Bill Text: IN HB1278 | 2010 | Regular Session | Introduced
Bill Title: Broadcast satellite service fee and 911 fees.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2010-01-25 - Representatives Thompson and Duncan added as coauthors [HB1278 Detail]
Download: Indiana-2010-HB1278-Introduced.html
Citations Affected: IC 6-8.1-1-1; IC 8-1-34.5; IC 36-8-16.5.
Synopsis: Broadcast satellite service fee and 911 fees. Imposes a
direct broadcast satellite service fee on direct broadcast satellite service
providers at the same percentage rate of gross revenue as the cable
service franchise fee rate in effect in a local government unit on
December 31, 2009. Permits the fee to be passed through to customers
of the provider. Requires a provider to remit the fees quarterly to the
department of state revenue. Requires a provider to submit a quarterly
report to the department indicating a provider's gross revenue and the
amount of fees paid with respect to each unit. Requires the department
to publish the direct broadcast satellite service fee rates before August
1, 2010. Requires the department to distribute the fees quarterly to each
unit. Permits the wireless enhanced 911 advisory board to set the
wireless emergency enhanced 911 fee at a rate not less $2 beginning
July 1, 2010, on each commercial mobile radio service subscriber that
is a customer having a place of primary use in Indiana. Provides for a
distribution of 25% of a part of the 911 fees to counties that have more
than two public safety answering points (PSAPs) and 75% to counties
that have reduced the number of PSAPs to no more than two.
Effective: Upon passage; July 1, 2010.
January 12, 2010, read first time and referred to Committee on Commerce, Energy,
Technology and Utilities.
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in
Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration and to make an appropriation.
(IC 6-6-5); the commercial vehicle excise tax (IC 6-6-5.5); the excise
tax imposed on recreational vehicles and truck campers (IC 6-6-5.1);
the hazardous waste disposal tax (IC 6-6-6.6); the cigarette tax
(IC 6-7-1); the beer excise tax (IC 7.1-4-2); the liquor excise tax
(IC 7.1-4-3); the wine excise tax (IC 7.1-4-4); the hard cider excise tax
(IC 7.1-4-4.5); the malt excise tax (IC 7.1-4-5); the petroleum
severance tax (IC 6-8-1); the various innkeeper's taxes (IC 6-9); the
various food and beverage taxes (IC 6-9); the county admissions tax
(IC 6-9-13 and IC 6-9-28); the direct broadcast satellite service fee
(IC 8-1-34.5); the regional transportation improvement income tax
(IC 8-24-17); the oil inspection fee (IC 16-44-2); the emergency and
hazardous chemical inventory form fee (IC 6-6-10); the penalties
assessed for oversize vehicles (IC 9-20-3 and IC 9-30); the fees and
penalties assessed for overweight vehicles (IC 9-20-4 and IC 9-30); the
underground storage tank fee (IC 13-23); the solid waste management
fee (IC 13-20-22); and any other tax or fee that the department is
required to collect or administer.
Chapter 34.5. Direct Broadcast Satellite Service Fee
Sec. 1. As used in this chapter, "department" means the department of state revenue.
Sec. 2. (a) As used in this chapter, "direct broadcast satellite service" means distributing or broadcasting video programming or services by satellite directly to receiving equipment located at an end user subscriber's or an end user customer's premises.
(b) The term includes but is not limited to the following:
(1) Renting receiving or recording equipment used by a subscriber or customer to obtain or use the service.
(2) Providing premium channels.
(3) Installing or repairing receiving or recording equipment used by a subscriber or customer to obtain or use the service.
(4) Providing music or other audio services or channels.
(5) Any other service provided in connection with the provision of direct broadcast satellite service.
Sec. 3. As used in this chapter, "direct broadcast satellite service provider" means any person that is transmitting, broadcasting, or otherwise providing direct broadcast satellite service to subscribers in Indiana.
Sec. 4. (a) As used in this chapter, "gross revenue" means all consideration of any kind or nature, including cash, credits,
property, and in kind contributions received by a direct broadcast
satellite service provider or an affiliate of the provider.
(b) For purposes of subsection (a), gross revenue includes the
following fees and charges to subscribers for direct broadcast
satellite service:
(1) Recurring monthly charges for direct broadcast satellite
service.
(2) Event based charges for direct broadcast satellite service,
including pay per view and video on demand charges.
(3) Charges for the rental of equipment related to providing
direct broadcast satellite service.
(4) Service charges related to providing direct broadcast
satellite service, including activation, installation, repair, and
maintenance charges.
(5) Administrative charges related to providing direct
broadcast satellite service, including service order and service
termination charges.
(6) Any other fee or charge that would be included in gross
revenue as determined under IC 8-1-34-23, regardless of
whether the direct broadcast satellite service provider, or an
affiliate of the provider, is subject to IC 8-1-34.
(c) For purposes of subsection (a), gross revenue does not
include the following received by a direct broadcast satellite service
provider or an affiliate of the provider:
(1) Revenue not actually received, regardless of whether it is
billed, including bad debts.
(2) Revenue received by an affiliate or any other person in
exchange for supplying goods and services used by a direct
broadcast satellite service provider.
(3) Refunds, rebates, or discounts made to a subscriber,
advertiser, or other person.
(4) Revenue from a service other than direct broadcast
satellite service, including:
(A) telecommunications service (as defined in 47 U.S.C.
153(46));
(B) information service (as defined in 47 U.S.C. 153(20));
or
(C) any other service that is not direct broadcast satellite
service.
(5) The tax imposed under IC 6-2.5-4-11.
(6) Any tax of general applicability imposed on a direct
broadcast satellite service provider, or a purchaser of direct
broadcast satellite service, by a federal, state, or local
governmental entity and required to be collected by a person
and remitted to the taxing entity, including the state gross
retail and use taxes (IC 6-2.5) and the utility receipts tax
(IC 6-2.3).
(7) Any foregone revenue from providing free or reduced cost
direct broadcast satellite service to any person, including
employees of the direct broadcast satellite service provider or
any governmental entity as required or permitted by federal,
state, or local law, except revenue foregone in exchange for
the goods or services through a trade or barter arrangement.
(8) Revenue from the sale of capital assets or surplus
equipment not used by the purchaser to receive direct
broadcast satellite service from the direct broadcast satellite
service provider.
(9) Reimbursements made by programmers to the direct
broadcast satellite service provider for marketing costs
incurred by the direct broadcast satellite service provider for
the introduction of new programming that exceed the actual
costs incurred by the direct broadcast satellite service
provider.
(10) Late payment fees collected from customers.
(11) Charges, other than those charges described in subsection
(b), that are aggregated or bundled with charges described in
subsection (b) on a customer's bill, if the direct broadcast
satellite service provider can reasonably identify the charges
in its books and records kept in the regular course of business.
Sec. 5. As used in this chapter, "person" includes an
administrator, an assignee, an association, a bank, a bureau, a club,
a commissioner, a consignee, a cooperative association, a
corporation, an estate, an executor, a fiduciary, a firm, a fraternity,
an Indiana political subdivision engaged in private or proprietary
activities, an individual, an institution, a joint venture, a limited
liability company, a lodge, a national bank, a partnership, a pool,
a receiver, a society, a sorority, a syndicate, a trust, or a trustee.
Sec. 6. As used in this chapter, "unit" has the meaning set forth
in IC 36-1-2-23.
Sec. 7. (a) Beginning January 1, 2011, a fee, known as the direct
broadcast satellite service fee, is imposed upon any direct
broadcast satellite service provider for the privilege of selling
direct broadcast satellite service in Indiana and based on gross
revenue derived each calendar quarter from selling, transmitting,
distributing, or otherwise providing direct broadcast satellite
service in each unit included in the provider's service area.
(b) The direct broadcast satellite service fee is imposed at a
percentage equal to the franchise fee percentage authorized under
IC 8-1-34-24 in the unit that is in effect as of December 31, 2009,
and paid to the unit by a holder of a certificate issued under
IC 8-1-34-17. The direct broadcast satellite service fee percentage
must be based on the billing address of the direct broadcast
satellite service subscriber at the time of the sale of the direct
broadcast satellite service. The department shall determine the
franchise fee percentage authorized under IC 8-1-34-24 in each
unit in effect as of December 31, 2009, and paid to each unit by a
holder of a certificate issued under IC 8-1-34-17. The department
of state revenue shall publish a report setting forth the applicable
direct broadcast satellite service fee percentages before August 1,
2010.
(c) The direct broadcast satellite service fee is in addition to the
state gross retail tax and use tax imposed by IC 6-2.5.
(d) The direct broadcast satellite service fee may be passed
through to, and collected from, the direct broadcast satellite
service provider's customers in Indiana. To the extent allowed
under federal or state law, a direct broadcast satellite service
provider may identify as a separate line item on each regular bill
issued to a customer the amount of the total bill assessed as a direct
broadcast satellite service fee under this section.
Sec. 8. (a) Each direct broadcast satellite service provider liable
for the direct broadcast satellite service fee shall file a report for
each calendar quarter and pay to the department the fee imposed
by this chapter for each calendar quarter. A direct broadcast
satellite service provider shall file a report for each calendar
quarter with the department and pay the direct broadcast satellite
service fee for that calendar quarter to the department not later
than twenty (20) days after the end of that calendar quarter. The
report must include a summary of gross revenue and fees
categorized by unit. This subsection does not create a liability of
the direct broadcast satellite service provider directly to a unit.
(b) The department shall prescribe the form of the direct
broadcast satellite service fee report required under subsection (a).
(c) The money received from the fees collected by the
department shall be credited to a special account to make
distributions to each unit before the last business day in January,
April, July, and October, based on the amount of fees received in
that month for the most recent calendar quarter from each
provider that provides direct broadcast satellite service in the unit.
The money is appropriated to make the distributions.
(b) Except as provided in section 34 of this chapter, the board shall assess, after June 30, 2010, a monthly wireless emergency enhanced 911 fee of at least two dollars ($2) on each CMRS subscriber that is a customer having a place of primary use in Indiana. A customer's place of primary use shall be determined in the manner provided by IC 6-8.1-15.
(1) costs incurred by CMRS providers before July 1, 2005; and
(2) the amount needed for the board to make distributions to PSAPs consistent with this chapter;
to develop and maintain an enhanced wireless 911 system.
(b) The fee assessed under section 25.5 of this chapter may not:
(1) be raised or lowered more than one (1) time in a calendar year; or
(2) be raised more than seven cents ($0.07) by an adjustment.
(1) Three cents ($0.03) of the wireless emergency 911 fee
collected from each subscriber must be deposited in an escrow
account to be used to reimburse:
(A) CMRS providers, PSAPs, and the board for costs
associated with implementation of phase two (2) of the FCC
order; and
(B) the board for costs associated with other wireless enhanced
911 services mandated by the FCC and specified in the FCC
order but not incurred by CMRS providers or PSAPs.
A CMRS provider or a PSAP may recover costs under this
chapter if the costs are incurred before July 1, 2005, and invoiced
to the board not later than December 31, 2005. The board may
invest money in the account in the manner prescribed by section
23 of this chapter and may use the proceeds of the investments to
reimburse CMRS providers and PSAPs under this subdivision.
(2) At least twenty-five cents ($0.25) of the wireless emergency
911 fee collected from each subscriber must be deposited in an
escrow account and used to reimburse CMRS providers for the
actual costs incurred by the CMRS providers before July 1, 2005,
in complying with the wireless 911 requirements established by
the FCC order and rules that are adopted by the FCC under the
FCC order, including costs and expenses incurred in designing,
upgrading, purchasing, leasing, programming, installing, testing,
or maintaining all necessary data, hardware, and software
required to provide service as well as the costs of operating the
service. The board may invest money in the account in the manner
prescribed by section 23 of this chapter and may use the proceeds
of the investments to reimburse CMRS providers under this
subdivision. The CMRS provider may only request funds for true
cost recovery. The board may increase the amount held in escrow
under this subdivision not more than one (1) time a calendar year.
If the board adjusts the wireless emergency 911 fee under section
26(a) of this chapter within a calendar year, an adjustment to the
amount held in escrow under this subdivision for the calendar
year must be made at that time.
(3) Two percent (2%) of the wireless emergency 911 fee collected
from each subscriber may be used by the board to recover the
board's expenses in administering this chapter. However, the
board may increase this percentage at the time the board may
adjust the monthly fee assessed against each subscriber to allow
for full recovery of administration expenses.
(4) The remainder of the wireless emergency 911 fee collected
from each subscriber must be distributed and used in the
following manner:
(A) The board shall distribute:
(i) twenty-five percent (25%) of the remainder on a
monthly basis to each county containing one (1) or more
eligible PSAPs, as identified by the county in the notice
required under section 40 of this chapter, a part of the
remainder, not complying with section 51 of this chapter;
and
(ii) seventy-five percent (75%) of the remainder on a
monthly basis to each county complying with section 51
of this chapter;
based upon the county's percentage of the state's population (as
reported in the most recent official United States census).
(B) A county must use a distribution received under this clause
subdivision to make distributions to PSAPs that:
(i) are identified by the county under section 40 of this
chapter as eligible for distributions; and
(ii) accept wireless enhanced 911 service;
for actual costs incurred by the PSAPs in complying with the
wireless enhanced 911 requirements established by the FCC
order and rules.
(B) The amount of the fee remaining, if any, after the
distributions required under clause (A) must be distributed in
equal shares between the escrow accounts established under
subdivisions (1) and (2).
(b) Notwithstanding the requirements described in subsection (a),
the board may transfer money between and among the accounts in
subsection (a) in accordance with the following procedures:
(1) For purposes of acting under this subsection, the board must
have a quorum consisting of at least one (1) member appointed
under section 18(c)(2) of this chapter and at least one (1) member
appointed under section 18(c)(3) of this chapter.
(2) A transfer under this subsection must be approved by the
affirmative vote of:
(A) at least fifty percent (50%) of the members present at a
duly called meeting of the board who are appointed under
section 18(c)(2) of this chapter; and
(B) at least fifty percent (50%) of the members present at a
duly called meeting of the board who are appointed under
section 18(c)(3) of this chapter.
(3) The board may make transfers only one (1) time during a
calendar year.
(4) The board may not make a transfer that:
(A) impairs cost recovery by CMRS providers or PSAPs; or
(B) impairs the ability of the board to fulfill its management and administrative obligations described in this chapter.
(c) If all CMRS providers have been reimbursed for their costs under this chapter, and the fee has been reduced under section 26(c) of this chapter, the board shall manage the fund in the following manner:
(1) One cent ($0.01) of the wireless emergency 911 fee collected from each subscriber may be used by the board to recover the board's expenses in administering this chapter. However, the board may increase this amount at the time the board may adjust the monthly fee assessed against each subscriber to allow for full recovery of administration expenses.
(2) Thirty-eight and three tenths cents ($0.383) of the wireless emergency 911 fee collected from each subscriber must be distributed to each county containing at least one (1) PSAP, as identified in the county notice required by section 40 of this chapter. The board shall make these distributions in the following manner:
(A) The board shall distribute on a monthly basis to each eligible county thirty-four and four tenths cents ($0.344) of the wireless emergency 911 fee based upon the county's percentage of the state's population.
(B) The board shall distribute on a monthly basis to each eligible county three and nine tenths cents ($0.039) of the wireless emergency 911 fee equally among the eligible counties. A county must use a distribution received under this clause to reimburse PSAPs that:
(i) are identified by the county under section 40 of this chapter as eligible for distributions; and
(ii) accept wireless enhanced 911 service;
for actual costs incurred by the PSAPs in complying with the wireless enhanced 911 requirements established by the FCC order and rules.
(C) The board shall deposit the remainder of the wireless emergency 911 fee collected from each subscriber into an escrow account to be used for costs associated with other wireless enhanced 911 services mandated by the FCC and specified in the FCC order but not incurred by PSAPs. The board may invest money in the account in the manner prescribed by section 23 of this chapter and may use the proceeds of the investments for costs associated with other
wireless enhanced 911 services mandated by the FCC but not
specified in the FCC order or to make distributions to PSAPs
under this section.
(3) If the fee has been reduced under section 26(c) of this chapter,
the board shall determine how money remaining in the accounts
or money for uses described in subsection (a) is to be allocated
into the accounts described in this subsection or used for
distributions under this subsection.
This subsection does not affect the transfer provisions set forth in
subsection (b).
