S-4102.1                   _______________________________________________

 

                                                     SENATE BILL 6265

                              _______________________________________________

 

State of Washington                              53rd Legislature                             1994 Regular Session

 

By Senators Sutherland, Amondson, Snyder, Pelz, Erwin, Fraser and Winsley

 

Read first time 01/18/94.  Referred to Committee on Energy & Utilities.

 

Implementing the cellular communications tax study recommendations regarding 911 emergency communication system funding.



          AN ACT Relating to the implementation of the cellular communications tax study recommendations regarding 911 emergency communication system funding; amending RCW 82.14B.020, 82.14B.030, 82.14B.040, and 38.52.540; adding a new section to chapter 38.52 RCW; creating new sections; providing an effective date; and declaring an emergency.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

 

          NEW SECTION.  Sec. 1.  (1) The legislature finds that:

          (a) Emergency services communication systems, including enhanced 911 telephone systems, are currently funded with revenues from state and local excise taxes imposed on the use of switched access lines;

          (b) Users of cellular communication systems and other similar wireless telecommunications systems do not use switched access lines and are not currently subject to these excise taxes; and

          (c) The volume of 911 calls by users of cellular communications systems and other similar wireless telecommunications systems has increased in recent years.

          (2) The intent of this act is to acknowledge the recommendations regarding 911 emergency communication system funding as detailed in the report to the legislature dated November 1993, entitled "Taxation of Cellular Communications in Washington State," to authorize imposition and collection of the twenty-five cent county tax discussed in chapter 6 of that report, and to require the department of revenue to continue the study of such funding as detailed in the report.

 

        Sec. 2.  RCW 82.14B.020 and 1991 c 54 s 10 are each amended to read as follows:

          As used in this chapter:

          (1) "Emergency services communication system" means a multicounty, county-wide, or district-wide radio or landline communications network, including an enhanced 911 telephone system, which provides rapid public access for coordinated dispatching of services, personnel, equipment, and facilities for police, fire, medical, or other emergency services.

          (2) "Enhanced 911 telephone system" means a public telephone system consisting of a network, data base, and on-premises equipment that is accessed by dialing 911 and that enables reporting police, fire, medical, or other emergency situations to a public safety answering point.  The system includes the capability to selectively route incoming 911 calls to the appropriate public safety answering point that operates in a defined 911 service area and the capability to automatically display the name, address, and telephone number of incoming 911 calls at the appropriate public safety answering point.

          (3) "Switched access line" means the telephone service line which connects a subscriber's main telephone(s) or equivalent main telephone(s) to the local exchange company's switching office.

          (4) "Local exchange company" has the meaning ascribed to it in RCW 80.04.010.

          (5) "Radio access line" means the telephone number assigned to or used by an end user for two-way local wireless voice service available to the public for hire from a radio communications service company.  Radio access lines include, but are not limited to, radio-telephone communications lines used in cellular telephone service, personal communications services, and network radio access lines, or their functional and competitive equivalent.  Radio access lines do not include lines that provide access to one-way signalling service, such as paging service, or to communications channels suitable only for data transmission, or to nonlocal radio access line service, such as wireless roaming service, or to a private telecommunications system.

          (6) "Radio communications service company" has the meaning ascribed to it in RCW 80.04.010.

          (7) "Private telecommunications system" has the meaning ascribed to it in RCW 80.04.010.

 

        Sec. 3.  RCW 82.14B.030 and 1991 c 54 s 11 are each amended to read as follows:

          (1) The legislative authority of a county may impose a county enhanced 911 excise tax on the use of switched access lines in an amount not exceeding fifty cents per month for each switched access line.  The amount of tax shall be uniform for each switched access line.  Each county shall provide notice of such tax to all local exchange companies serving in the county at least sixty days in advance of the date on which the first payment is due.

          (2) The legislative authority of a county may also impose a county 911 excise tax on the use of radio access lines located within the county in an amount not exceeding twenty-five cents per month for each radio access line.  The amount of tax shall be uniform for each radio access line.  The county shall provide notice of such tax to all radio communications service companies serving in the county at least sixty days in advance of the date on which the first payment is due.  Any county imposing this tax shall include in its ordinance a refund mechanism whereby the amount of any tax ordered to be refunded by the judgment of a court of record, or as a result of the resolution of any appeal therefrom, shall be refunded to the radio communications service company or local exchange company that collected the tax, and those companies shall reimburse the users who paid the tax.  The ordinance shall further provide that to the extent the users who paid the tax cannot be identified or located, the tax paid by those users shall be returned to the county.

          (3) Beginning January 1, 1992, a state enhanced 911 excise tax is imposed on all switched access lines in the state.  For 1992, the tax shall be set at a rate of twenty cents per month for each switched access line.  Until December 31, 1998, the amount of tax shall not exceed twenty cents per month for each switched access line and thereafter shall not exceed ten cents per month for each switched access line.  The tax shall be uniform for each switched access line.  Tax proceeds shall be deposited by the treasurer in the enhanced 911 account created in RCW 38.52.540.

          (((3))) (4) By August 31st of each year the state enhanced 911 coordinator shall recommend the level for the next year of the state enhanced 911 excise tax to the utilities and transportation commission.  The commission shall by the following October 31st determine the level of the state enhanced 911 excise tax for the following year.

 

        Sec. 4.  RCW 82.14B.040 and 1991 c 54 s 12 are each amended to read as follows:

          The state enhanced 911 tax and the county enhanced 911 tax ((created in this chapter)) on switched access lines shall be collected from the user by the local exchange company providing the switched access line.  The ((local exchange company shall state)) county 911 tax on radio access lines shall be collected from the end user by the radio communications service company providing the radio access line to the end user.  The amount of the ((taxes)) tax shall be stated separately on the billing statement which is sent to the user.

 

          NEW SECTION.  Sec. 5.  A new section is added to chapter 38.52 RCW to read as follows:

          Any person as defined in RCW 82.04.030 owning, operating, or managing any facilities used to provide wireless two-way telecommunications services for hire, sale, or resale which allow access to 911 emergency services shall provide a system of automatic number identification which allows the 911 operator to automatically identify the number of the caller.

 

          NEW SECTION.  Sec. 6.  (1) The department of revenue shall conduct a study of base and rate for the 911 excise tax.  The study shall address but not be limited to the following questions:

          (a) What is the current tax base for enhanced 911 excise tax?  Who is included in the current tax base?  Who is not included in the current tax base?

          (b) What have been and what are projected to be the 911 tax revenues, expenditures, and funding sources?

          (c) How are 911 systems funded in other states?

          (d) What would be an appropriate tax base and tax rate for a 911 tax?

          (e) What are the fiscal impacts of changing the tax base or tax rate, or both?

          (f) Does the proposed tax base cover all current and projected future technologies?

          (2) To perform this study, the department of revenue shall form an advisory study committee with balanced representation which must include, but need not be limited to, representatives from county government, representatives of both wireline and wireless telecommunications companies, large and small businesses that use wireline and wireless telecommunications services, the department of community, trade, and economic development, and county 911 coordinators.  The committee shall also include two members from the house of representatives, one from each caucus, appointed by the speaker of the house of representatives, and two members from the senate, one from each caucus, appointed by the president of the senate.

          (3) The department of revenue shall provide staff for the purpose of the study.

          (4) The department of revenue shall present a final report of the findings of the study to the committees of the legislature that deal with revenue matters no later than July 1, 1995.

 

        Sec. 7.  RCW 38.52.540 and 1991 c 54 s 6 are each amended to read as follows:

          The enhanced 911 account is created in the state treasury.  All receipts from the state enhanced 911 excise tax imposed by RCW 82.14B.030 shall be deposited into the account.  Moneys in the account shall be used only to help implement and operate enhanced 911 state-wide, and to conduct a study of the tax base and rate for the 911 excise tax.  The state enhanced 911 coordinator, with the advice and assistance of the enhanced 911 advisory committee, shall specify by rule the purposes for which moneys may be expended from this account.

 

          NEW SECTION.  Sec. 8.  This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and shall take effect immediately, except section 5 of this act shall take effect January 1, 1995.

 


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