I_911TF_2016A 10/25/2016 09:06:58 AM Committee Summary

09:07 AM -- Call to Order and Opening Remarks



Senator Scheffel, co-chair, called the task force to order. He and Speaker Hullinghorst made brief comments.





09:08 AM -- 911 Funding Issues



Mr. Scott Mackey, KSE Partners LLC, testified to the committee concerning 911 funding. Mr. Mackey's presentation is available as Attachment A, and on the task force website, at: https://www.colorado.gov/pacific/cga-legislativecouncil/2016-task-force-911-oversight-outage-reporting-and-reliability. He also provided a table of fee information from each state (Attachment B).



161025 AttachA.pdf161025 AttachB.pdf



Mr. Mackey discussed the fees that fund 911 service in the context of fees and taxes levied on services. He stated that Colorado's fees are near the average amount of fees nationwide. Mr. Mackey explained the history of 911 fees and funding, explaining that fees have been levied on landlines for decades, on wireless lines since the mid-1990s, and more recently on VoIP and pre-paid phones. He informed the task force that fees are collected by service providers. He also stated that the uses for these fees have expanded.











Mr. Mackey explained that there is a move by consumers away from wireline services, towards wireless phone and other services that use an internet connection for phone service, which can lead to a decline in collected fees. He informed the committee that because of Colorado's population growth, collected fees are staying level, while other states' are seeing declines in fees.



09:18 AM



Mr. Mackey discussed funding reforms in other states. In Oklahoma, the state replaced its county-based wireless fee with a single statewide fee. Oklahoma has also created a new 911 board to oversee 911 service. According to Mr. Mackey, by levying the statewide fee, fees can remain lower in rural areas, but still fund the adoption of new technologies in those areas that they could not afford under the old fee structure. Indiana, Kansas, Pennsylvania, and Tennessee have also instituted statewide fees, with many of those states making the changes revenue neutral. He stated that common reform themes are statewide fees with rates set by a board or oversight authority and guidance from the state legislature, a 911 board that oversees service statewide, creating incentives for Public Safety Answering Point (PSAP) consolidation.



Finally, Mr. Mackey explained policy questions to be considered by legislatures when making decisions concerning 911 funding and oversight.



09:25 AM



Mr. Mackey responded to questions from the committee about the Universal Service Fund (USF), pre-paid wireless service, and how telecom companies remit taxes and fees collected on wireless bills. He also responded to questions about methods used by other states to fund the transition to NextGen 911, including building up a surplus of 911 surcharge money, temporarily raising fees, or permanent fee increases.



09:35 AM



Mr. Mackey continued to respond to committee questions. He discussed issues relating to maintaining services while adapting to new technologies, such as wireless phone or tablet applications that permit users to make phone calls over wireless internet connections, but that don't create a billing relationship that allows a provider to collect fees and taxes to fund 911 services. Regarding federal funding and other funding issues, Mr. Mackey stated that he did not foresee states receiving a lot of funding assistance from the federal government, and he recommended that Colorado seek to centralize 911 funding. He also discussed different means by which to set 911 fee rates, including fees on each line, setting rates at a percentage of telecom bill amounts, and collecting fees based on property taxes.



09:45 AM



Mr. Mackey responded to a question about statewide 911 oversight boards. He stated that generally, such boards are comprised of political appointees and representatives from PSAPs, law enforcement, and public safety. Some states' oversight boards include telecom industry representatives. Membership on such boards range from 9-23 members, and the boards are usually housed in a public safety or homeland security related agencies.



09:48 AM -- Consumer Panel



Mr. Doug Dean, Director, Public Utilities Commission (PUC) within the Department of Regulatory Agencies (DORA); Ms. Kelli Fritts, representing AARP; and Ms. Cindy Schonhaut, Director, Office of Consumer Counsel (OCC) within DORA, came to the table. Mr. Dean introduced himself to the task force, and explained recent rulemaking by the PUC. He also discussed funding issues.









Ms. Fritts introduced herself to the task force and provided an overview of AARP, specifically providing information on AARP's position on 911 services and telecommunications. She distributed information to the committee (Attachment C). She spoke about prior legislation concerning 911 service oversight, and 911 outages.



161025 AttachC.pdf



Ms. Schonhaut, introduced herself, and explained the OCC's role in oversight of 911 services, stating that recent legislation removed authority to handle complaints regarding 911 services from the OCC.



10:03 AM



The panelists responded to questions from the task force. The panel discussed the potential for statewide oversight of 911 services, with Mr. Dean stating that he thought the local entities would be reluctant to agree to such a system. In response to a question, Mr. Dean discussed recent law suits by entities on the western slope of the state.



Senator Martinez Humenik was recognized by the chair for a question. In response to the question, Ms. Fritts discussed rates of seniors moving from wireless phones and not using landlines. Senator Martinez Humenik commented on landline telephone reliability.



Discussion turned to 911 service outages. Senator Heath commented. Mr. Dean stated reasons that outages occur, and that the best way to limit outages is network diversity. He explained the PUC rulemaking process and authority. He also stated that reporting requirements help manage outages.



10:16 AM



Senator Aguilar asked a question about the role of the OCC. Ms. Schonhaut stated that when the OCC receives a complaint related to 911 service, they refer the complainant to the appropriate contact at the PUC. Consequently, they do not hear many complaints about 911 because OCC no longer has authority relating to 911 service. Ms. Fritts stated that the AARP continues to refer people to the OCC. Mr. Dean stated that OCC, when they had telecom authority, would still refer complainants to the PUC, so there is no change for the individual consumer complainant.



In response to a question, Mr. Dean stated that the PUC would respect the decisions and authority of the legislature, but that he could not predict the PUC's response to any legislative action.



The task force asked about outage reporting requirements. Mr. Dean discussed existing reporting requirements, including a discussion of the entities that are required to formally report, and how the PUC learns of outages. Ms. Fritts stated that the PUC should be the authority where outages should be reported, and that it was better to have outages reported to a local authority instead of the Federal Communications Commission (FCC).



10:25 AM



In response to a question about potential statewide centralized oversight, Mr. Dean stated that moving oversight away from the PUC would not be easy. He also discussed the consequences of moving oversight away from the PUC. Ms. Fritts stated that the PUC was the best agency to oversee 911 service. They continued to discuss oversight and reporting requirements, as well as the potential consequences of outages.





The task force and panelists discussed the role of the service providers in repairing and reporting outages. Ms. Schonhaut stated that the OCC has no position on the role of telecom providers. Ms. Fritts stated that increased reporting would help public safety personnel respond to areas where 911 outages may occur. Mr. Dean stated that people need to call 811 to identify lines prior to digging and that some agency should have regulatory authority over excavators. He also stated that network resiliency should be required, regardless of whether oversight or regulatory authority rests with the PUC or another agency.



The chair recognized Representative Lontine for a question. In response, Mr. Dean stated that network redundancy and resiliency could be achieved though PUC rulemaking or a bill requiring fail-safe networks.



Senator Martinez Humenik was recognized by the chair for comment. Mr. Dean responded.



10:44 AM -- Emergency Management Panel



Mr. Mike Chard, Director, Boulder Office of Emergency Management (OEM); Kevin R. Klein, Director, Division of Homeland Security Emergency Management (DHSEM) within the Colorado Department of Public Safety; and Pat Sarin, Lead for Disaster of Emergency Communications (DEC), Federal Emergency Management Agency (FEMA), came to the table to participate on the panel.



Mr. Chard introduced himself to the task force and discussed how emergency managers use reverse 911 to notify citizens of emergencies. He also explained that OEM supports PSAPs and other entities across the state, and attempts to educate citizens. He also discussed outages. He explained that when he knows of a 911 outage, he can deploy secondary systems to continue notifications. He stated that the location of infrastructure should be examined because infrastructure placed in areas that may be exposed to natural disasters would more likely result in an outage. Mr. Chard stressed the importance of the community engagement systems. He discussed regulation of 911 systems, and stressed the importance of local autonomy for reacting to disasters.



10:54 AM



Mr. Klein introduced himself and explained the organization of DHSEM, including individual departments and offices: the Office of Emergency Management, the Office of Preparedness, and the Office of Prevention and Security. Mr. Klein explained the importance of the 911 system for emergency response, and stated that citizens need rapid and reliable access to the 911 system. He stated that at the state level, 911 helps minimize the size of events and gives the state situational awareness to permit appropriate responses. He also explained how the state works with PSAPs to properly allocate resources to respond to emergencies. The state also utilizes 911 for suspicious activity reporting by citizens, which supports counter-terrorism efforts.



Ms. Sarin introduced herself, and explained that DEC provides emergency communications support when such systems fail in the states. Such communication includes voice, data, and video. They support states through a working group that consists of responders from all states in FEMA Region VIII (which includes Colorado), as well as federal personnel. This work group permits FEMA to work across state lines to combat disasters that may be located in one state. DEC also coordinates mobile communications systems that are deployed in emergencies.



In response to a question, Mr. Chard stated that the task force recommendations should include comments about the use of secondary systems, and a thoughtful analysis of what is causing the interruptions, and set reporting rules accordingly. He believes that it is important to take time to study issues, and suggested collaborative solutions.







11:08 AM



Discussion turned to reporting and communication. Mr. Chard stated that PSAPs receive notification about outages, and the PSAP then communicates with emergency management and other agencies. Mr. Klein also stated that communication flows through PSAPs, and that with the Colorado State Patrol, DHSEM manages Colorado's emergency communication network. Ms. Sarin informed the task force that the state's statewide interoperability coordinator would dictate how FEMA is contacted when assistance is needed. In Colorado, the statewide interoperability coordinator and the statewide public safety communications subcommittee is located in DHSEM.



Senator Martinez Humenik was recognized by the chair. In response, Mr. Klein discussed communication training and education for emergency response personnel. He stated that DHSEM's primary role is bringing equipment to disaster sites.



Mr. Klein responded to a question about redundancy by stating that their systems can be used as back-up systems in emergencies, but that those systems should not be relied upon generally. He also explained outage situations in which DHSEM's equipment will not help maintain 911 service, such as short term power failures or other brief outages when callers cannot get through to 911. Instead, DHSEM's systems are designed to provide support in major emergency situations. Mr. Klein discussed the equipment owned by the state, the Colorado National Guard, and the role of the telecom carriers in providing wireless communication. Mr. Klein discussed the specific response to the 2013 floods in Colorado.



11:19 AM



Mr. Klein continued to discuss the response to the 2013 floods. He emphasized that DHSEM worked to get communications functioning in an emergency state, not in a normal user state. Mr. Chard commented that work on daily emergencies lays the groundwork for responding to large-scale emergencies. He also mentioned the importance of reverse 911 and notification systems. Ms. Sarin commented on the response to the 2013 floods.



Senator Martinez Humenik was recognized by the chair. She asked a question about portable wireless communications devices. Mr. Chard responded that time frames vary when responding and setting up back-up devices.



Mr. Chard responded to a question about funding, stating that funding sources for OEM includes the City of Boulder, the County of Boulder, and federal funding.



11:28 AM



The task force recessed.





11:42 AM -- Provider Panel



The task force returned to order. Mr. Benjamin Aron, Director, State Regulatory and External Affairs, Cellular Telecommunications Industry Association (CTIA); Mr. Pete Kirchhof, Executive Vice President, Colorado Telecommunications Association (CTA); Mr. Jeff Weist, Executive Director, Colorado Cable & Telecommunications Association; and Mr. Tim Kunkleman, Regulatory Director, CenturyLink came to the table.



Mr. Aron introduced himself, explained that he represents wireless carriers, and made a presentation to the task force (Attachment D). He explained 911 calls. He presented information concerning the regulation of wireless carriers, including alerts and notifications that are sent out over wireless networks. He stated that the primary regulation of wireless providers occurs at the federal level. He explained the federal outage reporting requirements for wireless carriers.



161025 AttachD.pdf



11:57 AM



Mr. Aron continued his presentation, discussing federal regulation of wireless providers. He stated that even wireless phones that are not activated on an account are required by federal regulations to be able to call 911. He explained proposed specific reporting obligations under proposed rules. He also made recommendations to the legislature.



12:02 PM



Mr. Kirchhof introduced himself and explained that he represents small telecom providers. He stated that the role of the small providers is the transport of 911 calls: when a call comes in, it is transferred to the Basic Emergency Service Provider (BESP). He provided information on the causes of outages, and suggested a collaborative approach to addressing outage issues. He stated that reporting should be based on who needs to know, and stated that the PSAPs need to know first, and that reporting obligations take time away from restoring service. He also discussed network diversity and funding. Mr. Kirchhof discussed issues with raising the 911 surcharge in rural areas. Mr. Kirchhof suggested that providers, BESP, and PSAPs should work together to make the 911 system process work more efficiently.



12:11 PM



Mr. Weist introduced himself. He also introduced Mr. Angel Arocho, representing Comcast. Mr. Weist discussed 911 service over different types of services. He also discussed regulation of providers. He stated that PSAPs work as partners with providers in providing 911 service. Mr. Weist suggested that a new statewide oversight authority board would be positive.



Mr. Kunkleman introduced himself and explained CenturyLink's role as the BESP. He stated that the current 911 system works well. He explained different types of 911 outages. In some instances, the customer cannot make a phone call to anyone, including 911; in others, the call may not be connected to a PSAP, but it will be answered by law enforcement or other appropriate personnel. He stated a concern that different types of outages are being regulated the same way. Mr. Kunkleman discussed the difference between outage reporting and notification. He views reporting as a long term requirement, and notification as telling people that there is an event and that 911 may not be working properly. Finally, he discussed the rulemaking process and the recent PUC rulemaking discussed earlier in the task force meeting. He stated that more time to study the issues may not lead to learning any new information.





12:23 PM



Senator Martinez Humenik was recognized by the chair. She commented on 911 service. Mr. Aron responded to the comments with information about location identification services, including issues surrounding pinpointing the exact location of a caller.



12:33 PM



Senator Martinez Humenik was recognized by the chair for a follow up. Mr. Arocho provided background on the technology used in 911 systems.



Mr. Kunkleman responded to question about the oversight of 911 and the rulemaking process, and the role of CenturyLink as the BESP. He also responded to a question about the time frame to study issues surrounding notification, restating that another year of time to study the issue was not necessary. He also stated that there may be other issues surrounding the transition to NextGen 911 that may need to be studied.



12:44 PM



Mr. Weist stated that there is a concern surrounding prior PUC rulemaking about whether the PUC had jurisdiction to make certain rules. Mr. Aron commented that it is better to involve all of the stakeholders in determining how to approach 911 oversight and regulation. Mr. Kirchhof commented that the legal nature of the PUC proceedings has made working on issues difficult.



Senator Aguilar commented on the issues that need to be considered surrounding any agency that may have oversight over 911 service. She also stated that she would like the PUC to continue their work. Mr. Aron commented on the role of the PUC, and issues surrounding the PUC's jurisdiction to make certain rules. Discussion continued about the PUC's rulemaking authority. Mr. Aron stated that wireless carriers report what is required, and that information sharing may be improved when the FCC better shares information. Senator Aguilar commented.



12:59 PM



Speaker Hullinghort began a discussion about regulation of telecom providers, including information gathering. Mr. Kunkleman clarified that he only considers a 911 outage to be when the 911 system is not functioning, and that when a customer cannot make any calls, but the 911 system is functioning, that is not a 911 outage. Mr, Kirchhof commented that other states do not need the regulatory process to achieve good results in 911 service.



In response to a question, Mr. Aron explained that prepaid customers pay the 911 surcharge at the point of sale and the sellers remit that money to the Department of Revenue. When a provider collects the 911 surcharge from the bills, they remit it to the relevant agencies. He also said that providers do not receive any money from the surcharge. He stated that there are concerns about how the money is spent, even though it is required to be spent on 911 systems. Mr. Arocho commented on the permitted uses for 911 surcharge funds. He mentioned FCC 911 surcharge reports, available here: https://www.fcc.gov/general/911-fee-reports.





01:12 PM



Discussion turned to the agency or body that should be responsible for oversight of 911 services. Mr. Kirchhof suggested a body that does not have quasi-judicial regulatory authority would be better for the 911 system. He suggested looking at oversight systems in other states. Representative Duran commented and Mr. Kirchhof responded by suggesting setting up a separate board for oversight, with a consultant to study network diversity issues, and identify the cost of making necessary changes. He commented that it would take time to set up such a process.



Mr. Aron suggested that the PUC begin to work within the jurisdiction that is has, the state begin to study NextGen 911, that emergency management practices be studied, and that when determining outage and reporting regulations, that the state study the following questions: who needs to know, what to do they need to know, and when do they need to know it, and then formalize the findings of that study. He also suggested that the state understand implications and impacts that the Colorado Open Records Act (CORA) may have on any action taken. Finally, he suggested that the state examine information sharing with the federal government, including communicating with the FCC what actions the FCC can take that would benefit Colorado.



01:24 PM



Mr. Kunkleman stated that he did not know whether the issues raised would be solved by a statewide authority. He stated that it may be okay to maintain PUC oversight.



Mr. Weist stated an eagerness to be involved in the discussion of oversight changes.



Mr. Arocho suggested that statewide leadership boards were beneficial in working on past issues. He suggested that those boards help get all stakeholders meeting together.



01:30 PM



The committee recessed.



02:24 PM -- Public Testimony



Senator Scheffel called the committee back to order and explained the procedures for public testimony.



02:25 PM -- Ms. Jaci Marie Louise, representing 911 Solutions, Inc., testified to the task force. She commented on the PUC process. Ms. Louise discussed the 911 surcharge and remittance. She stated that her organization works with authority boards to audit the remittance process. She stated that not all companies are following the law. She stated concerns regarding the auditing processes, and the challenges she faces in auditing. Ms. Louise responded to questions about her company, and the work she does not her clients concerning the surcharge and remittances.



02:30 PM -- Ms. Patti West, representing BRETSA Boulder County, testified before the task force. She stated that 911 stakeholders should work together through the PUC process to present possible solutions to the General Assembly. She stated that more time is need to study the issues, and that the task force has not enough time to study the issues.



02:34 PM -- Ms. Athena Butler, Executive Director, Denver 911, testified to the task force. She discussed an incident where callers could not reach 911 by phone because of a carrier outage. Ms. Butler explained that there are many entities that must work together to send calls from customers to PSAPs. She stressed the costs associated with needed updates to the 911 system, and that existing fees were not sufficient to build out the system.





02:37 PM -- Mr. Greg Romberg, representing the Colorado Press Association and Colorado Broadcasters Association, testified to the task force. Mr. Romberg discussed issues relating to CORA, and stated that he does not believe that CORA needs to be amended to address concerns relating to 911 service. He states that be believes existing exemptions in CORA would protect confidential information shared between the state and the federal government about 911 service.



02:40 PM -- Mr. Joe Benkert, representing Boulder 911 Authority, testified before the task force. He stated that the existing system functions well. He stated that the PUC needs regulatory authority over all originating service providers. He further discussed implementing new 911 technologies.



02:44 PM -- Mr. Bruce Romero, representing the Colorado 9-1-1 Resource Center, testified to the task force. Mr. Romero stated that the FCC has reported that states raid funds that are meant to be for 911 services. He also discussed different funding models, and that they should be studied by a task force. He also addressed the PUC rulemaking process.



02:47 PM -- Mr. Dave Sehnert, representing Mission Critical Partners, testified to the task force. He discussed oversight authorities in other states, specifically Tennessee. He stated that Tennessee has a statewide oversight board, and discussed the composition of the board. Mr. Sehnert responded to a question, stating that Tennessee's board does not have regulatory authority.



02:51 PM -- Discussion of Task Force Report



Senator Scheffel began the discussion of the task force report. He stated that staff would prepare a summary section of the task force report, and disseminate it to the task force members for approval. Senator Scheffel opened the floor to discussion about the report.



Senator Aguilar suggested establishing a committee for establishing oversight. She also explained specific issues the new committee could examine.



Senator Heath spoke with approval of testimony heard from the First Responder Panel at the task force's October 11th meeting. Senator Heath stated three issues: reporting issues, outage concerns, and implementation of NextGen 911. Senator Heath stated his preference for a study group, and stated concern that Colorado may be behind other states. He also stated that any study group will need to look at funding issues surrounding the issues discussed above, especially the implementation of NextGen 911. He stated that the task force recommend that there should be an immediate effort to find a solution to outage issues.



Speaker Hullinghorst discussed PUC regulatory authority and suggested that the General Assembly find immediate solutions to short term problems, such as outages and phase II wireless, and that there be a statewide study group with a director to study long term issues. She also suggested recommendations relating to better and more transparent reporting, and examination of funding issues, and accountability. Speaker Hullinghorst stated support for a state board, defined in legislation, with experts, and staffing help. Any legislation needs to define what would be placed under the purview of the board, and what authority would remain with the PUC.



03:05 PM



Senator Scheffel discussed PUC regulatory authority, and reviewed legislation relating to 911 regulation. He stated that the task force and General Assembly should consider the entities that oversee and regulate 911 service.



Senator Heath commented on the work of the task force.



03:11 PM



The committee adjourned.