Tennessee lawmakers considering new 911 funding model

Tennessee's 911 "experiment" began in 1984, with state laws that authorized referenda in each county to determine whether to authorize 911 fees on landlines, and to dedicate all revenue to the control of an independent legal entity, the Emergency Communications District (ECD). All 95 Tennessee counties approved referenda, most by margins in excess of 90%.

In 1998, the law was amended substantially to apply the 911 fee to wireless (CMRS / cell) users. In 2007, VoIP and pre-paid offerings became subject to the fee. In the process, Tennessee created a four-tier fee structure that few understood well. It was difficult to assess whether trends in one stream would be offset by trends in others. A 'fairness' issue manifested in recent years, because of the disproportionate usage by one class (cell) being subsidized by higher fees applicable to others (landlines). 

Tennessee legislators understandably were perplexed by these complications, yet remained committed to future-proofing this critical component of public safety, which continues to hold great importance with the public. The investment of the carriers in finding common ground with ECDs in a commercially reasonable manner also was a central part of resolution.

However, there is one variable in the new mix that remains unproven: the uniform fee of $1.16. This is supposed to produce the same amount of revenue as the total mixture of current fees, some of which (cell, VoIP, prepaid) flow directly to a state agency that redistributes approximately 80% to ECDs, and others (landline) that flow directly to ECDs at rates that vary across jurisdictional lines.

Our legislators believe the result will be 'revenue neutral.' We have our fingers crossed.

Michael Mahn serves as legal counsel for Tennessee 911 Districts.