Bill Text: MN SF367 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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-Introduced.html
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-Introduced.html
1.2relating to public safety; 911 telephone service; providing for collection of 911
1.3fees from prepaid wireless telecommunications services and prepaid wireless
1.4E911 services;amending Minnesota Statutes 2012, sections 237.52, subdivision
1.53, by adding a subdivision; 270B.01, subdivision 8; 270B.12, subdivision
1.64; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a;
1.7403.11, subdivision 1, by adding a subdivision; proposing coding for new law in
1.8Minnesota Statutes, chapter 403.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
1.11 Subd. 3. Collection. Every provider of services capable of originating a TRS call,
1.12including cellular communications and other nonwire access services, in this state shall,
1.13except as provided in subdivision 3a, collect the charges established by the commission
1.14under subdivision 2 and transfer amounts collected to the commissioner of public
1.15safety in the same manner as provided in section403.11, subdivision 1 , paragraph (d).
1.16The commissioner of public safety must deposit the receipts in the fund established in
1.17subdivision 1.
1.18 Sec. 2. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
1.19to read:
1.20 Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
1.21established in subdivision 2 does not apply to prepaid wireless telecommunications
1.22services as defined in section 403.02, subdivision 17b, which are instead subject to the
1.23prepaid wireless telecommunications access Minnesota fee established in section 403.161,
1.24subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
1.25telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.
2.1 Sec. 3. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
2.2 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
2.3stated otherwise, "Minnesota tax laws" means:
2.4 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
2.5chapters 115B, 289A (except taxes imposed under sections298.01 ,
298.015 , and
298.24 ),
2.6290, 290A, 291, 295, 297A, 297B,and 297H, and 403, or any similar Indian tribal tax
2.7administered by the commissioner pursuant to any tax agreement between the state and
2.8the Indian tribal government, and includes any laws for the assessment, collection, and
2.9enforcement of those taxes, refunds, and fees; and
2.10 (2) section273.1315 .
2.11 Sec. 4. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
2.12 Subd. 4. Department of Public Safety. The commissioner may disclose return
2.13information to the Department of Public Safety for the purpose of and to the extent
2.14necessary to administersection sections
270C.725 and 403.16 to 403.162.
2.15 Sec. 5. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
2.16to read:
2.17 Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
2.18telecommunications service" means a wireless telecommunications service that allows the
2.19caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
2.20(1) sold in predetermined units or dollars of which the number declines with use in a
2.21known amount; or
2.22(2) provides unlimited use for a predetermined time period.
2.23The inclusion of nontelecommunications services, including the download of digital
2.24products delivered electronically, content, and ancillary services, with a prepaid wireless
2.25telephone service does not preclude that service from being considered a prepaid wireless
2.26telephone service under this chapter.
2.27 Sec. 6. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
2.28to read:
2.29 Subd. 20a. Wireless telecommunications service. Wireless telecommunications
2.30service means a commercial mobile radio service, as that term is defined in United
2.31States Code, title 47, section 332, subsection (d), including all broadband personal
2.32communication services, wireless radio telephone services, and geographic area
3.1specialized mobile radio licensees, that offer real-time, two-way voice service
3.2interconnected with the public switched telephone network.
3.3 Sec. 7. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
3.4 Subd. 21. Wireless telecommunications service provider. "Wireless
3.5telecommunications service provider" means a provider ofcommercial mobile radio
3.6services, as that term is defined in United States Code, title 47, section 332, subsection
3.7(d), including all broadband personal communications services, wireless radio telephone
3.8services, geographic area specialized and enhanced specialized mobile radio services, and
3.9incumbent wide area specialized mobile radio licensees, that offers real-time, two-way
3.10voice service interconnected with the public switched telephone network and that is doing
3.11business in the state of Minnesota wireless telecommunications service.
3.12 Sec. 8. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
3.13 Subd. 1a. Biennial budget; annual financial report. The commissioner shall
3.14prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
3.15the commissioner shall submit a report to the legislature detailing the expenditures for
3.16maintaining the 911 system, the 911 fees collected, the balance of the 911 fund,and the
3.17911-related administrative expenses of the commissioner, and the most recent forecast of
3.18revenues and expenditures for the 911 emergency telecommunications service account,
3.19including a separate projection of E911 fees from prepaid wireless customers and
3.20projections of year-end fund balances. The commissioner is authorized to expend money
3.21that has been appropriated to pay for the maintenance, enhancements, and expansion
3.22of the 911 system.
3.23 Sec. 9. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
3.24 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
3.25customer of a wireless or wire-line switched or packet-based telecommunications service
3.26provider connected to the public switched telephone network that furnishes service capable
3.27of originating a 911 emergency telephone call is assessed a fee based upon the number
3.28of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
3.29maintenance and related improvements for trunking and central office switching equipment
3.30for 911 emergency telecommunications service, to offset administrative and staffing costs
3.31of the commissioner related to managing the 911 emergency telecommunications service
3.32program, to make distributions provided for in section403.113 , and to offset the costs,
4.1including administrative and staffing costs, incurred by the State Patrol Division of the
4.2Department of Public Safety in handling 911 emergency calls made from wireless phones.
4.3 (b) Money remaining in the 911 emergency telecommunications service account
4.4after all other obligations are paid must not cancel and is carried forward to subsequent
4.5years and may be appropriated from time to time to the commissioner to provide financial
4.6assistance to counties for the improvement of local emergency telecommunications
4.7services. The improvements may include providing access to 911 service for
4.8telecommunications service subscribers currently without access and upgrading existing
4.9911 service to include automatic number identification, local location identification,
4.10automatic location identification, and other improvements specified in revised county
4.11911 plans approved by the commissioner.
4.12 (c) The fee may not be less than eight cents nor more than 65 cents a month until
4.13June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
4.142009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
4.15not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
4.16each customer access line or other basic access service, including trunk equivalents as
4.17designated by the Public Utilities Commission for access charge purposes and including
4.18wireless telecommunications services. With the approval of the commissioner of
4.19management and budget, the commissioner of public safety shall establish the amount of
4.20the fee within the limits specified and inform the companies and carriers of the amount to
4.21be collected. When the revenue bonds authorized under section403.27, subdivision 1 ,
4.22have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
4.23service on the bonds is no longer needed. The commissioner shall provide companies and
4.24carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
4.25customers, except that the fee imposed under this subdivision does not apply to prepaid
4.26wireless telecommunications service, which is instead subject to the fee imposed under
4.27section 403.161, subdivision 1, paragraph (a).
4.28 (d) The fee must be collected by each wireless or wire-line telecommunications
4.29service provider subject to the fee. Fees are payable to and must be submitted to the
4.30commissioner monthly before the 25th of each month following the month of collection,
4.31except that fees may be submitted quarterly if less than $250 a month is due, or annually if
4.32less than $25 a month is due. Receipts must be deposited in the state treasury and credited
4.33to a 911 emergency telecommunications service account in the special revenue fund. The
4.34money in the account may only be used for 911 telecommunications services.
4.35 (e) This subdivision does not apply to customers of interexchange carriers.
5.1 (f) The installation and recurring charges for integrating wireless 911 calls into
5.2enhanced 911 systems are eligible for payment by the commissioner if the 911 service
5.3provider is included in the statewide design plan and the charges are made pursuant to
5.4contract.
5.5 (g) Competitive local exchanges carriers holding certificates of authority from the
5.6Public Utilities Commission are eligible to receive payment for recurring 911 services.
5.7 Sec. 10. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
5.8to read:
5.9 Subd. 6. Report. (a) Beginning September 1, 2013, and continuing semiannually
5.10thereafter, each wireless telecommunications service provider shall report to the
5.11commissioner, based on the mobile telephone number, both the total number of prepaid
5.12wireless telecommunications subscribers sourced to Minnesota and the total number of
5.13wireless telecommunications subscribers sourced to Minnesota. The report must be filed
5.14on the same schedule as Federal Communications Commission Form 477.
5.15(b) The commissioner shall make a standard form available to all wireless
5.16telecommunications service providers for submitting information required to compile
5.17the report required under this subdivision.
5.18(c) The information provided to the commissioner under this subdivision is
5.19considered trade secret data under section 13.37 and may only be used for purposes of
5.20administering this chapter.
5.21 Sec. 11. [403.16] DEFINITIONS.
5.22 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
5.23defined in this section have the meanings given them.
5.24 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
5.25telecommunications service in a retail transaction.
5.26 Subd. 3. Department. "Department" means the Department of Revenue.
5.27 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
5.28is required to be collected by a seller from a consumer as established in section 403.161,
5.29subdivision 1, paragraph (a).
5.30 Subd. 5. Prepaid wireless telecommunications access Minnesota fee. "Prepaid
5.31wireless telecommunications access Minnesota fee" means the fee that is required to be
5.32collected by a seller from a consumer as established in section 403.161, subdivision 1,
5.33paragraph (b).
6.1 Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
6.2telecommunications service under a license issued by the Federal Communications
6.3Commission.
6.4 Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
6.5wireless telecommunications service from a seller for any purpose other than resale.
6.6 Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
6.7telecommunications service to another person.
6.8 Sec. 12. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
6.9REMITTANCE.
6.10 Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
6.11transaction is imposed on prepaid wireless telecommunications service until the fee is
6.12adjusted as an amount per retail transaction under subdivision 6.
6.13(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
6.14the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
6.15retail transaction for prepaid wireless telecommunications service until the fee is adjusted
6.16as an amount per retail transaction under subdivision 6.
6.17 Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on a
6.18minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
6.19wireless device and is charged a single nonitemized price, and a seller may not apply the
6.20fees to such a transaction. For purposes of this subdivision, a minimal amount of service
6.21means an amount of service denominated as either ten minutes or less or $5 or less.
6.22 Subd. 3. Fee collected. The prepaid wireless E911 and telecommunications
6.23access Minnesota fees must be collected by the seller from the consumer for each retail
6.24transaction occurring in this state. The amount of each fee must be combined into one
6.25amount, which must be separately stated on an invoice, receipt, or other similar document
6.26that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
6.27 Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
6.28transaction conducted in person by a consumer at a business location of the seller must
6.29be treated as occurring in this state if that business location is in this state, and any other
6.30retail transaction must be treated as occurring in this state if the retail transaction is treated
6.31as occurring in this state for purposes of the sales and use tax as specified in section
6.32297A.669, subdivision 3, paragraph (c).
6.33 Subd. 5. Remittance. The prepaid wireless E911 and telecommunications access
6.34Minnesota fees are the liability of the consumer and not of the seller or of any provider,
6.35except that the seller is liable to remit all fees that the seller collects from consumers as
7.1provided in section 403.162, including all fees that the seller is deemed to collect in which
7.2the amount of the fee has not been separately stated on an invoice, receipt, or other similar
7.3document provided to the consumer by the seller.
7.4 Subd. 6. Exclusion for calculating other charges. The combined amount of the
7.5prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
7.6from a consumer must not be included in the base for measuring any tax, fee, surcharge,
7.7or other charge that is imposed by this state, any political subdivision of this state, or
7.8any intergovernmental agency.
7.9 Subd. 7. Fee changes. (a) The prepaid wireless E911 and telecommunications
7.10access Minnesota fee must be proportionately increased or reduced upon any change to
7.11the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
7.12the fee imposed under section 237.52, subdivision 2, as applicable.
7.13(b) The department shall post notice of any fee changes on its Web site at least 30
7.14days in advance of the effective date of the fee changes. It is the responsibility of sellers to
7.15monitor the department's Web site for notice of fee changes.
7.16(c) Fee changes are effective 60 days after the first day of the first calendar month
7.17after the commissioner of public safety or the Public Utilities Commission, as applicable,
7.18changes the fee.
7.19 Sec. 13. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
7.20 Subdivision 1. Remittance. Prepaid wireless E911 and telecommunications access
7.21Minnesota fees collected by sellers must be remitted to the commissioner of revenue
7.22at the times and in the manner provided by chapter 297A with respect to the general
7.23sales and use tax. The commissioner of revenue shall establish registration and payment
7.24procedures that substantially coincide with the registration and payment procedures that
7.25apply in chapter 297A.
7.26 Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
7.27prepaid wireless E911 and telecommunications access Minnesota fees collected by the
7.28seller from consumers.
7.29 Subd. 3. Audit; appeal. The audit and appeal procedures applicable under chapter
7.30297A apply to any fee imposed under section 403.161.
7.31 Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
7.32establish procedures by which a seller of prepaid wireless telecommunications service
7.33may document that a sale is not a retail transaction. These procedures must substantially
7.34coincide with the procedures for documenting sale for resale transactions as provided in
7.35chapter 297A.
8.1 Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
8.2the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
8.3telecommunications access Minnesota fee imposed per retail transaction, divide the fees
8.4collected in corresponding proportions. Within 30 days of receipt of the collected fees,
8.5the commissioner shall:
8.6(1) deposit the proportion of the collected fees attributable to the prepaid wireless
8.7E911 fee in the 911 emergency telecommunications service account in the special revenue
8.8fund; and
8.9(2) deposit the proportion of collected fees attributable to the prepaid wireless
8.10telecommunications access Minnesota fee in the telecommunications access fund
8.11established in section 237.52, subdivision 1.
8.12(b) The department may deduct and retain an amount, not to exceed two percent of
8.13collected fees, to reimburse its direct costs of administering the collection and remittance
8.14of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
8.15fees.
8.16 Sec. 14. [403.163] LIABILITY PROTECTION FOR SELLERS AND
8.17PROVIDERS.
8.18(a) A provider or seller of prepaid wireless telecommunications service is not liable
8.19for damages to any person resulting from or incurred in connection with providing, or
8.20failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
8.21telephone number, address, location, or name associated with any person or device that
8.22is accessing or attempting to access 911 or E911 service.
8.23(b) A provider or seller of prepaid wireless telecommunications service is not liable
8.24for damages to any person resulting from or incurred in connection with providing any
8.25lawful assistance to any investigative or law enforcement officer of the United States, this or
8.26any other state, or any political subdivision of this or any other state, in connection with any
8.27lawful investigation or other lawful enforcement activity by the law enforcement officer.
8.28(c) In addition to the protection from liability provided by paragraphs (a) and (b),
8.29section 403.08, subdivision 11, applies to sellers and providers.
8.30 Sec. 15. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
8.31The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
8.32obligation imposed with respect to prepaid wireless telecommunications service in this
8.33state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
8.34subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
9.1upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
9.2of prepaid wireless telecommunications service.
9.3 Sec. 16. REPORT; RECOMMENDATIONS.
9.4(a) By March 1, 2014, the commissioner of public safety shall submit a report to
9.5the chairs and ranking minority members of the legislative committees with primary
9.6jurisdiction over public safety and telecommunications that assesses the amount of
9.7revenue collected from the fees imposed under Minnesota Statutes, section 403.161,
9.8and recommends any adjustment of those fees that the commissioner of public safety
9.9determines is necessary in order to:
9.10(1) fund legislative appropriations from the 911 emergency telecommunications
9.11service account and to maintain a reasonable fund reserve; and
9.12(2) maintain fairness with respect to the amount of fees paid by customers of
9.13prepaid wireless telecommunications service as compared with customers of other
9.14telecommunications services.
9.15(b) A wireless telecommunications service provider shall provide any information
9.16requested by the commissioner of public safety for the purposes of the report.
9.17 Sec. 17. EFFECTIVE DATE.
9.18Sections 10 and 16 are effective the day following final enactment. Sections 1 to 9
9.19and 11 to 15 are effective January 1, 2014.
1.3fees from prepaid wireless telecommunications services and prepaid wireless
1.4E911 services;amending Minnesota Statutes 2012, sections 237.52, subdivision
1.53, by adding a subdivision; 270B.01, subdivision 8; 270B.12, subdivision
1.64; 403.02, subdivision 21, by adding subdivisions; 403.06, subdivision 1a;
1.7403.11, subdivision 1, by adding a subdivision; proposing coding for new law in
1.8Minnesota Statutes, chapter 403.
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.10 Section 1. Minnesota Statutes 2012, section 237.52, subdivision 3, is amended to read:
1.11 Subd. 3. Collection. Every provider of services capable of originating a TRS call,
1.12including cellular communications and other nonwire access services, in this state shall,
1.13except as provided in subdivision 3a, collect the charges established by the commission
1.14under subdivision 2 and transfer amounts collected to the commissioner of public
1.15safety in the same manner as provided in section
1.16The commissioner of public safety must deposit the receipts in the fund established in
1.17subdivision 1.
1.18 Sec. 2. Minnesota Statutes 2012, section 237.52, is amended by adding a subdivision
1.19to read:
1.20 Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
1.21established in subdivision 2 does not apply to prepaid wireless telecommunications
1.22services as defined in section 403.02, subdivision 17b, which are instead subject to the
1.23prepaid wireless telecommunications access Minnesota fee established in section 403.161,
1.24subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid wireless
1.25telecommunications access Minnesota fees are governed by sections 403.161 and 403.162.
2.1 Sec. 3. Minnesota Statutes 2012, section 270B.01, subdivision 8, is amended to read:
2.2 Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
2.3stated otherwise, "Minnesota tax laws" means:
2.4 (1) the taxes, refunds, and fees administered by or paid to the commissioner under
2.5chapters 115B, 289A (except taxes imposed under sections
2.6290, 290A, 291, 295, 297A, 297B,
2.7administered by the commissioner pursuant to any tax agreement between the state and
2.8the Indian tribal government, and includes any laws for the assessment, collection, and
2.9enforcement of those taxes, refunds, and fees; and
2.10 (2) section
2.11 Sec. 4. Minnesota Statutes 2012, section 270B.12, subdivision 4, is amended to read:
2.12 Subd. 4. Department of Public Safety. The commissioner may disclose return
2.13information to the Department of Public Safety for the purpose of and to the extent
2.14necessary to administer
2.15 Sec. 5. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
2.16to read:
2.17 Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
2.18telecommunications service" means a wireless telecommunications service that allows the
2.19caller to dial 911 to access the 911 system, which service must be paid for in advance and is:
2.20(1) sold in predetermined units or dollars of which the number declines with use in a
2.21known amount; or
2.22(2) provides unlimited use for a predetermined time period.
2.23The inclusion of nontelecommunications services, including the download of digital
2.24products delivered electronically, content, and ancillary services, with a prepaid wireless
2.25telephone service does not preclude that service from being considered a prepaid wireless
2.26telephone service under this chapter.
2.27 Sec. 6. Minnesota Statutes 2012, section 403.02, is amended by adding a subdivision
2.28to read:
2.29 Subd. 20a. Wireless telecommunications service. Wireless telecommunications
2.30service means a commercial mobile radio service, as that term is defined in United
2.31States Code, title 47, section 332, subsection (d), including all broadband personal
2.32communication services, wireless radio telephone services, and geographic area
3.1specialized mobile radio licensees, that offer real-time, two-way voice service
3.2interconnected with the public switched telephone network.
3.3 Sec. 7. Minnesota Statutes 2012, section 403.02, subdivision 21, is amended to read:
3.4 Subd. 21. Wireless telecommunications service provider. "Wireless
3.5telecommunications service provider" means a provider of
3.6
3.7
3.8
3.9
3.10
3.11
3.12 Sec. 8. Minnesota Statutes 2012, section 403.06, subdivision 1a, is amended to read:
3.13 Subd. 1a. Biennial budget; annual financial report. The commissioner shall
3.14prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
3.15the commissioner shall submit a report to the legislature detailing the expenditures for
3.16maintaining the 911 system, the 911 fees collected, the balance of the 911 fund,
3.17911-related administrative expenses of the commissioner, and the most recent forecast of
3.18revenues and expenditures for the 911 emergency telecommunications service account,
3.19including a separate projection of E911 fees from prepaid wireless customers and
3.20projections of year-end fund balances. The commissioner is authorized to expend money
3.21that has been appropriated to pay for the maintenance, enhancements, and expansion
3.22of the 911 system.
3.23 Sec. 9. Minnesota Statutes 2012, section 403.11, subdivision 1, is amended to read:
3.24 Subdivision 1. Emergency telecommunications service fee; account. (a) Each
3.25customer of a wireless or wire-line switched or packet-based telecommunications service
3.26provider connected to the public switched telephone network that furnishes service capable
3.27of originating a 911 emergency telephone call is assessed a fee based upon the number
3.28of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
3.29maintenance and related improvements for trunking and central office switching equipment
3.30for 911 emergency telecommunications service, to offset administrative and staffing costs
3.31of the commissioner related to managing the 911 emergency telecommunications service
3.32program, to make distributions provided for in section
4.1including administrative and staffing costs, incurred by the State Patrol Division of the
4.2Department of Public Safety in handling 911 emergency calls made from wireless phones.
4.3 (b) Money remaining in the 911 emergency telecommunications service account
4.4after all other obligations are paid must not cancel and is carried forward to subsequent
4.5years and may be appropriated from time to time to the commissioner to provide financial
4.6assistance to counties for the improvement of local emergency telecommunications
4.7services. The improvements may include providing access to 911 service for
4.8telecommunications service subscribers currently without access and upgrading existing
4.9911 service to include automatic number identification, local location identification,
4.10automatic location identification, and other improvements specified in revised county
4.11911 plans approved by the commissioner.
4.12 (c) The fee may not be less than eight cents nor more than 65 cents a month until
4.13June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
4.142009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
4.15not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
4.16each customer access line or other basic access service, including trunk equivalents as
4.17designated by the Public Utilities Commission for access charge purposes and including
4.18wireless telecommunications services. With the approval of the commissioner of
4.19management and budget, the commissioner of public safety shall establish the amount of
4.20the fee within the limits specified and inform the companies and carriers of the amount to
4.21be collected. When the revenue bonds authorized under section
4.22have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
4.23service on the bonds is no longer needed. The commissioner shall provide companies and
4.24carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
4.25customers, except that the fee imposed under this subdivision does not apply to prepaid
4.26wireless telecommunications service, which is instead subject to the fee imposed under
4.27section 403.161, subdivision 1, paragraph (a).
4.28 (d) The fee must be collected by each wireless or wire-line telecommunications
4.29service provider subject to the fee. Fees are payable to and must be submitted to the
4.30commissioner monthly before the 25th of each month following the month of collection,
4.31except that fees may be submitted quarterly if less than $250 a month is due, or annually if
4.32less than $25 a month is due. Receipts must be deposited in the state treasury and credited
4.33to a 911 emergency telecommunications service account in the special revenue fund. The
4.34money in the account may only be used for 911 telecommunications services.
4.35 (e) This subdivision does not apply to customers of interexchange carriers.
5.1 (f) The installation and recurring charges for integrating wireless 911 calls into
5.2enhanced 911 systems are eligible for payment by the commissioner if the 911 service
5.3provider is included in the statewide design plan and the charges are made pursuant to
5.4contract.
5.5 (g) Competitive local exchanges carriers holding certificates of authority from the
5.6Public Utilities Commission are eligible to receive payment for recurring 911 services.
5.7 Sec. 10. Minnesota Statutes 2012, section 403.11, is amended by adding a subdivision
5.8to read:
5.9 Subd. 6. Report. (a) Beginning September 1, 2013, and continuing semiannually
5.10thereafter, each wireless telecommunications service provider shall report to the
5.11commissioner, based on the mobile telephone number, both the total number of prepaid
5.12wireless telecommunications subscribers sourced to Minnesota and the total number of
5.13wireless telecommunications subscribers sourced to Minnesota. The report must be filed
5.14on the same schedule as Federal Communications Commission Form 477.
5.15(b) The commissioner shall make a standard form available to all wireless
5.16telecommunications service providers for submitting information required to compile
5.17the report required under this subdivision.
5.18(c) The information provided to the commissioner under this subdivision is
5.19considered trade secret data under section 13.37 and may only be used for purposes of
5.20administering this chapter.
5.21 Sec. 11. [403.16] DEFINITIONS.
5.22 Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
5.23defined in this section have the meanings given them.
5.24 Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
5.25telecommunications service in a retail transaction.
5.26 Subd. 3. Department. "Department" means the Department of Revenue.
5.27 Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
5.28is required to be collected by a seller from a consumer as established in section 403.161,
5.29subdivision 1, paragraph (a).
5.30 Subd. 5. Prepaid wireless telecommunications access Minnesota fee. "Prepaid
5.31wireless telecommunications access Minnesota fee" means the fee that is required to be
5.32collected by a seller from a consumer as established in section 403.161, subdivision 1,
5.33paragraph (b).
6.1 Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
6.2telecommunications service under a license issued by the Federal Communications
6.3Commission.
6.4 Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
6.5wireless telecommunications service from a seller for any purpose other than resale.
6.6 Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
6.7telecommunications service to another person.
6.8 Sec. 12. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
6.9REMITTANCE.
6.10 Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
6.11transaction is imposed on prepaid wireless telecommunications service until the fee is
6.12adjusted as an amount per retail transaction under subdivision 6.
6.13(b) A prepaid wireless telecommunications access Minnesota fee, in the amount of
6.14the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
6.15retail transaction for prepaid wireless telecommunications service until the fee is adjusted
6.16as an amount per retail transaction under subdivision 6.
6.17 Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on a
6.18minimal amount of prepaid wireless telecommunications service that is sold with a prepaid
6.19wireless device and is charged a single nonitemized price, and a seller may not apply the
6.20fees to such a transaction. For purposes of this subdivision, a minimal amount of service
6.21means an amount of service denominated as either ten minutes or less or $5 or less.
6.22 Subd. 3. Fee collected. The prepaid wireless E911 and telecommunications
6.23access Minnesota fees must be collected by the seller from the consumer for each retail
6.24transaction occurring in this state. The amount of each fee must be combined into one
6.25amount, which must be separately stated on an invoice, receipt, or other similar document
6.26that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
6.27 Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
6.28transaction conducted in person by a consumer at a business location of the seller must
6.29be treated as occurring in this state if that business location is in this state, and any other
6.30retail transaction must be treated as occurring in this state if the retail transaction is treated
6.31as occurring in this state for purposes of the sales and use tax as specified in section
6.32297A.669, subdivision 3, paragraph (c).
6.33 Subd. 5. Remittance. The prepaid wireless E911 and telecommunications access
6.34Minnesota fees are the liability of the consumer and not of the seller or of any provider,
6.35except that the seller is liable to remit all fees that the seller collects from consumers as
7.1provided in section 403.162, including all fees that the seller is deemed to collect in which
7.2the amount of the fee has not been separately stated on an invoice, receipt, or other similar
7.3document provided to the consumer by the seller.
7.4 Subd. 6. Exclusion for calculating other charges. The combined amount of the
7.5prepaid wireless E911 and telecommunications access Minnesota fees collected by a seller
7.6from a consumer must not be included in the base for measuring any tax, fee, surcharge,
7.7or other charge that is imposed by this state, any political subdivision of this state, or
7.8any intergovernmental agency.
7.9 Subd. 7. Fee changes. (a) The prepaid wireless E911 and telecommunications
7.10access Minnesota fee must be proportionately increased or reduced upon any change to
7.11the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2013, or
7.12the fee imposed under section 237.52, subdivision 2, as applicable.
7.13(b) The department shall post notice of any fee changes on its Web site at least 30
7.14days in advance of the effective date of the fee changes. It is the responsibility of sellers to
7.15monitor the department's Web site for notice of fee changes.
7.16(c) Fee changes are effective 60 days after the first day of the first calendar month
7.17after the commissioner of public safety or the Public Utilities Commission, as applicable,
7.18changes the fee.
7.19 Sec. 13. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
7.20 Subdivision 1. Remittance. Prepaid wireless E911 and telecommunications access
7.21Minnesota fees collected by sellers must be remitted to the commissioner of revenue
7.22at the times and in the manner provided by chapter 297A with respect to the general
7.23sales and use tax. The commissioner of revenue shall establish registration and payment
7.24procedures that substantially coincide with the registration and payment procedures that
7.25apply in chapter 297A.
7.26 Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
7.27prepaid wireless E911 and telecommunications access Minnesota fees collected by the
7.28seller from consumers.
7.29 Subd. 3. Audit; appeal. The audit and appeal procedures applicable under chapter
7.30297A apply to any fee imposed under section 403.161.
7.31 Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
7.32establish procedures by which a seller of prepaid wireless telecommunications service
7.33may document that a sale is not a retail transaction. These procedures must substantially
7.34coincide with the procedures for documenting sale for resale transactions as provided in
7.35chapter 297A.
8.1 Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on
8.2the relative proportion of the prepaid wireless E911 fee and the prepaid wireless
8.3telecommunications access Minnesota fee imposed per retail transaction, divide the fees
8.4collected in corresponding proportions. Within 30 days of receipt of the collected fees,
8.5the commissioner shall:
8.6(1) deposit the proportion of the collected fees attributable to the prepaid wireless
8.7E911 fee in the 911 emergency telecommunications service account in the special revenue
8.8fund; and
8.9(2) deposit the proportion of collected fees attributable to the prepaid wireless
8.10telecommunications access Minnesota fee in the telecommunications access fund
8.11established in section 237.52, subdivision 1.
8.12(b) The department may deduct and retain an amount, not to exceed two percent of
8.13collected fees, to reimburse its direct costs of administering the collection and remittance
8.14of prepaid wireless E911 fees and prepaid wireless telecommunications access Minnesota
8.15fees.
8.16 Sec. 14. [403.163] LIABILITY PROTECTION FOR SELLERS AND
8.17PROVIDERS.
8.18(a) A provider or seller of prepaid wireless telecommunications service is not liable
8.19for damages to any person resulting from or incurred in connection with providing, or
8.20failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
8.21telephone number, address, location, or name associated with any person or device that
8.22is accessing or attempting to access 911 or E911 service.
8.23(b) A provider or seller of prepaid wireless telecommunications service is not liable
8.24for damages to any person resulting from or incurred in connection with providing any
8.25lawful assistance to any investigative or law enforcement officer of the United States, this or
8.26any other state, or any political subdivision of this or any other state, in connection with any
8.27lawful investigation or other lawful enforcement activity by the law enforcement officer.
8.28(c) In addition to the protection from liability provided by paragraphs (a) and (b),
8.29section 403.08, subdivision 11, applies to sellers and providers.
8.30 Sec. 15. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
8.31The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
8.32obligation imposed with respect to prepaid wireless telecommunications service in this
8.33state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
8.34subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
9.1upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
9.2of prepaid wireless telecommunications service.
9.3 Sec. 16. REPORT; RECOMMENDATIONS.
9.4(a) By March 1, 2014, the commissioner of public safety shall submit a report to
9.5the chairs and ranking minority members of the legislative committees with primary
9.6jurisdiction over public safety and telecommunications that assesses the amount of
9.7revenue collected from the fees imposed under Minnesota Statutes, section 403.161,
9.8and recommends any adjustment of those fees that the commissioner of public safety
9.9determines is necessary in order to:
9.10(1) fund legislative appropriations from the 911 emergency telecommunications
9.11service account and to maintain a reasonable fund reserve; and
9.12(2) maintain fairness with respect to the amount of fees paid by customers of
9.13prepaid wireless telecommunications service as compared with customers of other
9.14telecommunications services.
9.15(b) A wireless telecommunications service provider shall provide any information
9.16requested by the commissioner of public safety for the purposes of the report.
9.17 Sec. 17. EFFECTIVE DATE.
9.18Sections 10 and 16 are effective the day following final enactment. Sections 1 to 9
9.19and 11 to 15 are effective January 1, 2014.
