BILL NUMBER: AB 910	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member De La Torre

                        FEBRUARY 26, 2009

   An act to add Sections 41017.5 and 41028 to the Revenue and
Taxation Code, relating to telecommunications.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 910, as introduced, De La Torre. Emergency Telephone Users
Surcharge Act: prepaid communications service.
   Existing provisions of the Warren-911-Emergency Assistance Act
establish the number "911" as the primary emergency telephone number
of use in the state. The existing Emergency Telephone Users Surcharge
Act ("911" surcharge act) generally imposes a surcharge on amounts
paid by every person in the state for intrastate telephone service
that is imposed at a percentage rate, not less than 0.5% nor more
than 0.75% as annually estimated to provide revenues sufficient to
fund "911" emergency telephone system costs for the current fiscal
year.
   This bill would define, for purposes of the "911" surcharge act,
"prepaid communications service" to include prepaid calling card
telephone service and prepaid wireless service, as specified.
   This bill would make legislative findings and declarations
regarding equitable contributions to the funding of 911 systems by
consumers of prepaid communications services.
   Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 41017.5 is added to the Revenue and Taxation
Code, to read:
   41017.5.  "Prepaid communications service" includes both prepaid
calling card telephone service and prepaid wireless service as
follows:
   (a) "Prepaid calling card service" means the right to access
exclusively telecommunications services, which must be paid for in
advance and which enables the origination of calls using an access
number or authorization code, whether manually or electronically
dialed, and that is sold in predetermined units or dollars of which
the number declines with use in a known amount.
   (b) "Prepaid wireless calling service" means a telecommications
service that provides the right to utilize mobile wireless service as
well as other nontelecommunications services, including the
downloading of digital products delivered electronically, content,
and ancillary services, which must be paid for in advance that is
sold in predetermined units or dollars of which the number declines
with use in a known amount.
  SEC. 2.  Section 41028 is added to the Revenue and Taxation Code,
to read:
   41028.  (a) The Legislature finds and declares the following:
   (1) Maintaining effective and efficient 911 systems across the
state benefits all citizens.
   (2) 911 fees imposed upon consumers of communications services
that have the ability to dial 911 are an important funding mechanism
to assist state and local governments with the deployment of enhanced
911 services to the citizens of this state.
   (3) Prepaid communications services are an important segment of
the communications industry and should bear an equitable part of the
responsibility for the funding of the 911 system.
   (4) Consumers purchase prepaid communications services at a wide
variety of retail locations and other distribution channels, as well
as through service providers.
   (5) To ensure equitable contributions to the funding of 911
systems from consumers of prepaid communications services, the
collection and payment obligation of charges to support the 911
service should be imposed upon the consumer's retail purchase of the
prepaid communications service and should be in the form of a single
charge that is collected at the time of purchase directly from the
consumer, remitted to the state or local jurisdiction and distributed
to the 911 emergency services fund.