Fiscal Note
Fiscal Services Division
SF 538 – 911 Service Charges (LSB1996SV)
Staff Contact: Christin Mechler (515.250.0458) christin.mechler@legis.iowa.gov
Fiscal Note Version – New
Description
Senate File 538 relates to 911 emergency telephone services, and makes several changes to
the determination of how funds deposited in the 911 Service Fund may be distributed, the
payment of costs associated with providing 911 services, and access to the Next Generation
911 Network.
The Bill eliminates 911 cost recovery by telephone providers by excluding costs that are
associated with reimbursement to an originating service provider from incurred costs that may
be paid for with funds deposited in the 911 Service Fund. The Bill also strikes the requirement
that the 911 Program Manager allocate 10.0% of the total amount of generated wireless
surcharge to wireless carriers in order to recover costs resulting from the delivery of E911
Phase 1 services.
Senate File 538 also removes the requirement that a local exchange service provider be
compensated for providing certain kinds of information related to its subscribers and provides
that these service providers pay all costs associated with recurring monthly 911 services.
Background
Under current law, funds deposited in the 911 Service Fund must be used for the payment of
costs that are limited to nonrecurring and recurring costs directly attributable to the receipt and
disposition of wireless and wireline 911 calls. Additionally, current law provides that local
exchange service providers are to be compensated for providing certain information to the Next
Generation 911 Network.
Assumptions
• Wireline calls represent approximately 20.0% of all 911 calls annually.
• Wireline cost recovery fees are not regulated or reported in the same manner as wireless
calls. Utilizing the extrapolation of sample costs, the Department of Homeland Security and
Emergency Management (HSEMD) estimates that in FY 2020, telephone providers
recovered approximately $3.3 million in costs for providing wireline 911 services. For
estimating purposes, it is assumed that these costs will remain relatively constant in
subsequent fiscal years.
• Wireless calls represent approximately 80.0% of all 911 calls annually. In FY 2020,
telephone providers recovered approximately $825,000 in costs for providing wireless 911
services. For estimating purposes, it is assumed that these costs will remain relatively
constant in subsequent fiscal years.
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Fiscal Impact
Senate File 538 eliminates the ability of telephone providers to recover costs related to
providing 911 services on wireline and wireless calls. According to the HSEMD, eliminating the
ability of telephone providers to recover costs related to 911 service on wireless calls would
allow the Department to save approximately $825,000 annually beginning FY 2022.
Additionally, the Department estimates that eliminating the ability of telephone providers to
recover costs related to 911 services on wireline calls would result in cost savings of
approximately $3.3 million annually in FY 2022. Total estimated savings related to both wireline
and wireless calls is approximately $4.1 million.
Sources
Department of Homeland Security and Emergency Management
LSA analysis
/s/ Holly M. Lyons
March 22, 2021
Doc ID 1216705
The fiscal note for this Bill was prepared pursuant to Joint Rule 17 and the Iowa Code. Data used in
developing this fiscal note is available from the Fiscal Services Division of the Legislative Services
Agency upon request.
www.legis.iowa.gov
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Statutes affected:
Introduced: 34A.2, 34A.7A, 34A.8, 29C.9