OVERVIEW
Senate File No. 367 extends the E911 fee and the Telecommunication Access Minnesota (TAM) fee (which provides persons with communications impairments with telecommuncation devices and relay service) to prepaid wireless customers.
Section 1 is technical.
Section 2 specifies that the regular TAM fee does not apply to prepaid wireless communications service, but that the prepaid service is subject to the fee established in Section 12, subdivision 1, paragraph (b).
Section 3 is technical.
Section 4 allows the Commissioner of Revenue to disclose return information to the Department of Public Safety as necessary to administer the collection of E911 and TAM fees from wireless customers.
Section 5 defines “prepaid wireless telecommunications service.”
Section 6 defines “wireless telecommunications service.”
Section 7 defines “wireless telecommunications service provider.”
Section 8 requires inclusion of E911 fees from prepaid wireless customer in the Department of Public Safety's annual budget report to the Legislature.
Section 9 exempts prepaid wireless customers from the current 911 fee; they are instead subject to the fee established in Section 12.
Section 10 requires semiannual reports from telecommunications providers to the Commissioner of Public Safety on the number of prepaid and total wireless subscribers sourced to Minnesota. Specifies that this is trade secret data.
Section 11 contains definitions for the purposes of sections 11 to 15.
Section 12 imposes an E911 and TAM fee on prepaid wireless service at the current monthly rate imposed on other telecommunications service providers. Exempts from the fees a minimal amount of prepaid wireless telecommunications service (10 minutes or $5 or less). Specifies that fees must be collected at the point of retail sale, combined into one amount, and separately reported on a receipt. Provides that the sales tax statutes be used to determine whether retail transactions of prepaid wireless service occur in Minnesota. Provides that the seller is liable to remit these fees as provided in Section 13. Excludes the fees from being included in the base for measuring any other tax or charge imposed by the state or a local government. Specifies that fees for prepaid wireless service must be increased or reduced proportionately to fluctuations in the same fees that apply to other telecommunication providers.
Section 13 specifies that fees must be collected by sellers and remitted to the commissioner of revenue in the same general manner as sales taxes. Seller may deduct and retain three percent of fees. Specifies that the audit and appeal procedures of Chapter 297A apply to fees. Requires the Commissioner of Revenue to deposit fees within 30 days of receipt. The Department of Revenue may retain and deduct two percent of the collected fees for administration costs.
Section 14 exempts providers and sellers of prepaid wireless telecommunication service from liability for damages resulting from providing or not providing 911 service or resulting from providing lawful assistance to a state, federal or local law enforcement officer.
Section 15 prohibits any other tax, fee, or surcharge being imposed on prepaid wireless telecommunications service for E911 purposes.
Section 16 requires the Commissioner of Public Safety to submit a report to the Legislature by March 1, 2015, assessing the revenue collected from these fees and recommending any adjustment necessary to fund legislative appropriations for 911 expenditures or to maintain fairness with respect to the amount of fees paid by prepaid wireless customers.
Section 17. Effective date. Specifies that sections 10 and 16 are effective the day following final enactment; all other sections are effective January 1, 2014.
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