Bill Text: MN SF236 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Prepaid wireless telecommunications service (PWTS) 911 fees collection authorization
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2011-02-07 - Referred to Judiciary and Public Safety [SF236 Detail]
Download: Minnesota-2011-SF236-Introduced.html
1.2relating to public safety; 911 telephone service; providing for collection of 911
1.3fees from prepaid wireless telecommunications services;amending Minnesota
1.4Statutes 2010, sections 403.02, by adding a subdivision; 403.11, subdivision 1;
1.5proposing coding for new law in Minnesota Statutes, chapter 403.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 403.02, is amended by adding a
1.8subdivision to read:
1.9 Subd. 17b. Prepaid wireless telecommunications service or PWTS. "Prepaid
1.10wireless telecommunications service" or "PWTS" means prepaid wireless calling service
1.11as that term is defined in section 297A.669, subdivision 14a.
1.12 Sec. 2. Minnesota Statutes 2010, section 403.11, subdivision 1, is amended to read:
1.13 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
1.14customer of a wireless or wire-line switched or packet-based telecommunications service
1.15provider connected to the public switched telephone network that furnishes service capable
1.16of originating a 911 emergency telephone call is assessed a fee based upon the number
1.17of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
1.18maintenance and related improvements for trunking and central office switching equipment
1.19for 911 emergency telecommunications service, to offset administrative and staffing costs
1.20of the commissioner related to managing the 911 emergency telecommunications service
1.21program, to make distributions provided for in section403.113 , and to offset the costs,
1.22including administrative and staffing costs, incurred by the State Patrol Division of the
1.23Department of Public Safety in handling 911 emergency calls made from wireless phones.
2.1 (b) Money remaining in the 911 emergency telecommunications service account
2.2after all other obligations are paid must not cancel and is carried forward to subsequent
2.3years and may be appropriated from time to time to the commissioner to provide financial
2.4assistance to counties for the improvement of local emergency telecommunications
2.5services. The improvements may include providing access to 911 service for
2.6telecommunications service subscribers currently without access and upgrading existing
2.7911 service to include automatic number identification, local location identification,
2.8automatic location identification, and other improvements specified in revised county
2.9911 plans approved by the commissioner.
2.10 (c) The fee may not be less than eight cents nor more than 65 cents a month until
2.11June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 2009,
2.12not less than eight cents nor more than 85 cents a month until June 30, 2010, and not less
2.13than eight cents nor more than 95 cents a month on or after July 1, 2010, for each customer
2.14access line or other basic access service, including trunk equivalents as designated by
2.15the Public Utilities Commission for access charge purposes and including wireless
2.16telecommunications services. With the approval of the commissioner of management and
2.17budget, the commissioner of public safety shall establish the amount of the fee within the
2.18limits specified and inform the companies and carriers of the amount to be collected. When
2.19the revenue bonds authorized under section403.27, subdivision 1 , have been fully paid or
2.20defeased, the commissioner shall reduce the fee to reflect that debt service on the bonds is
2.21no longer needed. The commissioner shall provide companies and carriers a minimum of
2.2245 days' notice of each fee change. The fee must be the same for all customers.
2.23 (d) The fee must be collected by each wireless or wire-line telecommunications
2.24service provider subject to the fee. Fees are payable to and must be submitted to the
2.25commissioner monthly before the 25th of each month following the month of collection,
2.26except that fees may be submitted quarterly if less than $250 a month is due, or annually if
2.27less than $25 a month is due. Receipts must be deposited in the state treasury and credited
2.28to a 911 emergency telecommunications service account in the special revenue fund. The
2.29money in the account may only be used for 911 telecommunications services.
2.30 (e) This subdivision does not apply to customers of interexchange carriers.
2.31 (f) The installation and recurring charges for integrating wireless 911 calls into
2.32enhanced 911 systems are eligible for payment by the commissioner if the 911 service
2.33provider is included in the statewide design plan and the charges are made pursuant to
2.34contract.
2.35 (g) Competitive local exchanges carriers holding certificates of authority from the
2.36Public Utilities Commission are eligible to receive payment for recurring 911 services.
3.1(h) The fee imposed by this subdivision does not apply to prepaid wireless
3.2telecommunications service, which is subject to the fee imposed under section 403.161,
3.3subdivision 2.
3.4 Sec. 3. [403.16] PREPAID WIRELESS 911 SERVICE; DEFINITIONS.
3.5 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
3.6defined in this section have the meanings given them.
3.7 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
3.8telecommunications service in a retail transaction.
3.9 Subd. 3. Department. "Department" means the Department of Revenue.
3.10 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
3.11is required to be collected by a seller from a consumer as established in section 403.161.
3.12 Subd. 5. Provider. "Provider" means a person that provides prepaid wireless
3.13telecommunications service under a license issued by the Federal Communications
3.14Commission.
3.15 Subd. 6. Retail transaction. "Retail transaction" means the purchase of prepaid
3.16wireless telecommunications service from a seller for any purpose other than resale.
3.17 Subd. 7. Seller. "Seller" means a person who sells prepaid wireless
3.18telecommunications service to another person.
3.19 Subd. 8. Wireless telecommunications service. "Wireless telecommunications
3.20service" means commercial mobile radio service as defined by Code of Federal
3.21Regulations, title 47, section 20.3, as amended.
3.22 Sec. 4. [403.161] PREPAID WIRELESS E911 FEE IMPOSED; COLLECTION,
3.23REMITTANCE.
3.24 Subdivision 1. Fee imposed. A prepaid wireless E911 fee of 38 cents per transaction
3.25is imposed until the fee is adjusted as an amount per retail transaction under subdivision 6.
3.26 Subd. 2. Fee collected. The prepaid wireless E911 fee must be collected by the
3.27seller from the consumer with respect to each retail transaction occurring in this state.
3.28The amount of the prepaid wireless E911 fee must be either separately stated on an
3.29invoice, receipt, or other similar document that is provided to the consumer by the seller,
3.30or otherwise disclosed to the consumer.
3.31 Subd. 3. Sales and use tax treatment. For purposes of this section, a retail
3.32transaction that is effected in person by a consumer at a business location of the seller
3.33must be treated as occurring in this state if that business location is in this state, and any
3.34other retail transaction must be treated as occurring in this state if the retail transaction
4.1is treated as occurring in this state for purposes of the sales and use tax as specified in
4.2section 297A.669, subdivision 3, paragraph (c).
4.3 Subd. 4. Remittance. The prepaid wireless E911 fee is the liability of the consumer
4.4and not of the seller or of any provider, except that the seller is liable to remit all fees that
4.5the seller collects from consumers as provided in section 403.162, including all fees that
4.6the seller is deemed to collect in which the amount of the fee has not been separately stated
4.7on an invoice, receipt, or other similar document provided to the consumer by the seller.
4.8 Subd. 5. Exclusion for calculating other charges. The amount of the prepaid
4.9wireless E911 fee that is collected by a seller from a consumer, if the amount is separately
4.10stated on an invoice, receipt, or other similar document provided to the consumer by
4.11the seller, must not be included in the base for measuring any tax, fee, surcharge, or
4.12other charge that is imposed by this state, any political subdivision of this state, or any
4.13intergovernmental agency.
4.14 Subd. 6. Fee changes. The prepaid wireless E911 fee must be proportionately
4.15increased or reduced, as applicable, upon any change to the fee imposed under section
4.16403.11, subdivision 1, paragraph (c). The increase or reduction is effective on the effective
4.17date of the change to the fee imposed under section 403.11, subdivision 1, paragraph (c),
4.18or, if later, the first day of the first calendar month to occur at least 60 days after the change
4.19to the fee imposed under section 403.11, subdivision 1, paragraph (c). The department
4.20shall provide not less than 30 days of advance notice to the increase or reduction on
4.21the department's Web site.
4.22 Sec. 5. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEE.
4.23 Subdivision 1. Remittance. Prepaid wireless E911 fees collected by sellers must
4.24be remitted to the department at the times and in the manner provided by chapter 297A
4.25with respect to the general sales and use tax. The department shall establish registration
4.26and payment procedures that substantially coincide with the registration and payment
4.27procedures that apply in chapter 297A.
4.28 Subd. 2. Deduction for collection. A seller may deduct and retain three percent of
4.29prepaid wireless E911 fees that are collected by the seller from consumers.
4.30 Subd. 3. Audit and appeal. The audit and appeal procedures applicable under
4.31chapter 297A apply to any fee imposed under this section.
4.32 Subd. 4. Procedures for resale transactions. The department shall establish
4.33procedures by which a seller of prepaid wireless telecommunications service may
4.34document that a sale is not a retail transaction. These procedures must substantially
5.1coincide with the procedures for documenting sale for resale transactions as provided in
5.2chapter 297A.
5.3 Subd. 5. Fees deposited. The department shall deposit all remitted prepaid wireless
5.4E911 fees in the state treasury, to be credited to the 911 emergency telecommunication
5.5service account in the special revenue fund, within 30 days of receipt. The department
5.6may deduct an amount, not to exceed two percent of collected fees, to be retained by the
5.7department to reimburse its direct costs of administering the collection and remittance of
5.8prepaid wireless E911 fees. Funds deposited into the 911 emergency telecommunications
5.9service account from the fee imposed in this section may only be used for the purposes
5.10specified under section 403.113.
5.11 Sec. 6. [403.163] LIABILITY OF SELLERS AND PROVIDERS OF PWTS.
5.12(a) A provider or seller of prepaid wireless telecommunications service is not liable
5.13for damages to any person resulting from or incurred in connection with providing, or
5.14failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
5.15telephone number, address, location, or name associated with any person or device that
5.16is accessing or attempting to access 911 or E911 service.
5.17(b) A provider or seller of prepaid wireless telecommunications service is not liable
5.18for damages to any person resulting from or incurred in connection with providing any
5.19lawful assistance to any investigative or law enforcement officer of the United States, this
5.20or any other state, or any political subdivision of this or any other state, in connection with
5.21any lawful investigation or other law enforcement activity by the law enforcement officer.
5.22(c) In addition to the protection from liability provided by paragraphs (a) and (b),
5.23section 403.08, subdivision 11, applies to sellers and providers.
5.24 Sec. 7. [403.164] EXCLUSIVITY OF PREPAID WIRELESS 911 FEE.
5.25The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
5.26obligation imposed with respect to prepaid wireless telecommunications service in this
5.27state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
5.28subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
5.29upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
5.30of prepaid wireless telecommunications service.
5.31 Sec. 8. EFFECTIVE DATE.
5.32Sections 1 to 7 are effective January 1, 2012.
1.3fees from prepaid wireless telecommunications services;amending Minnesota
1.4Statutes 2010, sections 403.02, by adding a subdivision; 403.11, subdivision 1;
1.5proposing coding for new law in Minnesota Statutes, chapter 403.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 403.02, is amended by adding a
1.8subdivision to read:
1.9 Subd. 17b. Prepaid wireless telecommunications service or PWTS. "Prepaid
1.10wireless telecommunications service" or "PWTS" means prepaid wireless calling service
1.11as that term is defined in section 297A.669, subdivision 14a.
1.12 Sec. 2. Minnesota Statutes 2010, section 403.11, subdivision 1, is amended to read:
1.13 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
1.14customer of a wireless or wire-line switched or packet-based telecommunications service
1.15provider connected to the public switched telephone network that furnishes service capable
1.16of originating a 911 emergency telephone call is assessed a fee based upon the number
1.17of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
1.18maintenance and related improvements for trunking and central office switching equipment
1.19for 911 emergency telecommunications service, to offset administrative and staffing costs
1.20of the commissioner related to managing the 911 emergency telecommunications service
1.21program, to make distributions provided for in section
1.22including administrative and staffing costs, incurred by the State Patrol Division of the
1.23Department of Public Safety in handling 911 emergency calls made from wireless phones.
2.1 (b) Money remaining in the 911 emergency telecommunications service account
2.2after all other obligations are paid must not cancel and is carried forward to subsequent
2.3years and may be appropriated from time to time to the commissioner to provide financial
2.4assistance to counties for the improvement of local emergency telecommunications
2.5services. The improvements may include providing access to 911 service for
2.6telecommunications service subscribers currently without access and upgrading existing
2.7911 service to include automatic number identification, local location identification,
2.8automatic location identification, and other improvements specified in revised county
2.9911 plans approved by the commissioner.
2.10 (c) The fee may not be less than eight cents nor more than 65 cents a month until
2.11June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30, 2009,
2.12not less than eight cents nor more than 85 cents a month until June 30, 2010, and not less
2.13than eight cents nor more than 95 cents a month on or after July 1, 2010, for each customer
2.14access line or other basic access service, including trunk equivalents as designated by
2.15the Public Utilities Commission for access charge purposes and including wireless
2.16telecommunications services. With the approval of the commissioner of management and
2.17budget, the commissioner of public safety shall establish the amount of the fee within the
2.18limits specified and inform the companies and carriers of the amount to be collected. When
2.19the revenue bonds authorized under section
2.20defeased, the commissioner shall reduce the fee to reflect that debt service on the bonds is
2.21no longer needed. The commissioner shall provide companies and carriers a minimum of
2.2245 days' notice of each fee change. The fee must be the same for all customers.
2.23 (d) The fee must be collected by each wireless or wire-line telecommunications
2.24service provider subject to the fee. Fees are payable to and must be submitted to the
2.25commissioner monthly before the 25th of each month following the month of collection,
2.26except that fees may be submitted quarterly if less than $250 a month is due, or annually if
2.27less than $25 a month is due. Receipts must be deposited in the state treasury and credited
2.28to a 911 emergency telecommunications service account in the special revenue fund. The
2.29money in the account may only be used for 911 telecommunications services.
2.30 (e) This subdivision does not apply to customers of interexchange carriers.
2.31 (f) The installation and recurring charges for integrating wireless 911 calls into
2.32enhanced 911 systems are eligible for payment by the commissioner if the 911 service
2.33provider is included in the statewide design plan and the charges are made pursuant to
2.34contract.
2.35 (g) Competitive local exchanges carriers holding certificates of authority from the
2.36Public Utilities Commission are eligible to receive payment for recurring 911 services.
3.1(h) The fee imposed by this subdivision does not apply to prepaid wireless
3.2telecommunications service, which is subject to the fee imposed under section 403.161,
3.3subdivision 2.
3.4 Sec. 3. [403.16] PREPAID WIRELESS 911 SERVICE; DEFINITIONS.
3.5 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
3.6defined in this section have the meanings given them.
3.7 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
3.8telecommunications service in a retail transaction.
3.9 Subd. 3. Department. "Department" means the Department of Revenue.
3.10 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
3.11is required to be collected by a seller from a consumer as established in section 403.161.
3.12 Subd. 5. Provider. "Provider" means a person that provides prepaid wireless
3.13telecommunications service under a license issued by the Federal Communications
3.14Commission.
3.15 Subd. 6. Retail transaction. "Retail transaction" means the purchase of prepaid
3.16wireless telecommunications service from a seller for any purpose other than resale.
3.17 Subd. 7. Seller. "Seller" means a person who sells prepaid wireless
3.18telecommunications service to another person.
3.19 Subd. 8. Wireless telecommunications service. "Wireless telecommunications
3.20service" means commercial mobile radio service as defined by Code of Federal
3.21Regulations, title 47, section 20.3, as amended.
3.22 Sec. 4. [403.161] PREPAID WIRELESS E911 FEE IMPOSED; COLLECTION,
3.23REMITTANCE.
3.24 Subdivision 1. Fee imposed. A prepaid wireless E911 fee of 38 cents per transaction
3.25is imposed until the fee is adjusted as an amount per retail transaction under subdivision 6.
3.26 Subd. 2. Fee collected. The prepaid wireless E911 fee must be collected by the
3.27seller from the consumer with respect to each retail transaction occurring in this state.
3.28The amount of the prepaid wireless E911 fee must be either separately stated on an
3.29invoice, receipt, or other similar document that is provided to the consumer by the seller,
3.30or otherwise disclosed to the consumer.
3.31 Subd. 3. Sales and use tax treatment. For purposes of this section, a retail
3.32transaction that is effected in person by a consumer at a business location of the seller
3.33must be treated as occurring in this state if that business location is in this state, and any
3.34other retail transaction must be treated as occurring in this state if the retail transaction
4.1is treated as occurring in this state for purposes of the sales and use tax as specified in
4.2section 297A.669, subdivision 3, paragraph (c).
4.3 Subd. 4. Remittance. The prepaid wireless E911 fee is the liability of the consumer
4.4and not of the seller or of any provider, except that the seller is liable to remit all fees that
4.5the seller collects from consumers as provided in section 403.162, including all fees that
4.6the seller is deemed to collect in which the amount of the fee has not been separately stated
4.7on an invoice, receipt, or other similar document provided to the consumer by the seller.
4.8 Subd. 5. Exclusion for calculating other charges. The amount of the prepaid
4.9wireless E911 fee that is collected by a seller from a consumer, if the amount is separately
4.10stated on an invoice, receipt, or other similar document provided to the consumer by
4.11the seller, must not be included in the base for measuring any tax, fee, surcharge, or
4.12other charge that is imposed by this state, any political subdivision of this state, or any
4.13intergovernmental agency.
4.14 Subd. 6. Fee changes. The prepaid wireless E911 fee must be proportionately
4.15increased or reduced, as applicable, upon any change to the fee imposed under section
4.16403.11, subdivision 1, paragraph (c). The increase or reduction is effective on the effective
4.17date of the change to the fee imposed under section 403.11, subdivision 1, paragraph (c),
4.18or, if later, the first day of the first calendar month to occur at least 60 days after the change
4.19to the fee imposed under section 403.11, subdivision 1, paragraph (c). The department
4.20shall provide not less than 30 days of advance notice to the increase or reduction on
4.21the department's Web site.
4.22 Sec. 5. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEE.
4.23 Subdivision 1. Remittance. Prepaid wireless E911 fees collected by sellers must
4.24be remitted to the department at the times and in the manner provided by chapter 297A
4.25with respect to the general sales and use tax. The department shall establish registration
4.26and payment procedures that substantially coincide with the registration and payment
4.27procedures that apply in chapter 297A.
4.28 Subd. 2. Deduction for collection. A seller may deduct and retain three percent of
4.29prepaid wireless E911 fees that are collected by the seller from consumers.
4.30 Subd. 3. Audit and appeal. The audit and appeal procedures applicable under
4.31chapter 297A apply to any fee imposed under this section.
4.32 Subd. 4. Procedures for resale transactions. The department shall establish
4.33procedures by which a seller of prepaid wireless telecommunications service may
4.34document that a sale is not a retail transaction. These procedures must substantially
5.1coincide with the procedures for documenting sale for resale transactions as provided in
5.2chapter 297A.
5.3 Subd. 5. Fees deposited. The department shall deposit all remitted prepaid wireless
5.4E911 fees in the state treasury, to be credited to the 911 emergency telecommunication
5.5service account in the special revenue fund, within 30 days of receipt. The department
5.6may deduct an amount, not to exceed two percent of collected fees, to be retained by the
5.7department to reimburse its direct costs of administering the collection and remittance of
5.8prepaid wireless E911 fees. Funds deposited into the 911 emergency telecommunications
5.9service account from the fee imposed in this section may only be used for the purposes
5.10specified under section 403.113.
5.11 Sec. 6. [403.163] LIABILITY OF SELLERS AND PROVIDERS OF PWTS.
5.12(a) A provider or seller of prepaid wireless telecommunications service is not liable
5.13for damages to any person resulting from or incurred in connection with providing, or
5.14failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
5.15telephone number, address, location, or name associated with any person or device that
5.16is accessing or attempting to access 911 or E911 service.
5.17(b) A provider or seller of prepaid wireless telecommunications service is not liable
5.18for damages to any person resulting from or incurred in connection with providing any
5.19lawful assistance to any investigative or law enforcement officer of the United States, this
5.20or any other state, or any political subdivision of this or any other state, in connection with
5.21any lawful investigation or other law enforcement activity by the law enforcement officer.
5.22(c) In addition to the protection from liability provided by paragraphs (a) and (b),
5.23section 403.08, subdivision 11, applies to sellers and providers.
5.24 Sec. 7. [403.164] EXCLUSIVITY OF PREPAID WIRELESS 911 FEE.
5.25The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
5.26obligation imposed with respect to prepaid wireless telecommunications service in this
5.27state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
5.28subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
5.29upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
5.30of prepaid wireless telecommunications service.
5.31 Sec. 8. EFFECTIVE DATE.
5.32Sections 1 to 7 are effective January 1, 2012.
