HB-5952, As Passed Senate, December 13, 2012

 

 

Text Box: HOUSE BILL No. 5952

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5952

 

September 27, 2012, Introduced by Rep. Nesbitt and referred to the Committee on Energy and Technology.

 

     A bill to amend 1986 PA 32, entitled

 

"Emergency 9-1-1 service enabling act,"

 

by amending section 401c (MCL 484.1401c), as amended by 2012 PA

 

260.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 401c. (1) A seller shall collect a prepaid wireless 9-1-1

 

surcharge from a consumer for each retail transaction occurring in

 

this state.

 

     (2) The amount of the prepaid wireless 9-1-1 surcharge shall

 

be 1.92% per retail transaction. The charge allowed under this

 

section shall be either separately stated on an invoice, receipt,

 

or other similar document that is provided to a consumer by the

 

seller or otherwise disclosed to the consumer.

 

     (3) Each of the following transactions shall be is considered

 

to have occurred in this state:

 

     (a) A retail transaction that is effected in person by a

 

consumer at a business location of a seller located in this state.

 

     (b) A retail transaction that is treated as occurring in this

 

state as provided in section 3c of the use tax act, 1937 PA 94, MCL

 

205.93c, as that section applies to a prepaid wireless calling

 

service.

 

     (4) A prepaid wireless 9-1-1 surcharge is the liability of the

 

consumer and not of the seller or of any provider.

 

     (5) Except as otherwise provided in subsection (6), if a

 

prepaid wireless telecommunications service is sold with 1 or more

 

products or services for a single, nonitemized price, the seller

 

shall collect 1.92% on the entire nonitemized price unless the

 

seller elects to do the following:

 

     (a) If the amount of the prepaid wireless telecommunications

 

service is disclosed to the consumer as a dollar amount, apply the

 

percentage to that dollar amount.

 

     (b) If the seller can identify the portion of the price that

 

is attributable to the prepaid wireless telecommunications service

 

by reasonable and verifiable standards from its books and records

 

that are kept in the regular course of business for other purposes

 

including, but not limited to, nontax purposes, apply the

 

percentage to that portion.

 

     (6) If a minimal amount of prepaid wireless telecommunications

 

service is sold with a prepaid wireless device for a single,

 

nonitemized price, a seller may elect not to apply the percentage

 

specified in subsection (5)(a) to that transaction. As used in this

 

subsection, "minimal amount" means an amount of service denominated


 

as 10 minutes or less or $5.00 or less.

 

     (7) The prepaid wireless 9-1-1 surcharge shall be remitted at

 

the same time and in the same manner as the taxes provided by the

 

general sales tax act, 1933 PA 167, MCL 205.51 to 205.78. The

 

department shall establish record keeping, payment, and other

 

procedures for providers or sellers that are substantially similar

 

to those applicable procedures for taxpayers imposed under the

 

general sales tax act, 1933 PA 167, MCL 205.51 to 205.78. The

 

department shall deposit the prepaid wireless 9-1-1 surcharges

 

monthly by the seller to the state treasurer and deposited in the

 

emergency 9-1-1 fund created in section 407.

 

     (8) The prepaid wireless 9-1-1 surcharge imposed by this act

 

shall be administered by the department under 1941 PA 122, MCL

 

205.1 to 205.31, and this act. If the provisions of 1941 PA 122,

 

MCL 205.1 to 205.31, and this act conflict, the provisions of this

 

act apply.

 

     (9) The department shall promulgate rules to implement this

 

section pursuant to the administrative procedures act of 1969, 1969

 

PA 306, MCL 24.201 to 24.328.

 

     (8) (10) A seller may retain 2% of prepaid wireless 9-1-1

 

surcharges that are collected by the seller to reimburse the seller

 

for its direct costs in collecting and remitting the prepaid

 

wireless 9-1-1 surcharges.

 

     (9) (11) A provider or seller of prepaid wireless

 

telecommunications service is not liable for damages to any person

 

resulting from or incurred in connection with the provision of, or

 

failure to provide, 9-1-1 service or for identifying or failing to


 

identify the telephone number, address, location, or name

 

associated with any person or device that is accessing or

 

attempting to access 9-1-1 service.

 

     (10) (12) A provider or seller of prepaid wireless

 

telecommunications service is not liable for damages to any person

 

resulting from or incurred in connection with the provision of any

 

lawful assistance to any investigative or law enforcement officer

 

of the United States, this state, or any other state in connection

 

with any lawful investigation or other law enforcement activity by

 

that law enforcement officer.

 

     (11) (13) As used in this section:

 

     (a) "Consumer" means a person who purchases prepaid wireless

 

telecommunications services in a retail transaction.

 

     (b) "Department" means the Michigan department of treasury.

 

     (c) "Prepaid wireless 9-1-1 surcharge" means the fee that is

 

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

 

established under subsection (2).

 

     (d) "Provider" means a person that provides prepaid wireless

 

telecommunications services under a license issued by the federal

 

communications commission.

 

     (e) "Retail transaction" means the purchase of prepaid

 

wireless telecommunications service from a seller for any purpose

 

other than resale.

 

     (f) "Seller" means a person who sells prepaid wireless

 

telecommunications service to another person.