Michigan 911 Technical Pool
The Michigan 911 system was established by state law in 1986 as Public Act 32. The law addressed many aspects of the 911 system in Michigan including how carriers are reimbursed for their costs related to providing dedicated 911 circuits and other 911 costs. The Michigan legislature determined that all carriers should be reimbursed for their 911 technical cost, which includes recurring and non-recurring costs. Non-recurring costs are generally plant and equipment and usually occurs when a 911 system is established or there is a major change in the system. Recurring costs consist of circuits, labor and maintenance cost that a carrier incurs related to the 911 network. The law stated that subscribers in each 911 service district would have a separate charge on their wireline telephone bill to reimburse the carriers for their technical costs. The law also stated that every subscriber within the district would pay the same surcharge for the 911 technical costs.
In order provide a vehicle to collect and disburse the funds from each subscriber to the various carriers, the Michigan 911 Technical Pool was established. Maner Costerisan administers the pool. Based on the number of subscribers to be billed and an estimate of the carrier cost to be reported we establish a rate to be billed to the subscribers. This is generally set annually effective July 1. On a quarterly basis each carrier reports to the pool administrator their monthly cost and access lines billed to their subscribers. Based on the difference between what each carrier collects from their subscribers and the amount of cost they submit for reimbursement a carrier either receives funds from the pool or they pay into the pool. Recurring costs are settled as they occur and non-recurring costs are settled based on a five year amortization. As noted before, this process is currently distinct for each 911 service district in Michigan.
This system has been in place since the inception of the law. However, in March 2018 a major revision to the 911 funding law occurred. For Michigan technical cost reimbursement, the new law requires that instead of billing and settling cost by service district the wireline technical carrier costs are settled on a Michigan statewide basis. Functionally the system is the same. All carriers should participate in the 911 technical pool and all subscribers should be billed the 911 technical surcharge. Effective May 5, 2018 the new Michigan statewide rate goes into effect. All bills to subscribers dated May 5, 2018 or later should use the new rate of $0.55 per line per month. This rate consists of $0.53 for recurring cost and $0.02 for non-recurring.
If you have any questions regarding the Michigan Technical 911 Pool please feel free to contact our office.