Relating to a uniform and statewide 9-1-1 emergency services fee on the retail sale of prepaid wireless telecommunications services to consumers.
The bill aims to standardize the funding for 9-1-1 services across Texas, ensuring that emergency service providers receive consistent financial support from prepaid wireless transactions. By segregating this fee from other taxes, it could bolster the revenue specifically earmarked for emergency services. The legislation also outlines the allocation of funds collected from this fee, mandating that these revenues be used exclusively for 9-1-1 and emergency service-related expenditures, including necessary services to enhance caller identification and location tracking.
House Bill 3359 proposes the implementation of a uniform and statewide 9-1-1 emergency services fee specifically for the retail sale of prepaid wireless telecommunications services in Texas. The bill stipulates that beginning January 1, 2010, sellers must collect a fee of 50 cents at the time of each retail transaction involving prepaid wireless services. This fee is intended to support 9-1-1 emergency services and is deemed the only charge for such services related to prepaid wireless options, thereby eliminating additional taxation or fees on these sales by state or local governments.
While proponents of the bill argue it simplifies 9-1-1 funding for prepaid services and provides a reliable funding source, there are notable concerns regarding the impacts on consumers and service providers. Critics may argue that the establishment of a fee could dissuade consumers from opting for prepaid services, thereby impacting access to emergency services, particularly for those who rely on prepaid options due to financial constraints. The exclusivity clause in the bill may cause contention as local governments and agencies may lose potential revenue streams they could have utilized for local emergency service enhancements.