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Business Taxes Law Guide—Revision 2024

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 41138


41138. Conditions for payment. (a) It is the intent of the Legislature that the reimbursement rates for "911" emergency telephone number equipment shall not exceed specified amounts negotiated with each interested supplier and approved by the Office of Emergency Services. The Office of Emergency Services shall negotiate supplier pricing to ensure cost-effectiveness and the best value for the "911" emergency telephone number system. The Office of Emergency Services shall pay those bills as provided in Section 41137 only under the following conditions:

(1) The Office of Emergency Services shall have received the local agency's "911" emergency telephone number system plan by July 1 of the prior fiscal year and approved the plan by October 1 of the prior fiscal year.

(2) The Legislature has appropriated in the Budget Bill an amount sufficient to pay those bills.

(3) The Office of Emergency Services has reviewed and approved each line item of a request for funding to ensure the necessity of the proposed equipment or services and the eligibility for reimbursement.

(4) The amounts to be paid do not exceed the pricing submitted by the supplier and approved by the Office of Emergency Services. Extraordinary circumstances may warrant spending in excess of the established rate, but shall be preapproved by the Office of Emergency Services. In determining the reimbursement rate, the Office of Emergency Services shall utilize the approved pricing submitted by the supplier providing the equipment or service.

(b) This section shall not be construed to limit an agency’s ability to select a supplier or procure telecommunications equipment as long as the supplier's pricing is preapproved by the Office of Emergency Services. Agencies shall be encouraged to procure equipment on a competitive basis. Any amount in excess of the pricing approved by the Office of Emergency Services shall not be reimbursed.

History—Stats. 1996, Ch. 746, in effect January 1, 1997, added subdivision letter (a), added "It is the intent … by the department." as the first sentence of, and substituted "negotiate supplier pricing … shall pay those" for "pay such" in the second sentence of, subdivision (a), substituted "agency's" for "agencies" after "received the local" and substituted "the" for "such" after "year and approved" in paragraph (1) of, substituted "those" for "such" after "sufficient to pay" in paragraph (2) of, substituted "department has reviewed … eligibility for reimbursement" for "amounts to be paid shall not exceed the contract or established tariff rates for the costs of telephone equipment" in paragraph (3) of, substituted "do not exceed … equipment or service." for "shall not exceed approved incremental costs." in paragraph (4) of, subdivision (a), and added subdivision (b). Stats. 2010, Ch. 404 (AB 2408), in effect January 1, 2011, substituted "California Technology Agency" for "department" throughout section. Stats. 2013, Ch. 28 (SB 71), in effect June 27, 2013, substituted "Office of Emergency Services" for "California Technology Agency" throughout the section; inserted a hyphen between "cost" and "effectiveness" in subdivision (a); and substituted "This" for "Nothing in this" and added "not" after "section shall" in the first sentence of subdivision (b).