BILL NUMBER: AB 2545INTRODUCED BILL TEXT 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 introduced, De La Torre. Emergency Telephone Users Surcharge Act: prepaid communications 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 the surcharge from users of prepaid communications 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 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 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 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 services, there should be clarity and standardization with respect to the collection and payment obligations of 911 surcharges for prepaid communications 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 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.