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108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-311

======================================================================



 
                    E-911 IMPLEMENTATION ACT OF 2003

                                _______
                                

October 14, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Tauzin, from the Committee on Energy and Commerce, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 2898]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Energy and Commerce, to whom was referred 
the bill (H.R. 2898) to improve homeland security, public 
safety, and citizen activated emergency response capabilities 
through the use of enhanced 911 wireless services, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     1
Purpose and Summary..............................................     4
Background and Need for Legislation..............................     4
Hearings.........................................................     6
Committee Consideration..........................................     6
Committee Votes..................................................     6
Committee Oversight Findings.....................................     7
Statement of General Performance Goals and Objectives............     7
New Budget Authority, Entitlement Authority, and Tax Expenditures     7
Committee Cost Estimate..........................................     7
Congressional Budget Office Estimate.............................     7
Federal Mandates Statement.......................................     9
Advisory Committee Statement.....................................     9
Constitutional Authority Statement...............................     9
Applicability to Legislative Branch..............................     9
Section-by-Section Analysis of the Legislation...................     9
Changes in Existing Law Made by the Bill, as Reported............    12

                               Amendment

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``E-911 Implementation Act of 2003'' .

SEC. 2. COORDINATION OF E-911 IMPLEMENTATION.

  Part C of title I of the National Telecommunications and Information 
Administration Organization Act (47 U.S.C. 901 et seq.) is amended by 
adding at the end the following:

``SEC. 158. COORDINATION OF E-911 IMPLEMENTATION.

  ``(a) E-911 Implementation Coordination Office.--
          ``(1) Establishment.--The Assistant Secretary shall establish 
        an E-911 Implementation Coordination Office to facilitate 
        coordination and communication between Federal, State, and 
        local emergency communications systems, emergency personnel, 
        public safety organizations, telecommunications carriers, and 
        telecommunications equipment manufacturers and vendors involved 
        in the implementation of E-911 services.
          ``(2) Purpose of office.--The Office shall--
                  ``(A) take actions, in concert with coordinators 
                designated in accordance with subsection (b)(3)(A)(ii), 
                to improve such coordination and communication;
                  ``(B) develop, collect, and disseminate information 
                concerning practices, procedures, and technology used 
                in the implementation of E-911 services;
                  ``(C) advise and assist eligible entities in the 
                preparation of implementation plans required under 
                subsection (b)(3)(A)(iii);
                  ``(D) receive, review, and recommend the approval or 
                disapproval of applications for grants under subsection 
                (b); and
                  ``(E) oversee the use of funds provided by such 
                grants in fulfilling such implementation plans.
          ``(3) Reports.--The Assistant Secretary shall provide an 
        annual report to Congress by the first day of October of each 
        year on the activities of the Office to improve coordination 
        and communication with respect to the implementation of E-911 
        services.
  ``(b) Phase II E-911 Implementation Grants.--
          ``(1) Matching grants.--The Assistant Secretary, after 
        consultation with the Secretary of Homeland Security and the 
        Chairman of the Federal Communications Commission, and acting 
        through the Office, shall provide grants to eligible entities 
        for the implementation of phase II E-911 services through 
        planning, infrastructure improvements, telecommunications 
        equipment purchases, and personnel training.
          ``(2) Matching requirement.--The Federal share of the cost of 
        a project eligible for a grant under this section shall not 
        exceed 50 percent. The non-Federal share of the cost shall be 
        provided from non-Federal sources.
          ``(3) Coordination required.--In providing grants under 
        paragraph (1), the Assistant Secretary shall require an 
        eligible entity to certify in its application that--
                  ``(A) in the case of an eligible entity that is a 
                State government, the entity--
                          ``(i) has coordinated its application with 
                        the public safety answering points (as such 
                        term is defined in section 222(h)(4) of the 
                        Communications Act of 1934) located within the 
                        jurisdiction of such entity;
                          ``(ii) has designated a single officer or 
                        governmental body of the entity to serve as the 
                        coordinator of implementation of E-911 
                        services, except that such designation need not 
                        vest such coordinator with direct legal 
                        authority to implement E-911 services or manage 
                        emergency communications operations;
                          ``(iii) has established a plan for the 
                        coordination and implementation of E-911 
                        services; and
                          ``(iv) has integrated telecommunications 
                        services involved in the implementation and 
                        delivery of phase II E-911 services; or
                  ``(B) in the case of an eligible entity that is not a 
                State, the entity has complied with clauses (i), (iii), 
                and (iv) of subparagraph (A), and the State in which it 
                is located has complied with clause (ii) of such 
                subparagraph.
          ``(4) Criteria.--The Assistant Secretary shall issue 
        regulations within 180 days of the enactment of the E-911 
        Implementation Act of 2003, after a public comment period of 
        not less than 60 days, prescribing the criteria for selection 
        for grants under this section, and shall update such 
        regulations as necessary.
  ``(c) Diversion of E-911 Charges.--
          ``(1) Designated e-911 charges.--For the purposes of this 
        subsection, the term `designated E-911 charges' means any 
        taxes, fees, or other charges imposed by a State or other 
        taxing jurisdiction that--
                  ``(A) appear on telecommunications services 
                customers' bills; and
                  ``(B) are designated or presented as dedicated to 
                deliver or improve E-911 services.
          ``(2) Certification.--Each applicant for a matching grant 
        under this section shall certify to the Assistant Secretary at 
        the time of application, and each applicant that receives such 
        a grant shall certify to the Assistant Secretary annually 
        thereafter during any period of time during which the funds 
        from the grant are available to the applicant, that no portion 
        of any designated E-911 charges imposed by a State or other 
        taxing jurisdiction within which the applicant is located are 
        being obligated or expended for any purpose other than the 
        purposes for which such charges are designated or presented.
          ``(3) Condition of grant.--Each applicant for a grant under 
        this section shall agree, as a condition of receipt of the 
        grant, that if the State or other taxing jurisdiction within 
        which the applicant is located, during any period of time 
        during which the funds from the grant are available to the 
        applicant, obligates or expends designated E-911 charges for 
        any purpose other than the purposes for which such charges are 
        designated or presented, all of the funds from such grant shall 
        be returned to the Secretary.
          ``(4) Penalty for providing false information.--Any applicant 
        that provides a certification under paragraph (1) knowing that 
        the information provided in the certification was false shall--
                  ``(A) not be eligible to receive the grant under 
                subsection (b);
                  ``(B) return any grant awarded under subsection (b) 
                during the time that the certification was not valid; 
                and
                  ``(C) not be eligible to receive any subsequent 
                grants under subsection (b).
  ``(d) Authorization; Termination.--
          ``(1) Authorization.--There are authorized to be appropriated 
        to the Department of Commerce not more than $100,000,000 for 
        each of the fiscal years 2004 through 2008 for grants under 
        this section.
          ``(2) Termination.--The provisions of this section shall 
        cease to be effective on October 1, 2008.
  ``(e) Definitions.--As used in this section:
          ``(1) Office.--The term `Office' means the E-911 
        Implementation Coordination Office.
          ``(2) Eligible entity.--
                  ``(A) In general.--The term `eligible entity' means a 
                State or local government or a tribal organization (as 
                defined in section 4(l) of the Indian Self-
                Determination and Education Assistance Act (25 U.S.C. 
                450b(l))).
                  ``(B) Instrumentalities.--Such term includes public 
                authorities, boards, commissions, and similar bodies 
                created by one or more eligible entities described in 
                subparagraph (A) to provide E-911 services.
                  ``(C) Exception.--Such term does not include any 
                entity that has failed to submit the most recently 
                required certification under subsection (c) within 30 
                days after the date on which such certification is due.
          ``(3) E-911 services.--The term `E-911 services' means both 
        phase I and phase II enhanced 911 services, as described in 
        section 20.18 of the Commission's regulations (47 CFR 20.18), 
        as in effect on the date of enactment of this section, or as 
        subsequently revised by the Federal Communications Commission.
          ``(4) Phase ii e-911 services.--The term `phase II E-911 
        services' means only phase II enhanced 911 services, as 
        described in such section 20.18 (47 CFR 20.18), as in effect on 
        such date, or as subsequently revised by the Federal 
        Communications Commission.''.

SEC. 3. REPORT ON THE DEPLOYMENT OF E-911 PHASE II SERVICES BY TIER III 
                    SERVICE PROVIDERS.

  Within 90 days after the date of enactment of this Act, the Federal 
Communications Commission shall submit a report to the Committee on 
Energy and Commerce of the House of Representatives and the Committee 
on Commerce, Science, and Transportation of the Senate detailing--
          (1) the number of tier III commercial mobile service 
        providers that are offering phase II E-911 services;
          (2) the number of requests for waivers from compliance with 
        the Commission's phase II E-911 service requirements received 
        by the Commission from such tier III providers;
          (3) the number of waivers granted or denied by the Commission 
        to such tier III providers;
          (4) how long each waiver request remained pending before it 
        was granted or denied;
          (5) how many waiver requests are pending at the time of the 
        filing of the report;
          (6) when the pending requests will be granted or denied;
          (7) actions the Commission has taken to reduce the amount of 
        time a waiver request remains pending; and
          (8) the technologies that are the most effective in the 
        deployment of phase II E-911 services by such tier III 
        providers.

                          Purpose and Summary

    The purpose of H.R. 2898, the E-911 Implementation Act of 
2003, is to facilitate coordination and communication between 
federal, state, and local emergency communications systems, 
emergency personnel, public safety organizations, 
telecommunications carriers, and telecommunications equipment 
manufacturers and vendors involved in the implementation of E-
911 services.

                  Background and Need for Legislation

    The nation's wireline telephone infrastructure provides a 
quick and reliable means of obtaining emergency services. 
Throughout the United States, many lives have been saved by the 
existence of so-called 911 services and the rapid response that 
emergency personnel can make to a 911 caller. 911 calls are 
typically routed by a local exchange carrier (LEC) to a public 
safety answering point (PSAP) staffed by professionals trained 
to assist callers in need of emergency assistance and to direct 
calls to police, fire, and health emergency response personnel.
    The advent of enhanced 911 (E-911) services has added 
features that permit even more efficient and rapid response by 
emergency service personnel. In areas with E-911 service, the 
LEC identifies the telephone number from which the wireline 911 
call is made through automatic number identification (ANI). The 
LEC then accesses a database to determine the address 
associated with that telephone number and routes the call and 
the automatic location information (ALI) to the appropriate 
PSAP for emergency response. This ALI information helps 
facilitate a rapid response by emergency service personnel, 
particularly when a caller is disoriented, disabled, unable to 
speak, or unable to convey his or her location.
    An increasing number of emergency calls are placed from 
wireless rather than wireline telephones. The United States has 
more than 140 million wireless customers, many of whom witness 
or experience accidents when they are in reach of their 
wireless phones but miles from a wireline telephone. Wireless 
phones present the opportunity to drastically reduce emergency 
response time and save even more lives.
    In 1999, Congress enacted the Wireless Communications and 
Public Safety Act, which designated 911 as the universal 
emergency telephone number within the United States for 
reporting an emergency and requesting assistance. In addition, 
to ensure that wireless 911 services achieve their potential 
life-saving capabilities, the Federal Communications Commission 
(the Commission) has spent more than seven years promulgating 
rules to make wireless 911, and, in particular, wireless E911, 
a reality.
    The basic 911 rules require wireless carriers to transmit 
all 911 calls to a PSAP even if the call was placed by a non-
subscriber. These rules are designed to avoid a situation in 
which someone in need of emergency services had to first prove 
that he or she was a subscriber before the wireless carrier 
would transmit the call to a PSAP.
    The Commission required its E-911 rules for wireless 
carriers to be implemented in two phases. As of April 1, 1998, 
or within six months of a request by a PSAP, whichever is 
later, wireless carriers are required to provide to the 
appropriate PSAP the telephone number of the originator of a 
911 call and the location of the cell site or base station 
receiving the 911 call. These rules achieve two goals. First, 
the rules provide emergency personnel with some information 
concerning the general location from which a wireless 911 call 
has been made. In addition, the Phase I rules enable emergency 
personnel to re-establish a connection with a caller if the 
call is lost.
    The Phase II rules focus on the ability of a wireless 
carrier to provide ALI. Initially, the Commission believed that 
ALI would be implemented by wireless carriers using network-
based technologies. However, since the rules were originally 
conceived, location technologies for handsets have become 
commercially viable. As a result, in September 1999, the 
Commission established separate accuracy requirements and 
deployment schedules for network-based and handset-based 
technologies.
    E-911 Phase II rules, for both handset and network-based 
solutions, originally required such solutions to be 
implemented, at least in part, by October of 2001. However, at 
that time, as a result of numerous technological, operational, 
and economic issues, the Commission revised its schedule for E-
911 Phase II compliance.
    In its revised rules, the Commission required wireless 
carriers to file quarterly reports to enable the Commission to 
monitor progress made by the carriers in implementing E-911. 
For five of the six largest wireless carriers (AT&T; Wireless, 
Cingular Wireless, Nextel, Sprint PCS, and Verizon Wireless), 
the Commission established company-specific schedules for E-911 
implementation depending upon the technology used to provide 
ALI. In July 2002, the Commission also granted waivers fromthe 
Phase II implementation deadlines to mid-sized and small wireless 
carriers.
    After the Commission revised its E-911 implementation 
schedule in October 2001, the agency realized that it needed 
assistance in clarifying the technological, operational, and 
economic issues facing Phase II deployment and in finding 
solutions to those problems. As a result, the Commission turned 
to Dale Hatfield, a former head of the Commission's Office of 
Engineering and Technology. Hatfield conducted a six-month 
inquiry that began on April 15, 2002 at the conclusion of which 
he produced a report (the Hatfield Report), which included his 
findings and recommendations.
    The Hatfield Report cites several problems facing Phase II 
E-911 deployment. First, Hatfield concludes that federal and 
state E-911 implementation programs are fragmented, and that 
coordination among public and private entities needs to be 
vastly improved. Second, Hatfield finds that E-911 deployment 
is being slowed because many PSAPs vary wildly with respect to 
technological capabilities, and lack a cost recovery mechanism. 
Moreover, in some cases, E-911 funds derived from cost recovery 
mechanisms are being diverted for other governmental purposes. 
Third, Hatfield asserts that LECs play an extremely important, 
and often overlooked, role in E-911 deployment, and that the 
LEC-portion of the E-911 equation presents some serious 
problems that need to be addressed, especially the fact that 
the existing wireline infrastructure in some areas is 
antiquated. Fourth, Hatfield concludes that many technical 
hurdles still remain to E-911 deployment and that vendors are 
not providing E-911 solutions that necessarily work in all 
geographic and topographical areas.
    The Hatfield Report makes a number of recommendations. 
Hatfield calls for closer cooperation at the federal and state 
level and among all parties responsible for E-911 deployment. 
In particular, Hatfield recommends that a ``National 911 
Program Office'' be established within the Department of 
Homeland Security. Hatfield also calls on the Commission, 
directly or through an advisory committee, to help address 
technical problems and to serve as a clearinghouse for 
information. In addition, Hatfield concludes that greater 
attention needed to be paid to the implementation of cost 
recovery mechanisms for PSAPs and to the pricing of services 
provided by LECs to PSAPs. Further, the Hatfield Report 
recommends that the Commission foster industry cooperation on 
industry-wide procedures for testing and certification of 
wireless E-911.
    H.R. 2898 attempts to remedy several of the problems 
identified in the Hatfield Report. H.R. 2898 creates a national 
office to facilitate greater coordination and communication 
among E-911 stakeholders and to serve as a clearinghouse for E-
911 -related information. H.R. 2898 also focuses attention on 
the diversion of E-911 funds by states and other taxing 
jurisdictions by denying entities located in such jurisdiction 
access to E-911 -related grants.

                                Hearings

    The Subcommittee on Telecommunications and the Internet 
held a hearing on H.R. 2898 on September 11, 2003. The 
Subcommittee received testimony from the Honorable Tim Berry, 
State Treasurer, State of Indiana; John Muleta, Chief of the 
FCC's Wireless Telecommunications Bureau; Anthony Haynes, 
Executive Director, Tennessee Emergency Communications Board; 
and Terry Addington, President and CEO, First Cellular of 
Southern Illinois.

                        Committee Consideration

    On Tuesday, September 23, 2003, the Subcommittee on 
Telecommunications and the Internet met in open markup session 
and approved H.R. 2898 for Full Committee consideration, as 
amended, by a voice vote, a quorum being present. On Wednesday, 
October 1, 2003, the Full Committee met in open markup session 
and ordered H.R. 2898 favorably reported to the House, as 
amended, by a voice vote, a quorum being present.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. 
There were no record votes taken in connection with ordering 
H.R. 2898 reported. A motion by Mr. Tauzin to order H.R. 2898 
reported to the House, as amended, was agreed to by a voice 
vote. Chairman Tauzin asked for and received unanimous consent 
to make technical and conforming changes to the bill.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a legislative 
hearing and made findings that are reflected in this report.

         Statement of General Performance Goals and Objectives

    The goal of H.R. 2898 is to facilitate better coordination 
and communications among stakeholders involved in E-911 Phase 2 
implementation.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee finds that H.R. 
2898, the E-911 Implementation Act of 2003, would result in 
changes to budget authority, entitlement authority, and tax 
expenditures and revenues to the extent stated below in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own cost estimate prepared by 
the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 7, 2003.
Hon. W.J. ``Billy'' Tauzin,
Chairman, Committee on Energy and Commerce,
House of Representatives, Washington, DC,
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 2898, the E-911 
Implementation Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Melissa 
Zimmerman.
            Sincerely,
                                      Elizabeth M. Robinson
                               (For Douglas Holtz-Eakin, Director).
    Enclosure.

H.R. 2898--E-911 Implementation Act of 2003

    Summary: H.R. 2898 would authorize the appropriation of 
$100 million a year to the National Telecommunications and 
Information Agency (NTIA) for grants to state and local 
governments and tribal organizations for improving emergency 
communications services. It also would establish the E-911 
Implementation Coordination Office within the NTIA to 
administer these grants and to improve coordination of 
emergency communications services.
    H.R. 2898 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA) 
and would benefit state, local, and tribal governments by 
authorizing grants to enhance services for emergency 
communication.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 2898 is shown in the following table. 
The costs of this legislation fall within budget function 370 
(commerce and housing credit).

----------------------------------------------------------------------------------------------------------------
                                                                       By fiscal year, in millions of dollars--
                                                                    --------------------------------------------
                                                                       2004     2005     2006     2007     2008
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Estimated authorization level......................................      107      107      107      107      107
Estimated outlays..................................................       45       87      107      107      107
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: H.R. 2898 would authorize the 
appropriation of $100 million a year to NTIA for grants to 
state and local governments and tribal organizations for 
improving emergency communications systems. The bill also would 
establish the E-911 Coordination Office within the NTIA to 
administer these grants and to improve coordination between 
Federal, state, and local emergency communications services, 
emergency personnel, public safety organizations, 
telecommunications carriers, and telecommunications equipment 
manufacturers and vendors involved with emergency services. 
Based on information provided by NTIA, CBO estimates that 
administering these grants and performing other 
responsibilities under the bill would cost NTIA about $7 
million a year. Assuming appropriation of the authorized 
amounts for the grants and performing other responsibilities 
under the bill would cost NTIA about $7 million a year. 
Assuming appropriation of the authorized amounts for the grants 
and the estimated administration needs of the new E-911 
Coordination Office, CBO estimates that implementing the grant 
program through this new office would cost $45 million in 2004 
and $453 million over the 2004-2008 period.
    Intergovernmental and private-sector impact: This bill 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. It would benefit state, local, and tribal 
governments by authorizing matching grants to enhance services 
for emergency communication. Any costs to those governments 
would be incurred voluntarily as conditions of receiving 
federal aid.
    Previous CBO estimates: On August 26, 2003, CBO transmitted 
a cost estimate for S. 1250, the Enhanced 911 Emergency 
Communications Act of 2003, as ordered reported by the Senate 
Committee on Science, Commerce, and Transportation on July 17, 
2003. S. 1250 would authorize the appropriation of $500 million 
a year to the NTIA for grants for improving emergency 
communications services, while H.R. 2989 would authorize $100 
million a year for the grants. S. 1250 also would direct the 
Federal Communications Commission to monitor the collection and 
spending of fees levied by states for the purposes of 
supporting emergency communications systems, while H.R. 2898 
does not. Finally, S. 1250 would establish a multi-agency 
taskforce for improving coordination of emergency 
communications systems while H.R. 2898 would charge the NTIA 
with that responsibility. Our cost estimates reflect those 
differences.
    Estimate prepared by: Federal Costs: Melissa E. Zimmerman. 
Impact on State, Local, and Tribal Governments: Melissa 
Merrell. Impact on the Private Sector: Jean Talarico.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional authority for this legislation is provided in 
Article I, section 8, clause 3, which grants Congress the power 
to regulate commerce with foreign nations, among the several 
States, and with the Indian tribes.

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    Section 1 establishes the short title of the bill, the ``E-
911 Implementation Act of 2003.''

Section 2. Coordination of E-911 implementation

    Section 2 of the bill amends the National 
Telecommunications and Information Administration Organization 
Act (47 U.S.C. 901 et seq.) by creating a new Section 158.
    Section 158(a)(1) establishes an E-911 Implementation 
Coordination Office (the Office) to facilitate coordination and 
communication between federal, state, and local emergency 
communications systems, emergency personnel, public safety 
organizations, telecommunications carriers, and 
telecommunications equipment manufacturers and vendors involved 
in the implementation of E-911 services.
    Section 158(a)(2) sets forth the purposes of the Office. 
The Office is required to (1) take actions in conjunction with 
state E-911 coordinators to improve coordination and 
communication among E-911 stakeholders; (2) develop, collect, 
and disseminate E-911-related information; (3) help eligible 
entities prepare E-911 implementation plans; and, (4) 
administer the E-911 grant program.
    Section 158(a)(3) requires the Assistant Secretary of 
Commerce for Communications and Information (NTIA 
Administrator) to provide an annual report to Congress on the 
activities of the office to improve coordination and 
communication with respect to E-911 implementation.
    Section 158(b)(1) requires the NTIA Administrator, after 
consultation with the Secretary of Homeland Security and the 
Chairman of the Federal Communications Commission, to provide 
grants for Phase II E-911 implementation through the Office to 
eligible entities. The Phase II E-911-related activities for 
which grants may be awarded are planning, infrastructure 
improvements, telecommunications equipment purchases, and 
personnel training.
    Section 158(b)(2) provides that the federal share of the 
cost of a project eligible for a grant awarded under this 
section cannot exceed 50 percent. Section 158(b)(2) also 
requires that the non-federal share of the cost must be 
provided from non-federal sources.
    Section 158(b)(3) provides that a state government that is 
an eligible entity receiving a grant under this section must 
certify in its application that the entity has (1) coordinated 
its application with PSAPs in the state; (2) designated a 
single officer or government body of the state as the 
coordinator of E-911 implementation; (3) established a plan for 
the coordination and implementation of E-911 services; and, (4) 
integrated its telecommunications services involved in E-911 
implementation and delivery. Section 158(b)(3) clarifies, 
however, that to be an eligible entity, a state does not have 
to vest its E-911 coordinator with direct legal authority to 
implement E-911 services or manage emergency communications 
operations.
    Section 158(b)(3) also requires an eligible entity that is 
not a state to (1) coordinate its application with PSAPs in the 
state; (2) establish a plan for the coordination and 
implementation of E-911 services; and, (3) integrate its 
telecommunications services involved in E-911 implementation 
and delivery. In addition, the state in which the eligible 
entity is located must have designated an E-911 coordinator.
    Section 158(b)(4) requires the NTIA Administrator to issue 
regulations regarding the grant program within 180 days of 
enactment that prescribe the criteria for selection for grants.
    Section 158(c)(1) defines ``designated E-911 charges'' as 
any taxes, fees, or other charges imposed by a state or other 
taxing jurisdiction that appear on telecommunications services 
customer bills and are designated or presented as dedicated to 
deliver or improve E-911 services. By ``fees, taxes, and other 
charges imposed by a State or other taxing jurisdiction,'' the 
Committee means fees, taxes, and other charges that a state or 
other taxing jurisdiction requires a telecommunications carrier 
to collect and remit to the state or other jurisdiction, and 
not fees that telecommunications carriers collect from their 
customers to defray the carriers' E-911 costs.
    Section 158(c)(2) requires grant applicants to make a 
certification at the time of application, and annually 
thereafter during the period in which funds are available for 
entities awarded grants. The applicants (and recipients) must 
certify that no portion of any designated E-911 charges imposed 
by a state or other taxing jurisdiction within which the 
applicant (or recipient) is located are being diverted to other 
purposes.
    Section 158(c)(3) requires each applicant to agree to 
return any funds from a grant if a state or taxing jurisdiction 
in which the applicant is located diverts E-911 monies to other 
purposes during the period in which funds are available for 
entities awarded grants.
    Section 158(c)(4) provides that any applicant that makes a 
certification under this section knowing that such information 
is false shall not be eligible to receive any grant under this 
section, including the one that is the subject of the 
certification, and shall return any funds awarded during the 
time that the certification was not valid.
    Section 158(d) authorizes $100,000,000 to be appropriated 
annually for each of the fiscal years 2004 through 2008. 
Section 158(d) also terminates the section effective on October 
1, 2008.
    Section 158(e)(1) defines the term ``Office'' to mean the 
E-911 Implementation Coordination Office.
    Section 158(e)(2) defines an eligible entity as a state, 
local government, or tribal organization, and includes public 
authorities, boards, commissions, and similar bodies created by 
one (or more) state, local government, or tribal organization. 
The term ``eligible entity'' does not include any entity that 
has failed to submit the most recently required certification 
within 30 days after such certification is due.
    Section 158(e)(3) defines E-911 services as both Phase I 
and Phase II enhanced 911 services as described by the 
Commission in 47 CFR 20.18, as in effect on the date of 
enactment or as subsequently amended by the Commission.
    Section 158(e)(4) defines Phase II E-911 services as such 
services are described by the Commission in 47 CFR 20.18, as in 
effect on the date of enactment or as subsequently amended by 
the Commission.

Section 3. Report on the deployment of E-911 Phase II services by Tier 
        III service providers

    Section 3 requires the Commission to report to the 
Committee and to the Senate Committee on Commerce, Science, and 
Transportation within 90 days regarding the Commission's 
process for granting waivers to Tier III commercial mobile 
service providers from the Commission's Phase II E-911 rules. 
The report must detail the number of Tier III carriers offering 
Phase II services, the number of such carriers that have 
requested waivers from the Phase II E-911 rules, the number of 
waivers by Tier III carriers granted or denied, how long each 
waiver remained pending before granted or denied, the number of 
waiver requests pending at the time of the report and when such 
requests will be granted or denied, and actions taken by the 
Commission to reduce the amount of time a waiver request 
remains pending.
    Section 3 also provides that the report must also detail 
the technologies that are the most effective in the deployment 
of Phase II E-911 services by Tier III carriers. Because many 
Tier III carriers serve rural areas where the terrain makes 
some Phase II E-911 solutions difficult to implement, such 
carriers will benefit from the Commission's insights regarding 
which technologies are proving successful in rural areas in 
enabling Tier III carriers to meet the Commission's Phase II E-
911 accuracy requirements.
    As the number of waivers filed by Tier III carriers 
indicates, such carriers have struggled with implementation of 
the Commission's Phase II E-911 requirements. Many of the Tier 
III carriers have made a good faith attempt to comply with the 
Commission's rules. However, network-based Phase II E-911 
solutions are difficult to implement in areas in which cellular 
towers are farther apart. In addition, a carrier cannot 
currently offer customers handsets that comply with Phase II E-
911 requirements if the carrier has deployed the Time Division 
Multiple Access (TDMA) or Global System for Mobility (GSM) air-
interfaces. Further, a carrier with a limited customer base 
that deploys the Code Division Multiple Access (CDMA) air-
interface might not be able to purchase Phase II E-911-
compliant handsets directly from a manufacturer. The Committee 
hopes that vendors of Phase II E-911 technologies continue to 
work with Tier III carriers to find solutions that address the 
unique circumstances faced by those carriers.
    The Committee finds that the Commission should work with 
Tier III carriers that are making a good faith effort to deploy 
Phase II E-911 services. The waiver process should be utilized 
by the Commission to assist Tier III carriers that need more 
time to find the right technological solution to meet the 
Commission's accuracy requirements. However, the Commission 
should not relax its accuracy standards, nor should the 
Commission reward carriers that are not making a good faith 
effort to satisfy the Commission's Phase II E-911 requirements.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (new matter is 
printed in italic and existing law in which no change is 
proposed is shown in roman):

NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION ORGANIZATION 
                                  ACT

TITLE I--NATIONAL TELECOMMUNICATIONS AND INFORMATION ADMINISTRATION

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PART C--SPECIAL AND TEMPORARY PROVISIONS

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SEC. 158. COORDINATION OF E-911 IMPLEMENTATION.

  (a) E-911 Implementation Coordination Office.--
          (1) Establishment.--The Assistant Secretary shall 
        establish an E-911 Implementation Coordination Office 
        to facilitate coordination and communication between 
        Federal, State, and local emergency communications 
        systems, emergency personnel, public safety 
        organizations, telecommunications carriers, and 
        telecommunications equipment manufacturers and vendors 
        involved in the implementation of E-911 services.
          (2) Purpose of office.--The Office shall--
                  (A) take actions, in concert with 
                coordinators designated in accordance with 
                subsection (b)(3)(A)(ii), to improve such 
                coordination and communication;
                  (B) develop, collect, and disseminate 
                information concerning practices, procedures, 
                and technology used in the implementation of E-
                911 services;
                  (C) advise and assist eligible entities in 
                the preparation of implementation plans 
                required under subsection (b)(3)(A)(iii);
                  (D) receive, review, and recommend the 
                approval or disapproval of applications for 
                grants under subsection (b); and
                  (E) oversee the use of funds provided by such 
                grants in fulfilling such implementation plans.
          (3) Reports.--The Assistant Secretary shall provide 
        an annual report to Congress by the first day of 
        October of each year on the activities of the Office to 
        improve coordination and communication with respect to 
        the implementation of E-911 services.
  (b) Phase II E-911 Implementation Grants.--
          (1) Matching grants.--The Assistant Secretary, after 
        consultation with the Secretary of Homeland Security 
        and the Chairman of the Federal Communications 
        Commission, and acting through the Office, shall 
        provide grants to eligible entities for the 
        implementation of phase II E-911 services through 
        planning, infrastructure improvements, 
        telecommunications equipment purchases, and personnel 
        training.
          (2) Matching requirement.--The Federal share of the 
        cost of a project eligible for a grant under this 
        section shall not exceed 50 percent. The non-Federal 
        share of the cost shall be provided from non-Federal 
        sources.
          (3) Coordination required.--In providing grants under 
        paragraph (1), the Assistant Secretary shall require an 
        eligible entity to certify in its application that--
                  (A) in the case of an eligible entity that is 
                a State government, the entity--
                          (i) has coordinated its application 
                        with the public safety answering points 
                        (as such term is defined in section 
                        222(h)(4) of the Communications Act of 
                        1934) located within the jurisdiction 
                        of such entity;
                          (ii) has designated a single officer 
                        or governmental body of the entity to 
                        serve as the coordinator of 
                        implementation of E-911 services, 
                        except that such designation need not 
                        vest such coordinator with direct legal 
                        authority to implement E-911 services 
                        or manage emergency communications 
                        operations;
                          (iii) has established a plan for the 
                        coordination and implementation of E-
                        911 services; and
                          (iv) has integrated 
                        telecommunications services involved in 
                        the implementation and delivery of 
                        phase II E-911 services; or
                  (B) in the case of an eligible entity that is 
                not a State, the entity has complied with 
                clauses (i), (iii), and (iv) of subparagraph 
                (A), and the State in which it is located has 
                complied with clause (ii) of such subparagraph.
          (4) Criteria.--The Assistant Secretary shall issue 
        regulations within 180 days of the enactment of the E-
        911 Implementation Act of 2003, after a public comment 
        period of not less than 60 days, prescribing the 
        criteria for selection for grants under this section, 
        and shall update such regulations as necessary.
  (c) Diversion of E-911 Charges.--
          (1) Designated e-911 charges.--For the purposes of 
        this subsection, the term ``designated E-911 charges'' 
        means any taxes, fees, or other charges imposed by a 
        State or other taxing jurisdiction that--
                  (A) appear on telecommunications services 
                customers' bills; and
                  (B) are designated or presented as dedicated 
                to deliver or improve E-911 services.
          (2) Certification.--Each applicant for a matching 
        grant under this section shall certify to the Assistant 
        Secretary at the time of application, and each 
        applicant that receives such a grant shall certify to 
        the Assistant Secretary annually thereafter during any 
        period of time during which the funds from the grant 
        are available to the applicant, that no portion of any 
        designated E-911 charges imposed by a State or other 
        taxing jurisdiction within which the applicant is 
        located are being obligated or expended for any purpose 
        other than the purposes for which such charges are 
        designated or presented.
          (3) Condition of grant.--Each applicant for a grant 
        under this section shall agree, as a condition of 
        receipt of the grant, that if the State or other taxing 
        jurisdiction within which the applicant is located, 
        during any period of time during which the funds from 
        the grant are available to the applicant, obligates or 
        expends designated E-911 charges for any purpose other 
        than the purposes for which such charges are designated 
        or presented, all of the funds from such grant shall be 
        returned to the Secretary.
          (4) Penalty for providing false information.--Any 
        applicant that provides a certification under paragraph 
        (1) knowing that the information provided in the 
        certification was false shall--
                  (A) not be eligible to receive the grant 
                under subsection (b);
                  (B) return any grant awarded under subsection 
                (b) during the time that the certification was 
                not valid; and
                  (C) not be eligible to receive any subsequent 
                grants under subsection (b).
  (d) Authorization; Termination.--
          (1) Authorization.--There are authorized to be 
        appropriated to the Department of Commerce not more 
        than $100,000,000 for each of the fiscal years 2004 
        through 2008 for grants under this section.
          (2) Termination.--The provisions of this section 
        shall cease to be effective on October 1, 2008.
  (e) Definitions.--As used in this section:
          (1) Office.--The term ``Office'' means the E-911 
        Implementation Coordination Office.
          (2) Eligible entity.--
                  (A) In general.--The term ``eligible entity'' 
                means a State or local government or a tribal 
                organization (as defined in section 4(l) of the 
                Indian Self-Determination and Education 
                Assistance Act (25 U.S.C. 450b(l))).
                  (B) Instrumentalities.--Such term includes 
                public authorities, boards, commissions, and 
                similar bodies created by one or more eligible 
                entities described in subparagraph (A) to 
                provide E-911 services.
                  (C) Exception.--Such term does not include 
                any entity that has failed to submit the most 
                recently required certification under 
                subsection (c) within 30 days after the date on 
                which such certification is due.
          (3) E-911 services.--The term ``E-911 services'' 
        means both phase I and phase II enhanced 911 services, 
        as described in section 20.18 of the Commission's 
        regulations (47 CFR 20.18), as in effect on the date of 
        enactment of this section, or as subsequently revised 
        by the Federal Communications Commission.
          (4) Phase ii e-911 services.--The term ``phase II E-
        911 services'' means only phase II enhanced 911 
        services, as described in such section 20.18 (47 CFR 
        20.18), as in effect on such date, or as subsequently 
        revised by the Federal Communications Commission.