HB 6629 — AN ACT CONCERNING THE COLLECTION AND REMITTANCE OF THE E 9-1-1 FEE BY MARKETPLACE FACILITATORS.

House ofBill Representatives General Assembly File No.

6516629 JanuaryPublic Session,Act 2021 House Bill No.

662921-70 HouseAN ofACT Representatives,CONCERNING MayTHE 10,COLLECTION 2021AND TheREMITTANCE CommitteeOF onTHE Finance,E Revenue9-1-1 andFEE BondingBY reportedMARKETPLACE throughFACILITATORS. REP.

SCANLON of the 98th Dist., Chairperson of the Committee on the part of the House, that the bill ought to pass.

AN ACT CONCERNING THE COLLECTION AND REMITTANCE OF THE E 9-1-1 FEE BY MARKETPLACE FACILITATORS.

HB6629[(3)] /(4) File"Prepaid wireless telecommunications service" means a wireless telephone service that a consumer pays for in advance, that allows the consumer to access the E 9-1-1 system by dialing or otherwise accessing the digits "9-1-1", and that is sold in predetermined units or House Bill No.

6516629 1dollars HB6629and Filesuch No.units or dollars decline with use.

651 [(3)] (4) "Prepaid wireless telecommunications service" means a wireless telephone service that a consumer pays for in advance, that allows the consumer to access the E 9-1-1 system by dialing or otherwise accessing the digits "9-1-1", and that is sold in predetermined units or dollars and such units or dollars decline with use.

HB6629Public /Act File No.

65121-70 2 HB6629of File3 House Bill No.

6516629 (d) The department shall establish procedures by which a seller [of prepaid wireless telecommunications service] may document that a sale is not a retail transaction, which procedures shall substantially coincide with the procedures for documenting sale for resale transactions pursuant to section 12-410.

ThisApproved actJune shall24, take2021 effectPublic asAct followsNo. and shall amend the following sections:

July21-70 1,3 2022,of and3 Section 1 28-30b applicable to sales occurring on or after July 1, 2022 Sec.

2 October 1, 2021 28-30f(d) and (e) FIN Joint Favorable HB6629 / File No.

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651 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Emergency Services and Public Enhanced 911 See Below See Below Protection, Dept.

Telecommunications Fund - Potential Revenue Gain Note:

GF=General Fund Municipal Impact:

None Explanation The bill makes marketplace facilitators retailers for the purposes of collecting the E-911 fee which results in a potential revenue gain to the Enhanced 911 Telecommunications Fund to the extent sales occur through marketplace facilitators.

The fee is determined annually by the Public Utilities Regulatory Authority.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.

HB6629 / File No.

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651 OLR Bill Analysis HB 6629 AN ACT CONCERNING THE COLLECTION AND REMITTANCE OF THE E 9-1-1 FEE BY MARKETPLACE FACILITATORS.

SUMMARY This bill makes marketplace facilitators retailers for purposes of collecting and remitting the prepaid wireless E-911 fee, which supports the state’s enhanced emergency 911 program.

By law, this fee is imposed on each sale of prepaid wireless telecommunications services (see BACKGROUND) by a seller conducting a retail transaction in Connecticut.

Retailers must disclose the amount of the fee to consumers in an invoice, a receipt, or other similar document, or post it conspicuously on their websites or on a conspicuous sign at the point of sale.

They may keep 1% of the amount collected and must remit the balance to the state.

Under the bill, marketplace facilitators that facilitate the sale of prepaid wireless telecommunications services to consumers are considered retailers for these purposes and are thus subject to these requirements.

Existing law already requires marketplace facilitators to collect and remit sales taxon behalf of their marketplace sellers.

By law, a “marketplace facilitator” is any person who:

1.

facilitates retail sales of at least $250,000 by marketplace sellers during the prior 12-month period by providing a forum (e.g., website, catalog, or booth) that lists or advertises taxable tangible personal property or services, including digital goods, for sale by such sellers;

2.

collects receipts from customers and remits payments to HB6629 / File No.

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