HF 441

as introduced - 87th Legislature (2011 - 2012) Posted on 02/10/2011 10:09am

A bill for an act
relating to public safety; 911 telephone service; providing for collection of 911
fees from prepaid wireless telecommunications services; amending Minnesota
Statutes 2010, sections 403.02, by adding a subdivision; 403.11, subdivision 1;
proposing coding for new law in Minnesota Statutes, chapter 403.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 403.02, is amended by adding a
subdivision to read:

new text begin Subd. 17b. new text end

new text begin Prepaid wireless telecommunications service or PWTS. new text end

new text begin "Prepaid
wireless telecommunications service" or "PWTS" means prepaid wireless calling service
as that term is defined in section 297A.669, subdivision 14a.
new text end

Sec. 2.

Minnesota Statutes 2010, section 403.11, subdivision 1, is amended to read:

Subdivision 1.

Emergency telecommunications service fee; account.

(a) Each
customer of a wireless or wire-line switched or packet-based telecommunications service
provider connected to the public switched telephone network that furnishes service capable
of originating a 911 emergency telephone call is assessed a fee based upon the number
of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
maintenance and related improvements for trunking and central office switching equipment
for 911 emergency telecommunications service, to offset administrative and staffing costs
of the commissioner related to managing the 911 emergency telecommunications service
program, to make distributions provided for in section 403.113, and to offset the costs,
including administrative and staffing costs, incurred by the State Patrol Division of the
Department of Public Safety in handling 911 emergency calls made from wireless phones.

(b) Money remaining in the 911 emergency telecommunications service account
after all other obligations are paid must not cancel and is carried forward to subsequent
years and may be appropriated from time to time to the commissioner to provide financial
assistance to counties for the improvement of local emergency telecommunications
services. The improvements may include providing access to 911 service for
telecommunications service subscribers currently without access and upgrading existing
911 service to include automatic number identification, local location identification,
automatic location identification, and other improvements specified in revised county
911 plans approved by the commissioner.

(c) The fee may not be less than eight cents nor more than 65 cents a month until
June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 2009,
not less than eight cents nor more than 85 cents a month until June 30, 2010, and not less
than eight cents nor more than 95 cents a month on or after July 1, 2010, for each customer
access line or other basic access service, including trunk equivalents as designated by
the Public Utilities Commission for access charge purposes and including wireless
telecommunications services. With the approval of the commissioner of management and
budget, the commissioner of public safety shall establish the amount of the fee within the
limits specified and inform the companies and carriers of the amount to be collected. When
the revenue bonds authorized under section 403.27, subdivision 1, have been fully paid or
defeased, the commissioner shall reduce the fee to reflect that debt service on the bonds is
no longer needed. The commissioner shall provide companies and carriers a minimum of
45 days' notice of each fee change. The fee must be the same for all customers.

(d) The fee must be collected by each wireless or wire-line telecommunications
service provider subject to the fee. Fees are payable to and must be submitted to the
commissioner monthly before the 25th of each month following the month of collection,
except that fees may be submitted quarterly if less than $250 a month is due, or annually if
less than $25 a month is due. Receipts must be deposited in the state treasury and credited
to a 911 emergency telecommunications service account in the special revenue fund. The
money in the account may only be used for 911 telecommunications services.

(e) This subdivision does not apply to customers of interexchange carriers.

(f) The installation and recurring charges for integrating wireless 911 calls into
enhanced 911 systems are eligible for payment by the commissioner if the 911 service
provider is included in the statewide design plan and the charges are made pursuant to
contract.

(g) Competitive local exchanges carriers holding certificates of authority from the
Public Utilities Commission are eligible to receive payment for recurring 911 services.

new text begin (h) The fee imposed by this subdivision does not apply to prepaid wireless
telecommunications service, which is subject to the fee imposed under section 403.161,
subdivision 2.
new text end

Sec. 3.

new text begin [403.16] PREPAID WIRELESS 911 SERVICE; DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin For the purposes of sections 403.16 to 403.164, the terms
defined in this section have the meanings given them.
new text end

new text begin Subd. 2. new text end

new text begin Consumer. new text end

new text begin "Consumer" means a person who purchases prepaid wireless
telecommunications service in a retail transaction.
new text end

new text begin Subd. 3. new text end

new text begin Department. new text end

new text begin "Department" means the Department of Revenue.
new text end

new text begin Subd. 4. new text end

new text begin Prepaid wireless E911 fee. new text end

new text begin "Prepaid wireless E911 fee" means the fee that
is required to be collected by a seller from a consumer as established in section 403.161.
new text end

new text begin Subd. 5. new text end

new text begin Provider. new text end

new text begin "Provider" means a person that provides prepaid wireless
telecommunications service under a license issued by the Federal Communications
Commission.
new text end

new text begin Subd. 6. new text end

new text begin Retail transaction. new text end

new text begin "Retail transaction" means the purchase of prepaid
wireless telecommunications service from a seller for any purpose other than resale.
new text end

new text begin Subd. 7. new text end

new text begin Seller. new text end

new text begin "Seller" means a person who sells prepaid wireless
telecommunications service to another person.
new text end

new text begin Subd. 8. new text end

new text begin Wireless telecommunications service. new text end

new text begin "Wireless telecommunications
service" means commercial mobile radio service as defined by Code of Federal
Regulations, title 47, section 20.3, as amended.
new text end

Sec. 4.

new text begin [403.161] PREPAID WIRELESS E911 FEE IMPOSED; COLLECTION,
REMITTANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Fee imposed. new text end

new text begin A prepaid wireless E911 fee of 38 cents per transaction
is imposed until the fee is adjusted as an amount per retail transaction under subdivision 6.
new text end

new text begin Subd. 2. new text end

new text begin Fee collected. new text end

new text begin The prepaid wireless E911 fee must be collected by the
seller from the consumer with respect to each retail transaction occurring in this state.
The amount of the prepaid wireless E911 fee must 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.
new text end

new text begin Subd. 3. new text end

new text begin Sales and use tax treatment. new text end

new text begin For purposes of this section, a retail
transaction that is effected in person by a consumer at a business location of the seller
must be treated as occurring in this state if that business location is in this state, and any
other retail transaction must be treated as occurring in this state if the retail transaction
is treated as occurring in this state for purposes of the sales and use tax as specified in
section 297A.669, subdivision 3, paragraph (c).
new text end

new text begin Subd. 4. new text end

new text begin Remittance. new text end

new text begin The prepaid wireless E911 fee is the liability of the consumer
and not of the seller or of any provider, except that the seller is liable to remit all fees that
the seller collects from consumers as provided in section 403.162, including all fees that
the seller is deemed to collect in which the amount of the fee has not been separately stated
on an invoice, receipt, or other similar document provided to the consumer by the seller.
new text end

new text begin Subd. 5. new text end

new text begin Exclusion for calculating other charges. new text end

new text begin The amount of the prepaid
wireless E911 fee that is collected by a seller from a consumer, if the amount is separately
stated on an invoice, receipt, or other similar document provided to the consumer by
the seller, must 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.
new text end

new text begin Subd. 6. new text end

new text begin Fee changes. new text end

new text begin The prepaid wireless E911 fee must be proportionately
increased or reduced, as applicable, upon any change to the fee imposed under section
403.11, subdivision 1, paragraph (c). The increase or reduction is effective on the effective
date of the change to the fee imposed under section 403.11, subdivision 1, paragraph (c),
or, if later, the first day of the first calendar month to occur at least 60 days after the change
to the fee imposed under section 403.11, subdivision 1, paragraph (c). The department
shall provide not less than 30 days of advance notice to the increase or reduction on
the department's Web site.
new text end

Sec. 5.

new text begin [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Remittance. new text end

new text begin Prepaid wireless E911 fees collected by sellers must
be remitted to the department at the times and in the manner provided by chapter 297A
with respect to the general sales and use tax. The department shall establish registration
and payment procedures that substantially coincide with the registration and payment
procedures that apply in chapter 297A.
new text end

new text begin Subd. 2. new text end

new text begin Deduction for collection. new text end

new text begin A seller may deduct and retain three percent of
prepaid wireless E911 fees that are collected by the seller from consumers.
new text end

new text begin Subd. 3. new text end

new text begin Audit and appeal. new text end

new text begin The audit and appeal procedures applicable under
chapter 297A apply to any fee imposed under this section.
new text end

new text begin Subd. 4. new text end

new text begin Procedures for resale transactions. new text end

new text begin The department shall establish
procedures by which a seller of prepaid wireless telecommunications service may
document that a sale is not a retail transaction. These procedures must substantially
coincide with the procedures for documenting sale for resale transactions as provided in
chapter 297A.
new text end

new text begin Subd. 5. new text end

new text begin Fees deposited. new text end

new text begin The department shall deposit all remitted prepaid wireless
E911 fees in the state treasury, to be credited to the 911 emergency telecommunication
service account in the special revenue fund, within 30 days of receipt. The department
may deduct an amount, not to exceed two percent of collected fees, to be retained by the
department to reimburse its direct costs of administering the collection and remittance of
prepaid wireless E911 fees. Funds deposited into the 911 emergency telecommunications
service account from the fee imposed in this section may only be used for the purposes
specified under section 403.113.
new text end

Sec. 6.

new text begin [403.163] LIABILITY OF SELLERS AND PROVIDERS OF PWTS.
new text end

new text begin (a) A provider or seller of prepaid wireless telecommunications service is not liable
for damages to any person resulting from or incurred in connection with providing, or
failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
telephone number, address, location, or name associated with any person or device that
is accessing or attempting to access 911 or E911 service.
new text end

new text begin (b) A provider or seller of prepaid wireless telecommunications service is not liable
for damages to any person resulting from or incurred in connection with providing any
lawful assistance to any investigative or law enforcement officer of the United States, this
or any other state, or any political subdivision of this or any other state, in connection with
any lawful investigation or other law enforcement activity by the law enforcement officer.
new text end

new text begin (c) In addition to the protection from liability provided by paragraphs (a) and (b),
section 403.08, subdivision 11, applies to sellers and providers.
new text end

Sec. 7.

new text begin [403.164] EXCLUSIVITY OF PREPAID WIRELESS 911 FEE.
new text end

new text begin The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
obligation imposed with respect to prepaid wireless telecommunications service in this
state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
of prepaid wireless telecommunications service.
new text end

Sec. 8. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 to 7 are effective January 1, 2012.
new text end