Bill Summary for H 571 (2011-2012)

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Summary date: 

May 18 2011

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 571 (Public) Filed Wednesday, March 30, 2011
IMPOSING A SERVICE CHARGE OF ONE AND TWO TENTHS PERCENT ON THE PURCHASE OF PREPAID WIRELESS TELECOMMUNICATIONS SERVICE FOR ANY PURPOSE OTHER THAN RESALE OCCURRING IN THIS STATE, REQUIRING THAT THE SERVICE CHARGE BE COLLECTED BY THE SELLER OF PREPAID WIRELESS TELECOMMUNICATION SERVICE AND REMITTED TO THE DEPARTMENT OF REVENUE, AND PROVIDING THAT THE DEPARTMENT OF REVENUE SHALL TRANSFER ALL SERVICE CHARGES COLLECTED, MINUS THE COSTS OF COLLECTION, TO THE 911 FUND TO SUPPORT 911 SERVICES IN THE STATE.
Intro. by Sager, Justice, Bryant, Brawley.

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Bill summary

House committee substitute makes the following changes to 1st edition. Amends GS 62A-43(b) to provide that the monthly service charge for 911 service is not imposed on prepaid wireless service, effective when the provision becomes law.
Rewrites GS 62A-43(b), as amended by this act, to specify that the monthly service charge for 911 service for prepaid wireless service will be collected as provided in Article 4 of GS Chapter 62A, effective July 1, 2013. Amends proposed GS 62A-60(a) to set a prepaid wireless E911 service charge of 70ยข (or a lower amount set by the 911 Board) on each retail transaction occurring in North Carolina (previously 1.2% of each retail transaction). Makes other clarifying changes. Amends proposed GS 62A-60(e) to direct the 911 Board to set the prepaid wireless E911 service charge at the same rate as established under GS 62A-43(d) (previously, directed the Board to proportionately increase or decrease the service charge according to a specified calculation).
Allows sellers that collect prepaid wireless E911 service charges to retain all of the services charges collected in the first three calendar months after the effective date of the act. Amends GS 62A-60(c) to increase the percentage of fees retained by such retailers from 3% to 5%, after the first three months. Changes the effective date of the act to July 1, 2013 (previously January 1, 2012). Makes a conforming change to the title.