1 TAC §255.1
The Commission on State Emergency Communications (CSEC) adopts
the amendment to §255.1, concerning the statewide 9-1-1 Equalization
Surcharge (the surcharge), with changes to the proposed text as published
in the June 10, 2005, issue of the
Texas Register
(30 TexReg 3388).
The change to the section (extending the effective date for implementing
the rounding methodology) is less stringent than that originally proposed
and therefore comports with the substantial compliance requirement of Government
Code, §2001.035.
Rule 255.1 is adopted with amendments as part of the CSEC's Rule Review
of Chapter 255 pursuant to Government Code, §2001.039. The rule continues
to be essential to CSEC's operations and is required by statute.
As adopted, Rule 255.1 raises the surcharge from 0.6% to 1.0%; makes applicable
the rounding methodology found in Texas Tax Code, §151.053 (which will
not take effect until 180 days after the effective date of the rule); makes
applicable Texas Tax Code, §151.025 when intrastate long distance services
are not billed separately on a customer's bill; and makes two minor stylistic
changes. Increasing the surcharge percentage is within the statutory limits
set by Health and Safety Code, §771.072(a) and necessary to generate
sufficient revenue to trigger the contingent funding appropriated to CSEC
in Rider 4 of the agency's Fiscal Year 2006-2007 appropriation.
Comments were received from:
Bexar Metro 911 Network District (Bexar 911)
Texas Statewide Telephone Cooperative, Inc. (TSTCI)
Southwestern Bell Telephone, L.P. d/b/a SBC Texas (SBC Texas)
Texas Association of Regional Councils
Concho Valley Council of Governments
Central Texas Poison Center, Southeast Texas Poison Center, Texas Panhandle
Poison Center, Texas Poison Center Network, West Texas Regional Poison Center
Bexar 911: Bexar 911 previously commented that legislation pending in the
79th Texas Legislature would, if passed, have changed the equalization surcharge
from a percentage-based to a dollar-based cap, and changed the imposition
of the surcharge from being on customers' intrastate long-distance service
to being on each local exchange access line or wireless telecommunications
connections.
CSEC Response: The legislation did not pass and therefore the proposed
rule as amended is not impacted.
TSTCI: TSTCI previously commented that the effective date of the rule change
should correspond to the effective date of any changes by the 79th Texas Legislature
to the Tax Code in order to avoid having to make system changes twice in a
short period of time.
CSEC Response: The CSEC is unaware of any changes to the Tax Code that
would impact the rule.
SBC Texas: SBC Texas generally agrees with the amendments to Rule 251.1,
but proposed that either the effective date be extended, or that CSEC grant
carriers a grace period to allow time to implement the programming changes
necessitated by the rule.
CSEC Response: SBC Texas' concerns involve implementing the rounding methodology
found in the Tax Code which will require SBC Texas and other carriers to write
and implement changes to their billing systems. SBC Texas' concerns are well-founded
and as a result the CSEC added additional language to Rule 255.1 extending
the effective date of the rounding provision to 180 days after the effective
date of the remainder of the rule.
All Other Comments: All other commenters supported re-adoption of the rule
as amended by the CSEC.
The amendment is adopted pursuant to the Health and Safety Code,
Chapter 771, §§771.072, 771.073, 771.074, 771.075, and 771.077,
which authorizes the Commission to adopt rules, policies and procedures prescribing
the distribution and use of 9-1-1 funds for providing 9-1-1 service.
§255.1.Statewide Equalization Surcharge.
An equalization surcharge is established in the amount of one percent
(1.0%). Rounding of the surcharge amount shall be in compliance with Texas
Tax Code, §151.053. This surcharge will be assessed to each customer
receiving intrastate long-distance service, except those exempted by Texas
Health and Safety Code, §771.074. The surcharge shall be applied to the
total amount for intrastate long-distance service charged by the customer's
service provider, but such amount shall not include taxes charged by local,
state, and federal authorities, nor shall local, state, or federal taxes be
applied to this surcharge unless otherwise required by law. Texas Tax Code, §151.025
shall apply when intrastate long-distance services are not billed separately
on a customer's invoice. The effective date of the rounding provision in this
rule shall be 180 days after the effective date of the remainder of the rule
as determined by Texas Government Code, §2001.036.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on August 8, 2005.
TRD-200503277
Paul Mallett
Executive Director
Commission on State Emergency Communications
Effective date: August 28, 2005
Proposal publication date: June 10, 2005
For further information, please call: (512) 305-6933