Code Section Group

Revenue and Taxation Code - RTC

DIVISION 2. OTHER TAXES [6001 - 61045]

  ( Heading of Division 2 amended by Stats. 1968, Ch. 279. )

PART 20. EMERGENCY TELEPHONE USERS SURCHARGE ACT [41001 - 41176]

  ( Heading of Part 20 amended by Stats. 2017, Ch. 561, Sec. 241. )

CHAPTER 1. General Provisions and Definitions [41001 - 41019.5]
  ( Chapter 1 added by Stats. 1976, Ch. 443. )

41001.
  

This part is known and may be cited as the “Emergency Telephone Users Surcharge Act”.

(Added by Stats. 1976, Ch. 443.)

41002.
  

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

(Added by Stats. 1976, Ch. 443.)

41003.
  

“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.

(Amended by Stats. 1994, Ch. 1200, Sec. 73. Effective September 30, 1994.)

41004.
  

“Department” means the California Department of Tax and Fee Administration.

(Repealed and added by Stats. 2019, Ch. 54, Sec. 2. (SB 96) Effective July 1, 2019.)

41005.
  

“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.

(Added by Stats. 1974, Ch. 443.)

41006.
  

“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.

(Added by Stats. 1976, Ch. 443.)

41007.
  

(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.

(c) This section shall become inoperative on January 1, 2020, and shall be repealed as of that date.

(Amended by Stats. 2019, Ch. 54, Sec. 3. (SB 96) Effective July 1, 2019. Repealed as of January 1, 2020, by its own provisions. See later operative version added by Sec. 4 of Stats. 2019, Ch. 54.)

41007.
  

(a) “Service supplier” shall mean a person supplying an access line to a service user in this state.

(b) This section shall become operative on January 1, 2020.

(Repealed (in Sec. 3) and added by Stats. 2019, Ch. 54, Sec. 4. (SB 96) Effective July 1, 2019. Section operative January 1, 2020, by its own provisions.)

41007.1.
  

“Access line” shall mean any of the following:

(a) A wireline communications service line.

(b) A wireless communications service line.

(c) A VoIP service line, as defined by Section 41016.5 as added by the act adding this section.

(Added by Stats. 2019, Ch. 54, Sec. 5. (SB 96) Effective July 1, 2019.)

41007.2.
  

(a) “Wireline communications service” shall mean a local exchange service provided at a physical location in this state that allows the user to make an outbound communication to the 911 emergency communications system.

(b) For the purposes of the surcharge imposed by Chapter 2 (commencing with Section 41020):

(1) A wireline communications service access line does not include a direct inward dialing number, extension, or other similar feature that routes an inbound call and cannot provide access to the 911 emergency communications system.

(2) The number of surcharges imposed shall not exceed the total number of concurrent outbound calls that can be placed to the emergency communications system at a single point of time.

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

(Added by Stats. 2019, Ch. 54, Sec. 6. (SB 96) Effective July 1, 2019.)

41007.3.
  

(a) “Wireless communications service line” shall mean a telecommunications service provided to an end user with a place of primary use in this state that allows the end user to make an outbound communication to the 911 emergency communications system. A wireless communications service line shall not include prepaid mobile telephony service.

(b) For the purposes of the surcharge imposed by Chapter 2 (commencing with Section 41020), not more than one surcharge may be imposed per wireless communications service line number assigned to an end user of mobile telecommunications service.

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

(Added by Stats. 2019, Ch. 54, Sec. 7. (SB 96) Effective July 1, 2019.)

41007.4.
  

“Purchase” means any transfer of title or possession, exchange, or barter, conditional or otherwise.

(Added by Stats. 2019, Ch. 54, Sec. 8. (SB 96) Effective July 1, 2019.)

41007.5.
  

For purposes of this part, all of the following definitions shall apply:

(a) “Prepaid consumer” means a person who purchases prepaid mobile telephony services in a retail transaction.

(b) “Prepaid mobile telephony services” means the right to utilize a mobile device for mobile telecommunications services or information services, including the download of digital products delivered electronically, content, and ancillary services, or both telecommunications services and information services, that must be purchased in advance of usage in predetermined units or dollars. For these purposes, “telecommunications service” and “information service” have the same meanings as defined in Section 153 of Title 47 of the United States Code.

(c) “Retail transaction” means the purchase of prepaid mobile telephony services, either alone or in combination with mobile data or other services, from a seller for any purpose other than resale in the regular course of business.

(d) “Seller” means a person that sells prepaid mobile telephony service to a person in a retail transaction.

(Added by Stats. 2019, Ch. 54, Sec. 9. (SB 96) Effective July 1, 2019.)

41008.
  

As used in this part, “month” shall mean a calendar month.

(Added by Stats. 1976, Ch. 443.)

41009.
  

(a) “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.

(b) This section shall become inoperative on January 1, 2020, and shall be repealed as of that date.

(Amended by Stats. 2019, Ch. 54, Sec. 10. (SB 96) Effective July 1, 2019. Repealed as of January 1, 2020, by its own provisions. See later operative version added by Sec. 11 of Stats. 2019, Ch. 54.)

41009.
  

(a) “Service user” means any person that subscribes for the right to utilize an access line in this state who is required to pay a surcharge under the provisions of this part.

(b) This section shall become operative on January 1, 2020.

(Repealed (in Sec. 10) and added by Stats. 2019, Ch. 54, Sec. 11. (SB 96) Effective July 1, 2019. Section operative January 1, 2020, by its own provisions.)

41010.
  

“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.

(Added by Stats. 1976, Ch. 443.)

41011.
  

(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 inserting coins 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.

(Amended by Stats. 2010, Ch. 328, Sec. 219. (SB 1330) Effective January 1, 2011.)

41012.
  

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

(Added by Stats. 1976, Ch. 443.)

41013.
  

“Surcharge” means a tax levied by this state.

(Added by Stats. 1976, Ch. 443.)

41014.
  

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.

(Added by Stats. 1974, Ch. 443.)

41015.
  

“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.”

(Amended by Stats. 1987, Ch. 38, Sec. 9.)

41016.
  

“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.

(Amended by Stats. 2008, Ch. 17, Sec. 4. Effective May 21, 2008.)

41016.5.
  

(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.

(c) This section shall become inoperative on January 1, 2020, and shall be repealed as of that date.

(Amended by Stats. 2019, Ch. 54, Sec. 12. (SB 96) Effective July 1, 2019. Repealed as of January 1, 2020, by its own provisions. See later operative version added by Sec. 13 of Stats. 2019, Ch. 54.)

41016.5.
  

(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 service.

(b) For the purposes of the surcharge imposed by Chapter 2 (commencing with Section 41020), both of the following shall apply:

(1) A VoIP service line does not include a direct inward dialing number, extension, or other similar feature that routes an inbound call and cannot provide direct access to the 911 emergency communications system.

(2) The number of surcharges imposed shall not exceed the total number of concurrent outbound calls that can be placed to the emergency communications system at a single point of time.

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

(d) This section shall become operative on January 1, 2020.

(Repealed (in Sec. 12) and added by Stats. 2019, Ch. 54, Sec. 13. (SB 96) Effective July 1, 2019. Section operative January 1, 2020, by its own provisions.)

41017.
  

“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 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.

(Amended by Stats. 2019, Ch. 54, Sec. 14. (SB 96) Effective July 1, 2019.)

41018.
  

“Communications equipment company” shall mean a manufacturer or vendor that sells or leases communications equipment.

(Added by Stats. 1976, Ch. 443.)

41019.
  

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.

(Amended by Stats. 1986, Ch. 1477, Sec. 2. Effective September 30, 1986.)

41019.5.
  

(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.

(Added by Stats. 2008, Ch. 17, Sec. 6. Effective May 21, 2008.)

RTCRevenue and Taxation Code - RTC