2020 -- H 7534

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LC004256

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2020

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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: Representatives Nardone, Filippi, Quattrocchi, Newberry, and Roberts

     Date Introduced: February 12, 2020

     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. E-911 surcharge and first response surcharge E-911 surcharge.

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     (a)(1) A monthly E-911 surcharge of fifty cents ($.50) is hereby levied upon each

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residence and business telephone line or trunk or path and data, telephony, internet, voice over

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internet protocol (VoIP) wireline, line, trunk or path in the state including PBX trunks and

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

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

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

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

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

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

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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). In each instance where a surcharge is levied pursuant to

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this subsection (a)(1) there shall also be a monthly first response surcharge of fifty cents ($.50).

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The surcharges surcharge shall be billed by each telecommunication services provider at the

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

 

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subscriber of the services.

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     (2) A monthly E-911 surcharge of fifty cents ($.50) is hereby levied, on each wireless

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instrument, device, or means including prepaid, cellular, telephony, internet, voice over internet

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protocol (VoIP), satellite, computer, radio, communication, data or data only wireless lines or any

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other wireless instrument, device, or means that has access to, connects with, or activates or

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interfaces or any combination thereof with the E-911 uniform emergency telephone system. In

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each instance where a surcharge is levied pursuant to this subsection (a)(2) above there shall also

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be a monthly first response surcharge of seventy-five cents ($.75). The surcharges surcharge shall

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be billed by each telecommunication services provider and shall be payable to the

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telecommunication services provider by the subscriber. Prepaid wireless telecommunications

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services shall not be included in this act, but shall be governed by chapter 21.2 of this title. The E-

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911 uniform emergency telephone system shall establish, by rule or regulation, an appropriate

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funding mechanism to recover from the general body of ratepayers this surcharge. If the public

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

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21.2 of title 39 exceed what is needed to operate the E-911 uniform emergency telephone system,

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

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

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chapter 18 of title 44 nor be included within the telephone common carrier's gross earnings for

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the purpose 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

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surcharges a 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. The E-911 surcharge shall be deposited in a restricted receipt account and used

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solely for the operation of the E-911 uniform emergency telephone system. The first response

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surcharge shall be deposited in the general fund; provided, however, that, ten percent (10%) of

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money collected from the first response surcharge shall be deposited in the information

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technology investment fund established pursuant to § 42-11-2.5. Any money not transferred in

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accordance with this paragraph shall be assessed interest at the rate set forth in § 44-1-7 from the

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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 shall 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-911 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 E-911 surcharge.

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

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the E-911 surcharge may be used are rent, lease, purchase, improvement, construction,

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maintenance, repair, and utilities for the equipment and site or sites occupied by the E-911

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uniform emergency telephone system; salaries, benefits, and other associated personnel costs;

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acquisition, upgrade, or modification of PSAP equipment to be capable of receiving E-911

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information, including necessary computer hardware, software, and database provisioning,

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addressing, and non-recurring costs of establishing emergency services; network development,

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

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equipment maintenance and operation; training emergency service personnel regarding use of E-

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911; educating consumers regarding the operations, limitations, role, and responsible use of E-

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911; reimbursement to telephone common carriers or telecommunication services providers of

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rates or recurring costs associated with any services, operation, administration, or maintenance of

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E-911 services as approved by the division; reimbursement to telecommunication services

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providers or telephone common carriers of other costs associated with providing E-911 services,

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including the cost of the design, development, and implementation of equipment or software

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necessary to provide E-911 service 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. Section 39-21.2-4 of the General Laws in Chapter 39-21.2 entitled "Prepaid

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

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     39-21.2-4. E-911 surcharge.

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     (a) Amount of charge. The prepaid wireless E-911 charge is hereby levied at the rate of

 

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

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

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

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pursuant to this chapter and chapter 21.2 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

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this section.

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

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the consumer with respect to each retail transaction occurring in this state. The amount of the

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prepaid wireless charge shall be either separately stated on an invoice, receipt, or other similar

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document that is provided to the consumer by the seller, or otherwise 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.

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

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

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

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such charges that the seller is deemed to collect where the amount of the charge has not been

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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.

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

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wireless charge that is collected by a seller from a consumer, if such amount is separately stated

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on an invoice, receipt, or other similar document provided to the consumer by the seller, shall not

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be included in the base for measuring any tax, fee, surcharge, or other charge that is imposed by

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this state, any political subdivision of this state, or any intergovernmental agency, including, but

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not limited to, the tax imposed under chapter 18 of title 44 nor be included within the telephone

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common carrier's gross earnings for the purpose of computing the tax under chapter 13 of title 44.

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     (f) [Deleted by P.L. 2019, ch. 88, art. 2, § 9].

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

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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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     SECTION 3. 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

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     This act would eliminate first responder surcharges from the 911 Emergency Telephone

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Number Act.

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     This act would take effect upon passage.

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