2015 -- H 5390

========

LC000866

========

     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2015

____________

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

     Introduced By: Representatives Lancia, Trillo, Morgan, Newberry, and Filippi

     Date Introduced: February 11, 2015

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

     SECTION 1. Section 39-21.1-14 of the General Laws in Chapter 39-21.1 entitled "911

Emergency Telephone Number Act" is hereby amended to read as follows:

     39-21.1-14. Funding. -- (a) A monthly surcharge of one dollar ($1.00) is hereby levied

upon each residence and business telephone line or trunk or path and data, telephony, Internet,

Voice Over Internet Protocol (VoIP) wireline, line, trunk or path in the state including PBX

trunks and centrex equivalent trunks and each line or trunk serving, and upon each user interface

number or extension number or similarly identifiable line, trunk, or path to or from a digital

network (such as, but not exclusive of, integrated services digital network (ISDN), Flexpath or

comparable digital private branch exchange, or connecting to or from a customer-based or

dedicated telephone switch site (such as, but not exclusive of, a private branch exchange (PBX)),

or connecting to or from a customer-based or dedicated central office (such as, but not exclusive

of, a centrex system but exclusive of trunks and lines provided to wireless communication

companies) that can access to, connect with or interface with the Rhode Island E-911 Uniform

Emergency Telephone System (RI E-911). The surcharge shall be billed by each

telecommunication services provider at the inception of services and shall be payable to the

telecommunication services provider by the subscriber of the services. A monthly surcharge of

one dollar ($1.00) is hereby levied effective July 1, 2002, on each wireless instrument, device or

means including prepaid, cellular, telephony, Internet, Voice Over Internet Protocol (VoIP),

satellite, computer, radio, communication, data or data only wireless lines or any other wireless

instrument, device or means which has access to, connects with, or activates or interfaces or any

combination thereof with the E 9-1-1 Uniform Emergency Telephone System. The surcharge

shall be in addition to the surcharge collected under § 39-1-62 and shall be billed by each

telecommunication services provider and shall be payable to the telecommunication services

provider by the subscriber. Prepaid wireless telecommunications services shall not be included in

this act, but shall be governed by chapter 21.2 of title 39. The E-911 Uniform Emergency

Telephone System shall establish, by rule or regulation an appropriate funding mechanism to

recover from the general body of ratepayers this surcharge.

      (b) The amount of the surcharge shall not be subject to the tax imposed under chapter 18

of title 44 nor be included within the telephone common carrier's gross earnings for the purpose

of computing the tax under chapter 13 of title 44.

      (c) Each telephone common carrier and each telecommunication services provider shall

establish a special account to which it shall deposit on a monthly basis the amounts collected as a

surcharge under this section.

      (d) The money collected by each telecommunication services provider shall be

transferred within sixty (60) days after its inception of wireline, wireless, prepaid, cellular,

telephony, Voice Over Internet Protocol (VoIP), satellite, computer, Internet, or communications

services in this state and every month thereafter, to the division of taxation, together with the

accrued interest and shall be deposited in a restricted receipt account to be administered by the

general treasurer for the sole purpose of operating, maintaining and otherwise administering the

E-911 uniform emergency telephone system established pursuant to chapter 21 of title 39. the

general fund as general revenue: provided, however, that beginning July 1, 2015, ten (10) percent

of such money collected shall be deposited in the Information Technology Investment Fund

established pursuant to § 42-11-2.5. Any money not transferred in accordance with this paragraph

shall be assessed interest at the rate set forth in § 44-1-7 from the date the money should have

been transferred.

      (e) Every billed subscriber-user shall be liable for any surcharge imposed under this

section until it has been paid to the telephone common carrier or telecommunication services

provider. Any surcharge shall be added to and may be stated separately in the billing by the

telephone common carrier or telecommunication services provider and shall be collected by the

telephone common carrier or telecommunication services provider.

      (f) Each telephone common carrier and telecommunication services provider shall

annually provide the E 9-1-1 uniform emergency telephone system division or any other agency

that may replace it, with a list of amounts uncollected together with the names and addresses of

LC000866 - Page 2 of 5

its subscriber-users who can be determined by the telephone common carrier or

telecommunication services provider to have not paid the surcharge.

      (g) Included within, but not limited to, the purposes for which the money collected may

be used are rent, lease, purchase, improve, construct, maintenance, repair, and utilities for the

equipment and site or sites occupied by the E 9-1-1 uniform emergency telephone system;

salaries, benefits, and other associated personnel costs; acquisition, upgrade or modification of

PSAP equipment to be capable of receiving E 9-1-1 information, including necessary computer

hardware, software, and data base provisioning, addressing, and non-recurring costs of

establishing emergency services; network development, operation and maintenance; data-base

development, operation, and maintenance; on-premise equipment maintenance and operation;

training emergency service personnel regarding use of E 9-1-1; educating consumers regarding

the operations, limitations, role and responsible use of E 9-1-1; reimbursement to telephone

common carriers or telecommunication services providers of rates or recurring costs associated

with any services, operation, administration or maintenance of E 9-1-1 services as approved by

the division; reimbursement to telecommunication services providers or telephone common

carriers of other costs associated with providing E 9-1-1 services, including the cost of the design,

development, and implementation of equipment or software necessary to provide E 9-1-1 service

information to PSAP's, as approved by the division.

      (h) [Deleted by P.L. 2000, ch. 55, art. 28, § 1.]

      (i) Nothing in this section shall be construed to constitute rate regulation of wireless

communication services carriers, nor shall this section be construed to prohibit wireless

communication services carriers from charging subscribers for any wireless service or feature.

      (j) [Deleted by P.L. 2006, ch. 246, art. 4, § 1].

     SECTION 2. Section 39-21.2-5 of the General Laws in Chapter 39-21.2 entitled "Prepaid

Wireless E911 Charge Act" is hereby amended to read as follows:

     39-21.2-5. Administration of E911 charge. -- (a) Time and manner of payment. -

Prepaid wireless E911 charges collected by sellers shall be remitted to the division at the times

and in the manner provided by the streamlined sales and use tax as described in § 44-18.1-34. The

division shall establish registration and payment procedures that substantially coincide with the

registration and payment procedures that apply to the streamlined sales and use tax.

      (b) Seller administrative deduction. - A seller shall be permitted to deduct and retain one

percent (1%) of prepaid wireless E911 charges that are collected by the seller from consumers.

      (c) Audit and appeal procedures. - The audit and appeal procedures applicable to sales

and use tax under § 44-19-18 of the general laws shall apply to prepaid wireless E911 charges.

LC000866 - Page 3 of 5

      (d) Exemption documentation. - The division shall establish procedures by which a seller

of prepaid wireless telecommunications service may document that a sale is not a retail

transaction, which procedures shall substantially coincide with the procedures form documenting

sale for resale transactions for sales tax purposes under § 44-19-18 of the general laws.

      (e) All fees collected pursuant to this section shall be deposited as general revenues in a

restricted receipt account to be administered by the general treasurer for the sole purpose of

operating, maintaining and otherwise administering the E-911 uniform emergency telephone

system established pursuant to chapter 21 of title 39.

     SECTION 3. This act shall take effect upon passage.

========

LC000866

========

LC000866 - Page 4 of 5

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS

***

     This act would require that all charges collected by telecommunications and prepaid

wireless providers in connection with the E-911 system be deposited into a restricted receipt

account for the sole purpose of administering the system.

     This act would take effect upon passage.

========

LC000866

========

LC000866 - Page 5 of 5