EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW. [Brackets] indicate matter deleted from existing law. *sb0974* SENATE BILL 974 J1, C5, C2 4lr1581 CF HB 933 By: Senator Guzzone Introduced and read first time: February 2, 2024 Assigned to: Budget and Taxation A BILL ENTITLED AN ACT concerning 1 Behavioral Health Crisis Response Services – 9–8–8 Trust Fund Fees 2 FOR the purpose of establishing a 9–8–8 fee to be paid by each subscriber to switched local 3 exchange access service, commercial mobile radio service, or other 9–8–8–accessible 4 service; establishing a prepaid wireless 9–8–8 fee to be paid on certain retail 5 transactions; requiring the Comptroller to deposit the remitted 9–8–8 fees and the 6 prepaid wireless 9–8–8 fees in the 9–8–8 Trust Fund; requiring the Comptroller to 7 adopt procedures for auditing fee collection and remittance by telephone companies 8 and commercial mobile radio service providers; and generally related to the 9–8–8 9 Trust Fund. 10 BY repealing and reenacting, with amendments, 11 Article – Health – General 12 Section 7.5–5A–01, 7.5–5A–02, and 7.5–5A–04 13 Annotated Code of Maryland 14 (2023 Replacement Volume) 15 BY adding to 16 Article – Health – General 17 Section 7.5–5A–03.1 and 7.5–5A–03.2 18 Annotated Code of Maryland 19 (2023 Replacement Volume) 20 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 21 That the Laws of Maryland read as follows: 22 Article – Health – General 23 7.5–5A–01. 24 2 SENATE BILL 974 (A) In this subtitle[,] THE FOLLOWING WORDS HAVE THE MEANINGS 1 INDICATED. 2 (B) “COMMERCIAL MOBILE RADIO SERVICE ” OR “CMRS” MEANS MOBILE 3 TELECOMMUNICATIONS S ERVICE THAT IS: 4 (1) PROVIDED FOR PROFIT W ITH THE INTENT OF RE CEIVING 5 COMPENSATION OR MONE TARY GAIN; 6 (2) AN INTERCONNECTED , TWO–WAY VOICE SERVICE ; AND 7 (3) AVAILABLE TO THE PUBL IC. 8 (C) “COMMERCIAL MOBILE RAD IO SERVICE PROVIDER ” OR “CMRS 9 PROVIDER” MEANS A PERSON AUTHO RIZED BY THE FEDERAL COMMUNICATIONS 10 COMMISSION TO PROVIDE CMRS IN THE STATE. 11 (D) “CONSUMER” MEANS A PERSON THAT PURCHASES PREPAID WI RELESS 12 TELECOMMUNICATIONS S ERVICE IN A RETAIL TRANSACTION . 13 (E) “Fund” means the 9–8–8 Trust Fund. 14 (F) “PREPAID WIRELESS TELE COMMUNICATIONS SERVI CE” MEANS A 15 COMMERCIAL MOBILE RA DIO SERVICE THAT : 16 (1) ALLOWS A CONSUMER TO DIAL 9–8–8 TO ACCESS THE 9–8–8 17 SYSTEM; 18 (2) MUST BE PAID FOR IN A DVANCE; AND 19 (3) IS SOLD IN PREDETERMI NED UNITS THAT DECLI NE WITH USE IN A 20 KNOWN AMOUNT . 21 (G) “RETAIL TRANSACTION ” MEANS THE PURCHASE O F PREPAID WIRELESS 22 TELECOMMUNICATIONS S ERVICE FROM A SELLER FOR ANY PURPOSE OTHE R THAN 23 RESALE. 24 (H) “SELLER” MEANS A PERSON THAT SELLS PR EPAID WIRELESS 25 TELECOMMUNICATIONS S ERVICE TO ANOTHER PE RSON. 26 7.5–5A–02. 27 (a) There is a 9–8–8 Trust Fund. 28 SENATE BILL 974 3 (b) The purpose of the Fund is to provide reimbursement for costs associated with: 1 (1) Designating and maintaining 9–8–8 as the universal telephone number 2 for a national suicide prevention and mental health crisis hotline in accordance with the 3 federal National Suicide Hotline Designation Act of 2020; and 4 (2) Developing and implementing a statewide initiative for the 5 coordination and delivery of the continuum of behavioral health crisis response services in 6 the State, including: 7 (i) Crisis call centers; 8 (ii) Mobile crisis team services; 9 (iii) Crisis stabilization centers; and 10 (iv) Other acute behavioral health care services. 11 (c) The Department shall administer the Fund. 12 (d) (1) The Fund is a special, nonlapsing fund that is not subject to § 7–302 of 13 the State Finance and Procurement Article. 14 (2) The State Treasurer shall hold the Fund separately, and the 15 Comptroller shall account for the Fund. 16 (e) The Fund consists of: 17 (1) MONEY FROM THE 9–8–8 FEE COLLECTED AND RE MITTED TO THE 18 COMPTROLLER UNDER § 7.5–5A–03.1 OF THIS SUBTITLE; 19 (2) MONEY FROM THE PREPAI D WIRELESS 9–8–8 FEE COLLECTED 20 AND REMITTED TO THE COMPTROLLER UNDER § 7.5–5A–03.2 OF THIS SUBTITLE; 21 [(1)] (3) Money appropriated in the State budget to the Fund; 22 [(2)] (4) Interest earnings of the Fund; and 23 [(3)] (5) Any other money from any other source accepted for the benefit 24 of the Fund. 25 (f) The Fund may be used only for carrying out the purpose of the Fund. 26 (g) (1) The State Treasurer shall invest the money of the Fund in the same 27 manner as other State money may be invested. 28 4 SENATE BILL 974 (2) Any interest earnings of the Fund shall be credited to the Fund. 1 (h) Expenditures from the Fund may be made only in accordance with the State 2 budget. 3 (i) Money expended from the Fund for carrying out the purpose of the Fund is 4 supplemental to and is not intended to take the place of funding that otherwise would be 5 appropriated for carrying out the purpose of the Fund. 6 (j) No part of the Fund may revert or be credited to: 7 (1) The General Fund of the State; or 8 (2) Any other special fund of the State. 9 (k) The Fund is subject to audit by the Office of Legislative Audits as provided in 10 § 2–1220 of the State Government Article. 11 7.5–5A–03.1. 12 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 13 INDICATED. 14 (2) “9–8–8–ACCESSIBLE SERVICE ” MEANS TELEPHONE SERV ICE OR 15 ANOTHER COMMUNICATIONS SERVI CE THAT CONNECTS AN INDIVIDUAL DIALING 16 THE DIGITS 9–8–8 TO AN ESTABLISHED PU BLIC SAFETY ANSWERIN G POINT. 17 (3) “9–8–8 FEE” MEANS THE FEE IMPOSE D IN ACCORDANCE WITH 18 THIS SECTION. 19 (4) (I) “9–8–8 SERVICE CARRIER ” MEANS A PROVIDER OF CMRS 20 OR OTHER 9–8–8–ACCESSIBLE SERVICE . 21 (II) “9–8–8 SERVICE CARRIER ” DOES NOT INCLUDE A 22 TELEPHONE COMPANY . 23 (B) THIS SECTION DOES NOT APPLY TO PREPAID WIR ELESS 24 TELECOMMUNICATIONS S ERVICE. 25 (C) EACH SUBSCRIBER TO SWITCHED LOCAL EXCHANGE ACCES S SERVICE, 26 CMRS, OR OTHER 9–8–8–ACCESSIBLE SERVICE S HALL PAY A 9–8–8 FEE. 27 (D) (1) SUBJECT TO PARAGRAPHS (2) THROUGH (4) OF THIS 28 SUBSECTION, THE 9–8–8 FEE IS 25 CENTS PER MONTH PAYA BLE WHEN THE BILL FO R 29 SENATE BILL 974 5 THE SWITCH ED LOCAL EXCHANGE ACCES S SERVICE, CMRS, OR OTHER 1 9–8–8–ACCESSIBLE SERVICE I S DUE. 2 (2) EXCEPT AS PROVIDED IN PARAGRAPHS (3) AND (4) OF THIS 3 SUBSECTION, IF A PERSON IS ABLE TO MAKE MORE THAN ON E SIMULTANEOUS 4 OUTBOUND CALL USING A 9–8–8–ACCESSIBLE SERVICE , EACH SEPARATE OUTBOU ND 5 CALL VOICE CHANNEL C APACITY, REGARDLESS OF THE TE CHNOLOGY, SHALL BE 6 CONSIDERED A SEPARATE 9–8–8–ACCESSIBLE SERVICE F OR THE PURPOSE OF 7 DETERMINING THE 9–8–8 FEE DUE UNDER PARAGR APH (1) OF THIS SUBSECTION . 8 (3) CMRS PROVIDED TO MULTIPLE DEVICES THAT SHARE THE SAME 9 TELEPHONE NUMBER SHA LL BE CONSIDERED A SINGLE 9–8–8–ACCESSIBLE 10 SERVICE FOR THE PURPOSE OF DETERMINING THE 9–8–8 FEE DUE UNDER 11 PARAGRAPH (1) OF THIS SUBSECTION . 12 (4) A BROADBAND CONNECTION THAT IS NOT USED AS A TELEPHONE 13 SERVICE MAY NOT BE CONSIDERED A SEPARATE VOICE CHA NNEL CAPACITY FOR THE 14 PURPOSE OF DETERMINING THE 9–8–8 FEE DUE UNDER PARAGR APH (1) OF THIS 15 SUBSECTION. 16 (E) (1) THE PUBLIC SERVICE COMMISSION SHALL DIRE CT EACH 17 TELEPHONE COMPANY TO ADD THE 9–8–8 FEE TO ALL CURRENT B ILLS RENDERED 18 FOR SWITCH ED LOCAL EXCHANGE ACCES S SERVICE IN THE STATE. 19 (2) EACH TELEPHONE COMPAN Y: 20 (I) SHALL ACT AS A COLLEC TION AGENT FOR THE FUND WITH 21 RESPECT TO THE 9–8–8 FEES; AND 22 (II) SHALL REMIT ALL MONEY COLLECTED TO THE 23 COMPTROLLER ON A MONT HLY BASIS. 24 (3) THE COMPTROLLER SHALL DEP OSIT THE MONEY REMIT TED IN 25 THE FUND. 26 (F) (1) EACH 9–8–8 SERVICE CARRIER SHAL L ADD THE 9–8–8 FEE TO ALL 27 CURRENT BILLS RENDER ED FOR CMRS OR OTHER 9–8–8–ACCESSIBLE SERVICE I N 28 THE STATE. 29 (2) EACH 9–8–8 SERVICE CARRIER : 30 (I) SHALL ACT AS A COLLEC TION AGENT FOR THE FUND WITH 31 RESPECT TO THE 9–8–8 FEES; 32 6 SENATE BILL 974 (II) SHALL REMIT ALL MONEY COLLECTED TO THE 1 COMPTROLLER ON A MONT HLY BASIS; 2 (III) SHALL KEEP RECORDS OF 9–8–8 FEES COLLECTED AND 3 REMITTED UNDER THIS PARAGRAPH FOR AT LEA ST 4 YEARS AFTER THE FEE IS 4 REMITTED; AND 5 (IV) IS ENTITLED TO CREDIT , AGAINST THE MONEY FR OM THE 6 9–8–8 FEE TO BE REMITTED T O THE COMPTROLLER , AN AMOUNT EQUAL TO 0.5% OF 7 THE 9–8–8 FEE TO COVER THE EXP ENSES OF BILLING , COLLECTING, REMITTING, 8 AND KEEPING RECORDS OF THE 9–8–8 FEES. 9 (3) THE COMPTROLLER SHALL DEP OSIT THE MONE Y REMITTED IN 10 THE FUND. 11 (G) (1) THE COMPTROLLER SHALL ADO PT PROCEDURES FOR AUDITING 12 FEE COLLECTION AND R EMITTANCE BY TELEPHO NE COMPANIES AND CMRS 13 PROVIDERS. 14 (2) THE COMPTROLLER IS ENTITL ED TO AN AMOUNT EQUA L TO 0.5% 15 OF THE 9–8–8 FEES TO COVER THE EXPENSES OF CONDUCTI NG AUDITS UNDER THIS 16 SUBSECTION. 17 (H) A CMRS PROVIDER THAT PAYS O R COLLECTS 9–8–8 FEES UNDER THIS 18 SECTION HAS THE SAME IMMUNITY FROM LIABIL ITY FOR TRANSMISSION FAILURES 19 AS THAT APPROVED BY THE PUBLIC SERVICE COMMISSION FOR LOCAL EXCHANGE 20 TELEPHONE COMPANIES THAT ARE SUBJECT TO REGULATION BY THE COMMISSION 21 UNDER THE PUBLIC UTILITIES ARTICLE. 22 (I) THE COMPTROLLER SHALL ADO PT REGULATIONS TO CA RRY OUT THIS 23 SECTION. 24 7.5–5A–03.2. 25 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26 INDICATED. 27 (2) “PREPAID WIRELESS 9–8–8 FEE” MEANS THE FEE THAT I S 28 REQUIRED TO BE COLLE CTED BY A SELLER FRO M A CONSUMER IN THE AMOUNT 29 ESTABLISHED UNDER TH IS SECTION. 30 SENATE BILL 974 7 (3) “PROVIDER” MEANS A PERSON THAT PROVIDES PREPAID 1 WIRELESS TELECOMMUNICATIONS S ERVICE UNDER A LICEN SE ISSUED BY THE 2 FEDERAL COMMUNICATIONS COMMISSION. 3 (B) (1) THE PREPAID WIRELESS 9–8–8 FEE IS 25 CENTS PER RETAIL 4 TRANSACTION . 5 (2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 6 PARAGRAPH , THE SELLER SHALL COLLECT THE PREPAID WIRELESS 9–8–8 FEES 7 FROM THE CONSUMER FO R EACH RETAIL TRANSA CTION IN THE STATE. 8 (II) A SELLER MAY NOT COLLECT A PREPAID WIRELESS 9–8–8 9 FEE FROM A CONSUMER IF THE CONSUMER IS CERTI FIED AS ELIGIBLE FOR THE 10 LIFELINE PROGRAM ESTABLISHED BY THE FEDERAL COMMUNICATIONS 11 COMMISSION. 12 (3) A RETAIL TRANSACTION O CCURS IN THE STATE IF: 13 (I) THE SALE OR RECHARGE TAKES PLACE AT THE S ELLER’S 14 PLACE OF BUSINESS LO CATED IN THE STATE; 15 (II) THE CONSUMER ’S SHIPPING ADDRESS I S IN THE STATE; OR 16 (III) NO ITEM IS SHIPPED , BUT THE CONSUMER ’S BILLING 17 ADDRESS OR THE LOCAT ION ASSOCIATED WITH THE CONSUMER ’S MOBILE 18 TELEPHONE NUMBER IS IN THE STATE. 19 (C) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 20 THE PREPAID WIRELESS 9–8–8 FEE IS THE LIABILITY OF THE CONSUMER AND NOT 21 OF THE SELLER OR OF ANY PROVIDER . 22 (2) THE SELLER IS LIABLE FOR REMITTING ALL PR EPAID WIRELESS 23 9–8–8 FEES THAT THE SELLER COLLECTS FROM CONSUM ERS AS PROVIDED IN T HIS 24 SECTION. 25 (D) A SELLER MAY DEDUCT AN D RETAIN 3% OF PREPAID WIRELESS 9–8–8 26 FEES COLLECTED FROM CONSUMERS TO COVER T HE EXPENSES OF COLLECTING 27 AND REMITTING THE PREPAID WIRELESS 9–8–8 FEE. 28 (E) A SELLER SHALL REPORT AND REMIT TO THE COMPTROLLER ALL 29 PREPAID WIRELESS 9–8–8 FEES COLLECTED BY TH E SELLER IN A MANNER 30 PROVIDED FOR THE REM ITTING OF THE SALES AND USE TAX UNDER TITLES 11 AND 31 13 OF THE TAX – GENERAL ARTICLE. 32 8 SENATE BILL 974 (F) THE COMPTROLLER SHALL DEP OSIT ALL REPORTED AN D REMITTED 1 PREPAID WIRELESS 9–8–8 FEES INTO THE FUND WITHIN 30 DAYS AFTER RECEIPT. 2 (G) FOR THE PURPOSE OF TH IS SECTION, THE AUDIT AND APPEAL 3 PROCEDURES ESTABLISH ED FOR THE SALES AND USE TAX UNDER TITLES 11 AND 13 4 OF THE TAX – GENERAL ARTICLE APPLY. 5 (H) PROVIDERS AND SELLERS OF PREPAID WIRELESS 6 TELECOMMUNICATIONS SERVICE HAVE THE SAM E IMMUNITY FROM LIABILI TY FOR 7 TRANSMISSION FAILURE S AS THAT APPROVED B Y THE PUBLIC SERVICE 8 COMMISSION FOR LOCAL EXCHANGE TELEPHONE C OMPANIES THAT ARE SU BJECT 9 TO REGULATION BY THE COMMISSION UNDER THE PUBLIC UTILITIES ARTICLE. 10 (I) A TAX, FEE, SURCHARGE , OR OTHER CHARGE MAY NOT BE IMPOSED BY 11 THE STATE, A POLITICAL SUBDIVIS ION OF THE STATE, OR AN INTERGOVERNMEN TAL 12 AGENCY FOR 9–8–8 FUNDING PURPOSES ON A PROVIDER, SELLER, OR CONSUMER 13 WITH RESPECT TO THE SALE, PURCHASE, USE, OR PROVISION OF PREP AID WIRELESS 14 TELECOMMUNICATIONS SERVICE . 15 (J) THE COMPTROLLER SHALL ADO PT REGULATIONS TO CA RRY OUT THIS 16 SECTION. 17 7.5–5A–04. 18 On or before December 1 each year, the Department shall submit a report to the 19 Legislative Policy Committee, the Senate Budget and Taxation Committee, and the House 20 Appropriations Committee, in accordance with § 2–1257 of the State Government Article, 21 that includes for the immediately preceding fiscal year a detailed description of: 22 (1) The amount of funds transferred and distributed from the Fund in 23 accordance with § 7.5–5A–02(b) of this subtitle; 24 (2) THE AMOUNT OF FUNDS COLLECTED AND REMITT ED TO THE 25 COMPTROLLER UNDER § 7.5–5A–03.1 OF THIS SUBTITLE; 26 (3) THE AMOUNT OF FUNDS COLLECTED AND REMITT ED TO THE 27 COMPTROLLER UNDER § 7.5–5A–03.2 OF THIS SUBTITLE; 28 [(2)] (4) The additional services provided by the funding in each local 29 jurisdiction; 30 [(3)] (5) The amount of any unspent funds in the Fund; and 31 SENATE BILL 974 9 [(4)] (6) The reasons funds identified under item [(3)] (5) of this section 1 were not spent. 2 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3 October 1, 2024. 4