BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 802|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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CONSENT
Bill No: SB 802
Author: Committee on Governance and Finance
Introduced:3/24/15
Vote: 27 - Urgency
SENATE GOVERNANCE & FIN. COMMITTEE: 6-0, 4/29/15
AYES: Hertzberg, Nguyen, Beall, Hernandez, Lara, Pavley
NO VOTE RECORDED: Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
SUBJECT: Emergency telephone user surcharge
SOURCE: Board of Equalization
DIGEST: This bill makes technical changes necessary for the
Board of Equalization (BOE) to implement the Prepaid Mobile
Telephony Services Surcharge Collections Act.
ANALYSIS:
Existing law:
1)Enacts the Prepaid Mobile Telephony Services Surcharge
Collections Act, which requires purchasers of prepaid wireless
services to pay a surcharge for each retail sale (MTS Fee) on
and after January 1, 2016 (AB 1717, Perea, Chapter 884,
Statutes of 2014).
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2)Provides that the MTS Fee is a percentage of the sales price,
and is in-lieu of all other state and local charges, fees, and
taxes that currently apply.
3)BOE administers the MTS Fee according to the Fee Procedures
Collections Law, and must calculate the rate according to the
bill by adding:
a) The 911 Surcharge rate, and
b) The Public Utilities Commission (CPUC) reimbursement and
cumulative universal service fees.
4)The Office of Emergency Services (OES) calculates by a
surcharge rate sufficient to fund the state's 911
infrastructure needs. OES must then transmit the 911
surcharge and the 911 surcharge rate applicable to the Mobile
Telephony Services (MTS) to BOE, who then calculates then
calculates the total MTS rate by adding the 911 surcharge
portion and CPUC surcharge portion.
a) OES must calculate the 911 surcharge rate applicable to
MTS by
October 15, 2015, and each October 15th thereafter.
b) BOE must publish the 911 surcharge rate as part of its
minutes from a public meeting by November 15, 2015, and
each November 15th thereafter.
5)Directs BOE to inform retailers of the MTS rate by mail.
6)Requires retailers to collect the prepaid MTS surcharge and
local charge at the time of the retail transaction and include
necessary provision, and provides that any amount collected by
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a retailer but unreturned to the consumer that is not owed as
part of the surcharge, constitutes a seller's debt to the
state.
This bill:
1)Requires OES to inform BOE of the 911 surcharge rate by
October 1st of this year and each year thereafter.
2)Allows BOE to use other means available to publish the MTS
rate, including electronic mail or publishing the information
on its Web site.
3)Makes consistent local charge and MTS provisions with regard
to amounts collected but unreturned to the consumer.
Comments
AB 1717 directed OES to inform BOE of the surcharge rates by
October 15th of each year, and BOE to publish the 911 surcharge
rate as part of its minutes from a public meeting by November
15th. While BOE meets monthly; however, the dates change each
year, and the Bagley-Keene Open Meeting Act requires the BOE to
issue a Public Agenda Notice at least 10 days prior to each
meeting. BOE may not be able to comply with both deadlines in
some circumstances. For example, should OES notify the BOE of
the new 911 surcharge rate on October 15th, BOE must have
scheduled its regular October meeting after October 25th to meet
the 10-day notice requirement, or defer action to its November
meeting. However, if BOE holds its regular November meeting
after the 15th, BOE would have to hold a special Board Meeting
before the 15th solely for the purpose of publishing the new 911
rate. BOE wants OES to move up the date to inform BOE of the
911 surcharge rate from October 15th to October 1st.
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Additionally, SB 802 is an urgency measure that will take effect
immediately upon signature of the Governor. An urgency measure
is necessary because BOE must begin calculating the MTS Fee in
October, before the general effective date for bills enacted
this year of January 1, 2016.
FISCAL EFFECT: Appropriation: No Fiscal
Com.:YesLocal: No
SUPPORT: (Verified5/12/15)
Board of Equalization (source)
OPPOSITION: (Verified5/12/15)
None received
ARGUMENTS IN SUPPORT: According to this bill's sponsor, the
Board of Equalization, SB 802 makes several technical changes to
the Prepaid Mobile Telephony Services Surcharge Collections Act
to ensure that BOE can correctly implement it beginning later
this year. BOE states that this bill will also help reduce its
costs and improve taxpayer communication.
Prepared by:Colin Grinnell / GOV. & F. / (916) 651-4119
5/13/15 16:37:37
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