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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Emergency Telephone Users Surcharge Act > Chapter 7 > Section 41136

Emergency Telephone Users Surcharge Act

Revenue and Taxation Code

Division 2. Other Taxes
Part 20. Emergency Telephone Users Surcharge Act

Chapter 7. Administration.

Article 2. Disposition of Proceeds

Section 41136

41136. Disposition of funds. (a) From the funds in the State Emergency Telephone Number Account, all amounts of the 911 surcharge collected shall, when appropriated by the Legislature, be spent solely for the following purposes:

(1) To pay refunds authorized by this part.

(2) To pay the department for the cost of the administration of the 911 surcharge under this part.

(3) To pay the Office of Emergency Services for its costs in administration of the “911” emergency telephone number system.

(4) To pay bills submitted to the Office of Emergency Services by service suppliers or communications equipment companies for the installation of, and ongoing expenses for, the following communications services supplied to local agencies in connection with the “911” emergency phone number system:

(A) A basic system, defined as 911 systems, including, but not limited to, Next Generation 911, and the subsequent technologies, and interfaces needed to deliver 911 voice and data information from the 911 caller to the emergency responder and the subsequent technologies, and interfaces needed to send information, including, but not limited to, alerts and warnings, to potential 911 callers.

(B) A basic system with telephone central office identification.

(D) Approved incremental costs.

(5) To pay claims of local agencies for approved incremental costs, not previously compensated for by another governmental agency.

(6) To pay claims of local agencies for incremental costs and amounts, not previously compensated for by another governmental agency, incurred prior to the effective date of this part, for the installation and ongoing expenses for the following communication services supplied in connection with the “911” emergency telephone number system:

(B) A basic system with telephone central office identification.

(D) Approved incremental costs. Incremental costs shall not be allowed unless the costs are concurred in by the Office of Emergency Services.

(b) (1) From the funds in the 988 State Suicide and Behavioral Health Crisis Services Fund, all amounts of the 988 surcharge collected shall be spent for purposes identified in Section 53123.4 of the Government Code. However, before funds are disbursed as provided in Section 53123.4 of the Government Code, funds shall be used for all of the following:

(A) To pay refunds authorized by this part.

(B) To pay the department for the cost of the administration of the 988 surcharge under this part.

(2) The remainder of the revenue shall be disbursed to the Office of Emergency Services for the purposes identified in Section 53123.4 of the Government Code.

History—Stats. 1994, Ch. 146, in effect January 1, 1995, added "expenses for the following" after "installation and ongoing" in subdivision (d); substituted "Incremental costs shall … unless costs are" for "Such incremental costs shall not be allowed unless such costs are recommended by the advisory committee and" in subparagraph (f)(4). Stats. 1997, Ch. 887 (AB 1198), in effect October 12, 1997, added subdivision (g). Stats. 1998, Ch. 485 (AB 2803), in effect January 1, 1999, substituted "Division of Telecommunications" for "Telecommunications Division" following "To pay the" in subdivision (g). Stats. 1999, Ch. 83 (SB 966), in effect January 1, 2000, added "of," after "for the installation", added a comma after "ongoing expenses for", and added "to" after "communications services supplied" in subdivision (d) and substituted "Division of Telecommunications of the Department of General Services" for "Communications Division" in paragraph (4) of subdivision (h). Stats. 2009, Ch. 489 (AB 912), in effect January 1, 2010, added "A minimum of one-half of 1 percent of the charges … surcharge applies as follows:" after ", when appropriated by the Legislature, … for the following purposes:" to the new subdivision (a); redesignated former subdivisions (a), (b), (c), and (d) as paragraphs (a)(1), (a)(2), (a)(3), and (a)(4), respectively; redesignated former paragraphs (d)(1), (d)(2), (d)(3), and (d)(4) as subparagraphs (a)(4)(A), (a)(4)(B), (a)(4)(C), and (a)(4)(D), respectively; redesignated former subdivisions (e) and (f) as paragraphs (a)(5) and (a)(6), respectively; redesignated former paragraphs (f)(1), (f)(2), (f)(3), and (f)(4) as (a)(6)(A), (a)(6)(B), (a)(6)(C), and (a)(6)(D), respectively; added new subdivision (b); deleted former subdivision (g); and substituted "office of the State Chief Information Officer" for "Department of General Services" throughout the entire section. Stats. 2010, Ch. 328 (SB 1330), in effect January 1, 2011, added a comma after "to which the surcharge applies" in subdivision (a) and substituted "telephone" for "phone" after "in connection with the "911" emergency" in paragraph (6) of subdivision (a). Stats. 2013, Ch. 28 (SB 71), in effect June 27, 2013, substituted "Office of Emergency Services" for "office of the State Chief Information Officer" throughout the section; and deleted paragraph (3) of subdivision (b) which read "This subdivision shall remain in effect only until December 31, 2011.". Stats. 2013, Ch. 353 (SB 820), in effect September 26, 2013, deleted the introductory clause, deleted "(a) A", added "From the funds in the State Emergency Telephone Number Account, a" before "minimum of one-half", deleted "services" after "intrastate telephone communications", substituted "shall, when appropriated by the Legislature, be spent solely for the following purposes:" for "as follows:" after "the surcharge applies"; redesignated former paragraphs (a)(1), (a)(2), (a)(3), and (a)(4) as subdivisions (a), (b), (c), and (d), respectively; redesignated former subparagraphs a)(4)(A), (a)(4)(B), (a)(4)(C), and (a)(4)(D) as paragraphs (d)(1), (d)(2), (d)(3), and (d)(4), respectively; redesignated former paragraphs (a)(5) and (a)(6) as subdivisions (e) and (f), respectively; redesignated former subparagraphs (a)(6)(A), (a)(6)(B), (a)(6)(C), and (a)(6)(D), as paragraphs (f)(1), (f)(2), (f)(3), and (f)(4); deleted former subdivision (b) which read: "(b) (1) For the purposes of paragraph (5) of subdivision (a), the term incremental costs shall include a maximum of one-quarter of 1 percent of the charges for intrastate telephone communications services and VoIP service to which the surcharge applies for a one-time payment to Primary Public Safety Answering Points for the cost necessary to recruit and train additional personnel necessary to accept wireless enhanced "911" calls from within their jurisdiction routed directly to their call centers. (2) Funds allocated pursuant to this subdivision shall supplement, and not supplant, existing funding for these services." Stats. 2019, Ch. 54 (SB 96), substituted "all amounts of the surcharge collected" for "a minimum of…the surcharge applies" in the first sentence, substituted "department" for "State Board of Equalization," and substituted "A basic system, defined as…to potential 911 callers" for "A basic system." in paragraph (1) of subdivisions (d) and (f). Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, lettered former first paragraph as subdivision (a), redesignated former subdivisions (a), (b), (c), and (d) as paragraphs (1), (2), (3), and (4); redesignated former paragraphs (1), (2), (3) and (4) as subparagraphs (A), (B), (C) and (D) in former subdivision (d); redesignated former subdivisions (e) and (f) as paragraphs (5) and (6); redesignated former paragraphs (1), (2), (3), and (4) as subparagraphs (A), (B), (C), and (D) in former subdivision (f); added subdivision (b). Stats. 2023, Ch. 42 (AB 118), July 10, 2023, substituted "other state departments" for "the Office of Emergency Services" after "To pay", substituted "their" for "its" before "costs" and substituted "&" for "and" before "Crisis" in subparagraph (C) of paragraph (1) of subdivision (b).

Note.—Sec. 1, Stats. 2009, Ch. 489 (AB 912) provided the following Legislative findings and declarations:

(a) The Warren-911-Emergency Assistance Act establishes the number "911" as the primary emergency telephone number of use in this state.

(b) The Emergency Telephone Users Surcharge Act generally imposes a surcharge on amounts paid by every person in the state for intrastate telephone service and is imposed at a percentage rate range, established in 1980, of between one-half of 1 percent and three-quarters of 1 percent. This surcharge is annually estimated to provide revenues to fund "911" emergency telephone system costs for the current fiscal year. The rate range has remained unchanged since 1980.

(c) In 2005, there were over five million "911" calls, over eight million "911" calls in 2006, and an estimated 12 million "911" calls in 2007. This represents a 119 percent increase in "911" calls over those past two years alone. The Department of the California Highway Patrol, a Public Safety Answering Point, receives approximately 750,000 "911" calls monthly at its 24 answering points statewide.

(d) This rapid increase has made it difficult for Public Safety Answering Points, including the Department of the California Highway Patrol, to meet the 10-second answering guideline recommended by the National Emergency Number Association and accepted by the industry, potentially affecting the safety and well-being of "911" callers.

(e) "911" call volumes continue to grow and additional personnel with the appropriate training and skills, including language skills, is needed to meet the 10-second answering guideline.

Note.—Sec. 1, Stats. 2022, Ch. 747 (AB 988) provided the following Legislative intent:

(a) It is the intent of the Legislature to implement the National Suicide Hotline Designation Act of 2020, in compliance with the Federal Communication Commission’s rules designating “988” as a three-digit number for the National Suicide Prevention Hotline, now known as the 988 Suicide and Crisis Lifeline, to assure all persons residing in and visiting the State of California have access to the "988" suicide prevention and other behavioral health crisis hotline and care 24 hours per day, seven days per week.

(b) It is the intent of the Legislature that the 988 system in California operate as an emergency suicidal, mental health, and substance use disorder crisis system that provides compassionate, appropriate, and easily accessible care to save lives and reduce law enforcement engagement, arrests, hospitalizations, and deaths.

(1) By July 16, 2022, the federally established go-live date for the 988 number will be prepared to receive and respond to the anticipated call volume in the first year of operation of 988.

(2) By June 30, 2024, the California Health and Human Services Agency and the Office of Emergency Services will develop a plan for the statewide coordination of 988, 911, and behavioral health crisis services. The plan will be based on a five-year implementation plan that includes a landscape analysis of existing services and describes how to expand, improve, and link services with the goal of fully implementing the 988 system by January 1, 2030.