2016 -- H 7722

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LC004946

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- 911 EMERGENCY TELEPHONE

NUMBER ACT -- PREPAID WIRELESS E911 CHARGE ACT

     

     Introduced By: Representatives Lancia, Chippendale, Costa, Nardolillo, and Filippi

     Date Introduced: February 24, 2016

     Referred To: House Finance

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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telecommunication services provider and shall be payable to the telecommunication services

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

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

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

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recover from the general body of ratepayers this surcharge. If the public utilities commission shall

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determine that the funds collected pursuant to this chapter and chapter 21.2 of title 39 exceed

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what is needed to operate the E 9-1-1 uniform emergency telephone system, it may authorize a

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reduction in the surcharge authorized by this section.

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

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

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of computing the tax under chapter 13 of title 44.

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

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

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surcharge under this section.

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

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

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

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

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accrued interest and shall be deposited in the general fund as general revenue: a restricted receipt

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account and used solely for the operation of the E 9-1-1 uniform emergency telephone system;

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provided, however, that beginning July 1, 2015, ten (10) percent of such money collected shall be

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deposited in the Information Technology Investment Fund established pursuant to § 42-11-2.5.

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Any money not transferred in accordance with this paragraph shall be assessed interest at the rate

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set forth in § 44-1-7 from the date the money should have been transferred.

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

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

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

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

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telephone common carrier or telecommunication services provider.

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

 

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

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

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

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telecommunication services provider to have not paid the surcharge.

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

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

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

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

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

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

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

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

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

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

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

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

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the division; reimbursement to telecommunication services providers or telephone common

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

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

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

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

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

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

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

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

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     SECTION 2. Sections 39-21.2-4 and 39-21.2-5 of the General Laws in Chapter 39-21.2

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entitled "Prepaid Wireless E911 Charge Act" are hereby amended to read as follows:

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     39-21.2-4. Collection and remittance of E911 charge. -- (a) Amount of charge. The

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prepaid wireless E911 charge is hereby levied at the rate of two and one-half percent (2.5%) per

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retail transaction or, on and after the effective date of an adjusted amount per retail transaction

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that is established under subsection (f) of this section, such adjusted amount. If the public utilities

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commission shall determine that the funds collected pursuant to this chapter and chapter 21.1 of

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title 39 exceed what is needed to operate the E 9-1-1 uniform emergency telephone system, it

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may authorize a reduction in the surcharge authorized by this section.

 

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      (b) Collection of charge. - The prepaid wireless E911 charge shall be collected by the

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seller from the consumer with respect to each retail transaction occurring in this state. The

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amount of the prepaid wireless E911 charge shall be either separately stated on an invoice,

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receipt, or other similar document that is provided to the consumer by the seller, or otherwise

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disclosed to the consumer.

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      (c) Application of charge. - For purposes of subsection (b) of this section, a retail

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transaction that is effected in person by a consumer at a business location of the seller shall be

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treated as occurring in this state if that business location is in this state, and any other retail

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transaction shall be treated as occurring in this state if the retail transaction is treated as occurring

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in this state for purposes of chapter 18 of title 44 of the general laws.

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      (d) Liability for charge. - The prepaid wireless E911 charge is the liability of the

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consumer and not of the seller or of any provider, except that the seller shall be liable to remit all

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prepaid wireless E911 charges that the seller collects from consumers as provided in § 39-21.2-5,

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including all such charges that the seller is deemed to collect where the amount of the charge has

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not been separately stated on an invoice, receipt, or other similar document provided to the

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consumer by the seller.

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      (e) Exclusion of E911 charge from base of other taxes and fees. - The amount of the

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prepaid wireless E911 charge that is collected by a seller from a consumer, if such amount is

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separately stated on an invoice, receipt, or other similar document provided to the consumer by

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the seller, shall not be included in the base for measuring any tax, fee, surcharge, or other charge

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that is imposed by this state, any political subdivision of this state, or any intergovernmental

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agency, including, but not limited to, the tax imposed under chapter 18 of title 44 nor be included

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within the telephone common carrier's gross earnings for the purpose of computing the tax under

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chapter 13 of title 44.

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      (f) Re-setting of charge. - The prepaid wireless E911 charge shall be proportionately

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increased or reduced, as applicable, upon any change to the state E911 charge on postpaid

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wireless telecommunications service under § 39-21.1-14 or subdivision 39-1-62(d)(2). The

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adjusted amount shall be determined by dividing the sum of the surcharges imposed under § 39-

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21.1-14 and subdivision 39-1-62(d)(2) by fifty dollars ($50.00). Such increase or reduction shall

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be effective on the effective date of the change to the postpaid charge or, if later, the first day of

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the first calendar month to occur at least sixty (60) days after the enactment of the change to the

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postpaid charge. The division shall provide not less than thirty (30) days of advance notice of

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such increase or reduction on the division's website.

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      (g) Bundled transactions. - When prepaid wireless telecommunications service is sold

 

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with one or more other products or services for a single, non-itemized price, then the percentage

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specified in subsection (a) of this section shall apply to the entire non-itemized prices unless the

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seller elects to apply such percentage (1) If the amount of prepaid wireless telecommunications

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service is disclosed to the consumer as a dollar amount, such dollar amount, or (2) If the retailer

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can identify the portion of the price that is attributable to the prepaid wireless telecommunications

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service, by reasonable and verifiable standards from its books and records that are kept in the

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regular course of business for other purposes, including, but not limited to, non-tax purposes,

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such portion.

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      However, if a minimal amount of prepaid wireless telecommunications service is sold

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with a prepaid wireless device for a single, non-itemized price, then the seller may elect not to

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apply the percentage specified in subsection (a) of this section to such transaction. For purposes

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of this paragraph, an amount of service denominated as ten (10) minutes or less, or five dollars

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($5.00) or less, is minimal.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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restricted receipt account and used solely for the operation of the E 9-1-1 uniform emergency

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telephone system.

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     SECTION 3. Chapter 39-21 of the General Laws entitled "E-911 Uniform Emergency

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Telephone System Division" is hereby amended by adding thereto the following section:

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     39-21-17. 911 Restricted receipt account. -- There is created within the general fund a

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restricted receipt account to be known as the "911 account". All funds in the account shall be

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utilized by the division of taxation to effectuate the provisions of chapters 21, 21.1 and 21.2 of

 

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this title. All funds received pursuant to §§39-21.1-14, 39-21.2-4 and 39-21.2-5 shall be deposited

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in the "911 account". The general treasurer is authorized and directed to draw their orders on the

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account upon receipt of properly authenticated vouchers from the division of taxation.

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     SECTION 4. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS -- 911 EMERGENCY TELEPHONE

NUMBER ACT -- PREPAID WIRELESS E911 CHARGE ACT

***

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     This act would create a restricted receipt account for all 911 funds collected by telephone

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service providers on land lines and cell phones, both contract and prepaid, and would require all

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911 funds to be used solely for the operation of the 911 system. This act would also authorize the

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PUC to reduce 911 surcharges to the extent they exceed the sums needed to operate the 911

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system.

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     This act would take effect upon passage.

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