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CHARLESTON -- After agreeing to make changes in light of a Federal Communications Commission report that dinged the state for raiding E-911 fees, the Justice administration is poised to increase the amount it takes from counties by creating a new public safety wireless fee.
Senate Bill 289, introduced on behalf of Gov. Jim Justice, would separate two agencies and a communications tower construction fund that receive funding through portions of the E-911 fees counties receive.
Instead of receiving funding through E-911, a new "public safety wireless fee" would be created, with cell phone subscribers paying the new fee monthly. If passed, the new fee would be an additional 34 cents on each subscriber's monthly bill. That's on top of the $3 monthly fee cell phone subscribers pay for E-911, or 6 percent at point of sale for pre-paid cell phones.
The proposed bill would also raise the amount the state Division of Homeland Security and Emergency Management receives for maintenance of radio systems for emergency dispatch from 10 cents to 15 cents per customer each month. The Public Service Commission's Tower Access Fund would receive 9 cents per wireless customer each month. Previously, the tower fund received $1 million annually from E-911 fees. The West Virginia State Police would continue to receive 10 cents per subscriber each month for radio equipment upgrades.
The legislation comes nearly a month after the FCC released a report critical of the state for taking funds from E-911 fees for the same projects. Of the more than $37 million in 911/E-911 fees collected in 2017, nearly $4 million was diverted for uses other than 911 improvements: $1 million for the Tower Fund, $1.9 million for homeland security and $1.1 million for the State Police.
Sen. Dave Sypolt, R-Preston, sits on the Senate Military Committee which deals with emergency services. Sypolt said he was happy to see counties get some of their funding restored.
"The counties I expect will remain whole and they shouldn't be as concerned as they initially were," Sypolt said. "I think they were hoping to roll that portion that was taken out of the 911 fee back into the counties to cover their increased expenses they have incurred over the last decade as they developed and built out their 911 centers for better service."
The Public Service Commission collects the E-911 fees and sends them to counties, but not before collecting a 5 percent wireless fee that goes to homeland security; a 10 cent per wireless fee collected for State Police; and transferring $1 million to the state's Tower Assistance Fund. It also gives grants for tower construction through that fund.
West Virginia has been criticized for diverting these funds from county E-911 system since 2015, but Justice wrote the FCC in November that he planned to introduce legislation to repeal the code sections causing the diversion of E-911 fees.
"When I became aware that we were ineligible for certain federal funds due to being designated a 'diverter' state, I immediately directed my staff to remedy any problems," Justice said. "However, it has been determined that a statutory change is necessary to cease the expenditures from our E-911 revenue that the FCC has deemed diverting."
Monday's bill switches those fee collections from E-911 fees to the public safety wireless fee. According to the Legislative Auditor's Office, the Wireless E-911 fee has generated between $33 million to $41 million annually and more than $364 million since 2009.
Sypolt said that even though more money will go back to the counties, he is concerned with adding an additional fee on cell phone bills. He also wants to make sure that if SB 289 fails, that money for cell phone tower construction in rural parts of the state remains untouched.
"First of all, I'm reluctant to increase a tax in any form unless it can be justified," Sypolt said. "Second of all, I felt that a portion of those E-911 fees for build-out of cellular rowers was a good benefit to the rural citizens of the state. I would hate to see any of that money compromised. I'm going to appeal to the Legislature to see if we can make sure we have funding available to help build-out cellular mobile coverage."
Legislative auditors recently looked at how the state and counties spend E-911 fees. Based on the available information, auditors determined the total cost to provide E-911 across the state was more than $50 million, though that number is likely much more because only 13 out of 55 counties reported their costs to the Public Service Commission.
Auditors found there is no system of oversight to ensure counties are appropriately spending E-911 funds. State code provides specifics on how the money is to be used, including the operation, maintenance and capital costs for E-911 systems. Money can also be used for equipping and furnishing the buildings, or converting addresses to make it easier for 911 dispatchers to direct first responders.
Landline telephone subscribers also pay an E-911 fee which is set by counties. Many counties have raised their landline fees to compensate for more people switching to and only using cell phones.
(Adams can be contacted at sadams@newsandsentinel.com)