Laws, Regulations & Annotations

Business Taxes Law Guide – Revision 2013
 

Emergency Telephone Users Surcharge Law

CHAPTER 1. GENERAL PROVISIONS AND DEFINITIONS.

Emergency Telephone Users Surcharge Law

(Part 20, Division 2, Revenue and Taxation Code)

Enacted Statutes 1976, Chapter 443, operative July 1, 1977; amended Statutes 1977, Chapter 921; Statutes 1978, Chapters 352, 827 Statutes 1979, Chapter 906; Statutes 1980, Chapters 546, 1035. Statutes 1981, Chapters 714, 947. Statutes 1982, Chapters 5 (First Extra Session), 517, and 1589.

Chapter 1. General Provisions and Definitions

41001. Title. This part is known and may be cited as the "Emergency Telephone Users Surcharge Act".

41002. Construction. Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.

41003. "Person." "Person" includes an individual, firm, partnership, joint venture, limited liability company, association, cooperative organization, fraternal organization, nonprofit organization, corporation, estate, trust, business or common law trust, receiver, assignee for the benefit of creditors, trustee or trustee in bankruptcy.

"Person" does not include a nonprofit hospital, nonprofit educational organization, or a public agency.

History.—Stats. 1994, Ch. 1200, in effect September 30, 1994, deleted "copartnership" and added "limited liability company".

41004. "Board." "Board" means the State Board of Equalization.

41005. "In this state." "In this state" means within the exterior limits of the State of California and includes all territory within those limits owned by or ceded to the United States of America.

41006. "Public agency." "Public agency" means this state, and any city, county, city and county, municipal corporation, public district, or public authority located in whole or in part within this state which provides or has authority to provide firefighting, police, ambulance, medical, or other emergency services.

41007. "Service supplier." (a) "Service supplier" shall mean both of the following:

(1) A person supplying intrastate telephone communication services to a service user in this state pursuant to California intrastate tariffs and providing access to the "911" emergency system by utilizing the digits 9-1-1.

(2) A person supplying Voice over Internet Protocol (VoIP) service to a service user in this state and providing access to the "911" emergency system by utilizing the digits 9-1-1.

(b) On and after January 1, 1988, "service supplier" also includes a person supplying intrastate telephone communication services for whom the Public Utilities Commission, by rule or order, modifies or eliminates the requirement for that person to prepare and file California intrastate tariffs.

History.—Stats. 1986, Ch. 1477, effective September 30, 1986, inserted "pursuant to California Intrastate tariffs" after "communication services". Stats. 1987, Ch. 556, effective January 1, 1988, inserted "(a)" before first paragraph and added paragraph (b). Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, revised subdivision (a) which read, ""Service supplier" shall mean any person supplying intrastate telephone communication services pursuant to California intrastate tariffs to any service user in the state." Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, substituted "A" or "a" for "Any" or "any" throughout section and substituted "communication" for "communications" after "supplying intrastate telephone" in subdivision (b).

41008. "Month." As used in this part, "month" shall mean a calendar month.

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41009. "Service user." "Service user" means any person using intrastate telephone communication services or VoIP service in this state who is required to pay a surcharge under the provisions of this part.

Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, added "or VoIP service" after communication services".

41010. "Intrastate telephone communication services." "Intrastate telephone communication services" means all local or toll telephone services where the point or points of origin and the point or points of destination of the service are all located in this state.

41011. "Charges for services." (a) "Charges for services" means all charges billed by a service supplier to a service user for intrastate telephone communication services and shall mean local telephone service and include monthly service flat-rate charges for usage, message unit charges and shall mean toll charges, and include intrastate wide area telephone service charges and also means all charges billed by a service supplier to a service user for VoIP service.

(b) (1) "Charges for services" shall not include any tax imposed by the United States or by any charter city, charges for service paid by insertingcoins in a public coin-operated telephone, and shall not apply to amounts billed to nonsubscribers for coin shortages. Where a coin-operated telephone service is furnished for a guarantee or other periodic amount, such amount is subject to the surcharge imposed by this part.

(2) "Charges for services" shall not include charges for intrastate toll calls where bills for such calls originate out of California.

(3) "Charges for services" shall not include charges for any nonrecurring, installation, service connection or one-time charge for service or directory advertising, and shall not include private communication service charges, charges for other than communication service, or any charge made by a hotel or motel for service rendered in placing calls for its guests regardless of how such hotel or motel charge is denominated or characterized by an applicable tariff of the Public Utilities Commission of this state.

(4) "Charges for services" shall not include charges for basic exchange line service for lifeline services.

History.—Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, lettered the former first paragraph as subdivision (a), and substituted "intrastate wide" for "intra state wide" after ", and include" and added "and also means all charges billed by a service supplier to a service user for VoIP service" after "telephone service charges" in subdivision (a); and lettered the former second, third, and fourth paragraphs as subdivision (b) (1), (2), and (3), respectively. Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, substituted "communication" for "communications" in subdivision (a) and paragraph (3) of subdivision (b).

41012. "Public telephone." "Public telephone" means any coin-operated telephone provided by the serving telephone company accessible to the public.

41013. "Surcharge." "Surcharge" means a tax levied by this state.

41014. Authorization. Notwithstanding any other provision of law to the contrary, persons subject to the jurisdiction of the Public Utilities Commission of the State of California need not obtain an authorization from the commission to comply with the provisions of this part, nor shall such persons obtain any such authorization on behalf of any hotel or motel, in order that such entities be permitted to collect and recoup the surcharge imposed hereby upon any charge for services measured by time units or other time measurement, from their guests, in addition to any applicable tariff rates.

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41015. "Local telephone service." "Local telephone service" shall mean both of the following:

(a) The access to a local telephone system, and the privilege of telephonic quality communication with substantially all persons having telephone or radiotelephone stations constituting a part of the local telephone system.

(b) Any facility or service provided in connection with a service described in subdivision (a).

The term "local telephone service" does not include any service which is a "toll telephone service" or a "private communication service."

History.—Stats. 1987, Ch. 38, effective January 1, 1988, in first sentence, added "both of the following:" after "shall mean", replaced "such" with "the" in paragraph (a) and ", and" for a period after "local telephone system," in paragraph (b) replaced "paragraph (1)" with "subdivision (a)" and in the last sentence, replaced closing quotation mark following "private communication service" after period.

41016. "Toll telephone service." "Toll telephone service" means either of the following:

(a) A telephonic quality communication that meets both of the following requirements:

(1) There is a toll charge for the service that varies in amount with either the distance or elapsed transmission time, or the distance and elapsed transmission time, of each individual communication.

(2) The charge is paid within the United States.

(b) A service which entitles the subscriber, upon payment of a periodic charge (determined as a flat amount or upon the basis of total elapsed transmission time), to the privilege of a predetermined amount of units or dollars of telephonic communications or an unlimited number of telephonic communications to or from all or a substantial portion of the persons having telephone or radiotelephone stations in a specified area which is outside the local telephone system area in which the station provided with this service is located.

History.—Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, revised the former subdivision (a) which read, ""Toll telephone service" shall mean (a) A telephonic quality communication for which (1) there is a toll charge which varies in amount with the distance and elapsed transmission time of each individual communication and (2) the charge is paid within the United States, and"; and added "a predetermined amount of units or dollars of telephonic communications or" after ", to the privilege of" in subdivision (b).

41016.5. "VoIP service." (a) "VoIP service" means any service that satisfies the requirements set forth in paragraph (1) and (2).

(1) Does all of the following:

(A) Enables real-time, two-way voice communication that originates from and terminates to the user's location using Internet Protocol (IP) or any successor protocol.

(B) Requires a broadband connection from the user's location.

(C) Permits users, generally, to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

(2) Does at least one of the following:

(A) Requires Internet protocol-compatible customer premises equipment (CPE).

(B) When necessary, is converted to or from transmission control protocol (TCP)/IP by the service user's service supplier before or after being switched by the public switched telephone network.

(C) Is a service that the Federal Communications Commission (FCC) has affirmatively required to provide 911 or E911 service.

(b) This definition shall only apply to this part.

History.—Added by Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008.

41017. "Private communication service." "Private communication service" shall mean

(a) The communication service furnished to a subscriber which entitles the subscriber—

(1) To exclusive or priority use of any communication channel or groups of channels, or

(2) To the use of an intercommunication system for the subscriber's stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in Sections 41015 and 41016,

(b) Switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of channels or systems described in subdivision (a), and

(c) The channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term shall not include any communication service unless a separate charge is made for such service.

41018. "Communications equipment company." "Communications equipment company" shall mean a manufacturer or vendor that sells or leases communications equipment.

41019. Exemption. No surcharge shall be imposed on charges for any types of service or equipment furnished by a service supplier subject to state or federal public utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons not subject to state or federal public utility regulation.

History.—Stats. 1986, Ch. 1477, effective September 30, 1986, inserted "state or federal" after "furnished by a service supplier subject to" and replaced "not subject to state or federal public utility regulation" for "other than a service supplier subject to public utility regulation."

41019.5. Legislative intent for VoIP service. (a) It is the intent of the Legislature that telephone quality communication utilizing VoIP shall not be regulated by the enactment of Senate Bill 1040 of the 2007–08 Regular Session. The sole purpose of this act is to ensure that all forms of telephonic quality communications that connect to the "911" emergency system contribute to the State Emergency Telephone Number Account and that this act may not be used by a court or administrative body for any purpose other than to interpret and apply this part.

(b) For purposes of this section only, "VoIP" means any service that:

(1) Enables real-time or two-way voice communication that originates or terminates from the user's location using IP or any successor protocol.

(2) Uses a broadband connection from the user's location, including any service that permits users, generally, to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network.

History.—Added by Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008.

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