North Dakota
Association of Telephone Cooperatives

3201 Nygren Drive NW, P.O. Box 1144, Mandan, ND 58554

Telephone: 701-663-1099  *    Fax:  701-663-0707

NDATC POSITION PAPER

BILL: HB 2067

SUBJECT: Extending E911 Tax to Wireless Phones

DESCRIPTION: Currently, cellular telephone users do not pay the E911 tax that customers’ of local exchange companies do. This legislation would require wireless users to pay the tax, which is capped by existing law at $1.00 per month if a county’s residents have approved the measure. The language in SB 2067 was developed by a broad cross-section of users and providers named by former Governor Ed Schafer following his veto of similar legislation two years ago. Revenues from the tax on wireless devices will be kept in a separate fund from the E911 tax collected from wireless phones and held by the collecting agency until that body certifies it is capable of receiving and utilizing wireless enhanced service.

IMPACT OF INDEPENDENT TELEPHONE COMPANIES: The Association believes that it is in the best interests of the State to tax all providers of telecommunications service similarly. It provides fairness in a competitive marketplace and it assures that everyone will have access to 911 services. The Association is disappointed in the segregated funds for wireless and wireline carriers. It would be to the Public Safety Answering Points (PSAP) and counties benefit to have a single E911 fund to support all of their obligations. The wireless industry has continually advocated having the capital costs of their deployment of E911 cable facility upgrades reimbursed by PSAP’s and other governing agencies despite the Federal Communications Commission rejecting language that would have mandated recovery of wireless costs. The Association will monitor what costs are recovered by wireless providers during the coming two years to ensure that wireline and wireless companies are being treated similarly in the recovery of their costs for providing the service.

ASSOCIATION RECOMMENDATION: Support SB 2067.