Bill Text: MN SF367 | 2013-2014 | 88th Legislature | Engrossed

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Bill Title: Prepaid wireless telecommunications 911 services and prepaid wireless E911 services fees collection authorization

Spectrum: Bipartisan Bill

Status: (Introduced - Dead) 2013-03-07 - Comm report: To pass and re-referred to Taxes [SF367 Detail]

Download: Minnesota-2013-SF367-Engrossed.html

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A bill for an act

relating to public safety; 911 telephone service; providing for collection of 911
fees from prepaid wireless telecommunications services and prepaid wireless
E911 services;amending Minnesota Statutes 2012, sections 237.52, subdivision
3, by adding a subdivision; 270B.01, subdivision 8; 270B.12, subdivision
4; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a;
403.11, subdivision 1, by adding a subdivision; proposing coding for new law in
Minnesota Statutes, chapter 403.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

    Section 1. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
    Subd. 3. Collection. Every provider of services capable of originating a TRS call,
including cellular communications and other nonwire access services, in this state shall,
except as provided in subdivision 3a, collect the charges established by the commission
under subdivision 2 and transfer amounts collected to the commissioner of public
safety in the same manner as provided in section 403.11, subdivision 1, paragraph (d).
The commissioner of public safety must deposit the receipts in the fund established in
subdivision 1.

    Sec. 2. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
to read:
    Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
established in subdivision 2 does not apply to prepaid wireless telecommunications
services as defined in section 403.02, subdivision 17b, which are instead subject to the
prepaid wireless telecommunications access Minnesota fee established in section 403.161,
subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.

    Sec. 3. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
stated otherwise, "Minnesota tax laws" means:
    (1) the taxes, refunds, and fees administered by or paid to the commissioner under
chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
290, 290A, 291, 295, 297A, 297B, and 297H, and 403, or any similar Indian tribal tax
administered by the commissioner pursuant to any tax agreement between the state and
the Indian tribal government, and includes any laws for the assessment, collection, and
enforcement of those taxes, refunds, and fees; and
    (2) section 273.1315.

    Sec. 4. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
    Subd. 4. Department of Public Safety. The commissioner may disclose return
information to the Department of Public Safety for the purpose of and to the extent
necessary to administer section sections 270C.725 and 403.16 to 403.162.

    Sec. 5. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
to read:
    Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
telecommunications service" means a wireless telecommunications service that allows the
caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
(1) sold in predetermined units or dollars of which the number declines with use in a
known amount; or
(2) provides unlimited use for a predetermined time period.
The inclusion of nontelecommunications services, including the download of digital
products delivered electronically, content, and ancillary services, with a prepaid wireless
telephone service does not preclude that service from being considered a prepaid wireless
telephone service under this chapter.

    Sec. 6. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
to read:
    Subd. 20a. Wireless telecommunications service. "Wireless telecommunications
service" means a commercial mobile radio service, as that term is defined in United
States Code, title 47, section 332, subsection (d), including all broadband personal
communication services, wireless radio telephone services, and geographic area
specialized mobile radio licensees, that offer real-time, two-way voice service
interconnected with the public switched telephone network.

    Sec. 7. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
    Subd. 21. Wireless telecommunications service provider. "Wireless
telecommunications service provider" means a provider of commercial mobile radio
services, as that term is defined in United States Code, title 47, section 332, subsection
(d), including all broadband personal communications services, wireless radio telephone
services, geographic area specialized and enhanced specialized mobile radio services, and
incumbent wide area specialized mobile radio licensees, that offers real-time, two-way
voice service interconnected with the public switched telephone network and that is doing
business in the state of Minnesota wireless telecommunications service.

    Sec. 8. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
    Subd. 1a. Biennial budget; annual financial report. The commissioner shall
prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
the commissioner shall submit a report to the legislature detailing the expenditures for
maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, and the
911-related administrative expenses of the commissioner, and of a separate accounting
of E911 fees from prepaid wireless customers. The commissioner is authorized to
expend money that has been appropriated to pay for the maintenance, enhancements,
and expansion of the 911 system.

    Sec. 9. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
    Subdivision 1. Emergency telecommunications service fee; account. (a) Each
customer of a wireless or wire-line switched or packet-based telecommunications service
provider connected to the public switched telephone network that furnishes service capable
of originating a 911 emergency telephone call is assessed a fee based upon the number
of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
maintenance and related improvements for trunking and central office switching equipment
for 911 emergency telecommunications service, to offset administrative and staffing costs
of the commissioner related to managing the 911 emergency telecommunications service
program, to make distributions provided for in section 403.113, and to offset the costs,
including administrative and staffing costs, incurred by the State Patrol Division of the
Department of Public Safety in handling 911 emergency calls made from wireless phones.
    (b) Money remaining in the 911 emergency telecommunications service account
after all other obligations are paid must not cancel and is carried forward to subsequent
years and may be appropriated from time to time to the commissioner to provide financial
assistance to counties for the improvement of local emergency telecommunications
services. The improvements may include providing access to 911 service for
telecommunications service subscribers currently without access and upgrading existing
911 service to include automatic number identification, local location identification,
automatic location identification, and other improvements specified in revised county
911 plans approved by the commissioner.
    (c) The fee may not be less than eight cents nor more than 65 cents a month until
June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
2009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
each customer access line or other basic access service, including trunk equivalents as
designated by the Public Utilities Commission for access charge purposes and including
wireless telecommunications services. With the approval of the commissioner of
management and budget, the commissioner of public safety shall establish the amount of
the fee within the limits specified and inform the companies and carriers of the amount to
be collected. When the revenue bonds authorized under section 403.27, subdivision 1,
have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
service on the bonds is no longer needed. The commissioner shall provide companies and
carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
customers, except that the fee imposed under this subdivision does not apply to prepaid
wireless telecommunications service, which is instead subject to the fee imposed under
section 403.161, subdivision 1, paragraph (a).
    (d) The fee must be collected by each wireless or wire-line telecommunications
service provider subject to the fee. Fees are payable to and must be submitted to the
commissioner monthly before the 25th of each month following the month of collection,
except that fees may be submitted quarterly if less than $250 a month is due, or annually if
less than $25 a month is due. Receipts must be deposited in the state treasury and credited
to a 911 emergency telecommunications service account in the special revenue fund. The
money in the account may only be used for 911 telecommunications services.
    (e) This subdivision does not apply to customers of interexchange carriers.
    (f) The installation and recurring charges for integrating wireless 911 calls into
enhanced 911 systems are eligible for payment by the commissioner if the 911 service
provider is included in the statewide design plan and the charges are made pursuant to
contract.
    (g) Competitive local exchanges carriers holding certificates of authority from the
Public Utilities Commission are eligible to receive payment for recurring 911 services.

    Sec. 10. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
to read:
    Subd. 6. Report. (a) Beginning September 1, 2013, and continuing semiannually
thereafter, each wireless telecommunications service provider shall report to the
commissioner, based on the mobile telephone number, both the total number of prepaid
wireless telecommunications subscribers sourced to Minnesota and the total number of
wireless telecommunications subscribers sourced to Minnesota. The report must be filed
on the same schedule as Federal Communications Commission Form 477.
(b) The commissioner shall make a standard form available to all wireless
telecommunications service providers for submitting information required to compile
the report required under this subdivision.
(c) The information provided to the commissioner under this subdivision is
considered trade secret data under section 13.37 and may only be used for purposes of
administering this chapter.

    Sec. 11. [403.16] DEFINITIONS.
    Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
defined in this section have the meanings given them.
    Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
telecommunications service in a retail transaction.
    Subd. 3. Department. "Department" means the Department of Revenue.
    Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
is required to be collected by a seller from a consumer as established in section 403.161,
subdivision 1, paragraph (a).
    Subd. 5. Prepaid wireless telecommunications access Minnesota fee. "Prepaid
wireless telecommunications access Minnesota fee" means the fee that is required to be
collected by a seller from a consumer as established in section 403.161, subdivision 1,
paragraph (b).
    Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
telecommunications service under a license issued by the Federal Communications
Commission.
    Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
wireless telecommunications service from a seller for any purpose other than resale.
    Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
telecommunications service to another person.

    Sec. 12. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
REMITTANCE.
    Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
transaction is imposed on prepaid wireless telecommunications service until the fee is
adjusted as an amount per retail transaction under subdivision 6.
(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
retail transaction for prepaid wireless telecommunications service until the fee is adjusted
as an amount per retail transaction under subdivision 6.
    Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on a
minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
wireless device and is charged a single nonitemized price, and a seller may not apply the
fees to such a transaction. For purposes of this subdivision, a minimal amount of service
means an amount of service denominated as either ten minutes or less or $5 or less.
    Subd. 3. Fee collected. The prepaid wireless E911 and telecommunications
access Minnesota fees must be collected by the seller from the consumer for each retail
transaction occurring in this state. The amount of each fee must be combined into one
amount, which must be separately stated on an invoice, receipt, or other similar document
that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
    Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
transaction conducted in person by a consumer at a business location of the seller must
be treated as occurring in this state if that business location is in this state, and any other
retail transaction must be treated as occurring in this state if the retail transaction is treated
as occurring in this state for purposes of the sales and use tax as specified in section
297A.669, subdivision 3, paragraph (c).
    Subd. 5. Remittance. The prepaid wireless E911 and telecommunications access
Minnesota fees are the liability of the consumer and not of the seller or of any provider,
except that the seller is liable to remit all fees that the seller collects from consumers as
provided in section 403.162, including all fees that the seller is deemed to collect in which
the amount of the fee has not been separately stated on an invoice, receipt, or other similar
document provided to the consumer by the seller.
    Subd. 6. Exclusion for calculating other charges. The combined amount of the
prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
from a consumer must not be included in the base for measuring any tax, fee, surcharge,
or other charge that is imposed by this state, any political subdivision of this state, or
any intergovernmental agency.
    Subd. 7. Fee changes. (a) The prepaid wireless E911 and telecommunications
access Minnesota fee must be proportionately increased or reduced upon any change to
the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
the fee imposed under section 237.52, subdivision 2, as applicable.
(b) The department shall post notice of any fee changes on its Web site at least 30
days in advance of the effective date of the fee changes. It is the responsibility of sellers to
monitor the department's Web site for notice of fee changes.
(c) Fee changes are effective 60 days after the first day of the first calendar month
after the commissioner of public safety or the Public Utilities Commission, as applicable,
changes the fee.

    Sec. 13. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
    Subdivision 1. Remittance. Prepaid wireless E911 and telecommunications access
Minnesota fees collected by sellers must be remitted to the commissioner of revenue
at the times and in the manner provided by chapter 297A with respect to the general
sales and use tax. The commissioner of revenue shall establish registration and payment
procedures that substantially coincide with the registration and payment procedures that
apply in chapter 297A.
    Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
prepaid wireless E911 and telecommunications access Minnesota fees collected by the
seller from consumers.
    Subd. 3. Audit; appeal. The audit and appeal procedures applicable under chapter
297A apply to any fee imposed under section 403.161.
    Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
establish procedures by which a seller of prepaid wireless telecommunications service
may document that a sale is not a retail transaction. These procedures must substantially
coincide with the procedures for documenting sale for resale transactions as provided in
chapter 297A.
    Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
telecommunications access Minnesota fee imposed per retail transaction, divide the fees
collected in corresponding proportions. Within 30 days of receipt of the collected fees,
the commissioner shall:
(1) deposit the proportion of the collected fees attributable to the prepaid wireless
E911 fee in the 911 emergency telecommunications service account in the special revenue
fund; and
(2) deposit the proportion of collected fees attributable to the prepaid wireless
telecommunications access Minnesota fee in the telecommunications access fund
established in section 237.52, subdivision 1.
(b) The department may deduct and retain an amount, not to exceed two percent of
collected fees, to reimburse its direct costs of administering the collection and remittance
of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
fees.

    Sec. 14. [403.163] LIABILITY PROTECTION FOR SELLERS AND
PROVIDERS.
(a) A provider or seller of prepaid wireless telecommunications service is not liable
for damages to any person resulting from or incurred in connection with providing, or
failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
telephone number, address, location, or name associated with any person or device that
is accessing or attempting to access 911 or E911 service.
(b) A provider or seller of prepaid wireless telecommunications service is not liable
for damages to any person resulting from or incurred in connection with providing any
lawful assistance to any investigative or law enforcement officer of the United States, this or
any other state, or any political subdivision of this or any other state, in connection with any
lawful investigation or other lawful enforcement activity by the law enforcement officer.
(c) In addition to the protection from liability provided by paragraphs (a) and (b),
section 403.08, subdivision 11, applies to sellers and providers.

    Sec. 15. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
obligation imposed with respect to prepaid wireless telecommunications service in this
state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
of prepaid wireless telecommunications service.

    Sec. 16. REPORT; RECOMMENDATIONS.
(a) By March 1, 2015, the commissioner of public safety shall submit a report to
the chairs and ranking minority members of the legislative committees with primary
jurisdiction over public safety and telecommunications that assesses the amount of
revenue collected from the fees imposed under Minnesota Statutes, section 403.161,
and recommends any adjustment of those fees that the commissioner of public safety
determines is necessary in order to:
(1) fund legislative appropriations from the 911 emergency telecommunications
service account and to maintain a reasonable fund reserve; and
(2) maintain fairness with respect to the amount of fees paid by customers of
prepaid wireless telecommunications service as compared with customers of other
telecommunications services.
(b) A wireless telecommunications service provider shall provide any information
requested by the commissioner of public safety for the purposes of the report.

    Sec. 17. EFFECTIVE DATE.
Sections 10 and 16 are effective the day following final enactment. Sections 1 to 9
and 11 to 15 are effective January 1, 2014.