Editorial Note: The above text accompanied a bar chart depicting E-911 Surcharge Rates, with the X axis running from $0.25 up to $1.50. The leftmost bar labeled "Average "State Tax" Capped/Fixed Rate" and rising to a level of $0.48. The next bar was labeled "Average "Local Tax" Capped/Fixed Rate", and rose to a level of $0.85. The third bar was labeled "National Average: Capped/Fixed Rate", and was calculated by combining the Average State Tax Rate and the Average Local Tax Rate. The third bar rose to a level of $0.67. The last bar on the chart was labeled "Virginia's Average Wireline Tax Rate", and it rose to a level of $1.30.

Some jurisdictions (12) do levy a local tax for enhanced emergency telephone service but do not provide wireline E-911 services, whereas others (14) neither levy the tax nor provide the service. Most localities (56%) use their general fund to account for wireline E-911 financial activity, and, as such, there is not always separate budgeting and accounting processes for wireline E-911 service expenditures. The remaining localities (44%) make use of a special fund revenue (32%) or some other fund (12%).

Expenditure activity reports provided to Virginia's APA pursuant to Item 9 2c (1999 Appropriations Act) by local governments show that contrary to Virginia's traditional public policy goals, as currently constructed Code of Virginia, §58.13813 promotes inconsistencies in local government interpretations of what constitutes an allowable E-911 expense. Summarizing, the APA commented:

In responding to our survey, some localities reported personnel service costs for all dispatchers and call-takers within a communication center, even though they handle administrative calls in addition to the 911 calls. Other localities reported a portion of the costs for dispatchers or call-takers depending on call activity or funding levels. Some localities considered all communication equipment and system upgrade costs as allowable even though these purchases provide both E-911 and other capabilities to the locality's communication operations. Certain localities charged other expenses they attributed to the E-911 services while other localities did not.

Looking more closely at the variability Code of Virginia 58.1-3813 encourages when it comes to determining an "allowable expense," some jurisdictions reported that they apply funds generated from the wireline E-911 tax to those expenses associated only with personnel services, contractual agreements, equipment purchases, and E-911 system upgrades/ maintenance directly related to the provision of wireline E-911 services, while other localities included a variety of expenses.

Fairfax County reported that it not only they considered fundable by moneys considers all PSAP dispatcher and call-taker expenses as recoverable under Code of Virginia, 58.1-3813 (Fairfax County designated 108 employees as "Public Safety Communicators "), but also the salaries - or portions thereof- of 32 of the public safety personnel positions, including 6 members of the police force and 4 "Fire Lieutenants".

Some of the items purchased with E-911 funds included:

Advertising
Janitorial Costs
Miscellaneous Expenditures
Office Equipment
Books
Non-Cash Achievement Award(s)
Chairs
Personal Computers
Clerical Expenses
Postage
Clothing Apparel/Uniforms
Laser Printer
Conventions
Printing Costs
Copy Machine
Report Binding
Desks
Scanner
Dues/Association Membership   
Subscriptions
Fax Machine
Supplies
Fixtures Travel
Furniture
Administrative Assistant/Secretary
Gasoline/Diesel Fuel

Wireline E-911 in Other States

Though wireline E-911 funding and cost recovery provisions do vary from state to state, similarities do exist. Working from a review of all fifty states' wireline E-911 laws, staff determined that Virginia is one of a minority of states in that Code of Virginia, § 58.1-3813:

Whereas other states establish clearly the primacy of public safety considerations, and then look to ensure that those funds designated for the provision of wireline E-911 services are spent appropriately, Virginia's enabling wireline E-911 legislation does comparatively little to encourage the development of those ideals deemed central by many other states to the successful implementation and future uninterrupted operation of their wireline E-911 systems and infrastructure. Virginia's enabling legislation, then, contributes greatly to the variability of Virginia's wireline E-911 tax rate, accounting measures, and spending practices, the fact that wireline 911 service delivery varies from jurisdiction to jurisdiction, and the current lack of inter-jurisdictional and inter-agency communication and cooperation, among other things.

Wireless E-911 in Virginia

The FCC regulates wireless telecommunications companies. In 1996 the FCC issued Docket Order 94-102 requiring all wireless carriers to provide wireless E-911 in two phases, if certain conditions were met. Subsequently, the FCC has revisited and revised these requirements, altering somewhat the specifics associated with Phase I and Phase II wireless E-911 location services, but leaving intact the main thrust of the original order. (Note also that this past October, the President signed U.S. Senate Bill 800, the Wireless Communications and Public Safety Act of 1999. Among other things, this legislation designates 911 as the universal emergency assistance number, and directs the FCC to encourage the construction and operation of a seamless, ubiquitous, and reliable wireless E-911 network through intra- and inter-statewide coordination.)

In 1998, the Virginia General Assembly passed legislation (the Wireless Enhanced Public Safety telephone Service Act, Code of Virginia, §§ 56-484.8 to 56-484.11) creating a Wireless E-911 Service Board. The General Assembly also authorized wireless service providers to collect a monthly fee of .75-cents assessed upon each of their assigned telephone numbers. These moneys are deposited into a fund to provide full payment to PSAPs and wireless carriers of all "reasonable and direct" wireless E-911 costs.

In the Commonwealth of Virginia, there are an estimated 1.5 million wireless subscribers. Evidence collected shows that from January 1, 1998 through December 31, 1998 a reported 709,018 wireless 911 and wireless #77 calls were placed throughout the Commonwealth. Subscriber counts and emergency call volume numbers are expected to grow by at least 15% annually. Note that as of September of 1999, all wireless 911 service in the Commonwealth is basic 91 1, though twenty-two of Virginia's PSAPs have recently (August 1999) requested Phase I service from wireless service providers.

In fiscal year 1998, the Wireless E-911 Fund generated over $13 million. Assuming a 15% growth rate in wireless subscribership in Virginia during fiscal year's 2000 (1.7 million subscribers), 2001 (2.0 million subscribers), and 2002 (2.3 million subscribers), Virginia's wireless E-911 tax will generate an estimated $15.3, $18.0, and $20.7 million during those years, respectively. Total revenue, then, during this period should eclipse $65 million. Hypothetical cost estimates suggest that the maximum cost range associated with implementing a statewide wireless E-911 system (Phase I and Phase II) in Virginia over a five-year period is $97.1 to $145.7 million.

Wireless E-911 in Other States

Virginia's Wireless Enhanced Public Safety Telephone Service Act (Code of Virginia, § 56-484.8 to 484.11) - similar to comparative legislation in 31 other states does do the following:

Conversely, Virginia's wireless E-911 enabling legislation is different from that adopted by other states in that it does not do the following:

Similar to Virginia's wireline E-911 enabling legislation, Virginia's wireless E-911 enabling legislation does little to promote "public safety." Further, Virginia's Wireless E-911 Service Board is hampered by its inability to thoroughly examine and consider wireless service provider and PSAP cost recovery estimates. Lacking the ability to adequately monitor trends and advances in on-point technology, and having no authority to propose a comprehensive plan for the acquisition, management, and use of the necessary Phase I and Phase II hardware and software components to implement wireless E-911 location technologies, Virginia's Board will be unable to deliver a focused, comprehensive approach to the statewide implementation of enhanced emergency telecommunications services.

Managing and Promoting Enhanced Emergency Telecommunications
Services in Virginia

Too much of the emergency telecommunications service's activities of Virginia's PSAPs and local governments now occur with inadequate planning and coordination. The issues discussed in the body of the report point to the need for a more focused approach to emergency telecommunications services, one that has clear leadership from the top, and strong support from all associated parties. Recognizing the need to encourage the statewide coordination of those entities charged with delivering to all citizens of the Commonwealth this important public safety service, Code of Virginia, § 58. 1 3813, as well as Code of Virginia, §§ 56-484.8 to 56-484.11 needs to be restructured, The restructuring highlighted in the following options for legislative consideration can be the foundation for improved emergency telecommunications services for all of Virginia's PSAPs and public safety personnel, and improved public safety services for the citizens of Virginia.

Recommendation (1): The Virginia General Assembly may wish to consider amending Code of Virginia, §§ 56-484.8 to 56-484.11 by replacing the Wireless E911 Service Board with the Virginia Emergency Telecommunications Board, and creating an Emergency Telecommunications Division within Virginia's Department of Technology Planning. The Virginia Emergency Telecommunications Board should be chaired by the Director of the Department of Technology Planning, and the Director of the Emergency Telecommunications Division - designated Virginia's Emergency Telecommunications Systems Coordinator - should be hired by the Board.

Recommendation (2): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider broadening the membership of the Virginia Emergency Telecommunications Board to include ten members appointed by the Governor, including: one representing the Geographic Information Network Division, one representing the Virginia Department of Emergency Services, one representing the Virginia Department of Transportation, one representing the Virginia State Police, one representing the Virginia chapter of the Association of Public Safety Communications Officials, one representing the Virginia chapter of the National Emergency Number Association, one representing the Virginia Sheriffs Association, one representing the Chiefs of Police Association, one who is employed by a local exchange telephone company providing E-911 service, and one representing CMRS providers authorized to do business in Virginia. The Director of the Department of Technology Planning shall serve as the Board's Chairman, and the Controller of the Commonwealth shall serve ex-officio as the Board's Treasurer.

Recommendation (3): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly my wish to consider clearly defining the role and responsibilities of the Virginia Emergency Telecommunications Board and Emergency Telecommunications Division.

Recommendation (4): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider clearly defining the role and responsibilities of the Chairman of the Virginia Emergency Telecommunications Board, and Virginia's Emergency Telecommunications System Coordinator.

Recommendation (5): As part of the restructuring of Code of Virginia, §§ 56484.8 to 56-484.11, the Virginia General Assembly may wish to consider requiring the Virginia Emergency Telecommunications Board to direct and approve a comprehensive, statewide five-year strategic plan for implementing a statewide enhanced emergency telecommunications system (wireline and wireless); and to facilitate the drafting of similar strategic plans at the local and/or regional level.

Recommendation (6): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider requiring the Virginia Emergency Telecommunications Board to re-evaluate the statewide emergency telecommunications services strategic plan annually and either reaffirm or amend it as appropriate.

Recommendation (7): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider requiring the Emergency Telecommunications Division to formulate, direct, and promulgate policies, standards, specifications, and guidelines for the effective development and deployment of a statewide enhanced emergency telecommunications system in the Commonwealth (wireline and wireless); to provide technical assistance to Virginia's PSAPS, as well as state and local police, fire and emergency medical service agencies; and to monitor and report on the implementation of a statewide enhanced emergency telecommunications system in the Commonwealth.

Recommendation (8): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, to ensure an effective system of oversight, the Virginia General Assembly may wish to consider requiring the Emergency Telecommunications Division to make an annual report to the Virginia State Crime Commission and the Public Safety Subcommittees of the House Appropriations and Senate Finance Committees of the Virginia General Assembly on the status of emergency telecommunications services in Virginia (wireline and wireless); and to conduct special or continuing studies as directed by the Virginia General Assembly.

Recommendation (9): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider deleting the existing "July 1, 2002" sunset language.

Funding Wireline and Wireless E-911 in Virginia

From a public policy perspective, emergency telecommunications funding mechanisms should raise adequate revenue to pay for the delivery of enhanced emergency telecommunications services. Additionally, if tax revenues are dedicated to funding this service, then generally accepted tax principles, including equity, efficiency, economy, effectiveness, productivity, stability, and accountability should be present. The following discussion outlines a plan of action that the Virginia General Assembly could adopt to relate wireline and wireless E-911 costs to revenues. Additionally, the plan provides for interim funding mechanisms that - taken together - should raise adequate revenue to pay for those "reasonable" and "direct" costs associated with the delivery of enhanced emergency telecommunications services, and better promote those taxation principles listed above.

Another point that deserves mentioning, Crime Commission staff did review and consider a number of possible enhanced emergency telecommunications services funding options, including the idea of eliminating the wireline and wireless E-911 telecommunications taxes and replacing them with an annual appropriation from Virginia's General Fund. Virginia's local PSAPs are the vital link between the citizenry and all of the Commonwealth's law enforcement and emergency service personnel. The price of delay, then, in delivering emergency telecommunications service to Virginia's citizenry may very will be the loss of life. Consequently, more than unwise, it would be reckless to go the route of a General Fund appropriation without first determining the costs associated with fully implementing and operating a statewide enhanced emergency telecommunications system, and guaranteeing that the amount of that appropriation will fluctuate in the future only in proportion to the costs associated with delivering enhanced emergency telecommunications services.

Funding Wireline E-911 in Virginia

Because of the high level of accountability that is required for dedicated tax revenues, funding and cost recovery oversight is necessary if the Virginia General Assembly is to allow tax monies to fund E-911 services. Recognizing the accountability problems posed by the existing local option tax for enhanced emergency telephone service, and working from the review of all existing wireline E-911 enabling legislation, the most appropriate funding mechanism for emergency telecommunications services in Virginia is a state wireline E-911 tax. The following options for legislative consideration promote those taxation principles captured by the words equity, efficiency, economy, effectiveness, productivity, stability, and accountability, and look to recapture the original thrust of Code of Virginia § 58.1-3813. Additionally, these recommendations (in conjunction with others that follow) ensure a stable and reliable funding source for the statewide deployment of enhanced emergency telecommunications services, and, most importantly, allow for the more effective and efficient delivery of this important public safety service to Virginia's citizenry would be more effectively and efficiently served.

Recommendation (10): 7he Virginia General Assembly may wish to consider amending Code of Virginia, § 58.1-3813 by replacing the local option tax for enhanced emergency telephone service with a statewide wireline E-911 surcharge; and to consider delaying the enactment of the statewide wireline E-911 surcharge until January 1, 2001. As determined by the Virginia Emergency Telecommunications Board, those monies generated from the wireline E-911 surcharge will be deposited into the Wireline E-911 Fund and utilized solely for all reasonable direct recurring and nonrecurring capital costs and operating expenses incurred by a public safety answering point in designing, upgrading, leasing, purchasing, programming, installing, testing, administering, delivering, or maintaining all necessary data, hardware, and software required to provide wireline E-911 service, direct personnel costs incurred in receiving and dispatching wireline E-911 calls only, and the salary of the public safety answering point director so long as the director has no duties other than the responsibility for the public safety answering point.

Recommendation (11): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider requiring that all local public safety answering points work with the Emergency Telecommunications Division to develop a standard system for maintaining accurate call volume counts and call processing (from phone answer to dispatch) times; and to develop a standard system for identifying and reporting wireline E-911 costs.

Recommendation (12): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider extending the "reasonable' and "direct " cost recovery standard currently applied to public safety answering points to wireline telephone companies.

Recommendation (13): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider requiring that the Auditor of Public Accounts, or his legally authorized representatives, annually audit the Wireline E-911 Fund in accordance with generally accepted auditing standards. The cost of such audit services shall be borne by the Wireline E-911 Fund. The Board shall furnish copies of such audit to the Governor and the Virginia General Assembly.

Recommendation (14): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider reducing the administrative fee due local exchange carriers for the cost of collecting and remitting the wireline E-911 tax to one percent of the total amount collected and to consider delaying the reduction of this administrative fee until January 1, 2001.

The wireless E-911 tax should continue to be based on the number of wireless customers whose billing address is within the Commonwealth and collected monthly. Like the proposed statewide wireline E-911 tax, more so than any other funding method, the action discussed here would ensure a stable and reliable funding source for the statewide deployment of emergency telecommunications services, thereby ensuring the effective and efficient delivery of this most important of public safety services to Virginia's citizenry.

Recommendation (15): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to requiring that the statewide wireless E-911 surcharge be forwarded to the Virginia Emergency Telecommunications Board As determined by the Virginia Emergency Telecommunications Board, those monies generated from the wireless E-911 surcharge will be utilized solely for all reasonable direct recurring and nonrecurring capital costs and operating expenses incurred by a public safety answering point and wireless service provider in designing, upgrading, leasing, purchasing, programming, installing, testing, administering, delivering, or maintaining all necessary data, hardware, and software required to provide wireless E-911 service- Public safety answering points may further recover direct personnel costs incurred in receiving and dispatching wireless E-911 calls only.

Recommendation (16): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider requiring that all local public safety answering points work with the Emergency Telecommunications Division to develop a standard system for identifying and reporting wireless E-911 costs.

Recommendation (17): The Virginia General Assembly may wish to consider amending Virginia's Freedom of Information Act (FOIA) (Code of Virginia, §2.1-340 et seq.) to provide very limited meeting and document FOIA exemption for the Wireless Carrier Cost Recovery Subcommittee of the Virginia Emergency Telecommunications Board, and staff of the Emergency Telecommunications Division designated by that subcommittee.

Recommendation (18): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider extending the "reasonable" and "direct" cost recovery standard currently applied to public safety answering points and wireless service providers to wireline telephone companies and third-party vendors of wireless E-911 location technologies and/or solutions.

Recommendation (19): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider reducing the administrative fee due wireless carriers for the cost of collecting and remitting the wireless E-911 tax to one percent of the total amount collected.

Wireline & Wireless E-911 Tax Rates

Many parties will disagree on how to determine the state wireline and wireless E-911 tax rates. Some will say that these tax rates should be comparable to those rates levied nationally. Others will propose that these rates be based on an estimate of the total costs associated with actually implementing and operating wireline and wireless E-911 in the Commonwealth of Virginia. With both methods, the actual cost to implement and operate wireline and wireless E-911 services will not be known until the service is implemented and operating. The key difference is that if the tax rates are based on an estimate of actual costs, fiscal accountability and planning processes are greatly enhanced. By successfully relating costs to revenues, the Commonwealth of Virginia would take the lead nationwide, effectively and efficiently delivering this important public safety service to its citizens.

Unfortunately, current local government wireline E-911 accounting methods do not lend themselves to a strict breakdown of those costs directly associated with the delivery of wireline E-911 services per Code of Virginia § 58.1-3813. Similarly, the actual cost to implement and operate wireless E-911 services will not be known until those services are operational. Acknowledging that adequate funding is a critical element in ensuring timely wireline and wireless E-911 implementation, but that cost estimates associated with actually implementing and operating wireline and wireless E-911 that are specific to the Commonwealth of Virginia are not currently available, the following discussion outlines a plan of action that the Virginia General Assembly could adopt to obtain the necessary cost information while guaranteeing in the interim that a cost recovery mechanism is in place for Virginia's PSAPs (wireline and wireless E-911) and wireless carriers (wireless E-911).

The Wireline E-911 Tax Rate

Working from national tax rate data, the Virginia General Assembly may wish to consider imposing a wireline E-911 tax in the 2000 session of the Virginia General Assembly at a rate of .75-cents per hard-wire access line per month. Data collected for this report indicates that if levied at this rate for a period of one year, say Fiscal Year 2000, the proposed wireline E-911 tax would generate roughly $45 million, or almost one-half of the total amount of PSAP operating budgets (FY 1999) as reported to Virginia's Auditor of Public Accounts. Note that total PSAP expenses reported for fiscal year 1999 represented a 27% increase from those total PSAP expenses reported just two years earlier (FY 1997). The total amount of revenues, then, generated from the wireline E-911 tax proposed here would produce more than two-thirds of the total amount of PSAP operating budgets as reported to Virginia's Auditor of Public Accounts for FY 1997 ($69 million).

Implementing this proposed funding structure would result in the following:

                    In those 20 local jurisdictions currently levying the existing local option tax at a
                    rate lower than the proposed .75-cents, the average monthly increase would
                    be .23-cents.

Simultaneously, the Virginia General Assembly may wish to consider requiring the Virginia Emergency Telecommunications Board and Emergency Telecommunications Division to work with Virginia's PSAPs and local exchange carriers to determine estimated costs to fully implement and operate wireline E-911 in the Commonwealth. In developing this estimate, the Board and Division should work from the guidelines for reimbursable wireline E-911 costs adopted during the 2000 session of the Virginia General Assembly. The Board and Division should then determine an appropriate wireline E-911 tax rate based on the aggregated cost estimate and present this information to the Virginia General Assembly no later than December 1, 2001. The Virginia General Assembly could then set the tax rate during the 2002 session of the Virginia General Assembly based on the aggregated wireline E-911 cost estimate. The effective date of the new tax rate would be July 1, 2002. If the cost data is not forthcoming, then the .75-cent wireline E-911 tax adopted during the 2000 session of the Virginia General Assembly would remain in effect.

Recommendation (20): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider imposing a wireline E-911 tax at a rate of. 75-cents per hard-wire access line per month; and to authorize the flexibility to change the rate once the estimated costs to fully implement and operate wireline E-911 in the Commonwealth become known.

Recommendation (21): As part of the restructuring of Code of Virginia, § 58.1-3813, the Virginia General Assembly may wish to consider requiring the Emergency Telecommunications Division to re-evaluate the wireline E-911 funding mechanism annually, and include in its annual report to the Virginia State Crime Commission and the Public Safety Subcommittees of the House Appropriations and Senate Finance Committees of the Virginia General Assembly a recommendation to either reaffirm the funding mechanism or amend it as appropriate.

Working from national tax rate data, the Virginia General Assembly may wish to consider continuing the wireless E-911 tax at the already established rate of .75-cents per wireless customer whose billing address is within the Commonwealth per month. Working from industry standards suggesting an annual 15% growth rate in the number of wireless subscribers, levied at this rate the proposed wireless E-911 tax would generate roughly $15.3 million in fiscal year 2000, $18.0 million in fiscal year 2001, and $20.7 million in fiscal year 2002. The Virginia General Assembly may wish to consider further requiring the Virginia Emergency Telecommunications Board and Emergency Telecommunications Division to - similar to wireline E-911 - to obtain the necessary cost information and present this information to the Virginia General Assembly no later than December 1, 2001 for consideration. If the cost data is not forthcoming, then the .75-cent wireline E-911 tax adopted during the 2000 session of the Virginia General Assembly would remain in effect.

Recommendation (22): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to continue imposing a wireless E-911 tax at a rate of .75-cents per wireless customer whose billing address is within the Commonwealth; and to authorize the flexibility to change the rate once the estimated costs to fully implement and operate wireless E-911 in the Commonwealth become known.

Recommendation (23): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider requiring the Emergency Telecommunications Division to re-evaluate the wireless E-911 funding mechanism annually, and include in its annual report to the Virginia State Crime Commission and the Public Safety Subcommittees of the House Appropriations and Senate Finance Committees of the Virginia General Assembly a recommendation to either reaffirm the funding mechanism or amend it as appropriate.

Funding Wireline and Wireless E-911

Finally, note that if set at the rates discussed above, the wireline E911 tax and the wireless E-911 tax would generate together $60.3 million during fiscal year 2000, $65.3 million during fiscal year 2001, and $70.4 million during fiscal year 2002, or more than two-thirds of the fiscal year 1999 total PSAP operating budgets. Those Virginia localities whose PSAPs are currently wireline E-911 compliant (108), if directed to begin taking wireless E-911 calls directly, could tap both the wireline and wireless E-911 funds to defray those costs associated with the delivery of these services.

Non-Emergency #77

Introduced by the Virginia Department of State Police in 1996, #77 was implemented to create a standard State Police highway-related emergency number for the motoring public. Since that time, the Department has worked with wireless service providers, coordinated with localities, and installed signs along major thoroughfares to make the public aware that #77 is the number to call for the State Police. [Editorial Note: This text was accompanied by a graphic of a current Virginia highway road sign which says "Emergency" at the top, then "Virginia State Police #77" in the middle, and "Crush Crime" at the bottom.]

Similar to some other states, the Commonwealth of Virginia has invested in the development and deployment of two highway-related wireless emergency numbers. In keeping with the thrust of the Wireless Communications and Public Safety Act of 1999 (which designates 911 as the universal emergency assistance number within the United States) and recognizing that certain non-emergency situations will arise in which the State Police should serve as the first point of contact for the motoring public, the Virginia General Assembly may wish to consider maintaining #77 and designating it as a non-emergency number. Further, the Virginia General Assembly may wish to consider requiring the Commonwealth to undertake efforts to notify the public of the proper use of #77, and ensure that the wireless location technology advantages soon to be associated with wireless E-911 are available for #77.

Recommendation (24): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider designating 911 as the Virginia emergency telephone number, and to designate #77 as the Department of State Police wireless non-emergency number.

Recommendation (25): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider designating the Department of State Police Regional Emergency Call Centers as public safety answering points, and to authorize the Department of State Police to receive monies collected and deposited into the Wireless E-911 Fund pursuant to the applicable PSAP cost recovery provisions, as determined by the Virginia Emergency Telecommunications Board. 

Recommendation (26): As part of the restructuring of Code of Virginia §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to authorize the Emergency Telecommunications Division to work with the Virginia Department of Transportation to coordinate the replacement of those road signs installed along Virginia's major thoroughfares that promote #77 as a wireless emergency number.

[Editorial note: Recommendation 26 was accompanied by a graphic of a Virginia highway road sign that says "Fender Bender" at the top, "Please move vehicle from travel lanes" in the middle, and "Virginia State Police #77" at the bottom.]

Recommendation (27): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484. 11, the Virginia General Assembly may wish to authorize the Emergency Telecommunications Division to develop a public education strategy to notify Virginia's citizenry of the proper use of #77, and to keep the citizenry abreast of future wireless 911 and #77 developments.

The Virginia Department of State Police and Wireless E-911

The Virginia Department of State Police continues to serve as the primary wireless 911 public safety answering point for those Virginia localities that currently do not take wireless E-911 calls directly. Item 461 2c (1999 Appropriations Act) reinforced this message, but also stated clearly that it is the intent of the Virginia General Assembly that wireless 911 calls be delivered directly by the wireless service provider to the appropriate local PSAP, thereby minimizing the need for call transfers whenever possible. Data collected for this study strongly suggests that the transferring of emergency calls poses an unacceptable public safety risk. These emergency calls can be dropped, in which case the caller would need to place a second 911 call, and/or can be routed to the wrong local PSAP - in which case the call would need to be re-routed. Further, lacking Phase II location technology, call transferring places an unnecessary burden on the emergency caller, requiring them to explain their situation multiple times to receive emergency service. Immediate public safety issues, then, demand that those all Virginia localities whose PSAPs are capable of receiving wireless E-911 calls directly be required to begin taking wireless E-911 calls by a date certain.

Recognizing the public safety risk posed by call transferring, in those areas of the Commonwealth where the wireless infrastructure is sufficiently built out to allow for the directing of wireless 911 calls to the appropriate local PSAP, the Virginia General Assembly may wish to consider requiring those local PSAPs that are currently wireline E-911 compliant and capable of receiving wireless E-911 calls directly begin answering wireless 911 calls originating in their jurisdictions no later than January 1, 2001, and that all other local PSAPs capable of receiving wireless E-911 calls directly begin receiving these calls directly no later than January 1, 2002. Concurrently, the Virginia General Assembly may wish to consider requiring that all of Virginia's local PSAPs are wireline E-911 capable by January 1, 2002. In those areas of the Commonwealth where the wireless infrastructure is not sufficiently built out to allow for the directing of wireless 911 calls to the appropriate local PSAP, the Virginia Department of State Police should continue to serve as the primary PSAP, and have access to the Wireless E-911 Fund pursuant to the applicable PSAP cost recovery provisions, as determined by the Virginia Emergency Telecommunications Board.

Recommendation (28): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to require that on or before January 1, 2001, that all PSAPs serving Virginia's local jurisdictions that are currently wireline E-911 compliant and capable of receiving wireless E-911 calls directly begin answering wireless 911 calls originating in their jurisdictions; to require that all other local PSAPs capable of receiving wireless E-911 calls directly begin answering wireless 911 calls originating in their jurisdictions no later than January 1, 2002; and to authorize the Virginia Emergency Telecommunications Board to lead this effort and to make transitional or start-up payments to these PSAPs as determined by the Virginia Emergency Telecommunications Board.

Recommendation (29): As part of the restructuring of Code of Virginia § 58.1-3813, the Virginia General Assembly may wish to require that on or before January 1, 2002, that all PSAPs serving Virginia's local jurisdictions develop and deploy a wireline E-911 system and to authorize the Virginia Emergency Telecommunications Board to lead this effort and to make transitional or start-up payments to these PSAPs as determined by the Virginia Emergency Telecommunications Board.

Recommendation (30): As part of the restructuring of Code of Virginia, §§ 56-484.8 to 56-484.11, the Virginia General Assembly may wish to consider designating the Department of State Police Regional Emergency Call Centers as public safety answering points, and to authorize the Department of State Police to receive monies collected and deposited into the Wireless E-911 Fund to offset dispatch center operating costs incurred for answering wireless 911 telephone calls originating in localities for which the Department of State Police continues to serve as the PSAP for wireless 911 telephone calls, as determined by the Virginia Emergency Telecommunications Board.

A Retrospective Summing Up

Since their inception, the management of Virginia's emergency telecommunications systems has been characterized by a lack of coordinated leadership and direction. As Virginia prepares to face increasingly complex challenges in the area of enhanced emergency telecommunications, communication, coordination, and planning will become increasingly critical. Lacking this coordination, we can expect systems development and deployment costs to increase, and the implementation of an end-to-end enhanced emergency telecommunications system in Virginia to be delayed. So as to reduce costs and better serve important public safety interests, then, the Commonwealth will need to endorse an emergency telecommunications management and funding strategy that ensures coordinated leadership and direction, as well as accountability and oversight. By creating a permanent advisory body, introducing the ideals of equity, efficiency, economy, effectiveness, productivity, stability, and accountability to the cost recovery provisions, and directly relating wireline and wireless E-911 systems costs to revenues, Virginia will be able to more effectively and efficiently serve the citizenry's public safety interests, both now and in the future. Taken together, these moves will help to establish Virginia as the nationwide leader in the provision of enhanced emergency telecommunications services.