PREPAID WIRELESS: 9-1-1 CHARGE                                                       H.B. 5468 (S-1):

                                                                                                      FLOOR SUMMARY

House Bill 5468 (Substitute S-1 as reported)

Sponsor:  Representative Aric Nesbitt

House Committee:  Energy and Technology

Senate Committee:  Energy and Technology

CONTENT

The bill would amend the Emergency 9-1-1 Service Enabling Act to do the following:

-- Require the 9-1-1 charge to be collected from prepaid wireless customers by retail sellers, rather than service suppliers.

-- Set the charge at 1.92% per retail transaction.

-- Allow sellers to retain 2% of the charge.

-- Require the charge to be remitted in the same manner as required for the sales tax. 

-- Require the Department of Treasury to deposit the charges in the Emergency 9-1-1 Fund.

-- Delay the Act's sunset from December, 31, 2014, until December 31, 2021.

The bill would take effect on January 1, 2013.

Legislative Analyst:  Julie Cassidy

FISCAL IMPACT

The bill would have a negligible fiscal impact on the level of future surcharge collections under the Emergency 9-1-1 Service Enabling Act.  Amending the manner in which surcharges for 9-1-1 service are administered for prepaid cell phones should result in a very similar level of revenue compared to current collection methods, with the possibility that the added efficiency of the new method could result in a somewhat higher capture of funds. 

Date Completed:  6-6-12                                                      Fiscal Analyst:  Bruce Baker

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.