Bill Text: CA SB802 | 2015-2016 | Regular Session | Introduced
Bill Title: Emergency telephone user surcharge.
Spectrum: Slight Partisan Bill (Democrat 5-2)
Status: (Failed) 2016-11-30 - From Assembly without further action. [SB802 Detail]
Download: California-2015-SB802-Introduced.html
BILL NUMBER: SB 802 INTRODUCED
BILL TEXT
INTRODUCED BY Committee on Governance and Finance (Senators
Hertzberg (Chair), Bates, Beall, Hernandez, Lara, Nguyen, and Pavley)
MARCH 24, 2015
An act to amend Sections 41030, 41032, and 42010 of the Revenue
and Taxation Code, relating to taxation, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 802, as introduced, Committee on Governance and Finance.
Emergency telephone user surcharge.
The Emergency Telephone Users Surcharge Act generally imposes a
surcharge on amounts paid by every person in the state for intrastate
telephone service to provide revenues sufficient to fund "911"
emergency telephone system costs, and requires the Office of
Emergency Services to annually determine the surcharge rate.
Commencing with the calculation made October 1, 2015, existing law
requires the office to compute the charges applicable to the
intrastate portion of prepaid mobile telephony services, as provided.
The Prepaid Mobile Telephony Service Surcharge Collection Act
establishes a prepaid MTS surcharge, as defined, based upon a
percentage of the sales price of each retail transaction that occurs
in this state for prepaid mobile telephony services, as defined, that
is imposed in lieu of any charges imposed pursuant to the Emergency
Telephone Users Surcharge Act and specified Public Utility Commission
surcharges. That act requires the prepaid MTS surcharge to be
annually calculated by the State Board of Equalization by November 1
of each year, commencing November 1, 2015, by using the emergency
telephone user surcharge rate reported by the office and specified
Public Utility Commission surcharges.
The Emergency Telephone Users Surcharge Act requires the office to
notify the board of the emergency telephone user surcharge rate and
the emergency telephone user surcharge rate applicable to prepaid
mobile telephony services by October 15 of each year.
This bill would instead require the office to notify the board of
the emergency telephone user surcharge rate by October 1.
The Emergency Telephone Users Surcharge Act requires, immediately
upon notification by the office and fixing the surcharge rate, the
board to notify by mail every registered service supplier of the new
rate.
This bill would instead require the board to notify every
registered service supplier of the new rate by means then available
to it, including, but not limited to, mail, electronic mail, or
Internet Web site postings.
This bill would make other technical, nonsubstantive changes.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 41030 of the Revenue and Taxation Code, as
amended by Chapter 926 of the Statutes of 2014, is amended to read:
41030. (a) The Office of Emergency Services shall determine
annually, on or before October 1, to be effective on January 1 of the
following year, a surcharge rate pursuant to subdivision (b) that it
estimates will produce sufficient revenue to fund the current fiscal
year's 911 costs.
(b) (1) The surcharge rate shall be determined by dividing the
costs (including incremental costs) the Office of Emergency Services
estimates for the current fiscal year of 911 costs approved pursuant
to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1
of Division 2 of Title 5 of the Government Code, less the available
balance in the State Emergency Telephone Number Account in the
General Fund, by its estimate of the charges for intrastate telephone
communications services and VoIP service to which the surcharge will
apply for the period of January 1, 2015, to December 31, inclusive,
of the next succeeding calendar year, but in no event shall the
surcharge rate in any year be greater than three-quarters of 1
percent nor less than one-half of 1 percent.
(2) Commencing with the calculation made October 1, 2015, to be
effective January 1, 2016, the surcharge shall be determined by
dividing the costs (including incremental costs) the Office of
Emergency Services estimates for the current fiscal year of 911 costs
approved pursuant to Article 6 (commencing with Section 53100) of
Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code,
less the available balance in the State Emergency Telephone Number
Account in the General Fund, by its estimate of the charges for
intrastate telephone communications services, the intrastate portion
of prepaid mobile telephony services, and VoIP service to which the
surcharge will apply for the period of January 1 to December 31,
inclusive, of the next succeeding calendar year, but in no event
shall the surcharge rate in any year be greater than three-quarters
of 1 percent or less than one-half of 1 percent. In making its
computation of the charges that are applicable to the intrastate
portion of prepaid mobile telephony services, the Office of Emergency
Services shall use the computation method developed by the Public
Utilities Commission and reported to the Office of Emergency Services
pursuant to subdivisions (a) and (b) and (c)
of Section 319 of the Public Utilities Code.
(c) When determining the surcharge rates pursuant to this section,
the office shall include the costs it expects to incur to plan,
test, implement, and operate Next Generation 911 technology and
services, including text to 911 service, consistent with the plan and
timeline required by Section 53121 of the Government Code.
(d) The office shall notify the board of the surcharge rate
imposed under this part and determined pursuant to this section
on or before October 1 of each year and the surcharge
rate applicable to prepaid mobile telephony services by
determined pursuant to this section for purposes of
the prepaid MTS surcharge calculated under Part 21 (commencing with
Section 42001) on or before October 15 of each year.
(e) At least 30 days prior to determining the surcharge pursuant
to subdivision (a), the Office of Emergency Services shall prepare a
summary of the calculation of the proposed surcharge and make it
available to the public, the Legislature, the 911 Advisory Board, and
on its Internet Web site. The summary shall contain all of the
following:
(1) The prior year revenues to fund 911 costs, including, but not
limited to, revenues from prepaid service.
(2) Projected expenses and revenues from all sources, including,
but not limited to, prepaid service to fund 911 costs.
(3) The rationale for adjustment to the surcharge determined
pursuant to subdivision (b), including, but not limited to, all
impacts from the surcharge collected pursuant to Part 21 (commencing
with Section 42001).
(f) This section shall remain in effect only until January 1,
2020, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2020, deletes or extends
that date.
SEC. 2. Section 41032 of the Revenue and Taxation Code is amended
to read:
41032. Immediately upon notification by the Office of Emergency
Services and fixing the surcharge rate, the board shall each year no
later than November 15 publish in its minutes the new rate, and it
shall notify by mail every service supplier
registered with it of the new rate by means then available to
it, including, but not limited to, mail, electronic mail, or Internet
Web site postings .
SEC. 3. Section 42010 of the Revenue and Taxation Code is amended
to read:
42010. (a) (1) On and after January 1, 2016, a prepaid MTS
surcharge shall be imposed on each prepaid consumer and shall be
collected by a seller from each prepaid consumer at the time of each
retail transaction in this state. The prepaid MTS surcharge shall be
imposed as a percentage of the sales price of each retail transaction
that occurs in this state.
(2) The prepaid MTS surcharge shall be in lieu of any charges
imposed pursuant to the Emergency Telephone Users Surcharge Act (Part
20 (commencing with Section 41001)) and the Public Utilities
Commission surcharges for prepaid mobile telephony services.
(b) The prepaid MTS surcharge shall be annually calculated by the
board by no later than November 1 of each year commencing November 1,
2015, by adding the following:
(1) The surcharge rate reported pursuant to subdivision (d) of
Section 41030.
(2) The Public Utilities Commission's reimbursement fee and
telecommunications universal service surcharges, established by the
Public Utilities Commission pursuant to subdivisions (a) and
(b) and (c) of Section 319 of the Public
Utilities Code.
(c) (1) The board shall post, for each local jurisdiction, the
combined total of the rates of prepaid MTS surcharge and the rate or
rates of local charges, as calculated pursuant to Sections 42102 and
42102.5, that each local jurisdiction has adopted, not later than
December 1 of each year, on its Internet Web site. The posted
combined rate shall be the rate that applies to all retail
transactions during the calendar year beginning April 1 following the
posting.
(2) Notwithstanding paragraph (1), if a local agency notifies the
board pursuant to subdivision (d) of Section 42101.5 that the posted
rate is inaccurate or it no longer imposes a local charge or local
charges or that the rate of its local charge or local charges has
decreased, the board shall promptly post a recalculated rate that is
applicable to the jurisdiction of that local agency. The change shall
become operative on the first day of the calendar quarter commencing
more than 60 days from the date the local agency notifies the board
of the inaccuracy or that it no longer imposes a local charge or that
the rate of its local charge has decreased. Nothing in this section
modifies the notice obligations of Section 799 of the Public
Utilities Code. However, beginning January 1, 2016, the notification
and implementation requirements of paragraphs (5) and (6) of
subdivision (a) of Section 799 of the Public Utilities Code shall not
apply to prepaid mobile telephony services.
(3) The board shall also separately post on its Internet Web site
the individual rates for each of the following:
(A) Each of the Public Utilities Commission surcharges that make
up the Public Utilities Commission surcharge portion of the prepaid
MTS surcharge, as reported pursuant to Section 319 of the Public
Utilities Code.
(B) The percentage for the emergency telephone users surcharge
reported pursuant to subdivision (c) (d)
of Section 41030.
(C) Each of the individual local charges reported pursuant to
Section 42101.5.
(4) A seller collecting the prepaid MTS surcharge and local
charges pursuant to this part and Part 21.1 (commencing with Section
42100) may rely upon the accuracy of the information posted on the
board's Internet Web site in collecting and remitting all amounts of
the prepaid MTS surcharge and local charges.
(d) (1) Except for amounts retained pursuant to subdivision (e),
and except as provided in subdivision (f) for a seller that is a
direct seller, all amounts of the prepaid MTS surcharge and local
charges collected by sellers shall be remitted to the board pursuant
to Chapter 3 (commencing with Section 42020).
(2) A seller that is authorized to provide lifeline service under
the state lifeline program or federal lifeline program, that sells
prepaid mobile telephony services directly to the prepaid customer,
shall remit the prepaid MTS surcharge to the board, less any
applicable exemption from the surcharge that is applicable to the
retail transaction pursuant to Section 42012.
(e) A seller that is not a direct seller shall be permitted to
deduct and retain an amount equal to 2 percent of the amounts that
are collected by the seller from prepaid consumers for the prepaid
MTS surcharge and local charges, on a pro rata basis, according to
that portion of the revenues collected by the seller for each of the
following:
(1) The emergency telephone users surcharge.
(2) The Public Utilities Commission surcharges.
(3) Local charges.
(f) A direct seller shall remit the prepaid MTS surcharge and
local charges as follows:
(1) That portion of the prepaid MTS surcharge that consists of the
Public Utilities Commission surcharges shall be remitted to the
commission with those reports required by the commission.
(2) That portion of the prepaid MTS surcharge that consists of the
emergency telephone users surcharge shall be remitted to the board
pursuant to the Emergency Telephone Users Surcharge Act (Part 20
(commencing with Section 41001)) for those retail transactions with a
prepaid consumer in the state.
(3) Local charges, if applicable, shall be remitted to the local
jurisdiction or local agency imposing the local charge. Remittance of
the local charges shall be separately identified from any other
local taxes or other charges that are remitted to the local
jurisdiction or local entity imposing the local tax or other charge.
(g) A direct seller shall utilize the amounts posted by the board
pursuant to subdivision (c) when determining what amounts to remit to
the Public Utilities Commission, board, and each local jurisdiction
or local agency.
(h) A prepaid MTS provider shall offer prepaid consumers the
option to make payment for additional prepaid usage directly to the
prepaid MTS provider at the provider's retail location or Internet
Web site.
(i) The amount of the combined prepaid MTS surcharge and local
charges shall be separately stated on an invoice, receipt, or other
similar document that is provided to the prepaid consumer of mobile
telephony services by the seller, or otherwise disclosed
electronically to the prepaid consumer, at the time of the retail
transaction.
(j) The prepaid MTS surcharge that is required to be collected by
a seller and any amount unreturned to the prepaid consumer of mobile
telephony services that is not owed as part of the surcharge, but was
collected from the prepaid consumer under the representation by the
seller that it was owed as part of the surcharge, constitute debts
owed by the seller to this state. The local charge shall
that is required to be collected by a
seller, seller and any amount unreturned to the
prepaid consumer of mobile telephony services that is not owed as
part of the local charge charge, but
that was collected from the prepaid consumer under the representation
by the seller that it was owed as part of the local charge
charge, constitutes a debt
debts owed by the seller jointly to the state, for
purposes of collection on behalf of, and payment to, the local
jurisdiction and to the local jurisdiction imposing that local
charge.
(k) A seller that has collected any amount of prepaid MTS
surcharge and local charges in excess of the amount of the surcharge
imposed by this part and actually due from a prepaid consumer may
refund that amount to the prepaid consumer, even though the surcharge
amount has already been paid over to the board and no corresponding
credit or refund has yet been secured. Any seller making a refund of
any charge to a prepaid consumer may repay therewith the amount of
the surcharge paid.
(l) (1) Every prepaid consumer of mobile telephony services in
this state is liable for the prepaid MTS surcharge and any local
charges until they have been paid to this state, except that payment
to a seller registered under this part relieves the prepaid consumer
from further liability for the surcharge and local charges. Any
surcharge collected from a prepaid consumer that has not been
remitted to the board shall be a debt owed to the state by the person
required to collect and remit the surcharge. Any local charge
collected from a prepaid consumer that has not been remitted to the
board shall be a debt owed jointly to the state, for purposes of
collection on behalf of, and payment to, the local jurisdiction and
to the local jurisdiction imposing the local charge by the person
required to collect and remit the local charge. Nothing in this part
shall impose any obligation upon a seller to take any legal action to
enforce the collection of the surcharge or local charge imposed by
this section.
(2) A credit shall be allowed against, but shall not exceed, the
prepaid MTS surcharge and local charges imposed on any prepaid
consumer of mobile telephony services by this part to the extent that
the prepaid consumer has paid emergency telephone users charges,
state utility regulatory commission fees, state universal service
charges, or local charges on the purchase to any other state,
political subdivision thereof, or the District of Columbia. The
credit shall be apportioned to the charges against which it is
allowed in proportion to the amounts of those charges.
(m) (1) A seller is relieved from liability to collect the prepaid
MTS surcharge imposed by this part that became due and payable,
insofar as the base upon which the surcharge is imposed is
represented by accounts that have been found to be worthless and
charged off for income tax purposes by the seller or, if the seller
is not required to file income tax returns, charged off in accordance
with generally accepted accounting principles. A seller that has
previously paid the surcharge may, under rules and regulations
prescribed by the board, take as a deduction on its return the amount
found worthless and charged off by the seller. If any such accounts
are thereafter in whole or in part collected by the seller, the
amount so collected shall be included in the first return filed after
such collection and the surcharge shall be paid with the return.
(2) The board may by regulation promulgate such other rules with
respect to uncollected or worthless accounts as it shall deem
necessary to the fair and efficient administration of this part.
SEC. 4. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to allow sufficient time to promulgate and adopt
regulations necessary to implement the recently enacted Prepaid
Mobile Telephony Services Surcharge Act (Part 21 (commencing with
Section 42001) of Division 2 of the Revenue and Taxation Code) and
Local Prepaid Mobile Telephony Services Collection Act (Part 21.1
(commencing with Section 42100) of Division 2 of the Revenue and
Taxation Code), it is necessary that this act take effect
immediately.
