HLS 16RS-746 ENGROSSED
2016 Regular Session
HOUSE BILL NO. 678
BY REPRESENTATIVE CARMODY
TELECOMMUNICATIONS: Provides for the assessment of a surcharge fee on prepaid 911
services
1 AN ACT
2To amend and reenact R.S. 33:9109.1(A) through (D), (F), and (G), to enact R.S. 33:9109.2,
3 and to repeal R.S. 33:9109.1(B)(9), relative to charges imposed on prepaid 911
4 services; to provide for and modify definitions; to increase the amount of the prepaid
5 911 charge; to provide for administration of prepaid 911 charges; to restrict use of
6 certain funds; to provide for effectiveness; and to provide for related matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 33:9109.1(A) through (D), (F), and (G) are hereby amended and
9reenacted and R.S. 33:9109.2 is hereby enacted to read as follows:
10 §9109.1. Prepaid wireless telecommunications 911 service charge; intent;
11 definitions; collection and remittance; administration; distribution of funds;
12 liability; exclusivity
13 A. Intent. (1) The legislature finds that maintaining effective and efficient
14 911 systems across the state benefits all citizens.
15 (2) Service charges Charges imposed upon the consumers of
16 telecommunication services services that have the ability to dial access 911 are an
17 important funding mechanism to assist state and local governments with the
18 deployment of enhanced 911 services to the citizens of this state.
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1 (3) Prepaid wireless telecommunication services that provide access to 911
2 are an important segment of the telecommunications industry and have proven
3 particularly attractive to low-volume consumers.
4 (4) Unlike traditional telecommunication services, prepaid wireless
5 telecommunications services that provide access to 911 are not sold or used pursuant
6 to term contracts or subscriptions, and monthly bills are not sent to consumers by
7 prepaid wireless telecommunication service providers or retail vendors.
8 (5) Prepaid wireless service consumers have the same access to emergency
9 911 services from their wireless devices as wireless consumers on term contracts,
10 and prepaid wireless service consumers benefit from the ability to access the 911
11 system by dialing 911. Therefore, prepaid wireless service consumers should begin
12 contributing contribute to funding of the 911 emergency communications system.
13 (6) Consumers purchase prepaid wireless telecommunication services that
14 provide access to 911 at a wide variety of general retail locations and other
15 distribution channels, not just through service providers. Such purchases are made
16 on a "cash-and-carry" or "pay-as-you-go" basis from retailers.
17 (7) To ensure equitable contributions to the funding of 911 systems from
18 consumers of prepaid wireless telecommunication services, the collection and
19 payment obligation of charges to support E911 911 should be imposed upon the
20 consumer's retail purchase of the prepaid wireless telecommunication service and
21 should be in the form of a single, statewide charge that is collected once at the time
22 of purchase directly from the consumer, remitted to the state, and distributed to
23 communications districts.
24 B. Definitions. As used in this Section, the following words and terms shall
25 have the following meanings, unless the context clearly indicates otherwise:
26 (1) "Consumer" means a person who purchases a prepaid wireless
27 telecommunications service that provides access to 911 in a retail transaction.
28 (2) "Department" means the Department of Revenue.
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1 (3) "E911" "911" means an emergency telephone system that provides the
2 caller with emergency 911 system service, that directs 911 calls to appropriate public
3 safety answering points by selective routing based on the geographical location from
4 which the call originated, and that provides the capability for automatic number
5 identification and other features that the Federal Communications Commission may
6 require in the future.
7 (4) "Prepaid wireless 911 service charge" means the charge that is required
8 to be collected by a seller from a consumer in the amount established under
9 Subsection C of this Section.
10 (5) "Prepaid wireless telecommunications service" means a wireless
11 telecommunications service that allows a caller to dial 911 to access the 911 system,
12 commercial mobile radio service as defined by 47 C.F.R. 20.3 in addition to any
13 other service capable of accessing 911 through the use of voice, text, video, image,
14 data, or any other means, which service shall be paid for in advance and is sold in
15 predetermined units or dollars of which the number declines with use in a known
16 amount.
17 (6) "Provider" means a person that provides a prepaid wireless
18 telecommunications service pursuant to a license issued by the Federal
19 Communications Commission.
20 (7) "Retail transaction" means each individual purchase of a prepaid wireless
21 telecommunications service that provides access to 911 from a seller for any purpose
22 other than resale.
23 (8) "Seller" means a person who sells a prepaid wireless telecommunications
24 service that provides access to 911 to another person.
25 C. Collection and remittance of prepaid wireless telecommunications 911
26 service charge. (1) There is hereby imposed a prepaid wireless telecommunications
27 911 service charge of two four percent of the amount of the per retail transaction.
28 (2) The prepaid wireless 911 service charge shall be collected by the seller
29 from the consumer with respect to each retail transaction occurring in this state. The
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1 amount of the prepaid wireless 911 service charge shall be either separately stated
2 on an invoice, receipt, or other similar document that is provided to the consumer by
3 the seller, or otherwise disclosed to the consumer.
4 (3) For purposes of Paragraph (2) of this Subsection, a retail transaction that
5 is effected in person by a consumer at a business location of the seller shall be
6 treated as occurring in this state if that business location is in this state, and any other
7 retail transaction shall be treated as occurring in this state if the retail transaction is
8 treated as occurring in this state for purposes of R.S. 47:301(16)(d).
9 (4) The prepaid wireless 911 service charge shall be the liability of the
10 consumer and not of the seller or of any provider, except that the seller shall be liable
11 to remit all prepaid wireless 911 service charges that the seller collects from
12 consumers as provided in Subsection D of this Section, including all such charges
13 that the seller is deemed to collect where the amount of the charge has not been
14 separately stated on an invoice, receipt, or other similar document provided to the
15 consumer by the seller.
16 (5) The amount of the prepaid wireless 911 service charge that is collected
17 by a seller from a consumer, whether or not such amount is separately stated on an
18 invoice, receipt, or other similar document provided to the consumer by the seller,
19 shall not be included in the base for measuring any tax, fee, surcharge, or other
20 charge that is imposed by this state, any political subdivision of this state, or any
21 intergovernmental agency.
22 D. Administration of prepaid wireless 911 service charge. (1) Prepaid
23 wireless 911 service charges collected by sellers shall be remitted to the department
24 quarterly by the seller and the return for the quarter shall be filed on or before the
25 twentieth day of the first month of the next succeeding quarter. The department shall
26 establish electronic registration procedures to enable sellers to file and pay the
27 prepaid wireless 911 service charges electronically in accordance with R.S.
28 47:1520(A), which authorizes the secretary of the department to mandate electronic
29 filing when the report is required for dedicated fund distribution. Sellers shall be
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1 required to file their prepaid wireless 911 service charge reports and to remit the
2 prepaid wireless 911 service charge collection electronically using the electronic
3 format prescribed by the department.
4 (2) A seller shall be permitted to deduct and retain the entirety half of the
5 2010 2016 first fourth quarter's fees. Thereafter, a seller shall be permitted to deduct
6 and retain four percent of prepaid wireless 911 service charges that are collected by
7 the seller from consumers.
8 (3) The audit and appeal procedures applicable under Chapter 2 of Subtitle
9 I of Title 47 of the Louisiana Revised Statutes of 1950 with respect to the state sales
10 tax shall apply to prepaid wireless 911 service charges and prescription shall be
11 governed by Article VII, Section 16 of the Constitution of Louisiana.
12 (4) The department shall establish procedures by which a seller of prepaid
13 wireless telecommunications 911 service may document that a sale is not a retail
14 transaction, which procedures shall substantially coincide with the procedures for
15 documenting sale for resale transactions under Chapter 2 of Subtitle I of Title 47 of
16 the Louisiana Revised Statutes of 1950 with respect to the state sales tax.
17 (5) The department shall pay all remitted prepaid wireless 911 service
18 charges over to eligible communications districts in accordance with Subsection E
19 of this Section. The department may retain up to two percent of remitted service
20 charges to reimburse its direct costs of administering the collection and remittance
21 of prepaid wireless 911 service charges.
22 * * *
23 F. Liability. (1) No provider or seller of prepaid wireless
24 telecommunications service shall be liable for damages to any person resulting from
25 or incurred in connection with the provision of, or failure to provide, 911 or E911
26 service, or for identifying, or failing to identify, the telephone number, address,
27 location, or name associated with any person or device that is accessing or
28 attempting to access 911 or E911 service.
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1 (2) No provider or seller of prepaid wireless telecommunications service
2 shall be liable for damages to any person resulting from or incurred in connection
3 with the provision of any lawful assistance to any investigation or activity by a law
4 enforcement officer of the United States, this or any other state, or any political
5 subdivision of this or any other state, in connection with any lawful investigation or
6 other law enforcement activity by such law enforcement officer.
7 G. Exclusivity of charge. The prepaid wireless E911 911 charge shall be the
8 only E911 911 funding obligation imposed with respect to prepaid wireless
9 telecommunications service in this state, and no tax, fee, surcharge, or other charge
10 shall be imposed by this state, any political subdivision of this state, or any
11 intergovernmental agency, for E911 911 funding purposes, upon any provider, seller,
12 or consumer with respect to the sale, purchase, use, or provision of prepaid wireless
13 telecommunications 911 service.
14 §9109.2. Restrictions imposed on use of certain funds
15 Notwithstanding any provision of law to the contrary, all revenues collected
16 from the assessment of 911 surcharge fees in a parishwide communications district,
17 as provided in this Chapter, shall be used for the express purpose of providing 911
18 emergency response communications services and operations. The funds shall not
19 be diverted for use by any other entity or for any purpose other than those outlined
20 within the Chapter.
21 Section 2. R.S. 33:9109.1(B)(9) is hereby repealed in its entirety.
22 Section 3. This Act shall become effective upon signature by the governor or, if not
23signed by the governor, upon expiration of the time for bills to become law without signature
24by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
25vetoed by the governor and subsequently approved by the legislature, this Act shall become
26effective on the day following such approval.
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DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 678 Engrossed 2016 Regular Session Carmody
Abstract: Provides for definitions and increases the amount of the charge being imposed
on prepaid 911 services.
Present law details the intent of present law.
Present law includes definitions and multiple references that include the terms "wireless",
"telecommunications", "wireless telecommunications service", and "service charges" relative
to describing certain charges and services. Proposed law removes these references and
modifies the definitions included in present law.
Proposed law removes the definitions of "wireless communications service" and "product".
Proposed law enumerates definitions to include the terms "prepaid 911 charge" and "prepaid
service". Proposed law effectually broadens the scope of present law to make certain
services that provide access to 911 subject to the prepaid 911 charge.
Present law provides procedures for the collection and remittance of prepaid wireless
telecommunications 911 service charges. Present law imposes a prepaid wireless
telecommunications 911 service charge in the amount of 2% of the amount of the per retail
transaction. Proposed law imposes a prepaid 911 charge. Further, proposed law increases
the amount of the charge from 2% to 4% of the amount of the per retail transaction.
Otherwise, proposed law makes only technical changes to the procedures established by
present law relative to the collection and remittance of the prepaid 911 charges for the
purpose of incorporating the terms defined in proposed law.
Present law provides for the administration of prepaid wireless 911 service charges.
Proposed law amends a reference to a provision of present law regarding the rights of a seller
of prepaid 911 services and proposed law allows any seller to deduct and retain half of the
2016 fourth quarter's fees. Otherwise, proposed law makes only technical changes to the
procedures established by present law relative to the administration of prepaid 911 charges
for the purpose of incorporating the terms defined in proposed law.
Present law provides for limited liability relative to providers and sellers of prepaid wireless
telecommunications service. Proposed law makes only technical changes to the provisions
of present law relative to liability for the purpose of incorporating the terms defined in
proposed law.
Present law provides that the prepaid wireless E911 charge shall be the exclusive funding
obligation imposed with respect to prepaid wireless telecommunications service in this state.
Proposed law makes only technical changes to the provisions of present law relative to the
exclusivity of the charge for the purpose of incorporating the terms defined in proposed law.
Proposed law requires all revenues collected from the assessment of 911 surcharge fees to
be used for the sole purpose of providing 911 emergency response communications services
and operations. Prohibits diversion of the revenues for use by any other entity or for any
other purpose other than those outlined in the present law and proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
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HB NO. 678
(Amends R.S. 33:9109.1(A) through (D), (F), and (G); Adds R.S. 33:9109.2; Repeals R.S.
33:9109.1(B)(9))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Commerce to the
original bill:
1. Remove all references to wireless telecommunications products.
2. Remove the definitions of "wireless communications service" and "product".
3. Add proposed law to require all revenues collected from the assessment of 911
surcharge fees to be used for the sole purpose of providing 911 emergency
response communications services and operations. Prohibits diversion of the
revenues for use by any other entity or for any other purpose other than those
outlined in the present law.
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