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Business Taxes Law Guide—Revision 2024

BTLG Table of Contents > Emergency Telephone Users Surcharge Act > Chapter 2 > entire chapter

Emergency Telephone Users Surcharge Act

Revenue and Taxation Code

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

Chapter 2. The Surcharges.


Article 1. Imposition of the Surcharges

Article 2. Adjustment of Surcharge Amounts

Article 3. Registration

Article 1. Imposition of the Surcharges

Text of Section Operative Through December 31, 2019

41020. Imposition and rate of surcharge. (a) A surcharge is hereby imposed on amounts paid by every person in the state for both of the following:

(1) (A) Intrastate telephone communication service in this state.

(B) Notwithstanding subparagraph (A), on and after January 1, 2016, and before January 1, 2020, in lieu of the surcharge imposed under subparagraph (A), a surcharge shall be imposed on amounts paid for prepaid mobile telephony services pursuant to the Prepaid Mobile Telephony Services Surcharge Collection Act (Part 21 (commencing with Section 42001)).

(2) VoIP service that provides access to the "911" emergency system by utilizing the digits 9-1-1 by any service user in this state commencing on January 1, 2009. The surcharge shall not apply to charges for VoIP service where any point of origin or destination is outside of this state.

(b) (1) Notwithstanding Section 41025, charges not subject to the surcharge may be calculated by a service supplier based upon books and records kept in the regular course of business, and, for purposes of calculating the interstate revenue portion not subject to the surcharge, a service supplier may also choose a reasonable and verifiable method from the following:

(A) Books and records kept in the regular course of business.

(B) Traffic or call pattern studies representative of the service supplier's business within California.

(C) For VoIP service only, the VoIP safe harbor factor established by the FCC to be used to calculate the service supplier's contribution to the federal Universal Service Fund. The FCC safe harbor factor in effect for VoIP service on September 1 of each year shall apply for the period of January 1 to December 31, inclusive, of the next succeeding calendar year for purposes of this method. At the time the FCC establishes a safe harbor factor for the federal Universal Service Fund for VoIP service that is greater than 75 percent for interstate revenue or abolishes the safe harbor factor applicable to VoIP service, this method shall become void and of no effect, in which case a VoIP service supplier may use an alternative method approved in advance by the board, which shall be available to all VoIP service suppliers. The FCC safe harbor factor applicable to VoIP service, as described in this subparagraph, is used solely as a mechanism to calculate the charges not subject to the surcharge for VoIP service and is not necessarily reflective of the intrastate portion of VoIP service. The use of the FCC safe harbor factor authorized by this subdivision shall not be interpreted to permit application of any intrastate requirement, other than the surcharge imposed under this part, upon VoIP service suppliers.

(2) Any method chosen by a service supplier shall remain in effect for at least one calendar year.

(3) If a service supplier reasonably relies upon books and records kept in the regular course of business or any documentation that satisfies the reasonable and verifiable method, then the service supplier's determination of the portion of the billed amount attributable to services not subject to the surcharge shall be rebuttably presumed to be correct. The service supplier's choice of books and records or other method and surcharge billing practice shall also be rebuttably presumed to be fair and legal business practices.

(4) It is the intent of the Legislature that the provisions of subparagraph (C) shall not be considered to be a precedent for the application of the surcharge or any other tax or fee where a person is required to collect a tax or fee imposed upon another.

(c) The surcharge imposed shall be at the rate of one-half of 1 percent of the charges made for the services to and including November 1, 1982, and thereafter at a rate fixed pursuant to Article 2 (commencing with Section 41030).

(d) The surcharge shall be paid by the service user as hereinafter provided.

(e) The surcharge imposed shall not apply to either of the following:

(l) In accordance with the Mobile Telecommunications Sourcing Act (Public Law 106–252), which is incorporated herein by reference, to any charges for mobile telecommunications services billed to a customer where those services are provided, or deemed provided, to a customer whose place of primary use is outside this state. Mobile telecommunications services shall be deemed provided by a customer's home service provider to the customer if those services are provided in a taxing jurisdiction to the customer, and the charges for those services are billed by or for the customer's home service provider.

(2) To any charges for VolP service billed to a customer where those services are provided to a customer whose place of primary use of VolP service is outside this state.

(f) For purposes of this section:

(1) "Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, that is billed to the customer by or for the customer's home service provider, regardless of whether individual transmissions originate or terminate within the licensed service area of the home service provider.

(2) "Customer" means (A) the person or entity that contracts with the home service provider for mobile telecommunications services, or with a VoIP service provider for VoIP service, or (B) if the end user of mobile telecommunications services or VoIP service is not the contracting party, the end user of the mobile telecommunications service or VoIP service. This paragraph applies only for the purpose of determining the place of primary use. The term "customer" does not include (A) a reseller of mobile telecommunications service or VoIP communication service, or (B) a serving carrier under an arrangement to serve the mobile customer outside the home service provider's licensed service area.

(3) "Home service provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

(4) "Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.

(5) "Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999.

(6) "Place of primary use" means the street address representative of where the customer's use of the mobile telecommunications service or VoIP service primarily occurs, that must be:

(A) The residential street address or the primary business street address of the customer.

(B) With respect to mobile telecommunications service, within the licensed service area of the home service provider.

(7) (A) "Reseller" means a provider who purchases telecommunications services or VoIP service from another telecommunications service provider or VoIP service and then resells the services, or uses the services as a component part of, or integrates the purchased services into, a mobile telecommunications service or VoIP service.

(B) "Reseller" does not include a serving carrier with which a home service provider arranges for the services to its customers outside the home service provider's licensed service area.

(8) "Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider's or reseller's licensed area.

(9) "Taxing jurisdiction" means any of the several states, the District of Columbia, or any territory or possession of the United States, any municipality, city, county, township, parish, transportation district, or assessment jurisdiction, or any other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.

(10) "VoIP service provider" means that provider of VoIP service with whom the end user customer contracts for the provision of VoIP services for the customer's own use and not for resale.

(11) "Prepaid mobile telephony services" has the same meaning as in subdivision (b) of Section 41007.5.

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

History—Stats. 1978, Ch. 352, effective July 4, 1978, substituted "1979" for "1978" in the second paragraph. Stats. 1979, Ch. 906, effective September 22, 1979, changed "1979" to "1982" and changed "this" following "Article 2 of" to "the". Stats. 2001, Ch. 638 (SB 896), reletterd first sentence as subdivision (a), second sentence as subdivision (b) and third sentence as subdivision (c), substituted "and thereafter at … with Section 41030)." for "at such a … the chapter thereafter." in new subdivision (b), added new subdivisions (d) and (e) and subparagraphs (e)(1) through (e)(9) inclusive, effective January 1, 2002, but operative August 1, 2002. Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, added "both of the following" after "in the state for", numbered part of subdivision (a) as paragraph (1), and added paragraph (2) to subdivision (a); added new subdivision (b); relettered former subdivisions (b) and (c) as (c) and (d), respectively; relettered former subdivision (d) as (e), added "The surcharge imposed shall not apply to either of the following: (1)" after "(e)", substituted "Public Law" for "P.L.", deleted "the surcharge imposed under this section does not apply" after "herein by reference,", and added paragraph (2) to the new subdivision (e); relettered former subdivision (e) as (f), added "or with a VoIP service provider for VoIP service," after "mobile telecommunications services,", added "or VoIP service" twice after "mobile telecommunications service", added "or VoIP communication service" after "mobile telecommunications service" and added "mobile" after "to serve the" in the third sentence of paragraph (2) in subdivision (f); added "or VoIP service" in paragraph (6) of subdivision (f); added "With respect to mobile telecommunications service," after "(B)" in paragraph (6) of subdivision (f); substituted "Services" for "services" after "purchases telecommunications", added "or VoIP service" twice to subparagraph (A) in paragraph (7) of subdivision (f); added paragraph (10) to subdivision (f); and added subdivision (g). Stats. 2014, Ch. 885 (AB 1717), in effect September 30, 2014, redesignated former paragraph (a)(1) as (a)(1)(A), deleted "commencing on January 1, 1977" after "in this state" in subparagraph (A) of paragraph (1), and added subparagraph (B) to paragraph (1) of subdivision (a); substituted "to" for "through" after "period of January 1", substituted "the" for "such" after "of this method. At", and deleted "as" after "time" in subparagraph (C) of paragraph (1) of subdivision (b); substituted "the" for "such" after "percent of the charges made for" in subdivision (c); added paragraph (11) to subdivision (f); and deleted subdivision (g). Stats. 2019, Ch. 54 (SB 96), substituted (b) for (k) in paragraph (11) of subdivision (f), added subdivision (g), and this section repealed by its own provisions effective July 1, 2019, and inoperative January 1, 2020.

Text of Section Operative January 1, 2020, Through September 28, 2022

41020. Imposition and rate of surcharge. (a) (1) (A) On and after January 1, 2020, a surcharge is hereby imposed on each access line for each month or part thereof for which a service user subscribes with a service supplier, at an amount determined under Article 2 (commencing with Section 41030).

(B) The surcharge shall be paid by the service user as hereinafter provided.

(2) On and after January 1, 2020, the purchase of prepaid mobile telephony services in this state shall be subject to a surcharge set forth under Article 2 (commencing with Section 41030). The surcharge shall be paid by the prepaid consumer in accordance with Section 41028 and remitted and administered in accordance with this part.

(b) The surcharge imposed shall not apply to either of the following:

(1) In accordance with the Mobile Telecommunications Sourcing Act (Public Law 106-252), which is incorporated herein by reference, to any charges for mobile telecommunications services billed to a customer where those services are provided, or deemed provided, to a customer whose place of primary use is outside this state. Mobile telecommunications services shall be deemed provided by a customer’s home service provider to the customer if those services are provided in a taxing jurisdiction to the customer, and the charges for those services are billed by or for the customer’s home service provider.

(2) To any charges for VoIP service billed to a customer where those services are provided to a customer whose place of primary use of VoIP service is outside this state.

(c) For purposes of this section:

(1) "Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, that is billed to the customer by or for the customer’s home service provider, regardless of whether individual transmissions originate or terminate within the licensed service area of the home service provider.

(2) "Customer" means (A) the person or entity that contracts with the home service provider for mobile telecommunications services, or with a VoIP service provider for VoIP service, or (B) if the end user of mobile telecommunications services or VoIP service is not the contracting party, the end user of the mobile telecommunications service or VoIP service. This paragraph applies only for the purpose of determining the place of primary use. The term "customer" does not include (A) a reseller of mobile telecommunications service or VoIP communication service, or (B) a serving carrier under an arrangement to serve the mobile customer outside the home service provider’s licensed service area.

(3) "Home service provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

(4) "Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.

(5) "Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999.

(6) "Place of primary use" means the street address representative of where the customer’s use of the mobile telecommunications service or VoIP service primarily occurs, that must be:

(A) The residential street address or the primary business street address of the customer.

(B) With respect to mobile telecommunications service, within the licensed service area of the home service provider.

(7) (A) "Reseller" means a provider who purchases telecommunications services or VoIP service from another telecommunications service provider or VoIP service and then resells the services, or uses the services as a component part of, or integrates the purchased services into, a mobile telecommunications service or VoIP service.

(B) "Reseller" does not include a serving carrier with which a home service provider arranges for the services to its customers outside the home service provider’s licensed service area.

(8) "Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider’s or reseller’s licensed area.

(9) "Taxing jurisdiction" means any of the several states, the District of Columbia, or any territory or possession of the United States, any municipality, city, county, township, parish, transportation district, or assessment jurisdiction, or any other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.

(10) "VoIP service provider" means that provider of VoIP service with whom the end user customer contracts for the provision of VoIP services for the customer’s own use and not for resale.

History—Stats. 2019, Ch. 54 (SB 96), repealed and added by its own provisions effective July 1, 2019, but operative January 1, 2020. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, deleted paragraph (1) and renumbered paragraphs (2), (3), (4), (5), (6), (7), (8), (9), (10), and (11) to (1), (2), (3), (4), (5), (6), (7), (8), (9), and (10), respectively, in subdivision (c).

Text of Section Operative September 29, 2022

41020. Imposition and rate of surcharges. (a) (1) (A) On and after January 1, 2020, a 911 surcharge is hereby imposed on each access line for each month or part thereof for which a service user subscribes with a service supplier, at an amount determined under Article 2 (commencing with Section 41030). Beginning January 1, 2023, a separate 988 surcharge is hereby imposed on each access line for each month or part thereof for which a service user subscribes with a service supplier, at an amount determined under Article 2 (commencing with Section 41030).

(B) The surcharges shall be paid by the service user as hereinafter provided.

(2) On and after January 1, 2020, the purchase of prepaid mobile telephony services in this state shall be subject to the 911 surcharge set forth under Article 2 (commencing with Section 41030). The surcharge shall be paid by the prepaid consumer in accordance with Section 41028 and remitted and administered in accordance with this part. Beginning January 1, 2023, a separate 988 surcharge is hereby imposed on the purchase of prepaid mobile telephony services, at an amount determined under Article 2 (commencing with Section 41030).

(b) The surcharges imposed shall not apply to either of the following:

(1) In accordance with the Mobile Telecommunications Sourcing Act (Public Law 106-252), which is incorporated herein by reference, to any charges for mobile telecommunications services billed to a customer where those services are provided, or deemed provided, to a customer whose place of primary use is outside this state. Mobile telecommunications services shall be deemed provided by a customer’s home service provider to the customer if those services are provided in a taxing jurisdiction to the customer, and the charges for those services are billed by or for the customer’s home service provider.

(2) To any charges for VoIP service billed to a customer where those services are provided to a customer whose place of primary use of VoIP service is outside this state.

(c) For purposes of this section:

(1) "Charges for mobile telecommunications services" means any charge for, or associated with, the provision of commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999, or any charge for, or associated with, a service provided as an adjunct to a commercial mobile radio service, that is billed to the customer by or for the customer’s home service provider, regardless of whether individual transmissions originate or terminate within the licensed service area of the home service provider.

(2) "Customer" means (A) the person or entity that contracts with the home service provider for mobile telecommunications services, or with a VoIP service provider for VoIP service, or (B) if the end user of mobile telecommunications services or VoIP service is not the contracting party, the end user of the mobile telecommunications service or VoIP service. This paragraph applies only for the purpose of determining the place of primary use. The term "customer" does not include (A) a reseller of mobile telecommunications service or VoIP communication service, or (B) a serving carrier under an arrangement to serve the mobile customer outside the home service provider’s licensed service area.

(3) "Home service provider" means the facilities-based carrier or reseller with which the customer contracts for the provision of mobile telecommunications services.

(4) "Licensed service area" means the geographic area in which the home service provider is authorized by law or contract to provide commercial mobile radio service to the customer.

(5) "Mobile telecommunications service" means commercial mobile radio service, as defined in Section 20.3 of Title 47 of the Code of Federal Regulations, as in effect on June 1, 1999.

(6) "Place of primary use" means the street address representative of where the customer’s use of the mobile telecommunications service or VoIP service primarily occurs, that must be:

(A) The residential street address or the primary business street address of the customer.

(B) With respect to mobile telecommunications service, within the licensed service area of the home service provider.

(7) (A) "Reseller" means a provider who purchases telecommunications services or VoIP service from another telecommunications service provider or VoIP service and then resells the services, or uses the services as a component part of, or integrates the purchased services into, a mobile telecommunications service or VoIP service.

(B) "Reseller" does not include a serving carrier with which a home service provider arranges for the services to its customers outside the home service provider’s licensed service area.

(8) "Serving carrier" means a facilities-based carrier providing mobile telecommunications service to a customer outside a home service provider’s or reseller’s licensed area.

(9) "Taxing jurisdiction" means any of the several states, the District of Columbia, or any territory or possession of the United States, any municipality, city, county, township, parish, transportation district, or assessment jurisdiction, or any other political subdivision within the territorial limits of the United States with the authority to impose a tax, charge, or fee.

(10) "VoIP service provider" means that provider of VoIP service with whom the end user customer contracts for the provision of VoIP services for the customer’s own use and not for resale.

History—Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022.

41021. Collection by service supplier. (a) A service supplier shall collect the surcharges from each service user at the time it collects its billings from the service user. The duty to collect the surcharges from a service user shall commence with the beginning of the first regular billing period applicable to that person which starts on or after the operative date of the surcharge imposed by this part. If the stations or lines of more than one service supplier are utilized in furnishing the telephone communication services to the service user, the service supplier that bills the customer shall collect the surcharges from the customer.

(b) Only one payment per month under this part shall be required with respect to the surcharges on an access line.

History—Stats. 2008, Ch. 179 (SB 1498), in effect January 1, 2009, added subdivision letters (a) and (b); substituted "A" for "Every" before "service supplier shall", deleted "," and added "that"after "service user, provided", and substituted "communication" for communications" after "telephone" in new subdivision (a); and substituted "a" for "any" after "surcharge on" and substituted "that" for "such" after "furnishing" in new subdivision (b). Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted ". The" for ", provided that the" after "service user" in the first sentence of subdivision (a); added "per month" after "one payment" and substituted "an access line" for "any service, notwithstanding that the lines or stations of one or more service suppliers are used in furnishing that service" in subdivision (b). Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted "surcharges" for "surcharge" throughout. Stats. 2023, Ch. 511 (SB 889), in effect January 1, 2024, substituted "surcharges" for "surcharge" after "collect the" in the third sentence of subdivision (a).

41022. Surcharges to be added; surcharge statement. (a) The surcharges required to be collected by the service supplier shall each be added to and stated separately in its billings to the service user.

(b) Notwithstanding subdivision (a), a service supplier may elect to combine the 911 and 988 surcharges into a single-line item on the service user billing. If the service supplier elects to combine the surcharges, the combined surcharge shall be labeled as the "911/988 Surcharge" on the service user’s bill. The service supplier shall remit the combined surcharges to the department in separate amounts for each surcharge on forms prescribed by the department.

History—Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, lettered sentence to subdivision (a), substituted "surcharges" for "surcharge" before "required" and added "each" before "be added"; added subdivision (b).

41023. Surcharge collections are debts. The surcharges required to be collected by the service supplier, and any amount unreturned to the service user that is not owed as part of the surcharges but was collected from the service user under the representation by the service supplier that it was owed as part of the surcharges, constitute debts owed by the service supplier to this state.

A service supplier that has collected any amount of surcharges in excess of the amount of surcharges imposed by this part and actually due from a service user, may refund that amount to the service user, even though the surcharge amounts have already been paid over to the department and a corresponding credit or refund has not yet been secured. The service supplier may claim credit for that overpayment refund against the amount of surcharges imposed by this part that is due upon any other return, providing that credit is claimed in a return dated no later than three years from the date of overpayment.

History—Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "that" for "which" in the first paragraph; substituted "that" for "such" before "amount to", substituted "that" for "such" before "surcharge amount", substituted "department" for "board" after "over to the", substituted "a" for "no" before "corresponding credit", added "not" before "yet been secured." in the first sentence of the second paragraph; deleted the second sentence in the second paragraph; substituted "that" for "such" before "overpayment", added "refund" before "against the", substituted "that" for "which" before "is due", deleted "quarterly" before "return, providing", and substituted "that" for "such" before "credit is claimed", in the third paragraph. Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted "surcharges" for "surcharge" after "The", substituted "owed as part of the surcharges" for "a surcharge" after "that is not", substituted "under the representation by the service supplier that it was owed as part of the surcharges" for "as representing a surcharge" before ", constitutes debts" in the first paragraph; substituted "surcharges" for "surcharge" before "in excess", substituted "surcharges" for "surcharge" before "imposed by", substituted "the" for "that" after "even though", substituted "amounts have" for "amount has" before "already been" in the first sentence of the second paragraph; substituted "surcharges" for "surcharge" after "amount of" in the second sentence of the second paragraph.

41024. Liability for surcharges. Every service user in this state is liable for the surcharges until they have been paid to this state, except that payment to a service supplier registered under this part is sufficient to relieve the service user from further liability for the surcharges.

Any surcharge collected from a service user that has not been remitted to the department shall be deemed a debt owed to the state by the person required to collect and remit that surcharge. Nothing in this part shall impose any obligation upon a service supplier to take any legal action to enforce the collection of the surcharges imposed by this part. The service supplier shall provide the department with amounts uncollected which total three dollars ($3) or more on a cumulative basis with respect to a single service user along with the names, addresses, and reasons of the service users refusing to pay the surcharges imposed by this part.

History—Stats. 1981, Chapter 947, in effect January 1, 1982, added "which total … single service user" before "along" in the third sentence of the second paragraph. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "surcharge" for "tax" after "liability for the" in the first paragraph; substituted "that" for "which" after "service user", substituted "department" for "board" before "shall be deemed", substituted "state" for "State of California" before "by the person", and substituted "that" for "such" after "collect and remit" in the first sentence of the second paragraph; substituted "department" for "board" before "with amounts", and added "," after "addresses" in the third sentence of the second paragraph. Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted "surcharges" for "surcharge" throughout; substituted "they have" for "it has" before "been paid", added "service" after "relieve the" in the first paragraph; deleted "utility users" after "collection of the" in the second sentence of the second paragraph.

41025. Billing of surcharge. (a) If a bill is rendered to persons using intrastate telephone services or VoIP service, the amount on which the surcharge with respect to such services shall be based shall be the sum of all charges for such services included in the bill; except that if the person who renders the bill groups individual items for purposes of rendering the bill and computing the surcharge then the amount on which the surcharge with respect to each such group shall be based shall be the sum of all items within that group, and the surcharge on the remaining items not included in any such group shall be based on the charge for each item separately.

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

History—Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, added "or VoIP service," after "intrastate telephone services", added "," after "computing the surcharge", deleted commas after "shall be based" and "any such group", respectively. Stats. 2019, Ch. 54 (SB 96), repealed by its own provisions effective July 1, 2019, and inoperative January 1, 2020.

41026. Rounding of payments. [Repealed by Stats. 2021, Ch. 432, in effect January 1, 2022.]

41027. Constitutional exemptions. Nothing in this part shall be construed as imposing a surcharge upon access lines or on the purchase of prepaid mobile telephony services if imposition of that surcharge would be in violation of the Constitution of the United States, the United States Code, or the laws of the state.

History—Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "access lines or on the purchase of prepaid mobile telephony services if" for "amounts paid by any person when" after "surcharge upon", substituted "that" for "such" after "imposition of", and substituted "state" for " State of California" after "laws of the", and deleted ", nor upon toll charges used in collection and dissemination of news for the public press or on charges for wide area telephone service used by common carries in the conduct of their business" before ".".

41028. Surcharge on purchase of prepaid mobile telephone services surcharge. (a) (1) On and after January 1, 2020, the surcharge amounts imposed by Section 41020 on the purchase of prepaid mobile telephony services in this state shall be collected by a seller from each prepaid consumer at the time of each retail transaction in this state. The surcharges shall be imposed at an amount as determined under Article 2 (commencing with Section 41030) on each retail transaction that occurs in this state.

(2) (A) The amount of the surcharges shall be separately stated on an invoice, receipt, or other similar document that is provided to the prepaid consumer of mobile telephony services by the seller, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction.

(B) Notwithstanding subparagraph (A), a seller may elect to combine the 911 and 988 surcharges into a single-line item. If the seller elects to combine the surcharges, the combined surcharge shall be labeled as the "911/988 Surcharge" on the invoice, receipt, or other similar document that is provided to the prepaid consumer of mobile telephony services by the seller, or otherwise disclosed electronically to the prepaid consumer, at the time of the retail transaction. The seller shall remit the combined surcharges to the department in separate amounts for each surcharge on forms prescribed by the department.

(b) (1) The surcharges that are required to be collected by a seller and any amount unreturned to the prepaid consumer of mobile telephony services that is not owed as part of the surcharges, but was collected from the prepaid consumer under the representation by the seller that it was owed as part of the surcharges, constitutes debts owed by the seller to this state.

(2) A seller that has collected any amount of surcharge in excess of the amount of the surcharges imposed by this part and actually due from a prepaid consumer may refund that amount to the prepaid consumer, even though the surcharge amounts have already been paid over to the department and a corresponding credit or refund has not yet been secured. The seller may claim credit for that overpayment refund against the amount of surcharges imposed by this part that is due upon any other return, providing that credit is claimed in a return dated no later than three years from the date of overpayment.

(c) (1) Every prepaid consumer of prepaid mobile telephony services in this state is liable for the surcharges until they have been paid to this state, except that payment to a seller registered under this part relieves the prepaid consumer from further liability for the surcharges. Any surcharge collected from a prepaid consumer that have not been remitted to the department shall be a debt owed to the state by the person required to collect and remit the surcharges. Nothing in this part shall impose any obligation upon a seller to take any legal action to enforce the collection of the surcharge imposed by this section.

(2) A credit shall be allowed against, but shall not exceed, the surcharge amounts imposed on any prepaid consumer of mobile telephony services by this part to the extent that the prepaid consumer has paid surcharges on the purchase to any other state, political subdivision thereof, or the District of Columbia. The credit shall be apportioned to the charges against which it is allowed in proportion to the amounts of those charges.

(d) A seller is relieved from liability to collect the surcharges imposed by this part that became due and payable, insofar as the base upon which the surcharges are imposed is represented by accounts that have been found to be worthless and charged off for income tax purposes by the seller or, if the seller is not required to file income tax returns, charged off in accordance with generally accepted accounting principles. A seller that has previously paid the surcharges may, under rules and regulations prescribed by the department take as a deduction on its return the amount found worthless and charged off by the seller. If any such accounts are thereafter in whole or in part collected by the seller, the amounts so collected shall be included in the first return filed after such collection and the surcharges shall be paid with the return.

(e) For purposes of this section, a retail transaction occurs in the state under any of the following circumstances:

(1) The prepaid consumer makes the retail transaction in person at a business location in the state (point-of-sale transaction).

(2) If paragraph (1) is not applicable, the prepaid consumer's address is in the state (known-address transaction). A known-address transaction occurs in the state under any of the following circumstances:

(A) The retail sale involves shipping of an item to be delivered to, or picked up by, the prepaid consumer at a location in the state.

(B) If the prepaid consumer's address is known by the seller to be in the state, including if the seller’s records maintained in the ordinary course of business indicate that the prepaid consumer’s address is in the state and the records are not made or kept in bad faith.

(C) The prepaid consumer provides an address during consummation of the retail transaction that is in the state, including an address provided with respect to the payment instrument if no other address is available and the address is not given in bad faith.

(3) If an address is not available to the seller to determine whether any of the circumstances in paragraph (2) exist, the transaction will be deemed to be a known-address transaction occurring in this state if the mobile telephone number is associated with a location in this state.

(f) The surcharge amounts imposed under this section shall be remitted by every seller, except a service supplier, as prescribed under Part 1 (commencing with Section 6001), along with a return filed using electronic media. The department shall administer such remittance and returns as prescribed under Part 1 (commencing with Section 6001).

(g) Notwithstanding Article 1.1 (commencing with Section 41060) of Chapter 4, any seller, except a service supplier, required, or that elects, to remit amounts due under Part 1 (commencing with Section 6001) by electronic funds transfer pursuant to Article 1.2 (commencing with Section 6479.3) of Chapter 5 of Part 1 shall remit the surcharge upon prepaid mobile telephony service amounts due under this section by electronic funds transfer.

(h) The purchase in a retail transaction in this state of prepaid mobile telephony services, either alone or in combination with mobile data or other services, by a prepaid consumer is exempt from the surcharges if all of the following apply:

(1) The prepaid consumer is certified as eligible for the state lifeline program or federal lifeline program.

(2) The seller is authorized to provide lifeline service under the state lifeline program or federal lifeline program.

History—Added by Stats. 2019, Ch. 54, effective July 1, 2019. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, added second sentence to paragraph (1) of subdivision (a); substituted "a" for "no" before "corresponding credit", added "not" before "yet been secured." in the first sentence of paragraph (2) of subdivision (b); deleted the former second sentence of paragraph (2) in subdivision (b); substituted "that" for "such" before "overpayment", added "refund" before "against the", substituted "that" for "which" before "is due", deleted "quarterly" before "return, providing", and substituted "that" for "such" before "credit is claimed", in third sentence of paragraph (2) in subdivision (b); deleted "prepaid MTS" before "surcharge imposed" in the first sentence of subdivision (d); substituted "department" for "board," after "prescribed by the" in the second sentence of subdivision (d); deleted former subdivision (e); relettered former subdivisions (f), (g) to (e), (f); added subdivision (g); deleted paragraph (3) from subdivision (h). Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted "amounts" for "amount" and "surcharges" for "surcharge" throughout; relettered paragraph (2) to subparagraph (2) (A) and added subparagraph (B); substituted "surcharges that are" for "surcharge that is" after "The" in paragraph (b)(1); substituted "amounts have" for "amount has" before "already been paid" in the first sentence of paragraph (b)(2); substituted "they have" for "it has" before "been paid to" in the first sentence of paragraph (c)(1); substituted "surcharges are" for "surcharge is" after "upon which the" in the first sentence of subdivision (d). Stats. 2023, Ch. 511 (SB 889), in effect January 1, 2024, substituted "surcharges,", "surcharges" or "surcharges." for "surcharge,", "surcharge" or "surcharge." respectively throughout; substituted "have" for "has" after "consumer that" in second sentence of paragraph (1) of subdivision (c); substituted "amounts" for "amount" before "so collected" in third sentence of subdivision (d).

Text of Section Operative Through December 31, 2014

41030. Determination of rate. (a) The Office of Emergency Services shall determine annually, on or before October 1, to be effective on January 1 of the following year, a surcharge rate pursuant to subdivision (b) that it estimates will produce sufficient revenue to fund the current fiscal year's 911 costs.

(b) (1) The surcharge rate shall be determined by dividing the costs (including incremental costs) the Office of Emergency Services estimates for the current fiscal year of 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the charges for intrastate telephone communications services and VoIP service to which the surcharge will apply for the period of January 1, to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge rate in any year be greater than three-quarters of 1 percent or less than one-half of 1 percent.

(2) Commencing with the calculation made October 1, 2015, to be effective January 1, 2016, the surcharge shall be determined by dividing the costs (including incremental costs) the Office of Emergency Services estimates for the current fiscal year of 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the charges for intrastate telephone communications services, the intrastate portion of prepaid mobile telephony services, and VoIP service to which the surcharge will apply for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge rate in any year be greater than three-quarters of 1 percent or less than one-half of 1 percent. In making its computation of the charges that are applicable to the intrastate portion of prepaid mobile telephony services, the Office of Emergency Services shall use the computation method developed by the Public Utilities Commission and reported to the Office of Emergency Services pursuant to subdivisions (a) and (b) of Section 319 of the Public Utilities Code.

(c) When determining the surcharge rates pursuant to this section, the office shall include the costs it expects to incur to plan, test, implement, and operate Next Generation 911 technology and services, including text to 911 service.

(d) The Office of Emergency Services shall notify the board of the surcharge amount collected pursuant to this part and the surcharge amount applicable to prepaid mobile telephony services by October 15 of each year.

(e) At least 30 days prior to determining the surcharge pursuant to subdivision (a), the Office of Emergency Services shall prepare a summary of the calculation of the proposed surcharge and make it available to the public and on its Internet Web site. The summary shall contain all of the following:

(1) The prior year revenues to fund 911 costs, including, but not limited to, revenues from prepaid service.

(2) Projected expenses and revenues from all sources, including, but not limited to, prepaid service to fund 911 costs.

(3) The rationale for adjustment to the surcharge determined pursuant to subdivision (b), including, but not limited to, all impacts from the surcharge collected pursuant to Part 21 (commencing with Section 42001).

(f) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.

History—Stats. 1978, Ch. 352, effective July 4, 1978, in the first sentence substituted "1979–80" for "1978–79". Stats. 1979, Ch. 906, effective September 22, 1979, changed "1979–80" to "1982–83". Stats. 1980, Ch. 1035, operative January 1, 1981, completely reworded the section. Stats. 2007, Ch. 342 (AB 1748), in effect January 1, 2008, substituted "October" for "September" and substituted "January 1 to December 31" for "November 1 of the current calendar year to October 31". Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, added "and VoIP service" after "intrastate telephone communications services" and added ", inclusive," after "December 31". Stats. 2010, Ch. 404 (AB 2408), in effect January 1, 2011, substituted "California Technology Agency" for "Department of General Services" throughout the section. Stats. 2013, Ch. 28 (SB 71), in effect June 27, 2013, substituted "Office of Emergency Services" for "California Technology Agency" throughout the section. Stats. 2014, Ch. 885 (AB 1717), in effect September 30, 2014, designated first and second sentences as subdivision (a) and subdivision (b)(1), respectively; added "to be effective on January 1 of the following year," after "October 1," and added "pursuant to subdivision (b)" after "surcharge rate" in subdivision (a); substituted "costs" for "plans" after "fiscal year of 911", replaced "Section 53115 of the Government Code" with "Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code", added a comma after "January 1", substituted "the" for "such" after "no event shall", and substituted "or" for "nor" after "three-quarters of 1 percent" in paragraph (1) of subdivision (b); added paragraph (2) to subdivision (b); added subdivisions (c), (d), (e), and (f). 2019, Ch. 54 (SB 96), repealed by its own provisions effective July 1, 2019.

Text of Section Operative January 1, 2015, Through June 30, 2019

41030. Determination of rate. (a) The Office of Emergency Services shall determine annually, on or before October 1, to be effective on January 1 of the following year, a surcharge rate pursuant to subdivision (b) that it estimates will produce sufficient revenue to fund the current fiscal year's 911 costs.

(b) (1) The surcharge rate shall be determined by dividing the costs (including incremental costs) the Office of Emergency Services estimates for the current fiscal year of 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the charges for intrastate telephone communications services and VoIP service to which the surcharge will apply for the period of January 1, 2015, to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge rate in any year be greater than three-quarters of 1 percent nor less than one-half of 1 percent.

(2) Commencing with the calculation made October 1, 2015, to be effective January 1, 2016, the surcharge shall be determined by dividing the costs (including incremental costs) the Office of Emergency Services estimates for the current fiscal year of 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the charges for intrastate telephone communications services, the intrastate portion of prepaid mobile telephony services, and VoIP service to which the surcharge will apply for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge rate in any year be greater than three-quarters of 1 percent or less than one-half of 1 percent. In making its computation of the charges that are applicable to the intrastate portion of prepaid mobile telephony services, the Office of Emergency Services shall use the computation method developed by the Public Utilities Commission and reported to the Office of Emergency Services pursuant to subdivisions (a) and (b) of Section 319 of the Public Utilities Code.

(c) When determining the surcharge rates pursuant to this section, the office shall include the costs it expects to incur to plan, test, implement, and operate Next Generation 911 technology and services, including text to 911 service, consistent with the plan and timeline required by Section 53121 of the Government Code.

(d) The office shall notify the board of the surcharge rate imposed under this part, determined pursuant to this section on or before October 1 of each year, and the surcharge rate applicable to prepaid mobile telephony services determined pursuant to this section for purposes of the prepaid MTS surcharge calculated under Part 21 (commencing with Section 42001) on or before October 15 of each year.

(e) At least 30 days prior to determining the surcharge pursuant to subdivision (a), the Office of Emergency Services shall prepare a summary of the calculation of the proposed surcharge and make it available to the public, the Legislature, the 911 Advisory Board, and on its Internet Web site. The summary shall contain all of the following:

(1) The prior year revenues to fund 911 costs, including, but not limited to, revenues from prepaid service.

(2) Projected expenses and revenues from all sources, including, but not limited to, prepaid service to fund 911 costs.

(3) The rationale for adjustment to the surcharge determined pursuant to subdivision (b), including, but not limited to, all impacts from the surcharge collected pursuant to Part 21 (commencing with Section 42001).

(f) This section shall remain in effect only until January 1, 2020, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2020, deletes or extends that date.

History—Stats. 2014, Ch. 926 (SB 1211), in effect January 1, 2015. Stats. 2015, Ch. 25 (SB 84), in effect June 24, 2015, added "imposed under this part," after "board of the surcharge rate", added "on or before October 1 of each year," after "pursuant to this section", deleted "by" after "mobile telephony services", and added "determined pursuant to this section … under Part 21 (commencing with Section 42001) on or before" to subdivision (d). 2019, Ch. 54 (SB 96), repealed by its own provisions effective July 1, 2019.


Note: The amendments in Stats. 2014, Ch. 926 (SB 1211) succeeded the version as amended (September 30, 2014) by SEC. 5 of Stats. 2014, Ch. 885 (AB 1717).

Text of Section Operative July 1, 2019, Through September 28, 2022

41030. Determination of amount. (a) The Office of Emergency Services shall determine annually, on or before October 1, to be effective on January 1 of the following year, a surcharge amount pursuant to subdivision (b) that it estimates will produce sufficient revenue to fund the current fiscal year’s 911 costs.

(b) For determinations made that are applicable to the calendar year beginning on January 1, 2020, and each calendar year thereafter, the surcharge amount shall be determined annually by dividing the costs, including incremental costs, the Office of Emergency Services estimates for the current fiscal year of 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the number of access lines to which the surcharge will apply per month for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge amount in any month be greater than eighty cents ($0.80) per access line per month.

(c) When determining the surcharge amount pursuant to this section, the office shall include the costs it expects to incur to plan, test, implement, and operate Next Generation 911 technology and services, including text to 911 service, and alerts and warnings, consistent with the plan and timeline required by Section 53121 of the Government Code.

(d) (1) Service suppliers shall report the total number of access lines to the Office of Emergency Services, on or before August 1, for the previous period of January 1 to December 31, inclusive.

(2) The total number of access lines required to be reported in paragraph (1) shall include all lines from the categories of wireline communication service line, wireless communication service line, prepaid mobile telephony service line, and VoIP service line. The number of access line figures shall be reported individually for these categories.

(3) Notwithstanding any other law, the Office of Emergency Services, within 45 days of receiving a request from the department, shall provide the department the name and address of each service supplier, each service supplier’s total number of access lines, as provided in paragraph (2) for the prior calendar year, and any other information the department deems necessary to conduct its responsibilities under this part.

(e) The office shall perform a validation of the number of access lines using subscription data or other comparable data collected by appropriate federal or state agencies. This subscription data or other comparable data shall be used to validate the access line data required to be reported by service suppliers in subdivision (d).

(f) (1) The office shall notify the department of the surcharge amount imposed under this part, determined pursuant to this section on or before October 1 of each year.

(2) The surcharge imposed on the purchase of prepaid mobile telephony services shall be equal to the amount set forth in subdivision (b) for each retail transaction in this state.

(g) (1) At least 30 days prior to determining the surcharge pursuant to subdivision (a), the Office of Emergency Services shall prepare a summary of the calculation of the proposed surcharge and make it available to the public, the Legislature, the 911 Advisory Board, and on its internet website.

(2) For determinations made on or before October 1, 2019, the summary shall contain all of the following:

(A) The prior year revenues to fund 911 costs, including, but not limited to, revenues from prepaid service.

(B) Projected expenses and revenues from all sources, including, but not limited to, prepaid service to fund 911 costs.

(C) The rationale for adjustment to the surcharge determined pursuant to subdivision (b), including, but not limited to, all impacts from the surcharge collected pursuant to Part 21 (commencing with Section 42001).

(h) For purposes of this section, for the determination made by the office on or before October 1, 2019, that is applicable for the calendar year beginning on January 1, 2020, and ending on December 31, 2020, the following definitions shall apply:

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

(2) "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.

History—Added by Stats. 2019, Ch. 54 (SB 96), in effect July 1, 2019. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, added paragraph (3) to subdivision (d).

Text of Section Operative September 29, 2022

41030. Determination of amounts. (a) The Office of Emergency Services shall determine annually, on or before October 1, to be effective on January 1 of the following year, surcharge amounts pursuant to subdivision (b) that it estimates will produce sufficient revenue to fund the current fiscal year’s 911 and 988 costs.

(b) The surcharge amounts shall be determined annually by dividing the costs, including incremental costs, the Office of Emergency Services estimates for the current fiscal year of the following:

(1) The 911 costs approved pursuant to Article 6 (commencing with Section 53100) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the State Emergency Telephone Number Account in the General Fund, by its estimate of the number of access lines to which the surcharge will apply per month for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge amount in any month be greater than eighty cents ($0.80) per access line per month.

(2) For the 2023 and 2024 calendar years, the 988 surcharge shall be set at eight cents ($0.08) per access line per month.

(3) For determinations that are made applicable to the calendar year beginning on January 1, 2025, and each calendar year thereafter, the 988 surcharge shall be determined by dividing the 988 costs approved pursuant to Article 6.3 (commencing with Section 53123.1) of Chapter 1 of Part 1 of Division 2 of Title 5 of the Government Code, less the available balance in the 988 State Suicide and Behavioral Health Crisis Services Fund, by the Office of Emergency Services’ estimate of the number of access lines to which the surcharge will apply per month for the period of January 1 to December 31, inclusive, of the next succeeding calendar year, but in no event shall the surcharge amount in any month be greater than thirty cents ($0.30) per access line per month.

(c) When determining the 911 surcharge amount pursuant to this section, the office shall include the costs it expects to incur to plan, test, implement, and operate Next Generation 911 technology and services, including text to 911 service, and alerts and warnings, consistent with the plan and timeline required by Section 53121 of the Government Code.

(d) (1) Service suppliers shall report the total number of access lines to the Office of Emergency Services, on or before August 1, for the previous period of January 1 to December 31, inclusive.

(2) The total number of access lines required to be reported in paragraph (1) shall include all lines from the categories of wireline communication service line, wireless communication service line, prepaid mobile telephony service line, and VoIP service line. The number of access line figures shall be reported individually for these categories.

(3) Notwithstanding any other law, the Office of Emergency Services, within 45 days of receiving a request from the department, shall provide the department the name and address of each service supplier, each service supplier’s total number of access lines, as provided in paragraph (2) for the prior calendar year, and any other information the department deems necessary to conduct its responsibilities under this part.

(e) The office shall perform a validation of the number of access lines using subscription data or other comparable data collected by appropriate federal or state agencies. This subscription data or other comparable data shall be used to validate the access line data required to be reported by service suppliers in subdivision (d).

(f) (1) The office shall notify the department of the surcharge amount imposed under this part, determined pursuant to this section on or before October 1 of each year.

(2) The surcharge imposed on the purchase of prepaid mobile telephony services shall be equal to the amount set forth in subdivision (b) for each retail transaction in this state.

(g) (1) At least 30 days prior to determining the surcharge pursuant to subdivision (a), the Office of Emergency Services shall prepare a summary of the calculation of the proposed surcharge amounts and make it available to the public, the Legislature, the California Health and Human Services Agency and relevant departments, and on its internet website.

(2) For determinations made on or before October 1, 2019, the summary shall contain all of the following:

(A) The prior year revenues to fund 911 costs, including, but not limited to, revenues from prepaid service.

(B) Projected expenses and revenues from all sources, including, but not limited to, prepaid service to fund 911 costs.

(C) The rationale for adjustment to the surcharges determined pursuant to subdivision (b).

(h) For purposes of this section, for the determination made by the office on or before October 1, 2019, that is applicable for the calendar year beginning on January 1, 2020, and ending on December 31, 2020, the following definitions shall apply:

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

(2) "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.

History—Added by Stats. 2022, Ch. 747 (AB 988), in effect September 29, 2022. Stats. 2023, Ch. 511 (SB 889), in effect January 1, 2024, substituted "amounts" for "amount" after "proposed surcharge" in paragraph (1) of subdivision (g).

41031. Determination time. The Office of Emergency Services shall make its determination of the surcharge amounts each year no later than October 1 and shall notify the department of the new amounts which shall be effective with respect to access lines and the purchase of prepaid mobile telephony services on or after January 1 of the next succeeding calendar year.

History—Stats. 1980, Ch. 1035, operative January 1, 1981, substituted "The Department of General Services" for "The board", substituted "notify the board of" for "fix", added a comma following "new rate" and substituted present wording following "shall be" for "effective as provided in Section 41033.". Stats. 2007, Ch. 342 (AB 1748), in effect January 1, 2008, substituted "October" for "September", substituted "January" for November" and substituted "the next succeeding calendar year" for "each year." Stats. 2008, Ch. 17 (SB 1040), in effect May 21, 2008, added "and VoIP service" after "intrastate telephone communication services". Stats. 2010, Ch. 404 (AB 2408), in effect January 1, 2011, substituted "California Technology Agency" for "Department of General Services" before "shall make its determination" and substituted "the" for "such" before "surcharge rate each year". Stats. 2013, Ch. 28 (SB 71), in effect June 27, 2013, substituted "Office of Emergency Services" for "California Technology Agency". Stats. 2019, Ch. 54 (SB 96), substituted "amount" for "rate" and "department" for "board" throughout section, and substituted "access lines" for "charges made for…VoIP service." Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, added "surcharge" after "of the new", deleted " fixed by the department to be" before "effective", and added " and the purchase of prepaid mobile telephony services" after "access lines". Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted " amounts" for "amount" throughout; deleted "surcharge" after" of the new".

41032. Notification of amounts. Immediately upon notification by the Office of Emergency Services, the department shall notify every service supplier and seller registered with it of the new amounts by a means determined by the department that may include, but is not limited to, mail, electronic mail, or internet website postings.

History—Stats. 1980, Ch. 1035, operative January 1, 1981, substituted "notification by the Department of General Services" for "making its determination" and substituted "15" for "1". Stats. 2007, Ch. 342 (AB 1748), in effect January 1, 2008, substituted "November" for "September". Stats. 2010, Ch. 404 (AB 2408), in effect January 1, 2011, substituted "California Technology Agency" for "Department of General Services". Stats. 2013, Ch. 28 (SB 71), in effect June 27, 2013, substituted "Office of Emergency Services" for "California Technology Agency". Stats. 2015, Ch. 25 (SB 84), in effect June 24, 2015, deleted "by mail" after "shall notify" and replaced "rate" with "rate by a means, or means determined by the board, that may include, but is not limited to, mail, electronic mail, or Internet Web site postings". Stats. 2019, Ch. 54 (SB 96), substituted "amount" for "rate" and "department" for "board" throughout section, and substituted "internet website" for "Internet Web site." Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, deleted "and fixing the surcharge amount" after "Office of Emergency Services", deleted "each year no later than November 15 publish in its minutes the new amount, and it shall" after "the department shall", added "and seller" after "service supplier", deleted ", or means" after "by a means", and deleted "," after "by the department". Stats. 2022, Ch. 747 (AB 988), effective September 29, 2022, substituted "amounts" for "amount" before "by a means".

41033. Application of rate. [Repealed by Stats. 1980, Ch. 1035, operative January 1, 1981.]

41033. Guaranteed minimum annual funding of Prepaid MTS 911 Account; deficiency determinations. [Repealed by Stats. 2019, Ch. 54 (SB 96), effective July 1, 2019.]

Article 3. Registration

41040. Registration. Every service supplier or seller in this state shall register with the department upon a form prescribed by the department and shall set forth the name under which it transacts or intends to transact business and other information as the department may require.

History—Stats. 2019, Ch. 54 (SB 96), substituted "department" for "board" throughout section, and added "or seller" after "Every service supplier". Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "department" for "board" before "upon a form" and deleted "such" before "other information".

41041. Security requirement. (a) When necessary to ensure compliance with this part, the department may require any person subject to this part to place with it the security that the department determines. Security in the form of cash, insured deposits in banks or savings and loan institutions, or a bond or bonds duly executed by an admitted surety insurer, payable to the state, conditioned upon faithful performance of all of the requirements of this part and expressly providing for the payment of all surcharges, penalties, and other obligations of the person arising out of this part, shall be held in trust to be used solely in the manner provided by this section. The amount of security shall be fixed by the department, not to exceed twice the estimated average quarterly liability of persons filing for quarterly periods, or three times the estimated average monthly liability of persons filing for monthly periods, determined in the manner that the department deems proper. Security held by the department shall be released after a three-year period in which the person has filed all returns and paid all surcharges due to the state under this part or any amount of surcharge required to be collected and paid to the state within the time required.

(b) If, when a person discontinues business, the department holds security pursuant to this section in the form of cash or insured deposits in banks or savings and loan institutions, the security when applied to the account of the taxpayer shall be deemed a payment on any liability of the person to the department on the date the business is discontinued.

(c) This section shall not apply to a taxpayer who either has timely filed all returns and paid all surcharges due to the state under this part for the three consecutive years prior to the effective date of this section, or has, on or before July 31, 1998, timely filed all returns and paid all surcharges due to the state under this part since the taxpayer registered with the department pursuant to Section 41040. However, the department may require security from any taxpayer who fails to remain in compliance with the reporting and payment requirements of this part subsequent to the effective date of this section.

History—Added by Stats. 1998, Ch. 649 (AB 911), in effect January 1, 1999. Stats. 2021, Ch. 432 (SB 824), in effect January 1, 2022, substituted "surcharge" or "surcharges" for "tax" or "taxes" throughout; substituted "department" for "board" throughout; deleted "such" before "taxpayer who" in the second paragraph in subdivision (c).