THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY SOLOBAY, EVERETT, MELIO, ADOLPH, BEAR, BELFANTI, BRENNAN, BRIGGS, CARROLL, D. COSTA, DALLY, DePASQUALE, DERMODY, DiGIROLAMO, J. EVANS, FARRY, FRANKEL, GEIST, GIBBONS, GINGRICH, GRUCELA, HALUSKA, HARHAI, HARHART, HARKINS, HENNESSEY, HESS, HORNAMAN, JOSEPHS, W. KELLER, KNOWLES, KORTZ, KOTIK, KULA, LEVDANSKY, MANN, MARKOSEK, MARSHALL, MATZIE, McGEEHAN, McILVAINE SMITH, MENSCH, MILLER, MURT, OBERLANDER, M. O'BRIEN, O'NEILL, OLIVER, PASHINSKI, PAYNE, PETRI, PHILLIPS, PICKETT, QUINN, READSHAW, REICHLEY, SABATINA, SANTONI, SEIP, SIPTROTH, K. SMITH, SONNEY, STERN, STURLA, J. TAYLOR, R. TAYLOR, VEREB, VULAKOVICH, WAGNER, WALKO, WHITE, YOUNGBLOOD, YUDICHAK, SAYLOR AND GOODMAN, JUNE 29, 2009

AS RE-REPORTED FROM COMMITTEE ON APPROPRIATIONS, HOUSE OF REPRESENTATIVES, AS AMENDED, JANUARY 25, 2010  

AN ACT

Amending the act of July 9, 1990 (P.L.340, No.78), entitled "An

act providing for a Statewide emergency telephone number 911

system; providing for contributions from telephone

subscribers; providing a penalty; and making a repeal,"

further providing for definitions and for Wireless E-911

Emergency Services Fund; and imposing a prepaid wireless

E-911 surcharge.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 2 of the act of July 9, 1990 (P.L.340,

No.78), known as the Public Safety Emergency Telephone Act,

amended December 30, 2003 (P.L.384, No.56) and July 9, 2008

(P.L.948, No.72), is amended to read:

Section 2.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"911 emergency communication system" or "911 system."  A

system, including enhanced 911 service but excluding a wireless

E-911 system, which permits a person dialing 911 by telephone to

be connected to a public safety answering point, via normal

telephone facilities, for the reporting of police, fire, medical

or other emergency situations.

["Active prepaid wireless account."  A prepaid wireless

account that has been used by the customer during the month to

complete a telephone call for which the customer's card or

account was reduced.]

"Advisory committee."  The wireless E-911 Emergency Services

Advisory Committee established in section 11.3.

"Agency."  The Pennsylvania Emergency Management Agency.

"Associated with Pennsylvania."

(1)  In the case of the mobile telephone number (MTN),

the geographical location associated with the first six

digits or NPA/NXX of the MTN; or

(2)  in the case of a customer service address, the

physical location of the address.

"Automatic location information" or "ALI."  The delivery or

receipt of the street address of the telephone or the geographic

location of the wireless device, as specified in the FCC E-911

Order, being used to place a call to a 911 system or to a

wireless E-911 system.

"Automatic number identification" or "ANI."  The delivery or

receipt of the telephone number assigned to the telephone or

wireless device being used to place a call to a 911 system or to

a wireless E-911 system.

"Commission."  The Pennsylvania Public Utility Commission.

"Competitive local exchange carrier."  A local exchange

carrier that has been certificated as a competitive local

exchange carrier by the Pennsylvania Public Utility Commission.

"Consumer."  A person who purchases prepaid wireless

telecommunications service or a prepaid wireless device in a

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retail transaction.

"Contribution rate."  A fee assessed against a telephone

subscriber for the nonrecurring costs, maintenance and operating

costs of a 911 system. Counties of the first through second

class A may impose a monthly contribution rate in an amount not

to exceed $1 per line on each local exchange access line.

Counties of the third through fifth class may impose monthly

contribution rates in an amount not to exceed $1.25 per line on

each local exchange access line. Counties of the sixth through

eighth class may impose a monthly contribution rate in an amount

not to exceed $1.50 per line on each local exchange access line.

The contribution rate may be used by counties for the expenses

of implementing, expanding or upgrading a 911 system. Expenses

eligible for reimbursement through the contribution rate shall

include telephone terminal equipment, trunk line service

installation, network changes, building of initial data base and

any other nonrecurring costs to establish a 911 system. The

contribution rate may also be used to fund recurring costs

pursuant to section 8(b). Expenses not eligible for

reimbursement through the contribution rate shall include

purchase of real estate, cosmetic remodeling, central office

upgrades, hiring of dispatchers, ambulances, fire engines or

other emergency vehicles, utilities, taxes and other expenses as

determined by the Pennsylvania Emergency Management Agency.

"Council."  The Pennsylvania Emergency Management Council.

"County."  The term shall include a city of the first class

coterminous with a county.

"County plan."  A document submitted by the county on a

triennial basis to the Pennsylvania Emergency Management Agency,

outlining its proposed and existing wireline and wireless 911

and enhanced 911 systems and procedures, including a

contribution rate, for the forthcoming three years.

"Emergency notification services."  Services provided by

authorized agencies of Federal, State, county or local

governments, or by persons authorized by such governments, that

notify the public, using ANI/ALI data base information, of

emergencies declared by such governments.

"Emergency support services."  Information or data base

management services provided by authorized agencies of Federal,

State, county or local governments, or by persons authorized by

such governments, that are used in support of PSAPs or emergency

notification services.

"Enhanced 911 service" or "E-911."  Emergency telephone

service providing for automatic identification of caller

location and calling number.

"FCC E-911 Order."  All orders issued by the Federal

Communications Commission pursuant to the proceeding entitled

"Revision of the Commission's Rules to Ensure Compatibility with

Enhanced 911 Emergency Calling Systems" (CC Docket No. 94-102)

codified at 47 CFR 20.18 (relating to 911 Service), any

successor proceeding and any other FCC order that affects the

provision of wireless E-911 service to wireless service

customers.

"Fund."  The Wireless E-911 Emergency Services Fund

established in section 11.4.

"Interconnected Voice over Internet Protocol service

customer" or "VoIP service customer."  A person who is billed by

an interconnected Voice over Internet Protocol provider, is the

end user of VoIP service and who has designated a primary place

of use within this Commonwealth.

"Interconnected Voice over Internet Protocol provider" or

"VoIP provider."  A person engaged in the business of providing

VoIP service to end-use customers in this Commonwealth,

including resellers.

"Interconnected Voice over Internet Protocol service" or

"VoIP service."  Service as defined by all orders issued by the

Federal Communications Commission pursuant to the proceeding

entitled "IP-Enabled Services", (WC Docket No. 04-36; FCC

05-116), codified at 47 CFR Part 9 (relating to interconnected

Voice over Internet Protocol services), any successor proceeding

and any other FCC order that affects the provision of 911

service or E-911 service to VoIP service customers or further

defines interconnected Voice over Internet Protocol service.

"Interexchange carrier."  A person that is authorized by the

Pennsylvania Public Utility Commission to provide long-distance

telecommunications service.

"Local exchange carrier."  A person, including a competitive

local exchange carrier, that is authorized by the Pennsylvania

Public Utility Commission to provide local exchange

telecommunications service or exchange access.

"Local exchange telephone service."  The provision of

telephonic message transmission within an exchange, as such is

defined and described in tariffs filed with and approved by the

commission.

"Mobile telephone number" or "MTN."  The telephone number

assigned to a wireless telephone at the time of initial

activation.

"NPA-NXX."  The first six digits of a ten-digit telephone

number, including a mobile telephone number, representing the

area code and exchange of the telephone number.

"Person."  The term includes a corporation, a partnership, an

association, the Federal Government, the State government, a

political subdivision, a municipal or other local authority, as

well as a natural person.

"Prepaid wireless device."  A wireless telephone that is

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purchased strictly for the purpose of initiating a prepaid

calling service and does not include traditional wireless

devices used for monthly calling plans.

"Prepaid wireless E-911 surcharge."  The charge that is

required to be collected by a seller from a consumer in the

amount established under section 11.4(b.1).

"Prepaid wireless provider."  A person that provides prepaid

wireless telecommunications service pursuant to a license issued

by the Federal Communications Commission.

"Prepaid wireless [telephone] telecommunications service."  A

wireless [telephone service which is activated in advance by

payment of a finite dollar amount or for a finite set of minutes

and which, unless an additional finite dollar amount or finite

set of minutes is paid in advance, terminates either upon use by

a customer and delivery by the wireless carrier of an agreed-

upon amount of service corresponding to the total dollar amount

paid in advance or within a certain period of time following

initial purchase or activation] telecommunications service that

allows a caller to dial 911 to access the 911 system, which

service must be paid for in advance and is sold in predetermined

units or dollars of which the number declines may or may not

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decline with use in a known amount.

"Primary place of use."  The street address representative of

where the customer's use of the VoIP service primarily occurs.

For the purpose of VoIP 911 fees, primary place of use is the

customer's registered location on the date the customer is

billed.

"Public agency."  The Commonwealth or a political

subdivision, public authority, municipal authority or any

organization located in whole or in part within this

Commonwealth which provides or has the authority to provide

firefighting, law enforcement, ambulance, emergency medical or

other emergency services.

"Public safety answering point" or "PSAP."  The agency-

approved first point at which calls for emergency assistance

from individuals are answered, operated 24 hours a day.

"Retail transaction."  The purchase of prepaid wireless

telecommunications service or a prepaid wireless device from a

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seller for any purpose other than resale.

"Seller."  A person who sells prepaid wireless

telecommunications service or a prepaid wireless device to

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another person.

["Sufficient positive balance."  A dollar amount greater than

or equal to the monthly wireless surcharge amount.]

"Telecommunications carrier."  Any provider of

telecommunications services as defined by the Telecommunications

Act of 1996 (Public Law 104-104, 110 Stat. 56).

"Telephone subscriber."  A person who contracts with a local

exchange carrier within this Commonwealth for local exchange

telephone service, either residential or commercial. When the

same person has several telephone dial tone access lines, each

dial tone access line shall constitute a separate subscription.

For purposes of the contribution rate, the term shall not

include pay stations owned or operated by a regulated public

utility, or nonpublic utilities as the term is used in 66

Pa.C.S. § 2913(b) (relating to minimum service requirement).

"Vendor."  A person other than a local exchange carrier or a

wireless provider who supplies 911 or wireless E-911 system

services or equipment.

"Wireless E-911 service."  Service provided by a wireless

provider, pursuant to the FCC E-911 Order.

"Wireless E-911 State plan."  A document to be prepared,

maintained and kept current by the Pennsylvania Emergency

Management Agency providing for all aspects of the development,

implementation, operation and maintenance of a Statewide

integrated wireless E-911 system, including the exclusive

authority to formulate technical standards and determine

permitted uses of and amounts disbursed from the Wireless E-911

Emergency Services Fund established by section 11.4(a).

"Wireless E-911 surcharge."  A monthly fee assessed upon each

wireless service customer, other than a prepaid wireless seller,

provider or consumer subject to the prepaid wireless E-911

surcharge under section 11.4(b.1), for each wireless two-way

communication device for which that customer is charged by a

wireless provider for wireless service.

"Wireless E-911 system."  An E-911 system which permits

wireless service customers dialing 911 to be connected to a

public safety answering point for the reporting of police, fire,

medical or other emergency situations.

"Wireless provider."  A person engaged in the business of

providing wireless service to end-use customers in this

Commonwealth, including resellers.

"Wireless service."  Commercial mobile radio service as

defined under section 332(d) of the Communications Act of 1934

(47 U.S.C. § 332(d)) and which provides real-time, two-way voice

service that is interconnected with the public switched

telephone network.

"Wireless service customer."  A person who is billed by a

wireless provider or who receives prepaid wireless telephone

service from a wireless provider for wireless service within

this Commonwealth.

Section 2.  Section 11.4(a) and (b) of the act, added

December 30, 2003 (P.L.384, No.56), are amended and the section

is amended by adding a subsection to read:

Section 11.4.  Wireless E-911 Emergency Services Fund.

(a)  Establishment of fund.--There is hereby established in

the State Treasury a nonlapsing restricted interest-bearing

account to be known as the Wireless E-911 Emergency Services

Fund. The fund shall consist of the fees collected under

[subsection (b)] subsections (b) and (b.1), funds appropriated

by the General Assembly and of funds from any other source,

private or public. Moneys in the fund and the interest it

accrues is hereby appropriated to the Pennsylvania Emergency

Management Agency to be disbursed by the agency. The moneys in

the fund shall be used only for the following costs:

(1)  PSAP and wireless provider costs resulting from

compliance with the FCC E-911 Order, including development,

implementation and testing, operation and maintenance of a

Statewide integrated wireless E-911 system. Costs paid from

the fund must be eligible recurring or nonrecurring costs as

determined by the agency in accordance with sections 11.2(a)

and 11.5 for wireless E-911 service provided in accordance

with the FCC E-911 Order or a county plan or amended county

plan approved by the agency.

(2)  The agency-approved costs of PSAPs specified in

section 8(b) that relate directly or indirectly to the

provision of wireless E-911 service, to the extent:

(i)  the costs are not included in the costs paid

under section 11.4(a)(1) and the approved E-911 costs

provided in section 11.4(a)(1) have been reimbursed; and

(ii)  the costs do not exceed the percentage of the

actual ratio of demonstrated wireless calls to

demonstrated total emergency call volume times the amount

of money in the fund, and further:

(A)  the amount of the costs that may be

reimbursed is limited to 25% of the fund if a

majority of wireless providers serving the geographic

area covered by the PSAP have been tested and

accepted by the PSAP for wireless E-911 Phase I

service;

(B)  the amount of the costs that may be

reimbursed is limited to 50% of the fund if all of

the wireless providers serving the geographic area

covered by the PSAP have been tested and accepted by

the PSAP for wireless E-911 Phase I service;

(C)  the amount of the costs that may be

reimbursed is limited to 75% of the fund if a

majority of wireless providers serving the geographic

area covered by the PSAP have been tested and

accepted by the PSAP for wireless E-911 Phase II

service; and

(D)  the amount of the costs that may be

reimbursed is limited to 100% of the fund if all of

the wireless providers serving the geographic area

covered by the PSAP have been tested and accepted by

the PSAP for wireless E-911 Phase II service.

In the event that, pursuant to an FCC E-911 waiver, a wireless

provider is temporarily relieved of its obligation to provide

wireless E-911 Phase II service in the geographic area covered

by a requesting PSAP, such wireless carrier shall be disregarded

in the determinations to be made pursuant to subparagraphs (iii)

and (iv) until such time as the wireless carrier's obligation to

provide wireless E-911 Phase II service again becomes effective.

(b)  Wireless E-911 surcharge.--Each wireless service

customer shall pay a fee, to be known as a wireless E-911

surcharge, in an amount of $1 per month for each device that

provides wireless service for which that customer is billed by a

wireless provider for wireless service [or receives prepaid

wireless telephone service from a wireless provider]. Such fee

shall be collected apart from and in addition to any fee levied

by the wireless provider in whole or in part for the provision

of 911 services.

(1)  Wireless providers shall collect the fee on behalf

of the agency as part of their billing process and shall have

no obligation to take any legal action to enforce the

collection of the surcharge. Such action may be brought by or

on behalf of the agency. Annually, upon written request of

the agency, each wireless provider shall provide a list of

the names and addresses of those wireless service customers

carrying a balance that have failed to pay the wireless E-911

surcharge. The wireless provider shall not be liable for such

unpaid amounts.

(2)  If a wireless provider receives a partial payment

for a monthly bill from a wireless service customer, the

wireless provider shall apply the payment against the amount

the wireless service customer owes the wireless provider

first and shall remit to the State Treasurer such lesser

amount, if any, as shall result therefrom.

(3)  The fees collected under this subsection shall not

be subject to taxes or charges levied by the Commonwealth or

any political subdivision of this Commonwealth, nor shall

such fees be considered revenue of the wireless provider for

any purpose.

[(4)  In the case of prepaid wireless telephone service,

the monthly wireless 911 surcharge imposed by this section

shall be remitted based upon each prepaid wireless account in

any manner consistent with the provider's existing operating

or technological abilities, such as customer address,

location associated with the MTN, or reasonable allocation

method based upon other comparable relevant data and

associated with Pennsylvania, for each wireless customer with

an active prepaid wireless account and has a sufficient

positive balance as of the last day of each month, if such

information is available.]

(4)  The provisions of this subsection shall not apply to

sellers, providers or consumers of prepaid wireless

telecommunications service.

(b.1)  Prepaid wireless E-911 surcharge.--

(1)  There is hereby imposed a prepaid wireless E-911

surcharge of $1 per retail transaction or the adjusted

surcharge, if any, established under paragraph (5). The $1

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surcharge shall be applied to the cost of each retail

transaction regardless of whether the service or prepaid

wireless device was purchased in person, by telephone,

through the Internet or by any other method.

(2)  A prepaid wireless E-911 surcharge shall be

collected by the seller from the consumer for each retail

transaction occurring in this Commonwealth. The amount of the

prepaid wireless E-911 surcharge shall be either 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. A retail transaction that is

effected in person by a consumer at a business location of

the seller shall be treated as occurring in this Commonwealth

if that business location is in this Commonwealth, and any

other retail transaction shall be treated as occurring in

this Commonwealth if the retail transaction is treated as

occurring in this Commonwealth for the purposes of section

202(e.1) of the act of March 4, 1971 (P.L.6, No.2), known as

the Tax Reform Code of 1971.

(3)  A prepaid wireless E-911 surcharge is a liability of

the consumer and not of the seller or any provider, except

that the seller shall be liable to remit all prepaid wireless

E-911 surcharges that the seller collects from consumers as

provided under paragraph (6), including all charges that the

seller is deemed to collect where the amount of the surcharge

has not been separately stated in an invoice, receipt or

other similar document provided to the consumer by the

seller.

(4)  The amount of the prepaid wireless E-911 surcharge

that is collected by a seller from a consumer, whether or not

the amount is separately stated on an invoice, receipt or

similar document provided to the consumer by the seller,

shall not be included in the base for measuring any tax, fee,

surcharge or other charge that is imposed by the

Commonwealth, a political subdivision or an intergovernmental

agency.

(5)  The prepaid wireless E-911 surcharge shall be

proportionately increased or reduced, as applicable, upon any

change to the wireless E-911 surcharge imposed under

subsection (b). The increase or reduction shall be effective

on the effective date of the change to the surcharge imposed

under subsection (b) or, if later, the first day of the first

calendar month to occur at least 60 days after the effective

date of the change to the surcharge imposed under subsection

(b). The Department of Revenue shall provide not less than 30

days' notice of an increase or reduction on its public

website.

(6)  Prepaid wireless E-911 surcharges collected by a

seller shall be remitted to the Department of Revenue at the

times and in the manner provided under Chapter IV of Article

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II of the Tax Reform Code of 1971 with respect to sales and

use tax. The Department of Revenue shall establish

registration and payment procedures that substantially

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coincide with the registration and payment procedures of

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Chapter IV of Article II of the Tax Reform Code of 1971, 

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except the department may require the filing of returns and

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the payment of the surcharge by electronic means.

(7)  A seller may deduct and retain 3% of prepaid

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wireless E-911 surcharges that are collected by the seller

from consumers During the first 180 days after the effective

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date of this section, a seller may deduct and retain 25% of

the prepaid wireless surcharges collected by the seller from

consumers for direct start-up costs. After such

implementation period, a seller may deduct and retain up to

3% of prepaid wireless E-911 surcharges that are collected by

the seller from consumers for administrative purposes.

(8)  The assessment, audit and, appeal, collection and

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enforcement procedures and any other pertinent provisions 

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applicable to the sales and use tax imposed under Article II

of the Tax Reform Code of 1971 shall apply to prepaid

wireless E-911 surcharges.

(9)  The Department of Revenue shall establish procedures

by which a seller of prepaid wireless telecommunications

service may document that a sale is not a retail transaction,

which procedures shall substantially coincide with the

procedures for documenting sale for resale transactions for

sales and use tax purposes under Article II of the Tax Reform

Code of 1971.

(10)  The Department of Revenue shall pay all remitted

prepaid wireless E-911 surcharges to the State Treasurer for

deposit into the fund within 30 days of receipt, for use as

provided in this act. The Department of Revenue may deduct an

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amount, not to exceed 2% of remitted surcharges, that shall

be retained by the Department of Revenue to reimburse its

direct costs of administering the collection and remittance

of prepaid wireless E-911 surcharges During the first 180

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days after the effective date of this section, the Department

of Revenue may retain 25% of the remitted surcharges for

direct start-up costs. After the implementation period, the

department may retain up to 2% of remitted surcharges to pay

for agency expenses directly related to the costs of

administering the collection and remittance of prepaid

wireless E-911 surcharges.

(11)  The provisions of section 11.9 shall apply to

providers and sellers of prepaid wireless telecommunications

service.

(12)  The prepaid wireless E-911 surcharge shall be the

only E-911 funding obligation imposed with respect to prepaid

wireless telecommunications service in this Commonwealth. No

tax, fee, surcharge or other charge may be imposed by the

Commonwealth, a political subdivision or an intergovernmental

agency for E-911 funding purposes, on any provider, seller or

consumer with respect to the sale, purchase, use or provision

of prepaid wireless telecommunications service.

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Section 3.  This act shall take effect January October 1,

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2010.