2017 -- S 0039

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LC000243

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO PUBLIC UTILITIES AND CARRIERS - 911 EMERGENCY TELEPHONE

NUMBER ACT - PREPAID WIRELESS E-911 CHARGE ACT

     Introduced By: Senators Algiere, and Kettle

     Date Introduced: January 18, 2017

     Referred To: Senate 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. If the public utilities commission shall

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

what is needed to operate the E-911 uniform emergency telephone system, it may authorize a

reduction in the surcharge authorized by this section.

     (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 the general fund as general revenue: a restricted receipt

account and used solely for the operation of the E-911 uniform emergency telephone system;

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.

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     (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

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

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

     39-21.2-4. Collection and remittance of E911 charge.

     (a) Amount of charge. The prepaid wireless E911 charge is hereby levied at the rate of

two and one-half percent (2.5%) per retail transaction or, on and after the effective date of an

adjusted amount per retail transaction that is established under subsection (f) of this section, such

adjusted amount. If the public utilities commission shall determine that the funds collected

pursuant to this chapter and chapter 21.1 of title 39 exceed what is needed to operate the E-911

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uniform emergency telephone system, it may authorize a reduction in the surcharge authorized by

this section.

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

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

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

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

disclosed to the consumer.

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

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

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

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

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

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

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

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

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

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

consumer by the seller.

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

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

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

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

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

agency, including, but not limited 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.

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

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

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

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

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

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

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

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.

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

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

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

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

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

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

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

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

such portion.

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

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

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

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

($5.00) or less, is minimal.

     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.

     (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 and used solely for the operation of the E-911 uniform emergency

telephone system.

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

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

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     39-21-18. 911 Restricted receipt account.

     There is created within the general fund a restricted receipt account to be known as the

"911 account". All funds in the account shall be utilized by the division of taxation to effectuate

the provisions of chapters 21, 21.1 and 21.2 of this title. All funds received pursuant to §§39-

21.1-14, 39-21.2-4 and 39-21.2-5 shall be deposited in the "911 account". The general treasurer is

authorized and directed to draw their orders on the account upon receipt of properly authenticated

vouchers from the division of taxation.

     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 E-911 CHARGE ACT

***

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

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

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

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

system.

     This act would take effect upon passage.

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