2006 Code of Virginia § 56-484.17 - Wireless E-911 Fund; uses of Fund; enforcement; audit required

56-484.17. Wireless E-911 Fund; uses of Fund; enforcement; audit required.

A. There is hereby created in the state treasury a special nonreverting fundto be known as the Wireless E-911 Fund (the Fund). The Fund shall beestablished on the books of the Comptroller. Interest earned on moneys in theFund shall remain in the Fund and be credited to it. Any moneys remaining inthe Fund, including interest thereon, at the end of each fiscal year shallnot revert to the general fund but shall remain in the Fund. Except asprovided in 2.2-2031, moneys in the Fund shall be used for the purposesstated in subsections C through D. Expenditures and disbursements from theFund shall be made by the State Treasurer on warrants issued by theComptroller upon written request signed by the Chief Information Officer ofthe Commonwealth.

B. (Effective until January 1, 2007) Each CMRS provider shall collect awireless E-911 surcharge from each of its customers whose place of primaryuse is within the Commonwealth. In addition, the wireless E-911 surchargeshall be imposed on wireless customers who purchase prepaid CMRS service,subject to the provisions in this subsection. However, no surcharge shall beimposed on federal, state and local government agencies. A payment equal toall wireless E-911 surcharges shall be remitted within 30 days to the Boardfor deposit in the Fund. Each CMRS provider and CMRS reseller may retain anamount equal to three percent of the amount collected to defray the costs ofcollecting the surcharges. State and local taxes shall not apply to anywireless E-911 surcharge collected from customers. Surcharges collected fromcustomers who do not purchase CMRS service on a prepaid basis shall besubject to the provisions of subsection K of 58.1-3812.

For CMRS customers who do not purchase CMRS service on a prepaid basis, theCMRS provider and CMRS reseller shall collect the surcharge through regularperiodic billing.

For CMRS customers who purchase CMRS service on a prepaid basis, the wirelessE-911 surcharge shall be determined according to one of the followingmethodologies:

a. The CMRS provider and CMRS reseller shall collect, on a monthly basis, thewireless E-911 surcharge from each active prepaid customer whose accountbalance is equal to or greater than the amount of the surcharge; or

b. The CMRS provider and CMRS reseller shall divide its total earned prepaidwireless telephone revenue with respect to prepaid customers in theCommonwealth within the monthly E-911 reporting period by $50, multiply thequotient by the surcharge amount, and pay the resulting amount to the Boardwithout collecting a separate charge from its prepaid customers for suchamount; or

c. The CMRS provider and CMRS reseller shall collect the surcharge at thepoint of sale.

Collection of the wireless E-911 surcharge from or with respect to prepaidcustomers shall not reduce the sales price for purposes of taxes which arecollected at point of sale.

B. (Effective January 1, 2007 - see Editor's notes) Each CMRS provider shallcollect a wireless E-911 surcharge from each of its customers whose place ofprimary use is within the Commonwealth. In addition, the wireless E-911surcharge shall be imposed on wireless customers who purchase prepaid CMRSservice, subject to the provisions in this subsection. However, no surchargeshall be imposed on federal, state and local government agencies. A paymentequal to all wireless E-911 surcharges shall be remitted within 30 days tothe Board for deposit in the Fund. Each CMRS provider and CMRS reseller mayretain an amount equal to three percent of the amount collected to defray thecosts of collecting the surcharges. State and local taxes shall not apply toany wireless E-911 surcharge collected from customers. Surcharges collectedfrom customers who do not purchase CMRS service on a prepaid basis shall besubject to the provisions of the federal Mobile Telecommunications SourcingAct (4 U.S.C. 116 et seq., as amended).

For CMRS customers who do not purchase CMRS service on a prepaid basis, theCMRS provider and CMRS reseller shall collect the surcharge through regularperiodic billing.

For CMRS customers who purchase CMRS service on a prepaid basis, the wirelessE-911 surcharge shall be determined according to one of the followingmethodologies:

a. The CMRS provider and CMRS reseller shall collect, on a monthly basis, thewireless E-911 surcharge from each active prepaid customer whose accountbalance is equal to or greater than the amount of the surcharge; or

b. The CMRS provider and CMRS reseller shall divide its total earned prepaidwireless telephone revenue with respect to prepaid customers in theCommonwealth within the monthly E-911 reporting period by $50, multiply thequotient by the surcharge amount, and pay the resulting amount to the Boardwithout collecting a separate charge from its prepaid customers for suchamount; or

c. The CMRS provider and CMRS reseller shall collect the surcharge at thepoint of sale.

Collection of the wireless E-911 surcharge from or with respect to prepaidcustomers shall not reduce the sales price for purposes of taxes which arecollected at point of sale.

C. Sixty percent of the Wireless E-911 Fund shall be distributed on a monthlybasis to the PSAPs according to the percentage of recurring wireless E-911funding received by the PSAP as determined by the Board. The Board shallcalculate the distribution percentage for each PSAP at the start of eachfiscal year based on the cost and call load data from the previous fiscalyear and implement this percentage by October 1 of the current year. Using30% of the Wireless E-911 Fund, the Board shall provide full payment to CMRSproviders of all wireless E-911 CMRS costs. For these purposes each CMRSprovider shall submit to the Board on or before December 31 of each year anestimate of wireless E-911 CMRS costs it expects to incur during the nextfiscal year of counties and municipalities in whose jurisdiction it operates.The Board shall review such estimates and advise each CMRS provider on orbefore the following March 1 whether its estimate qualifies for paymenthereunder and whether the Wireless E-911 Fund is expected to be sufficientfor such payment during said fiscal year. The remaining 10% of the Fund andany remaining funds for the previous fiscal year from the 30% for CMRSproviders shall be distributed to PSAPs or on behalf of PSAPs based on grantrequests received by the Board each fiscal year. The Board shall establishcriteria for receiving and making grants from the Fund, including proceduresfor determining the amount of a grant and payment schedule; however, thegrants must be to the benefit of wireless E-911. Any grant funding that hasnot been committed by the Board by the end of the fiscal year shall bedistributed to the PSAPs based on the same distribution percentage usedduring the fiscal year in which the funding was collected; however, the Boardmay retain some or all of this uncommitted funding for an identified fundingneed in the next fiscal year.

D. After the end of each fiscal year, on a schedule adopted by the Board, theBoard shall audit the grant funding received by all recipients to ensure itwas utilized in accordance with the grant requirements. For the fiscal yearending June 30, 2005, the Board shall determine whether qualifying paymentsto PSAP operators and CMRS providers during the preceding fiscal yearexceeded or were less than the actual wireless E-911 PSAP costs or wirelessE-911 CMRS costs of any PSAP operator or CMRS provider. Each fundingrecipient shall provide such verification of such costs as may be requestedby the Board. Any overpayment shall be refunded to the Board or credited topayments during the then current fiscal year, on such schedule as the Boardshall determine. If payments are less than the actual costs reported, theBoard may include the additional funding in the then current fiscal year.

E. The Auditor of Public Accounts, or his legally authorized representatives,shall annually audit the Wireless E-911 Fund. The cost of such audit shall beborne by the Board and be payable from the Wireless E-911 Fund, asappropriate. The Board shall furnish copies of the audits to the Governor,the Public Safety Subcommittees of the Senate Committee on Finance and theHouse Committee on Appropriations, and the Virginia State Crime Commission.

F. (Effective until January 1, 2007) The special tax authorized by 58.1-3813.1 shall not be imposed on consumers of CMRS.

F. (Effective January 1, 2007 - see Editor's notes) The special taxauthorized by 58.1-1730 shall not be imposed on consumers of CMRS.

(2000, c. 1064; 2001, c. 529; 2002, c. 68; 2003, c. 341; 2004, c. 167; 2005,c. 942; 2006, cc. 739, 780.)