1.1.................... moves to amend H.F. No. 441 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2010, section 237.52, subdivision 3, is amended to read:
1.4    Subd. 3. Collection. Every telephone company or communications carrier that
1.5provides service capable of originating a telecommunications relay call, including cellular
1.6communications and other nonwire access services, in this state shall, except as provided
1.7in subdivision 3a, collect the charges established by the commission under subdivision 2
1.8and transfer amounts collected to the commissioner of public safety in the same manner
1.9as provided in section 403.11, subdivision 1, paragraph (d). The commissioner of public
1.10safety must deposit the receipts in the fund established in subdivision 1.

1.11    Sec. 2. Minnesota Statutes 2010, section 237.52, is amended by adding a subdivision
1.12to read:
1.13    Subd. 3a. Fee for prepaid wireless telecommunications service. The fee
1.14established in subdivision 2 does not apply to prepaid wireless telecommunications
1.15services as defined in section 403.02, subdivision 17b, which are instead subject to
1.16the prepaid wireless Telecommunications Access Minnesota fee established in section
1.17403.161, subdivision 1, paragraph (b). Collection, remittance, and deposit of prepaid
1.18wireless Telecommunication Access Minnesota fees are governed by sections 403.161
1.19and 403.162.

1.20    Sec. 3. Minnesota Statutes 2010, section 270B.01, subdivision 8, is amended to read:
1.21    Subd. 8. Minnesota tax laws. For purposes of this chapter only, unless expressly
1.22stated otherwise, "Minnesota tax laws" means:
1.23    (1) the taxes, refunds, and fees administered by or paid to the commissioner under
1.24chapters 115B, 289A (except taxes imposed under sections 298.01, 298.015, and 298.24),
1.25290, 290A, 291, 295, 297A, 297B, and 297H, and 403, or any similar Indian tribal tax
2.1administered by the commissioner pursuant to any tax agreement between the state and
2.2the Indian tribal government, and includes any laws for the assessment, collection, and
2.3enforcement of those taxes, refunds, and fees; and
2.4    (2) section 273.1315.

2.5    Sec. 4. Minnesota Statutes 2010, section 270B.12, subdivision 4, is amended to read:
2.6    Subd. 4. Department of Public Safety. The commissioner may disclose return
2.7information to the Department of Public Safety for the purpose of and to the extent
2.8necessary to administer section 270C.725 and sections 403.16 to 403.162.

2.9    Sec. 5. Minnesota Statutes 2010, section 403.02, is amended by adding a subdivision
2.10to read:
2.11    Subd. 17b. Prepaid wireless telecommunications service. "Prepaid wireless
2.12telecommunications service" means a wireless telecommunications service that allows
2.13the caller to dial 911 to access the 911 system, which service must be paid for in advance
2.14and is:
2.15(1) sold in predetermined units or dollars of which the number declines with use in a
2.16known amount; or
2.17(2) provides unlimited use for a predetermined time period.
2.18The inclusion of nontelecommunications services, including the download of digital
2.19products delivered electronically, content and ancillary services, with a prepaid wireless
2.20telephone service does not preclude that service from being considered a prepaid wireless
2.21telephone service under this chapter.

2.22    Sec. 6. Minnesota Statutes 2010, section 403.02, is amended by adding a subdivision
2.23to read:
2.24    Subd. 19c. Wireless telecommunications service. Wireless telecommunications
2.25service means a commercial mobile radio service, as that term is defined in United
2.26States Code, title 47, section 332, subsection (d), including all broadband personal
2.27communication services, wireless radio telephone services, geographic area specialized
2.28mobile radio licensees, that offer real-time, two-way voice service interconnected with the
2.29public switched telephone network.

2.30    Sec. 7. Minnesota Statutes 2010, section 403.02, subdivision 21, is amended to read:
2.31    Subd. 21. Wireless telecommunications service provider. "Wireless
2.32telecommunications service provider" means a provider of commercial mobile radio
3.1services, as that term is defined in United States Code, title 47, section 332, subsection
3.2(d), including all broadband personal communications services, wireless radio telephone
3.3services, geographic area specialized and enhanced specialized mobile radio services, and
3.4incumbent wide area specialized mobile radio licensees, that offers real-time, two-way
3.5voice service interconnected with the public switched telephone network and that is doing
3.6business in the state of Minnesota wireless telecommunications service.

3.7    Sec. 8. Minnesota Statutes 2010, section 403.06, subdivision 1a, is amended to read:
3.8    Subd. 1a. Biennial budget; annual financial report. The commissioner shall
3.9prepare a biennial budget for maintaining the 911 system. By December 15 of each year,
3.10the commissioner shall submit a report to the legislature detailing the expenditures for
3.11maintaining the 911 system, the 911 fees collected, the balance of the 911 fund, and the
3.12911-related administrative expenses of the commissioner, and the most recent forecast of
3.13revenues and expenditures for the 911 emergency telecommunications service account,
3.14including a separate projection of E911 fees from prepaid wireless customers and
3.15projections of year end fund balances. The commissioner is authorized to expend money
3.16that has been appropriated to pay for the maintenance, enhancements, and expansion
3.17of the 911 system.

3.18    Sec. 9. Minnesota Statutes 2010, section 403.11, subdivision 1, is amended to read:
3.19    Subdivision 1. Emergency telecommunications service fee; account. (a) Each
3.20customer of a wireless or wire-line switched or packet-based telecommunications service
3.21provider connected to the public switched telephone network that furnishes service capable
3.22of originating a 911 emergency telephone call is assessed a fee based upon the number
3.23of wired or wireless telephone lines, or their equivalent, to cover the costs of ongoing
3.24maintenance and related improvements for trunking and central office switching equipment
3.25for 911 emergency telecommunications service, to offset administrative and staffing costs
3.26of the commissioner related to managing the 911 emergency telecommunications service
3.27program, to make distributions provided for in section 403.113, and to offset the costs,
3.28including administrative and staffing costs, incurred by the State Patrol Division of the
3.29Department of Public Safety in handling 911 emergency calls made from wireless phones.
3.30    (b) Money remaining in the 911 emergency telecommunications service account
3.31after all other obligations are paid must not cancel and is carried forward to subsequent
3.32years and may be appropriated from time to time to the commissioner to provide financial
3.33assistance to counties for the improvement of local emergency telecommunications
3.34services. The improvements may include providing access to 911 service for
4.1telecommunications service subscribers currently without access and upgrading existing
4.2911 service to include automatic number identification, local location identification,
4.3automatic location identification, and other improvements specified in revised county
4.4911 plans approved by the commissioner.
4.5    (c) The fee may not be less than eight cents nor more than 65 cents a month until
4.6June 30, 2008, not less than eight cents nor more than 75 cents a month until June 30,
4.72009, not less than eight cents nor more than 85 cents a month until June 30, 2010, and
4.8not less than eight cents nor more than 95 cents a month on or after July 1, 2010, for
4.9each customer access line or other basic access service, including trunk equivalents as
4.10designated by the Public Utilities Commission for access charge purposes and including
4.11wireless telecommunications services. With the approval of the commissioner of
4.12management and budget, the commissioner of public safety shall establish the amount of
4.13the fee within the limits specified and inform the companies and carriers of the amount to
4.14be collected. When the revenue bonds authorized under section 403.27, subdivision 1,
4.15have been fully paid or defeased, the commissioner shall reduce the fee to reflect that debt
4.16service on the bonds is no longer needed. The commissioner shall provide companies and
4.17carriers a minimum of 45 days' notice of each fee change. The fee must be the same for all
4.18customers, except that the fee imposed under this subdivision does not apply to prepaid
4.19wireless telecommunications service, which is instead subject to the fee imposed under
4.20section 403.161, subdivision 1, paragraph (a).
4.21    (d) The fee must be collected by each wireless or wire-line telecommunications
4.22service provider subject to the fee. Fees are payable to and must be submitted to the
4.23commissioner monthly before the 25th of each month following the month of collection,
4.24except that fees may be submitted quarterly if less than $250 a month is due, or annually if
4.25less than $25 a month is due. Receipts must be deposited in the state treasury and credited
4.26to a 911 emergency telecommunications service account in the special revenue fund. The
4.27money in the account may only be used for 911 telecommunications services.
4.28    (e) This subdivision does not apply to customers of interexchange carriers.
4.29    (f) The installation and recurring charges for integrating wireless 911 calls into
4.30enhanced 911 systems are eligible for payment by the commissioner if the 911 service
4.31provider is included in the statewide design plan and the charges are made pursuant to
4.32contract.
4.33    (g) Competitive local exchanges carriers holding certificates of authority from the
4.34Public Utilities Commission are eligible to receive payment for recurring 911 services.

5.1    Sec. 10. Minnesota Statutes 2010, section 403.11, is amended by adding a subdivision
5.2to read:
5.3    Subd. 6. Report. (a) Beginning September 1, 2011, and continuing semiannually
5.4thereafter, each wireless telecommunications service provider shall report to the
5.5commissioner, based on the mobile telephone number, both the total number of prepaid
5.6wireless telecommunications subscribers sourced to Minnesota and the total number of
5.7wireless telecommunications subscribers sourced to Minnesota. The report shall be filed
5.8on the same schedule as Federal Communications Commission Form 477.
5.9(b) The commissioner shall make a standard form available to all wireless
5.10telecommunications service providers for the submission of information required to
5.11compile the report required under this subdivision.
5.12(c) The information provided to the commissioner under this subdivision is
5.13considered trade secret data under section 13.37 and may only be used for purposes of
5.14administering this chapter.

5.15    Sec. 11. [403.16] DEFINITIONS.
5.16    Subdivision 1. Scope. For the purposes of sections 403.16 to 403.164, the terms
5.17defined in this section have the meanings given them.
5.18    Subd. 2. Consumer. "Consumer" means a person who purchases prepaid wireless
5.19telecommunications service in a retail transaction.
5.20    Subd. 3. Department. "Department" means the Department of Revenue.
5.21    Subd. 4. Prepaid wireless E911 fee. "Prepaid wireless E911 fee" means the fee that
5.22is required to be collected by a seller from a consumer as established in section 403.161,
5.23subdivision 1, paragraph (a).
5.24    Subd. 5. Prepaid wireless Telecommunications Access Minnesota fee. "Prepaid
5.25wireless Telecommunications Access Minnesota fee" means the fee that is required to be
5.26collected by a seller from a consumer as established in section 403.161, subdivision 1,
5.27paragraph (b).
5.28    Subd. 6. Provider. "Provider" means a person that provides prepaid wireless
5.29telecommunications service under a license issued by the Federal Communications
5.30Commission.
5.31    Subd. 7. Retail transaction. "Retail transaction" means the purchase of prepaid
5.32wireless telecommunications service from a seller for any purpose other than resale.
5.33    Subd. 8. Seller. "Seller" means a person who sells prepaid wireless
5.34telecommunications service to another person.

6.1    Sec. 12. [403.161] PREPAID WIRELESS FEES IMPOSED; COLLECTION;
6.2REMITTANCE.
6.3    Subdivision 1. Fees imposed. (a) A prepaid wireless E911 fee of 80 cents per retail
6.4transaction is imposed on prepaid wireless telecommunications service until the fee is
6.5adjusted as an amount per retail transaction under subdivision 6.
6.6(b) A prepaid wireless Telecommunications Access Minnesota fee, in the amount
6.7of the monthly charge provided for in section 237.52, subdivision 2, is imposed on each
6.8retail transaction for prepaid wireless telecommunications service until the fee is adjusted
6.9as an amount per retail transaction under subdivision 6.
6.10    Subd. 2. Exemption. The fees established under subdivision 1 are not imposed on
6.11a minimal amount of prepaid wireless telecommunications service that is sold with a
6.12prepaid wireless device and is charged a single nonitemized price. For purposes of this
6.13subdivision, a minimal amount of service means an amount of service denominated as
6.14either ten minutes or less or five dollars or less.
6.15    Subd. 3. Fee collected. The prepaid wireless E911 and Telecommunications
6.16Access Minnesota fees must be collected by the seller from the consumer for each retail
6.17transaction occurring in this state. The amount of each fee must be combined into one
6.18amount, which must be separately stated on an invoice, receipt, or other similar document
6.19that is provided to the consumer by the seller, or otherwise disclosed to the consumer.
6.20    Subd. 4. Sales and use tax treatment. For purposes of this section, a retail
6.21transaction conducted in person by a consumer at a business location of the seller must
6.22be treated as occurring in this state if that business location is in this state, and any other
6.23retail transaction must be treated as occurring in this state if the retail transaction is treated
6.24as occurring in this state for purposes of the sales and use tax as specified in section
6.25297A.669, subdivision 3, paragraph (c).
6.26    Subd. 5. Remittance. The prepaid wireless E911 and Telecommunications Access
6.27Minnesota fees are the liability of the consumer and not of the seller or of any provider,
6.28except that the seller is liable to remit all fees that the seller collects from consumers as
6.29provided in section 403.162, including all fees that the seller is deemed to collect in which
6.30the amount of the fee has not been separately stated on an invoice, receipt, or other similar
6.31document provided to the consumer by the seller.
6.32    Subd. 6. Exclusion for calculating other charges. The combined amount of the
6.33prepaid wireless E911 and Telecommunication Access Minnesota fees collected by a seller
6.34from a consumer must not be included in the base for measuring any tax, fee, surcharge,
6.35or other charge that is imposed by this state, any political subdivision of this state, or
6.36any intergovernmental agency.
7.1    Subd. 7. Fee changes. (a) The prepaid wireless E911 and Telecommunications
7.2Access Minnesota fee must be proportionately increased or reduced upon any change to
7.3the fee imposed under section 403.11, subdivision 1, paragraph (c), after July 1, 2011, or
7.4the fee imposed under section 237.52, subdivision 2, as applicable.
7.5(b) The department must post notice of any fee changes on its Web site at least 30
7.6days in advance of the effective date of the fee changes. It is the responsibility of sellers to
7.7monitor the department's Web site for notice of fee changes.
7.8(c) Fee changes are effective 60 days after the first day of the first calendar month
7.9after the commissioner of public safety or the commission, as applicable, changes the fee.

7.10    Sec. 13. [403.162] ADMINISTRATION OF PREPAID WIRELESS E911 FEES.
7.11    Subdivision 1. Remittance. Prepaid wireless E911 and Telecommunications Access
7.12Minnesota fees collected by sellers must be remitted to the commissioner of revenue
7.13at the times and in the manner provided by chapter 297A with respect to the general
7.14sales and use tax. The commissioner of revenue shall establish registration and payment
7.15procedures that substantially coincide with the registration and payment procedures that
7.16apply in chapter 297A.
7.17    Subd. 2. Seller's fee retention. A seller may deduct and retain three percent of
7.18prepaid wireless E911 and Telecommunications Access Minnesota fees collected by
7.19the seller from consumers.
7.20    Subd. 3. Audit; appeal. The audit and appeal procedures applicable under chapter
7.21297A apply to any fee imposed under section 403.161.
7.22    Subd. 4. Procedures for resale transactions. The commissioner of revenue shall
7.23establish procedures by which a seller of prepaid wireless telecommunications service
7.24may document that a sale is not a retail transaction. These procedures must substantially
7.25coincide with the procedures for documenting sale for resale transactions as provided in
7.26chapter 297A.
7.27    Subd. 5. Fees deposited. (a) The commissioner of revenue shall, based on the
7.28relative proportion of the prepaid wireless E911 fee and the wireless Telecommunications
7.29Access Minnesota fees imposed per retail transaction, divide the fees collected in
7.30corresponding proportions. Within 30 days of receipt of the collected fees, the
7.31commissioner shall:
7.32(1) deposit the proportion of the collected fees attributable to the prepaid wireless
7.33E911 fee in the 911 emergency telecommunications service account in the special revenue
7.34fund; and
8.1(2) deposit the proportion of collected fees attributable to the prepaid wireless
8.2Telecommunications Access Minnesota fee in the telecommunications access fund
8.3established in section 237.52, subdivision 1.
8.4(b) The department may deduct and retain an amount, not to exceed two percent of
8.5collected fees, to reimburse its direct costs of administering the collection and remittance
8.6of prepaid wireless E911 and Telecommunications Access Minnesota fees.

8.7    Sec. 14. [403.163] LIABILITY OF SELLERS AND PROVIDERS.
8.8(a) A provider or seller of prepaid wireless telecommunications service is not liable
8.9for damages to any person resulting from or incurred in connection with providing, or
8.10failing to provide, 911 or E911 service, or for identifying, or failing to identify, the
8.11telephone number, address, location, or name associated with any person or device that
8.12is accessing or attempting to access 911 or E911 service.
8.13(b) A provider or seller of prepaid wireless telecommunications service is not liable
8.14for damages to any person resulting from or incurred in connection with providing any
8.15lawful assistance to any investigative or law enforcement officer of the United States, this
8.16or any other state, or any political subdivision of this or any other state, in connection with
8.17any lawful investigation or other lawful enforcement activity by the law enforcement
8.18officer.
8.19(c) In addition to the protection from liability provided by paragraphs (a) and (b),
8.20section 403.08, subdivision 11, applies to sellers and providers.

8.21    Sec. 15. [403.164] EXCLUSIVITY OF PREPAID WIRELESS E911 FEE.
8.22The prepaid wireless E911 fee imposed by section 403.161 is the only E911 funding
8.23obligation imposed with respect to prepaid wireless telecommunications service in this
8.24state, and no tax, fee, surcharge, or other charge may be imposed by this state, any political
8.25subdivision of this state, or any intergovernmental agency, for E911 funding purposes,
8.26upon any provider, seller, or consumer with respect to the sale, purchase, use, or provision
8.27of prepaid wireless telecommunications service.

8.28    Sec. 16. REPORT; RECOMMENDATIONS.
8.29By March 1, 2012, the commissioner shall submit a report to the chairs and ranking
8.30minority members of the senate and house committees with primary jurisdiction over
8.31public safety and telecommunications that assesses the amount of revenue collected from
8.32the fees imposed under section 403.161 and recommends any adjustment of those fees the
8.33commissioner determines is necessary in order to:
9.1(1) fund legislative appropriations from the 911 emergency telecommunications
9.2service account and to maintain a reasonable fund reserve; and
9.3(2) maintain fairness with respect to the amount of fees paid by customers of
9.4prepaid wireless telecommunications service as compared with customers of other
9.5telecommunications services.
9.6A wireless telecommunications service provider shall provide any information
9.7requested by the commissioner for the purposes of the report.

9.8    Sec. 17. EFFECTIVE DATE.
9.9Sections 10 and 16 are effective the day following final enactment. Sections 1 to 9
9.10and 11 to 15 are effective January 1, 2012."
9.11Amend the title accordingly