Relates to 911 calls made on prepaid cell phones

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.