2019 -- H 5933

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LC002306

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2019

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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 Lyle, Nardone, Place, Filippi, and Quattrocchi

     Date Introduced: March 29, 2019

     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. Emergency services and first response surcharge.

     (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 that 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 this title. 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 9-1-1 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 9-1-1 uniform emergency telephone system;

provided, however, that beginning July 1, 2015, ten percent (10%) 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

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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, improvement, construction, maintenance, repair, and utilities for

the equipment and site or sites occupied by the state's first responder and emergency services

agencies; 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 database provisioning, addressing, and non-recurring

costs of establishing emergency services; network development, operation, and maintenance;

database 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 Charge Act" are hereby amended to read as follows:

     39-21.2-4. Emergency services and first response surcharge.

     (a) Amount of charge. The prepaid wireless 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 9-1-1 uniform

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

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section.

     (b) Collection of charge. The prepaid wireless 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 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.

     (d) Liability for charge. The prepaid wireless 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 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 charge from base of other taxes and fees. The amount of the prepaid

wireless 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 charge shall be proportionately increased or

reduced, as applicable, upon any change to the state charge on postpaid wireless

telecommunications service under § 39-21.1-14 or § 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 § 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 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

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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 9-1-1 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:

     39-21-18. 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

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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 his or her 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 E911 CHARGE ACT

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     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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