Establishing an equitable and reasonable method for the remittance and collection of a surcharge on prepaid wireless telephone service

560 CMR: 560 STATE 911 CMR: STATE 911 DEPARTMENT DEPARTMENT

560 CMR 560 CMR 3.00: 3.00: ESTABLISHING AN ESTABLISHING AN EQUITABLE EQUITABLE AND AND REASONABLE REASONABLE METHOD METHOD FOR FOR THE THE REMITTANCE AND REMITTANCE AND COLLECTION COLLECTION OF OF A A SURCHARGE SURCHARGE ON ON PREPAID PREPAID WIRELESS TELEPHONE WIRELESS TELEPHONE SERVICE SERVICE

Section Section

3.01: 3.01: Purpose Purpose 3.02: 3.02: Scope and Scope and Applicability Applicability 3.03: 3.03: Definitions Definitions 3.04: 3.04: Surcharge Surcharge 3.05: 3.05: Calculation and Calculation and Remittance Remittance of of the the Surcharge Surcharge 3.06: 3.06: Reports and Reports and Recordkeeping Recordkeeping 3.07: 3.07: Information Disclosure Information Disclosure Requirements Requirements 3.08: 3.08: Enforcement Enforcement 3.09: 3.09: Severability Severability

3.01: Purpose 3.01: Purpose

560 CMR 560 CMR 3.003.00 establishes establishes an an equitable equitable and and reasonable reasonable method method for for the the remittance remittance and and of aa surcharge collection of collection surcharge on on prepaid prepaid wireless wireless telephone telephone service. service.

3.02: Scope and 3.02: Scope and Applicability Applicability

560 CMR 560 CMR 3.00 3.00 applies applies to to all all prepaid prepaid wireless wireless telephone telephone service service capable capable of of accessing accessing and and utilizing enhanced 911 utilizing enhanced 911 service service on on or or after after July July 1, 1, 2009. 2009.

3.03: Definitions 3.03: Definitions

As used As used throughout throughout 560 560 CMR CMR 3.00, 3.00, the the following following terms terms shall shall have have the the following following meaning: meaning:

Average Revenue Average Revenue per User means per User means total total revenue revenue divided divided by the number by the number of of subscribers, subscribers, end end users, users, or customers. or customers.

Automatic Location Automatic Location Identification Identification means means anan enhanced enhanced 911 911 service service capability capability that that allows allows for for the the automatic display automatic display of of information information relating to the relating to the geographical geographical location location of of the the communication communication device used device used to to place place aa 911 911 call. call.

Automatic Number Automatic Number Identification Identification means means an an enhanced enhanced 911 911 service service capability capability that that allows allows for for the the automatic display automatic of aa telephone display of telephone number number used used to to place place or or route route aa 911 911 call. call.

Customer means Customer means aa subscriber subscriber or or end end user. user.

Department means Department means the the state state 911 911 department. department.

End User End User means means aa person or entity person or entity who who uses uses communication communication services. services.

Enhanced 911 Enhanced 911 Fund Fund means means the the fund fund established established under under M.G.L. M.G.L. c. 10, §§ 35JJ. c. 10, 35JJ.

Enhanced 911 Enhanced 911 Service Service means means aa service service consisting consisting of of communication communication network, network, database database and and equipment features equipment features provided for subscribers provided for subscribers oror end end users users of of communication communication services services enabling enabling such subscribers such subscribers or or end end users users to reach aa PSAP to reach PSAP by by dialing dialing the the digits digits 911, 911, or or by by other other means means approved by approved the department, by the department, that that directs directs calls calls to to appropriate appropriate PSAPs PSAPs based based on on selective selective routing routing and provides and provides the the capability capability for for automatic automatic number number identification identification and and automatic automatic location location identification. identification.

FCC means FCC means the the Federal Federal Communications Communications Commission. Commission.

National Average Revenue National Average Revenue per User means per User means the the average average monthly monthly revenue revenue per per user user in in all all states states where the where the prepaid prepaid wireless wireless telephone telephone service service provider provider operates. operates.

(Mass. Register #1538, 1/3/2025) 1/3/2025)

560 CMR: 560 STATE 911 CMR: STATE 911 DEPARTMENT DEPARTMENT

3.03: continued 3.03: continued

Prepaid Wireless Prepaid Wireless Telephone Telephone Service Service means means wireless wireless service service that that is is activated activated in in advance advance by by payment for aa finite payment for finite dollar dollar amount amount ofof service service or or minutes minutes that that terminates terminates either either upon upon use use by by aa customer and customer and delivery delivery by the wireless by the wireless provider of an provider of an agreed-upon agreed-upon amount amount of of service service or or minutes, minutes, unless the unless the customer customer makes makes additional additional payments. payments.

Prepaid Wireless Prepaid Wireless Telephone Telephone Service Service Provider Provider means means an an entity entity providing prepaid wireless providing prepaid wireless telephone service telephone service at at retail retail or or wholesale. wholesale.

Public Safety Public Safety Answering Answering Point Point or or PSAP means aa facility PSAP means facility assigned assigned the the responsibility responsibility of of receiving receiving 911 calls 911 calls and, and, as as appropriate, appropriate, directly directly dispatching dispatching emergency emergency response response services services or or transferring transferring or relaying or relaying emergency emergency 911 911 calls calls to to other other public public or or private safety agencies private safety agencies or or other other PSAPs. PSAPs.

Retail means Retail means sales sales by by aa prepaid prepaid wireless wireless telephone telephone service service provider provider directly directly to to the the subscriber, subscriber, end end user, or user, or customer customer or to aa non-prepaid or to non-prepaid wireless wireless telephone telephone service service provider provider through through aa voluntary voluntary contractual relationship contractual relationship inin which which the the service service is is sold sold directly directly to to the the subscriber, subscriber, end end user, user, or or customer by customer the non-prepaid by the non-prepaid wireless wireless telephone telephone service service provider provider onon behalf behalf ofof the the prepaid prepaid wireless telephone wireless telephone service service provider. provider.

means aa person Subscriber means Subscriber person or or entity entity who who uses uses communication communication services. services.

Universal Service Universal Service Fund means aa mechanism Fund means mechanism created created by the FCC by the FCC or or aa state state to to advance advance universal universal telecommunications service. telecommunications service.

Wholesale means Wholesale means sales sales by by aa prepaid prepaid wireless wireless telephone telephone service service provider provider to to aa non-prepaid non-prepaid wireless telephone wireless telephone service service provider provider that that sells sells service service on on behalf of the behalf of the prepaid wireless telephone prepaid wireless telephone service provider. service provider.

3.04: Surcharge 3.04: Surcharge

On or On or after after July July 1, 1, 2009, there shall 2009, there shall be imposed on be imposed on each each subscriber, subscriber, endend user, user, or or customer customer of of prepaid wireless telephone prepaid wireless telephone services services whose whose communications communications services services are are capable capable ofof accessing accessing and and utilizing an utilizing an enhanced enhanced 911 system, aa surcharge 911 system, surcharge for for expenses expenses associated associated with with services services provided provided under M.G.L. under M.G.L. c. c. 6A, 6A, §§ §§ 18A 18A through through 18J,18J, and and M.G.L. M.G.L. c. c. 166, 166, §§§§ 14A 14A and and 15E, 15E, in in the the amount amount of of .75 cents .75 cents per month through per month through June June 30, 30, 2015; $1.25 per 2015; $1.25 per month month commencing commencing July July 1, 1, 2015 2015 through through July 1, July 1, 2016; $1.00 per 2016; $1.00 per month month effective effective July July 1,1, 2016; $1.50 per 2016; $1.50 per month month effective effective January January 1, 1, 2019, 2019, and $1.00 and $1.00 per per month month effective effective January January 1, 1, 2029. 2029. The surcharge The surcharge shallshall apply apply toto any any and and all all prepaid wireless telephone prepaid wireless telephone services services oror minutes, minutes, whether such whether such services services or or minutes minutes areare included included withwith the the initial initial purchase purchase or or receipt receipt ofof aa wireless wireless telephone or telephone or other other device device or or are are recorded recorded on on aa wireless wireless telephone telephone or or other other device device by the purchase by the purchase of aa calling of calling card, card, through through an an internet internet transaction, transaction, by means of by means of aa wireless wireless communication communication directly directly to the to the subscriber, subscriber, end end user, or customer's user, or customer's wireless wireless telephone telephone or or other other device, device, by means of by means of services services supported by supported by aa universal universal service service fund, fund, oror by by any any other other means. means. The surcharge The surcharge shall shall apply apply toto all all sales by aa prepaid sales by prepaid wireless wireless telephone telephone service service provider provider at at retail retail or wholesale or wholesale and and shall shall include include thethe resale resale ofof services services byby aa prepaid prepaid wireless wireless telephone telephone service service provider who provider who purchases purchases telecommunications telecommunications services services from from another another telecommunications telecommunications serviceservice provider and provider and then then resells resells the the services, services, oror uses uses the the services services asas aa component component part of, or part of, or integrates integrates the purchased the purchased services into aa wireless services into wireless telecommunications telecommunications service.service. The surcharge The surcharge shallshall not not be be subject subject toto sales sales or or use use tax. tax. The surcharge The surcharge shallshall be subject to be subject to adjustment adjustment in in accordance accordance with with M.G.L. M.G.L. c. 6A, §§ 18H. c. 6A, 18H.

Calculation and 3.05: Calculation 3.05: and Remittance Remittance of of the the Surcharge Surcharge

Each prepaid Each prepaid wireless wireless telephone telephone service service provider provider shall: shall:

(1) collect (1) collect the the surcharge on aa monthly surcharge on monthly basis basis from from each each subscriber, subscriber, end end user, user, or or customer; customer; or or

(2) calculate (2) calculate and and remit remit the the total total surcharge surcharge owed owed for for the the month month by: by: (a) dividing (a) dividing its its total total Massachusetts Massachusetts revenue revenue for for prepaid wireless telephone prepaid wireless telephone service service for for the the month by month its national by its national average average revenue revenue per user for per user for prepaid wireless telephone prepaid wireless telephone service; service; and and (b) multiplying (b) multiplying the the result result by .75 cents by .75 cents through through June June 30, 30, 2015; 2015; multiplying the result multiplying the result by by $1.25 through $1.25 through June June 30, 30, 2016; 2016; multiplying the result multiplying the result by by $1.00 $1.00 commencing commencing July July 1,1, 2016; 2016; multiplying the multiplying the results results by $1.50 commencing by $1.50 commencing January January 1,1, 2019, 2019, and and multiplying the result multiplying the result by by $1.00 commencing $1.00 commencing JanuaryJanuary 1,1, 2029. 2029.

560 CMR: 560 STATE 911 CMR: STATE 911 DEPARTMENT DEPARTMENT

3.05: continued 3.05: continued

The total The total Massachusetts Massachusetts revenue revenue shall shall include include universal universal service service fund fund reimbursements reimbursements or or any any payments received payments by aa prepaid received by wireless telephone prepaid wireless telephone service service provider provider inin exchange exchange for for delivery delivery of of services to services to the the subscriber, subscriber, end end user, user, or or customer. customer. Regardless of Regardless of the the method method of of collection, collection, each each prepaid wireless telephone prepaid wireless telephone service service provider provider shall remit shall remit the the surcharge surcharge on on aa monthly monthly basis to the basis to the department department notnot later later than than 30 30 days days from from the the end of end of the the month month in in which which it it is is collected collected or or for for which which it it is is calculated. calculated. Regardless of Regardless of the the method method of of collection, collection, each each prepaid prepaid wireless wireless telephone telephone service service provider provider shall be shall permitted to be permitted to deduct deduct from from thethe surcharge surcharge remittance remittance anan administrative administrative fee fee not not to to exceed exceed 11% of of the the monthly surcharge revenue monthly surcharge revenue forfor administration administration costscosts to to cover cover the the expenses expenses ofof calculating and calculating and remitting remitting the the surcharge surcharge during during the the preceding month. preceding month.

3.06: Reports and 3.06: Reports and Recordkeeping Recordkeeping

Each prepaid Each wireless telephone prepaid wireless telephone service service provider shall submit provider shall submit to to the the department department and and the the department of department oftelecommunications telecommunications and and cable on aa form cable on form prescribed prescribed by the department by the department information information on its on its business entity, including business entity, including name, name, business business address, address, and and the the telephone telephone number, number, faxfax number, number, and e-mail and e-mail address address ofof aa contact contact person for such person for such prepaid prepaid wireless wireless telephone telephone service service provider provider and and for any for any preparer preparer of of any any report report onon behalf behalf of of such such prepaid prepaid wireless wireless telephone telephone service service provider. provider. Each prepaid Each wireless telephone prepaid wireless telephone service service provider shall update provider shall update this this information information annually. annually. Each prepaid Each wireless telephone prepaid wireless telephone service service provider shall report provider shall report toto the the department department on on aa monthly monthly basis on aa form basis on form prescribed prescribed by the department by the department the the total total surcharge surcharge revenues revenues calculated, calculated, collected, collected, and remitted and remitted fromfrom its its subscribers, subscribers, end end users, users, oror customers customers consistent consistent withwith the the provisions provisions of of 560 CMR 560 CMR 3.053.05 during during thethe preceding preceding month; month; thethe calculation calculation used used toto arrive arrive atat the the amount amount of of the the surcharge remittance; surcharge remittance; the the total total uncollected uncollected surcharge surcharge revenues revenues fromfrom itsits subscribers, subscribers, end end users, users, or customers or customers duringduring the the preceding preceding month, month, ifif applicable; applicable; thethe calculation calculation used used to to arrive arrive atat the the uncollectible surcharge uncollectible surcharge amount, amount, if ifapplicable; applicable; and and the the total total amount amount billed billed for for administration administration costs costs to cover to cover the the expenses expenses of of calculating calculating andand remitting remitting thethe surcharge surcharge during during thethe preceding month, if preceding month, if any. any. Each prepaid Each wireless telephone prepaid wireless telephone service service provider provider shall shall provide provide to to the the department department suchsuch additional information additional information as as may may be be reasonably reasonably requested requested by the department. by the department. Each prepaid Each prepaid wireless wireless telephone telephone service service provider provider shall shall maintain, maintain, and and shall shall make make available available to the to the department department for for inspection, inspection, its its books books andand records records in in aa manner manner thatthat will will permit permit thethe department to department to determine determine whether whether thethe prepaid prepaid wireless wireless telephone telephone service service provider provider has has complied complied with or with or is is complying complying with with thethe provisions provisions ofof 560 560 CMR CMR 3.00. 3.00.

3.07: Information Disclosure 3.07: Information Disclosure Requirements Requirements

Each prepaid Each prepaid wireless wireless telephone telephone service service provider provider shall, shall, to to the the extent extent that that such such information information is available is available to to the the prepaid wireless telephone prepaid wireless telephone service service provider, forward to provider, forward to any any PSAP PSAP oror any any other other answering point answering point equipped equipped for for enhanced enhanced 911 911 service, service, or or upon upon request request consistent consistent with with federal federal law, law, to the to the department, department, the the telephone telephone number number andand street street address address or or location location of of any any telephone telephone used used to to place aa 911 place 911 call, call, and and any any other other data data or or information information required required by the FCC by the FCC toto be transmitted to be transmitted to aa PSAP. PSAP.

3.08: Enforcement 3.08: Enforcement

The Attorney The General may, Attorney General may, at at the the request request of ofthe the department department or or on on the the Attorney General's own Attorney General's own initiative, institute initiative, institute civil civil proceedings proceedings to to enforce enforce the the provisions provisions of of 560 560 CMR CMR 3.00. 3.00.

3.09: Severability 3.09: Severability

If any If any provision provision of of 560 560 CMR 3 CMR 3.00, or the or the application application thereof, thereof, is is held, held, adjudged, adjudged, or or deemed deemed invalid, such invalid, such finding finding of ofinvalidity invalidity shall shall not not affect affect other other provisions or application, provisions or application, and and to to that that end end the provisions the of 560 provisions of 560 CMR CMR 3.00 3.00 are are severable. severable.

REGULATORY AUTHORITY REGULATORY AUTHORITY

560 CMR 560 CMR 3.00: M.G.L. c. 3.00: M.G.L. 6A, §§ 18H c. 6A, 18H and and c. c. 30A. 30A.