BILL NUMBER: AB 2545 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 22, 2010
INTRODUCED BY Assembly Member De La Torre
FEBRUARY 19, 2010
An act to add Section 41127.9 to the Revenue and Taxation Code,
relating to telecommunications.
LEGISLATIVE COUNSEL'S DIGEST
AB 2545, as amended, De La Torre. Emergency Telephone Users
Surcharge Act: prepaid communications mobile
telecommunications 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 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. Surcharge amounts
are paid to the State Board of Equalization on a monthly basis by
the telephone service supplier and are deposited into the State
Treasury to the credit of the State Emergency Telephone Number
Account in the General Fund. Under existing law, the Public Utilities
Commission (PUC) has regulatory authority over public utilities,
including telephone corporations, except to the extent regulation of
commercial mobile radio service is preempted by federal regulation.
This bill would require the PUC to open proceedings or expand the
scope of existing proceedings to determine an equitable manner for
mobile telephony service providers to collect
collection of the surcharge from users of prepaid
communications mobile telecommunications
services, and would require the PUC to advise the board of its
determination.
This bill would also make legislative findings and declarations
regarding equitable contributions to the funding of 911 systems by
consumers of prepaid communications mobile
telecommunications services.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. (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 mobile
telecommunications 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
mobile telec ommunications 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
mobile telecommunications services, there should be
clarity and standardization with respect to the collection and
payment obligations of 911 surcharges for prepaid
communications mobile telecommunications
services.
(6) Current law also requires several public purpose surcharges
and user fees to be collected from end users and remitted to the
Public Utilities Commission.
(7) The Public Utilities Commission has the body of experience and
comparative advantage over the State Board of Equalization regarding
the collection of surcharges for prepaid communications services.
SEC. 2. Section 41127.9 is added to the Revenue and Taxation Code,
to read:
41127.9. (a) The Public Utilities Commission shall open
proceedings or expand the scope of existing proceedings to
determine an equitable manner for mobile telephony service providers
to collect the surcharge from users of prepaid communications
determine an equitable manner for collection of the
surcharge from users of prepaid mobile telecommunications
services. The commission shall advise the State Board of Equalization
of its determination.
(b) For purposes of this section, all of the following shall
apply:
(1) "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 telecommunications
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.
(2) "Mobile telephony service provider" means a provider of mobile
telephony service as defined in subdivision (d) of Section 224.4 of
the Public Utilities Code.
(1) "Prepaid mobile telecommunications service" means a
telecommunications service or product that must be paid for in
advance that provides the right to utilize mobile telecommunications
service and that is sold in predetermined units or dollars of which
the number declines with use in a known amount.
(2) "Mobile telecommunications service" means commercial mobile
radio service, as defined in Section 20.3 of Title 47 of the Code of
the Federal Regulations, as in effect on June 1, 1999.