Assembly Bill A8830B

2009-2010 Legislative Session

Relates to 911 calls made on prepaid cell phones

download bill text pdf

Archive: Last Bill Status - In Assembly Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 01, 2010	held for consideration in ways and means
Feb 23, 2010	reported referred to ways and means
Jan 08, 2010	print number 8830b
Jan 08, 2010	amend and recommit to corporations, authorities and commissions
Jan 06, 2010	referred to corporations, authorities and commissions
Jun 18, 2009	print number 8830a
Jun 18, 2009	amend and recommit to corporations, authorities and commissions
Jun 11, 2009	referred to corporations, authorities and commissions

Bill Amendments

2009-A8830 - Details

Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Add §92-g, Pub Serv L; add §186-g, Tax L

2009-A8830 - Summary

Relates to 911 calls made on cell phones; requires all cell phones sold in the state to be capable of dialing 911 regardless of whether the consumer has entered or maintained a service contract; imposes a surcharge on prepaid wireless communications service.

2009-A8830 - Sponsor Memo

                                BILL NUMBER:A8830

TITLE OF BILL:  An act to amend the public service law, in relation to
wireless communications devices; and to amend the tax law, in relation
to a surcharge on prepaid wireless communications service

PURPOSE:  This legislation will require that all disposable and pre-paid
wireless communication devices sold in the state be capable of accessing
911 emergency services and enhanced 911 services; and be capable of
automatic location identification, regardless of the wireless communi-
cations service contract status on the device. The legislation also
provides for a three percent surcharge on the retail purchase of any
prepaid wireless communications device or service, to be collected at
the point of sale, for the purposes of maintaining and enhancing the
state's 911 and emergency communications capabilities.

SUMMARY OF PROVISIONS:  Section 1. Adds a new section 92-g to the public
service law requiring that all wireless communications devices sold in
New York State must be capable of accessing 911 services and enhanced
911 services, regardless of whether a customer maintains a contract for
wireless communications on these devices.

Section 2. Adds a new section 186-g to the tax law defining relevant
terms and; requires that a fee of 3% be affixed to sales of prepaid
wireless communications devices or services and; requires that retailers
shall collect the aforementioned surcharge and remit this surcharge to

the commissioner on a quarterly basis and; allows retailers to retain an
administrative fee for their collection responsibility and; requires
that the surcharge be disclosed to the consumer on a receipt or invoice,
etc. and; requires the comptroller to retain an amount determined by the
commissioner for refunds and; provides that all revenue must be trans-
ferred exclusively to the New York State wireless telephone emergency
service account.

Section 3. Provides for an effective date.

JUSTIFICATION:  Currently, the state of New York collects a $1.20 month-
ly fee on postpaid customers' wireless communications contracts. The
income from this fee is used to maintain the 911 system, allowing
responders to identify and locate callers in an emergency. The 911
system requires infrastructure enhancement and updates in New York;
without these updates, New Yorkers are serviced by a system that has
deficiencies that can cost lives. Updating the system must be a priority
for all of us, and revenue has to be generated for these updates, espe-
cially at a time when resources are scarce. Currently, prepaid cellular
devices are becoming more prominent nationwide and are a massive source
of revenue for wireless providers. Due to holes in New York's tax law,
there exists no apparatus to collect 911 fees from prepaid customers,
despite the fact that they utilize the 911 system. Collecting a 3%
surcharge on an average $40 per month consumer expenditure (as evidenced
by a J.D. Powers and Associates Wireless Prepaid Survey) will provide
the 911 system with an average $1.20 per month from prepaid devices.

This funding will provide the 911 system the income that it needs to
improve its infrastructure and save lives. Additionally, the bill
requires that all cellular devices be 911-accessible and locatable where
service is available, so that all New Yorkers have consistent, high-
quality, reliable access to the 911 system.

LEGISLATIVE HISTORY:  This is new legislation.

FISCAL IMPLICATIONS:  There is no cost to the state; instead, this
legislation will generate new revenues to the state by ensuring that
purchasers of prepaid wireless communications services are required to
pay E-911 surcharges, similar to the surcharges associated with monthly
wireless device plans.

EFFECTIVE DATE:  This act shall take effect on the ninetieth day after
it shall have become a law; provided that section two of this act shall
take effect on the first day of the quarterly period, as described in
paragraph (b) of subdivision 2 of section 186-g of the tax law, as added
by section two of this act, next commencing after this act becomes a
law.

2009-A8830 - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  8830

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2009
                               ___________

Introduced  by  M. of A. KOON -- read once and referred to the Committee
  on Corporations, Authorities and Commissions

AN ACT to amend the public service law, in relation to wireless communi-
  cations devices; and to amend the tax law, in relation to a  surcharge
  on prepaid wireless communications service

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public service law is amended by adding a  new  section
92-g to read as follows:
  S  92-G. AUTOMATIC LOCATION IDENTIFICATION AND ACCESS TO 911 EMERGENCY
SERVICES FOR WIRELESS COMMUNICATIONS DEVICES.    ALL  WIRELESS  COMMUNI-
CATION  DEVICES SOLD IN THIS STATE, INCLUDING BUT NOT LIMITED TO DISPOS-
ABLE AND PREPAID DEVICES, SHALL BE CAPABLE OF  ACCESSING  911  EMERGENCY
SERVICES  AND  ENHANCED 911 SERVICES AS DEFINED IN SECTION THREE HUNDRED
ONE OF THE COUNTY LAW, WHERE AVAILABLE, AND SHALL BE CAPABLE OF AUTOMAT-
IC LOCATION IDENTIFICATION,  REGARDLESS  OF  WHETHER  THE  CONSUMER  HAS
ENTERED  INTO  OR  MAINTAINS  A  CONTRACT  FOR  WIRELESS  COMMUNICATIONS
SERVICES FOR SUCH DEVICE.
  S 2. The tax law is amended by adding a new section 186-g to  read  as
follows:
  S  186-G.  PREPAID WIRELESS COMMUNICATIONS SURCHARGE. 1.  DEFINITIONS.
(A) "CONSUMER" MEANS A PERSON WHO PURCHASES A PREPAID WIRELESS  TELECOM-
MUNICATIONS DEVICE OR SERVICE IN A RETAIL TRANSACTION.
  (B)  "WIRELESS  COMMUNICATIONS  DEVICE"  MEANS  ANY  EQUIPMENT USED TO
ACCESS A WIRELESS COMMUNICATIONS SERVICE.
  (C) "PREPAID WIRELESS TELECOMMUNICATIONS  SERVICE"  MEANS  A  WIRELESS
TELECOMMUNICATIONS SERVICE WHICH MUST BE PAID FOR IN ADVANCE AND IS SOLD
IN  PREDETERMINED UNITS OR DOLLARS OF WHICH THE NUMBER DECLINES WITH USE
IN A KNOWN AMOUNT, AND SHALL INCLUDE BUT NOT BE LIMITED TO PREPAID CALL-
ING CARDS AS DEFINED IN SECTION NINETY-TWO-F OF THE PUBLIC  SERVICE  LAW

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14159-02-9

A. 8830                             2

OR  ANY  OTHER  CARD OR SIMILAR ITEM WHICH PERMITS A CONSUMER ADDITIONAL
CALLING TIME ON A PREPAID WIRELESS COMMUNICATIONS DEVICE.
  2.  (A)  A  SURCHARGE  ON  PREPAID WIRELESS COMMUNICATIONS DEVICES AND
SERVICES PROVIDED TO A RETAIL CUSTOMER IS IMPOSED AT THE RATE  OF  THREE
PERCENT  OF THE PURCHASE PRICE OF EACH WIRELESS COMMUNICATIONS DEVICE OR
SERVICE.
  (B) EVERY RETAILER OF A WIRELESS COMMUNICATIONS DEVICE OR  SERVICE  IN
NEW  YORK  STATE  MUST  ACT  AS A COLLECTION AGENT FOR THE STATE FOR THE
COLLECTION OF THE SURCHARGE. THE SURCHARGE MUST BE REPORTED AND PAID  TO
THE  COMMISSIONER ON A QUARTERLY BASIS ON OR BEFORE THE FIFTEENTH DAY OF
THE MONTH FOLLOWING EACH QUARTERLY PERIOD ENDING  ON  THE  LAST  DAY  OF
FEBRUARY,  MAY,  AUGUST AND NOVEMBER, RESPECTIVELY. THE PAYMENTS MUST BE
ACCOMPANIED BY A RETURN IN THE FORM AND CONTAINING THE  INFORMATION  THE
COMMISSIONER MAY PRESCRIBE.
  (C)  EACH RETAILER IS ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE, AN
AMOUNT EQUAL TO TWO PERCENT OF FIFTY-EIGHT AND THREE-TENTHS  PERCENT  OF
THE TOTAL COLLECTIONS OF THE SURCHARGE IMPOSED BY THIS SECTION, PROVIDED
THAT THE RETAILER FILES ANY REQUIRED RETURN AND REMITS THE SURCHARGE DUE
TO THE COMMISSIONER ON OR BEFORE ITS DUE DATE.
  (D) FOR PURPOSES OF ARTICLE TWENTY-SEVEN OF THIS CHAPTER AS APPLIED TO
THIS  SECTION  BY  SECTION TWO HUNDRED SEVEN-B OF THIS ARTICLE, THE TERM
"TAXPAYER" IN ARTICLE TWENTY-SEVEN OF THIS CHAPTER REFERS TO A  RETAILER
OF  PREPAID WIRELESS COMMUNICATIONS DEVICES AND SERVICES SUBJECT TO THIS
SECTION AND THE TERM "TAX"  IN  ARTICLE  TWENTY-SEVEN  OF  THIS  CHAPTER
REFERS TO THE SURCHARGE IMPOSED BY THIS SECTION.
  3. THE PREPAID WIRELESS COMMUNICATIONS SURCHARGE SHALL BE COLLECTED BY
THE  SELLER  FROM  THE  CONSUMER WITH RESPECT TO EACH RETAIL TRANSACTION
OCCURRING IN THIS STATE. THE AMOUNT OF THE  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. THE AMOUNT OF THE SURCHARGE THAT IS COLLECTED BY A SELLER FROM
A CONSUMER PURSUANT TO THIS SECTION, WHETHER OR NOT SUCH AMOUNT IS SEPA-
RATELY STATED ON AN INVOICE, RECEIPT, OR OTHER 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
THIS STATE, ANY POLITICAL SUBDIVISION OF THIS STATE, OR ANY INTERGOVERN-
MENTAL AGENCY.
  4.  DEPOSITS OF SURCHARGE MONIES COLLECTED AND RECEIVED. NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, ALL SURCHARGE MONIES COLLECTED
AND RECEIVED BY THE COMMISSIONER UNDER THIS SECTION  MUST  BE  DEPOSITED
DAILY  TO  THE  CREDIT  OF THE COMPTROLLER WITH THOSE RESPONSIBLE BANKS,
BANKING HOUSES OR TRUST COMPANIES THE COMPTROLLER MAY  DESIGNATE.  THOSE
DEPOSITS  MUST  BE  KEPT SEPARATE AND APART FROM ALL OTHER MONIES IN THE
POSSESSION OF THE COMPTROLLER. THE  COMPTROLLER  MUST  REQUIRE  ADEQUATE
SECURITY  FROM  ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR
RECEIVED UNDER THIS SECTION, THE COMPTROLLER MUST RETAIN  IN  THE  COMP-
TROLLER'S HANDS AN AMOUNT DETERMINED BY THE COMMISSIONER TO BE NECESSARY
FOR REFUNDS UNDER THE SECTION, OUT OF WHICH THE COMPTROLLER WILL PAY ANY
REFUNDS  TO  WHICH  TAXPAYERS  ARE ENTITLED UNDER THE PROVISIONS OF THIS
SECTION. THE COMPTROLLER, AFTER RESERVING THE AMOUNT TO PAY REFUNDS, AND
AFTER DEDUCTING THE AMOUNT RETAINED BY WIRELESS COMMUNICATIONS SUPPLIERS
PURSUANT TO PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION,  MUST,  ON
OR  BEFORE  THE  TENTH  DAY  OF  EACH  MONTH,  PAY  ALL SURCHARGE MONIES
COLLECTED AND RECEIVED UNDER THIS SECTION AND  REMAINING  INTO  THE  NEW
YORK STATE WIRELESS TELEPHONE EMERGENCY SERVICE ACCOUNT OF THE MISCELLA-

A. 8830                             3

NEOUS  SPECIAL REVENUE FUND, CREATED PURSUANT TO SECTION NINETY-SEVEN-QQ
OF THE STATE FINANCE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided that section two  of  this  act  shall  take
effect  on  the first day of the quarterly period, as described in para-
graph (b) of subdivision 2 of section 186-g of the tax law, as added  by
section two of this act, next commencing after this act becomes a law.

co-Sponsors

multi-Sponsors

View additional multi-sponsors

2009-A8830A - Details

Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Add §92-g, Pub Serv L; add §186-g, Tax L

2009-A8830A - Summary

2009-A8830A - Sponsor Memo

                                BILL NUMBER:A8830A

TITLE  OF BILL:   An act to amend the public service law, in relation to
wireless communications devices; and to amend the tax law,  in  relation
to a surcharge on prepaid wireless communications service

PURPOSE:  This legislation will require that all disposable and pre-paid
wireless communication devices sold in the state be capable of accessing
911  emergency  services  and  enhanced  911 services; and be capable of
automatic location identification, regardless of the  wireless  communi-
cations  service  contract  status  on  the device. The legislation also
provides for a three percent surcharge on the  retail  purchase  of  any
prepaid wireless communications service, to be collected at the point of
sale,  for the purposes of maintaining and enhancing the state's 911 and
emergency communications capabilities.

SUMMARY OF PROVISIONS:  Section 1. Adds a new section 92-g to the public
service law requiring that all wireless communications devices  sold  in
New  York  State  must be capable of accessing 911 services and enhanced
911 services, regardless of whether a customer maintains a contract  for
wireless communications on these devices.

Section  2.  Adds  a  new section 186-g to the tax law defining relevant
terms and; requires that a fee of 3% be  affixed  to  sales  of  prepaid
wireless  communications  services  and;  requires  that retailers shall
collect the aforementioned surcharge and remit  this  surcharge  to  the

commissioner  on  a  quarterly  basis and; allows retailers to retain an
administrative fee for their  collection  responsibility  and;  requires
that the surcharge be disclosed to the consumer on a receipt or invoice,
etc. and; requires the comptroller to retain an amount determined by the
commissioner  for  refunds and; provides that all revenue must be trans-
ferred exclusively to the New York State  wireless  telephone  emergency
service account.

Section 3. Provides for an effective date.

JUSTIFICATION:  Currently, the state of New York collects a $1.20 month-
ly  fee  on  postpaid  customers' wireless communications contracts. The
income from this fee is  used  to  maintain  the  911  system,  allowing
responders  to  identify  and  locate  callers  in an emergency. The 911
system requires infrastructure enhancement  and  updates  in  New  York;
without  these  updates,  New  Yorkers are serviced by a system that has
deficiencies that can cost lives. Updating the system must be a priority
for all of us, and revenue has to be generated for these updates,  espe-
cially  at a time when resources are scarce. Currently, prepaid cellular
services are becoming more prominent nationwide and are a massive source
of revenue for wireless providers. Due to holes in New York's  tax  law,
there  exists  no  apparatus to collect 911 fees from prepaid customers,
despite the fact that they utilize  the  911  system.  Collecting  a  3%
surcharge on an average $40 per month consumer expenditure (as evidenced
by  a  J.D.  Powers and Associates Wireless Prepaid Survey) will provide
the 911 system with an average $1.20 per month  from  prepaid  services.

This  funding  will  provide  the 911 system the income that it needs to
improve its  infrastructure  and  save  lives.  Additionally,  the  bill
requires that all cellular devices be 911-accessible and locatable where
service  is  available,  so  that all New Yorkers have consistent, high-
quality, reliable access to the 911 system.

LEGISLATIVE HISTORY:  This is new legislation.

FISCAL IMPLICATIONS:   There is no cost  to  the  state;  instead,  this
legislation  will  generate  new  revenues to the state by ensuring that
purchasers of prepaid wireless communications services are  required  to
pay  E-911 surcharges, similar to the surcharges associated with monthly
wireless device plans.

EFFECTIVE DATE:  This act shall take effect on the ninetieth  day  after
it  shall have become a law; provided that section two of this act shall
take effect on  the  first  day  of  the  second  quarterly  period,  as
described  in paragraph (b) of subdivision 2 of section 186-g of the tax
law, as added by section two of this act, next commencing after this act
becomes a law.

2009-A8830A - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8830--A

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2009
                               ___________

Introduced  by  M. of A. KOON, JAFFEE, CASTRO, ESPAILLAT, COOK -- Multi-
  Sponsored by -- M. of A. DelMONTE, EDDINGTON, GABRYSZAK, MENG, SKARTA-
  DOS, TITONE, WEISENBERG -- read once and referred to the Committee  on
  Corporations,  Authorities  and  Commissions  -- committee discharged,
  bill amended, ordered reprinted as amended  and  recommitted  to  said
  committee

AN ACT to amend the public service law, in relation to wireless communi-
  cations  devices; and to amend the tax law, in relation to a surcharge
  on prepaid wireless communications service

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  The public service law is amended by adding a new section
92-g to read as follows:
  S 92-G. AUTOMATIC LOCATION IDENTIFICATION AND ACCESS TO 911  EMERGENCY
SERVICES  FOR  WIRELESS  COMMUNICATIONS DEVICES.   ALL WIRELESS COMMUNI-
CATION DEVICES SOLD IN THIS STATE, INCLUDING BUT NOT LIMITED TO  DISPOS-
ABLE  AND  PREPAID  DEVICES, SHALL BE CAPABLE OF ACCESSING 911 EMERGENCY
SERVICES AND ENHANCED 911 SERVICES AS DEFINED IN SECTION  THREE  HUNDRED
ONE OF THE COUNTY LAW, WHERE AVAILABLE, AND SHALL BE CAPABLE OF AUTOMAT-
IC  LOCATION  IDENTIFICATION,  REGARDLESS  OF  WHETHER  THE CONSUMER HAS
ENTERED  INTO  OR  MAINTAINS  A  CONTRACT  FOR  WIRELESS  COMMUNICATIONS
SERVICES FOR SUCH DEVICE.
  S  2.  The tax law is amended by adding a new section 186-g to read as
follows:
  S 186-G. PREPAID WIRELESS COMMUNICATIONS SURCHARGE. 1.    DEFINITIONS.
(A)  "CONSUMER" MEANS A PERSON WHO PURCHASES A PREPAID WIRELESS TELECOM-
MUNICATIONS DEVICE OR SERVICE IN A RETAIL TRANSACTION.
  (B) "WIRELESS COMMUNICATIONS  DEVICE"  MEANS  ANY  EQUIPMENT  USED  TO
ACCESS A WIRELESS COMMUNICATIONS SERVICE.
  (C)  "PREPAID  WIRELESS  TELECOMMUNICATIONS  SERVICE" MEANS A WIRELESS
TELECOMMUNICATIONS SERVICE WHICH MUST BE PAID FOR IN ADVANCE AND IS SOLD

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14159-03-9

A. 8830--A                          2

IN PREDETERMINED UNITS OR DOLLARS OF WHICH THE NUMBER DECLINES WITH  USE
IN A KNOWN AMOUNT, AND SHALL INCLUDE BUT NOT BE LIMITED TO PREPAID CALL-
ING  CARDS  AS DEFINED IN SECTION NINETY-TWO-F OF THE PUBLIC SERVICE LAW
OR  ANY  OTHER  CARD OR SIMILAR ITEM WHICH PERMITS A CONSUMER ADDITIONAL
CALLING TIME ON A PREPAID WIRELESS COMMUNICATIONS DEVICE.
  2. (A) A SURCHARGE ON PREPAID WIRELESS COMMUNICATIONS SERVICE PROVIDED
TO A RETAIL CUSTOMER IS IMPOSED AT THE RATE  OF  THREE  PERCENT  OF  THE
PURCHASE PRICE OF EACH WIRELESS COMMUNICATIONS SERVICE. WIRELESS PREPAID
DEVICES  AND EQUIPMENT SHALL BE EXCLUDED FROM SUCH SURCHARGE UNLESS SUCH
DEVICES ARE BUNDLED WITH SERVICE MINUTES.
  (B) EVERY RETAILER OF A WIRELESS COMMUNICATIONS SERVICE  IN  NEW  YORK
STATE MUST ACT AS A COLLECTION AGENT FOR THE STATE FOR THE COLLECTION OF
THE SURCHARGE IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION. THE
SURCHARGE  MUST  BE REPORTED AND PAID TO THE COMMISSIONER ON A QUARTERLY
BASIS ON OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING  EACH  QUAR-
TERLY  PERIOD ENDING ON THE LAST DAY OF FEBRUARY, MAY, AUGUST AND NOVEM-
BER, RESPECTIVELY. THE PAYMENTS MUST BE ACCOMPANIED BY A RETURN  IN  THE
FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY PRESCRIBE.
  (C)  EACH RETAILER IS ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE, AN
AMOUNT EQUAL TO ONE AND ONE-HALF PERCENT OF THE TOTAL COLLECTIONS OF THE
SURCHARGE IMPOSED BY THIS SECTION, PROVIDED THAT THE RETAILER FILES  ANY
REQUIRED  RETURN  AND REMITS THE SURCHARGE DUE TO THE COMMISSIONER ON OR
BEFORE ITS DUE DATE.
  (D) NOTWITHSTANDING SECTION TWO HUNDRED SEVEN-B OF THIS  ARTICLE,  THE
SURCHARGE IMPOSED BY THIS SECTION SHALL BE SUBJECT TO THE ADMINISTRATIVE
PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER.  THE TERM "TAXPAYER"
IN  ARTICLE TWENTY-EIGHT OF THIS CHAPTER REFERS TO A RETAILER OF PREPAID
WIRELESS COMMUNICATIONS SERVICE SUBJECT TO THIS  SECTION  AND  THE  TERM
"TAX"  IN  ARTICLE  TWENTY-EIGHT OF THIS CHAPTER REFERS TO THE SURCHARGE
IMPOSED BY THIS SECTION.
  3. THE PREPAID WIRELESS COMMUNICATIONS SURCHARGE SHALL BE COLLECTED BY
THE SELLER FROM THE CONSUMER WITH RESPECT  TO  EACH  RETAIL  TRANSACTION
OCCURRING  IN  THIS  STATE  CONSISTENT WITH ARTICLE TWENTY-EIGHT OF THIS
CHAPTER. THE AMOUNT OF THE 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.  THE
AMOUNT  OF  THE  SURCHARGE THAT IS COLLECTED BY A SELLER FROM A CONSUMER
PURSUANT TO THIS SECTION, WHETHER OR NOT SUCH AMOUNT IS SEPARATELY STAT-
ED ON AN INVOICE, RECEIPT, OR OTHER 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 THIS  STATE,
ANY  POLITICAL SUBDIVISION OF THIS STATE, OR ANY INTERGOVERNMENTAL AGEN-
CY.
  4. DEPOSITS OF SURCHARGE MONIES COLLECTED AND RECEIVED.  NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, ALL SURCHARGE MONIES COLLECTED
AND  RECEIVED  BY  THE COMMISSIONER UNDER THIS SECTION MUST BE DEPOSITED
DAILY TO THE CREDIT OF THE COMPTROLLER  WITH  THOSE  RESPONSIBLE  BANKS,
BANKING  HOUSES  OR TRUST COMPANIES THE COMPTROLLER MAY DESIGNATE. THOSE
DEPOSITS MUST BE KEPT SEPARATE AND APART FROM ALL OTHER  MONIES  IN  THE
POSSESSION  OF  THE  COMPTROLLER.  THE COMPTROLLER MUST REQUIRE ADEQUATE
SECURITY FROM ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE  COLLECTED  OR
RECEIVED  UNDER  THIS  SECTION, THE COMPTROLLER MUST RETAIN IN THE COMP-
TROLLER'S HANDS AN AMOUNT DETERMINED BY THE COMMISSIONER TO BE NECESSARY
FOR REFUNDS UNDER THIS SECTION, OUT OF WHICH THE  COMPTROLLER  WILL  PAY
ANY REFUNDS TO WHICH TAXPAYERS ARE ENTITLED UNDER THE PROVISIONS OF THIS
SECTION. THE COMPTROLLER, AFTER RESERVING THE AMOUNT TO PAY REFUNDS, AND

A. 8830--A                          3

AFTER DEDUCTING THE AMOUNT RETAINED BY WIRELESS COMMUNICATIONS RETAILERS
PURSUANT  TO  PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION, MUST, ON
OR BEFORE THE  TENTH  DAY  OF  EACH  MONTH,  PAY  ALL  SURCHARGE  MONIES
COLLECTED  AND  RECEIVED  UNDER  THIS SECTION AND REMAINING INTO THE NEW
YORK STATE WIRELESS TELEPHONE EMERGENCY SERVICE ACCOUNT OF THE MISCELLA-
NEOUS SPECIAL REVENUE FUND, CREATED PURSUANT TO SECTION  NINETY-SEVEN-QQ
OF THE STATE FINANCE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided that section two  of  this  act  shall  take
effect  on  the first day of the quarterly period, as described in para-
graph (b) of subdivision 2 of section 186-g of the tax law, as added  by
section two of this act, next commencing after this act becomes a law.

co-Sponsors

multi-Sponsors

View additional multi-sponsors

2009-A8830B (ACTIVE) - Details

Current Committee:: Assembly Ways And Means
Law Section:: Public Service Law
Laws Affected:: Add §92-g, Pub Serv L; add §186-g, Tax L

2009-A8830B (ACTIVE) - Summary

2009-A8830B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:A8830B

TITLE OF BILL:  An act to amend the public service law, in relation to
wireless communications devices; and to amend the tax law, in relation
to a surcharge on prepaid wireless communications service

PURPOSE:    This  legislation  will  require  that  all disposable and
pre-paid wireless communication devices sold in the state  be  capable
of  accessing 911 emergency services and enhanced 911 services; and be
capable  of  automatic  location  identification,  regardless  of  the
wireless  communications  service  contract  status on the device. The
legislation also provides for a three percent surcharge on the  retail
purchase  of  any  prepaid  wireless  communications  service,  to  be
collected at the point of sale, for the purposes  of  maintaining  and
enhancing the state's 911 and emergency communications capabilities.

SUMMARY  OF  PROVISIONS:    Section  1. Adds a new section 92-g to the
public service law requiring that all wireless communications  devices
sold  in  New York State must be capable of accessing 911 services and
enhanced 911 services, regardless of whether a  customer  maintains  a
contract for wireless communications on these devices.

Section  2,  Adds a new section 186-g to the tax law defining relevant
terms and; requires that a fee of 3% be affixed to  sales  of  prepaid
wireless  communications  services  and; requires that retailers shall
collect the aforementioned surcharge and remit this surcharge  to  the

commissioner  on  a quarterly basis and; allows retailers to retain an
administrative fee for their collection responsibility  and;  requires
that  the  surcharge  be  disclosed  to  the  consumer on a receipt or
invoice, etc. and;  requires  the  comptroller  to  retain  an  amount
determined  by  the  commissioner  for  refunds and; provides that all
revenue must be transferred exclusively to the New York State wireless
telephone emergency service account.

Section 3. Provides for an effective date.

JUSTIFICATION:   Currently, the state of New  York  collects  a  $1.20
monthly  fee on postpaid customers' wireless communications contracts.
The income from this fee is used to maintain the 911 system,  allowing
responders  to  identify  and  locate callers in an emergency. The 911
system requires infrastructure enhancement and updates  in  New  York;
without  these  updates, New Yorkers are serviced by a system that has
deficiencies that can cost  lives.  Updating  the  system  must  be  a
priority  for  all  of  us,  and revenue has to be generated for these
updates, especially at a time when resources  are  scarce.  Currently,
prepaid  cellular  services are becoming more prominent nationwide and
are a massive source of revenue for wireless providers. Due  to  holes
in  New  York's tax law, there exists no apparatus to collect 911 fees
from prepaid customers, despite the fact that  they  utilize  the  911
system. Collecting a 3% surcharge on an average $40 per month consumer
expenditure  (as  evidenced  by  a J.D. Powers and Associates Wireless
Prepaid Survey) will provide the 911 system with an average $1.20  per
month  from prepaid services. This funding will provide the 911 system
the income that it needs to improve its infrastructure and save lives.
Additionally,  the  bill  requires  that  all  cellular   devices   be
911-accessible  and  locatable where service is available, so that all


New Yorkers have consistent, high-quality, reliable access to the  911
system.

LEGISLATIVE HISTORY: This is new legislation.

FISCAL  IMPLICATIONS:    There  is no cost to the state; instead, this
legislation will generate new revenues to the state by  ensuring  that
purchasers of prepaid wireless communications services are required to
pay  E-911  surcharges,  similar  to  the  surcharges  associated with
monthly wireless device plans.

EFFECTIVE DATE:  This act shall take effect on the ninetieth day after
it shall have become a law; provided that  section  two  of  this  act
shall  take effect on the first day of the second quarterly period, as
described in paragraph (b) of subdivision 2 of section  186-g  of  the
tax  law,  as  added by section two of this act, next commencing after
this act becomes a law.

2009-A8830B (ACTIVE) - Bill Text download pdf

                            
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 8830--B

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                              June 11, 2009
                               ___________

Introduced  by  M. of A. KOON, JAFFEE, CASTRO, ESPAILLAT, COOK -- Multi-
  Sponsored by -- M. of A. DelMONTE, GABRYSZAK, MENG, SKARTADOS, TITONE,
  WEISENBERG -- read once and referred to the Committee on Corporations,
  Authorities and Commissions --  committee  discharged,  bill  amended,
  ordered  reprinted  as  amended  and  recommitted to said committee --
  recommitted to the Committee on Corporations, Authorities and  Commis-
  sions  in  accordance  with  Assembly  Rule  3,  sec.  2  -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

AN ACT to amend the public service law, in relation to wireless communi-
  cations devices; and to amend the tax law, in relation to a  surcharge
  on prepaid wireless communications service

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The public service law is amended by adding a  new  section
92-g to read as follows:
  S  92-G. AUTOMATIC LOCATION IDENTIFICATION AND ACCESS TO 911 EMERGENCY
SERVICES FOR WIRELESS COMMUNICATIONS DEVICES.    ALL  WIRELESS  COMMUNI-
CATION  DEVICES SOLD IN THIS STATE, INCLUDING BUT NOT LIMITED TO DISPOS-
ABLE AND PREPAID DEVICES, SHALL BE CAPABLE OF  ACCESSING  911  EMERGENCY
SERVICES  AND  ENHANCED 911 SERVICES AS DEFINED IN SECTION THREE HUNDRED
ONE OF THE COUNTY LAW, WHERE AVAILABLE, AND SHALL BE CAPABLE OF AUTOMAT-
IC LOCATION IDENTIFICATION,  REGARDLESS  OF  WHETHER  THE  CONSUMER  HAS
ENTERED  INTO  OR  MAINTAINS  A  CONTRACT  FOR  WIRELESS  COMMUNICATIONS
SERVICES FOR SUCH DEVICE.
  S 2. The tax law is amended by adding a new section 186-g to  read  as
follows:
  S  186-G.  PREPAID WIRELESS COMMUNICATIONS SURCHARGE. 1.  DEFINITIONS.
(A) "CONSUMER" MEANS A PERSON WHO PURCHASES A PREPAID WIRELESS  TELECOM-
MUNICATIONS DEVICE OR SERVICE IN A RETAIL TRANSACTION.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD14159-04-9

A. 8830--B                          2

  (B)  "WIRELESS  COMMUNICATIONS  DEVICE"  MEANS  ANY  EQUIPMENT USED TO
ACCESS A WIRELESS COMMUNICATIONS SERVICE.
  (C)  "PREPAID  WIRELESS  TELECOMMUNICATIONS  SERVICE" MEANS A WIRELESS
TELECOMMUNICATIONS SERVICE WHICH MUST BE PAID FOR IN ADVANCE AND IS SOLD
IN PREDETERMINED UNITS OR DOLLARS OF WHICH THE NUMBER DECLINES WITH  USE
IN A KNOWN AMOUNT, AND SHALL INCLUDE BUT NOT BE LIMITED TO PREPAID CALL-
ING  CARDS  AS DEFINED IN SECTION NINETY-TWO-F OF THE PUBLIC SERVICE LAW
OR ANY OTHER CARD OR SIMILAR ITEM WHICH PERMITS  A  CONSUMER  ADDITIONAL
CALLING TIME ON A PREPAID WIRELESS COMMUNICATIONS DEVICE.
  2. (A) A SURCHARGE ON PREPAID WIRELESS COMMUNICATIONS SERVICE PROVIDED
TO  A  RETAIL  CUSTOMER  IS  IMPOSED AT THE RATE OF THREE PERCENT OF THE
PURCHASE PRICE OF EACH WIRELESS COMMUNICATIONS SERVICE. WIRELESS PREPAID
DEVICES AND EQUIPMENT SHALL BE EXCLUDED FROM SUCH SURCHARGE UNLESS  SUCH
DEVICES ARE BUNDLED WITH SERVICE MINUTES.
  (B)  EVERY  RETAILER  OF A WIRELESS COMMUNICATIONS SERVICE IN NEW YORK
STATE MUST ACT AS A COLLECTION AGENT FOR THE STATE FOR THE COLLECTION OF
THE SURCHARGE IMPOSED PURSUANT TO PARAGRAPH (A) OF THIS SUBDIVISION. THE
SURCHARGE MUST BE REPORTED AND PAID TO THE COMMISSIONER ON  A  QUARTERLY
BASIS  ON  OR BEFORE THE FIFTEENTH DAY OF THE MONTH FOLLOWING EACH QUAR-
TERLY PERIOD ENDING ON THE LAST DAY OF FEBRUARY, MAY, AUGUST AND  NOVEM-
BER,  RESPECTIVELY.  THE PAYMENTS MUST BE ACCOMPANIED BY A RETURN IN THE
FORM AND CONTAINING THE INFORMATION THE COMMISSIONER MAY PRESCRIBE.
  (C) EACH RETAILER IS ENTITLED TO RETAIN, AS AN ADMINISTRATIVE FEE,  AN
AMOUNT EQUAL TO ONE AND ONE-HALF PERCENT OF THE TOTAL COLLECTIONS OF THE
SURCHARGE  IMPOSED BY THIS SECTION, PROVIDED THAT THE RETAILER FILES ANY
REQUIRED RETURN AND REMITS THE SURCHARGE DUE TO THE COMMISSIONER  ON  OR
BEFORE ITS DUE DATE.
  (D)  NOTWITHSTANDING  SECTION TWO HUNDRED SEVEN-B OF THIS ARTICLE, THE
SURCHARGE IMPOSED BY THIS SECTION SHALL BE SUBJECT TO THE ADMINISTRATIVE
PROVISIONS OF ARTICLE TWENTY-EIGHT OF THIS CHAPTER.  THE TERM "TAXPAYER"
IN ARTICLE TWENTY-EIGHT OF THIS CHAPTER REFERS TO A RETAILER OF  PREPAID
WIRELESS  COMMUNICATIONS  SERVICE  SUBJECT  TO THIS SECTION AND THE TERM
"TAX" IN ARTICLE TWENTY-EIGHT OF THIS CHAPTER REFERS  TO  THE  SURCHARGE
IMPOSED BY THIS SECTION.
  3. THE PREPAID WIRELESS COMMUNICATIONS SURCHARGE SHALL BE COLLECTED BY
THE  SELLER  FROM  THE  CONSUMER WITH RESPECT TO EACH RETAIL TRANSACTION
OCCURRING IN THIS STATE CONSISTENT WITH  ARTICLE  TWENTY-EIGHT  OF  THIS
CHAPTER.  THE  AMOUNT OF THE 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. THE
AMOUNT OF THE SURCHARGE THAT IS COLLECTED BY A SELLER  FROM  A  CONSUMER
PURSUANT TO THIS SECTION, WHETHER OR NOT SUCH AMOUNT IS SEPARATELY STAT-
ED  ON  AN  INVOICE,  RECEIPT, OR OTHER 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 THIS STATE,
ANY POLITICAL SUBDIVISION OF THIS STATE, OR ANY INTERGOVERNMENTAL  AGEN-
CY.
  4.  DEPOSITS OF SURCHARGE MONIES COLLECTED AND RECEIVED. NOTWITHSTAND-
ING ANY PROVISION OF LAW TO THE CONTRARY, ALL SURCHARGE MONIES COLLECTED
AND RECEIVED BY THE COMMISSIONER UNDER THIS SECTION  MUST  BE  DEPOSITED
DAILY  TO  THE  CREDIT  OF THE COMPTROLLER WITH THOSE RESPONSIBLE BANKS,
BANKING HOUSES OR TRUST COMPANIES THE COMPTROLLER MAY  DESIGNATE.  THOSE
DEPOSITS  MUST  BE  KEPT SEPARATE AND APART FROM ALL OTHER MONIES IN THE
POSSESSION OF THE COMPTROLLER. THE  COMPTROLLER  MUST  REQUIRE  ADEQUATE
SECURITY  FROM  ALL SUCH DEPOSITORIES. OF THE TOTAL REVENUE COLLECTED OR
RECEIVED UNDER THIS SECTION, THE COMPTROLLER MUST RETAIN  IN  THE  COMP-

A. 8830--B                          3

TROLLER'S HANDS AN AMOUNT DETERMINED BY THE COMMISSIONER TO BE NECESSARY
FOR  REFUNDS  UNDER  THIS SECTION, OUT OF WHICH THE COMPTROLLER WILL PAY
ANY REFUNDS TO WHICH TAXPAYERS ARE ENTITLED UNDER THE PROVISIONS OF THIS
SECTION. THE COMPTROLLER, AFTER RESERVING THE AMOUNT TO PAY REFUNDS, AND
AFTER DEDUCTING THE AMOUNT RETAINED BY WIRELESS COMMUNICATIONS RETAILERS
PURSUANT  TO  PARAGRAPH (C) OF SUBDIVISION TWO OF THIS SECTION, MUST, ON
OR BEFORE THE  TENTH  DAY  OF  EACH  MONTH,  PAY  ALL  SURCHARGE  MONIES
COLLECTED  AND  RECEIVED  UNDER  THIS SECTION AND REMAINING INTO THE NEW
YORK STATE WIRELESS TELEPHONE EMERGENCY SERVICE ACCOUNT OF THE MISCELLA-
NEOUS SPECIAL REVENUE FUND, CREATED PURSUANT TO SECTION  NINETY-SEVEN-QQ
OF THE STATE FINANCE LAW.
  S  3.  This  act shall take effect on the ninetieth day after it shall
have become a law; provided that section two  of  this  act  shall  take
effect  on the first day of the second quarterly period, as described in
paragraph (b) of subdivision 2 of section 186-g of the tax law, as added
by section two of this act, next commencing after  this  act  becomes  a
law.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Find your Senator and share your views on important issues.

Do you support this bill?

Assembly Bill A8830B

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A8830 - Details

2009-A8830 - Summary

2009-A8830 - Sponsor Memo

2009-A8830 - Bill Text download pdf

co-Sponsors

multi-Sponsors

2009-A8830A - Details

2009-A8830A - Summary

2009-A8830A - Sponsor Memo

2009-A8830A - Bill Text download pdf

co-Sponsors

multi-Sponsors

2009-A8830B (ACTIVE) - Details

2009-A8830B (ACTIVE) - Summary

2009-A8830B (ACTIVE) - Sponsor Memo

2009-A8830B (ACTIVE) - Bill Text download pdf

Comments

Do you support this bill?

Get Status Alerts for 2009-A8830B

Assembly Bill A8830B

Share this bill

Sponsored By

KOON

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

2009-A8830 - Details

2009-A8830 - Summary

2009-A8830 - Sponsor Memo

2009-A8830 - Bill Text download pdf

co-Sponsors

Ellen C. Jaffee

Nelson Castro

Adriano Espaillat

Vivian Cook

multi-Sponsors

Francine DelMonte

Dennis H. Gabryszak

Grace Meng

Frank Skartados

2009-A8830A - Details

2009-A8830A - Summary

2009-A8830A - Sponsor Memo

2009-A8830A - Bill Text download pdf

co-Sponsors

Ellen C. Jaffee

Nelson Castro

Adriano Espaillat

Vivian Cook

multi-Sponsors

Francine DelMonte

Dennis H. Gabryszak

Grace Meng

Frank Skartados

2009-A8830B (ACTIVE) - Details

2009-A8830B (ACTIVE) - Summary

2009-A8830B (ACTIVE) - Sponsor Memo

2009-A8830B (ACTIVE) - Bill Text download pdf

Comments