PART 20. EMERGENCY TELEPHONE USERS SURCHARGE ACT [41001. - 41176.]
Heading of Part 20 amended by Stats. 2017, Ch. 561, Sec. 241.
§§ 41001–41176 · 163 sections
CHAPTER 1. General Provisions and Definitions §§ 41001–41019.5 · 19 sections
- § 41001 This part is known and may be cited as the “Emergency Telephone Users Surcharge Act”.
- § 41002 Except where the context otherwise requires, the definitions given in this chapter govern the construction of this part.
- § 41003 “Person” includes an individual, firm, partnership, joint venture, limited liability company, association, cooperative organization, fraternal organization,…
- § 41004 “Department” means the California Department of Tax and Fee Administration.
- § 41005 “In this state” means within the exterior limits of the State of California and includes all territory within those limits owned by or ceded to the United…
- § 41006 “Public agency” means this state, and any city, county, city and county, municipal corporation, public district, or public authority located in whole or in…
- § 41007 (a) “Service supplier” shall mean a person supplying an access line to a service user in this state. (b) This section shall become operative on January 1, 2020.
- § 41007.1 “Access line” shall mean any of the following: (a) A wireline communications service line. (b) A wireless communications service line. (c) A VoIP service line,…
- § 41007.2 (a) “Wireline communications service” shall mean a local exchange service provided at a physical location in this state that allows the user to make an…
- § 41007.3 (a) (1) (A) “Wireless communications service line” shall mean a telecommunications service provided to an end user with a place of primary use in this state…
- § 41007.4 “Purchase” means any transfer of title or possession, exchange, or barter, conditional or otherwise.
- § 41007.5 For purposes of this part, all of the following definitions shall apply: (a) “Prepaid consumer” means a person who purchases prepaid mobile telephony services…
- § 41008 As used in this part, “month” shall mean a calendar month.
- § 41009 (a) “Service user” means any person that subscribes for the right to utilize an access line in this state who is required to pay a surcharge under the…
- § 41010 “Access line in this state” means a telephone line, as defined in Section 233 of the Public Utilities Code, associated with a billing address located in…
- § 41012 “Public telephone” means any coin-operated telephone provided by the serving telephone company accessible to the public.
- § 41013 “Surcharge” means a tax or taxes levied by this state. Commencing January 1, 2023, “surcharge,” or “surcharges” as used in this part, refers to two separate…
- § 41016.5 (a) “VoIP service” means any service that satisfies the requirements set forth in paragraph (1) and (2). (1) Does all of the following: (A) Enables real-time,…
- § 41019.5 (a) It is the intent of the Legislature that telephone quality communication utilizing VoIP shall not be regulated by the enactment of Senate Bill 1040 of the…
CHAPTER 2. The Surcharges §§ 41020–41041 · 12 sections
ARTICLE 1. Imposition of the Surcharges §§ 41020–41028 · 7 sections
- § 41020 (a) (1) (A) On and after January 1, 2020, a 911 surcharge is hereby imposed on each access line for each month or part thereof for which a service user…
- § 41021 (a) A service supplier shall collect the surcharges from each service user at the time it collects its billings from the service user. The duty to collect the…
- § 41022 (a) The surcharges required to be collected by the service supplier shall each be added to and stated separately in its billings to the service user. (b)…
- § 41023 The surcharges required to be collected by the service supplier, and any amount unreturned to the service user that is not owed as part of the surcharges but…
- § 41024 Every service user in this state is liable for the surcharges until they have been paid to this state, except that payment to a service supplier registered…
- § 41027 Nothing in this part shall be construed as imposing a surcharge upon access lines or on the purchase of prepaid mobile telephony services if imposition of that…
- § 41028 (a) (1) On and after January 1, 2020, the surcharge amounts imposed by Section 41020 on the purchase of prepaid mobile telephony services in this state shall…
ARTICLE 2. Adjustment of Surcharge Amounts §§ 41030–41032 · 3 sections
- § 41030 (a) The Office of Emergency Services shall determine annually, on or before October 1, to be effective on January 1 of the following year, surcharge amounts…
- § 41031 The Office of Emergency Services shall make its determination of the surcharge amounts each year no later than October 1 and shall notify the department of the…
- § 41032 Immediately upon notification by the Office of Emergency Services, the department shall notify every service supplier and seller registered with it of the new…
ARTICLE 3. Registration §§ 41040–41041 · 2 sections
- § 41040 Every service supplier or seller in this state shall register with the department upon a form prescribed by the department and shall set forth the name under…
- § 41041 (a) When necessary to ensure compliance with this part, the department may require any person subject to this part to place with it the security that the…
CHAPTER 3. Special Provisions and Exemptions §§ 41045–41049 · 3 sections
- § 41045 The surcharges imposed by this part, other than the surcharge imposed pursuant to Section 41028, shall be collected insofar as practicable at the same time as,…
- § 41046 (a) There are exempt from the surcharges the following access lines and nonaccess line services: (1) Those lines supplying lifeline service. (2) Those lines…
- § 41049 If an exemption is claimed by reason of the provisions of this part, and the service supplier or seller questions the validity of the claimed exemption, either…
CHAPTER 4. Determination of Surcharge §§ 41050–41099 · 42 sections
ARTICLE 1. Due and Payable Dates §§ 41050–41056 · 10 sections
- § 41050 (a) The surcharges imposed by subparagraph (A) of paragraph (1) of subdivision (a) of Section 41020 are imposed to each access line for which a service user…
- § 41051 The surcharges imposed by this part and the amounts thereof required to be collected are due monthly, and the amount of surcharge collected in one calendar…
- § 41052 (a) On or before the last day of the second month following each month in which the surcharges were collected, a return for that month shall be filed by a…
- § 41052.1 The department may require the payment of the amount due and the filing of returns for periods other than the periods set forth under this part.
- § 41053 The person required to file the return shall deliver the return together with a remittance of the amount of the surcharges payable to the department.
- § 41053.1 (a) Notwithstanding Sections 41053 and 41055, the surcharge imposed pursuant to Section 41028 and collected by a seller, except a service supplier, is due and…
- § 41054 (a) Except as provided in subdivision (b), the department, for good cause, may extend not to exceed one month the time for making any return or paying any…
- § 41054.5 (a) Subject to subdivision (c), if the Governor issues a state of emergency proclamation, the department may extend the time, for a period not to exceed three…
- § 41055 All amounts required to be paid to the state under this part shall be paid to the department in the form of remittances payable to the California Department of…
- § 41056 The service supplier and seller shall maintain records as may be necessary to determine the amount of surcharges collected under provisions of this part. Those…
ARTICLE 1.1. Payment by Electronic Funds Transfer §§ 41060–41063 · 4 sections
- § 41060 (a) Any service supplier whose estimated surcharge liability under this part averages twenty thousand dollars ($20,000) or more per month, as determined by the…
- § 41061 If the department finds that a person’s failure to make payment by an appropriate electronic funds transfer in accordance with department procedures is due to…
- § 41062 (a) “Electronic funds transfer” means any transfer of funds, other than a transaction originated by check, draft, or similar paper instrument, that is…
- § 41063 (a) Any return, declaration, statement, or other document required to be made under this part that is filed using electronic media shall be filed and…
ARTICLE 3. Deficiency Determinations §§ 41070–41078 · 9 sections
- § 41070 If the department is not satisfied with return or returns of the surcharges or the amount of surcharges required to be paid upon the basis of the facts…
- § 41071 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant…
- § 41072 In making a determination the department may offset overpayments for another period or periods, against underpayments for another period or periods, against…
- § 41073 If any part of the deficiency for which a deficiency determination is made is due to negligence or intentional disregard of this part or authorized rules and…
- § 41074 If any part of the deficiency for which a deficiency determination is made is due to fraud or an intent to evade this part or authorized rules and regulations,…
- § 41075 The department shall give to the service supplier, seller, or service user written notice of its determination. The notice shall be served in one of the…
- § 41076 Except in the case of fraud, intent to evade this part or authorized rules and regulations, or failure to make a return, every notice of a deficiency…
- § 41077 In the case of a deficiency arising under this part during the lifetime of a decedent, a notice of deficiency determination shall be served within four months…
- § 41078 If before the expiration of the time prescribed in Section 41076 for serving a notice of deficiency determination, the taxpayer has consented in writing to…
ARTICLE 4. Determinations if No Return Made §§ 41080–41084 · 5 sections
- § 41080 If any person fails to make a return, the department shall make an estimate of the number of access lines or purchases of prepaid mobile telephony services…
- § 41081 In making a determination the department may offset overpayments for a period or periods, together with interest on the overpayments, against underpayments for…
- § 41082 The amount of the determination, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant…
- § 41083 If the failure of any person to file a return is due to fraud or an intent to evade this part or rules and regulations, a penalty of 25 percent of the amount…
- § 41084 Promptly after making its determination the department shall give to the person written notice of the estimate, determination, and penalty, the notice to be…
ARTICLE 5. Redeterminations §§ 41085–41091 · 7 sections
- § 41085 Any person against whom a determination is made under Article 3 or 4 of this chapter may petition for a redetermination within 30 days after service upon the…
- § 41086 Every petition for redetermination shall be in writing and shall state the specific grounds upon which the petition is founded. The petition may be amended to…
- § 41087 If a petition for redetermination is filed within the 30-day period, the department shall reconsider the determination and, if the person has so requested in…
- § 41088 The department may decrease or increase the amount of the determination before it becomes final, but the amount may be increased only if a claim for the…
- § 41089 The order or decision of the department upon a petition for redetermination becomes final 30 days after service upon the petitioner of notice thereof.
- § 41090 All determinations made by the department under Article 3 or 4 of this chapter are due and payable at the time they become final. If they are not paid when due…
- § 41091 Any notice required by this article shall be served in the manner prescribed for service of notice of a deficiency determination.
ARTICLE 6. Interest and Penalties §§ 41095–41099 · 7 sections
- § 41095 (a) Any person who fails to pay any surcharge to the state or any amount of surcharge required to be collected and paid to the state, except amounts of…
- § 41095.5 (a) If the department finds, taking into account all facts and circumstances, that it is inequitable to compute interest at the modified adjusted rate per…
- § 41096 (a) If the department finds that a person’s failure to make a timely return or payment is due to reasonable cause and circumstances beyond the person’s…
- § 41097 (a) If the department finds that a person’s failure to make a timely return or payment was due to a disaster, and occurred notwithstanding the exercise of…
- § 41097.5 (a) The department, in its discretion, may relieve all or any part of the interest imposed on a person by this part if the failure to pay the surcharge is due…
- § 41098 (a) If the department finds that a person’s failure to make a timely return or payment is due to the person’s reasonable reliance on written advice from the…
- § 41099 (a) Under regulations prescribed by the department, if: (1) A surcharge liability under this part was understated by a failure to file a return required to be…
CHAPTER 5. Overpayments and Refunds §§ 41100–41114.3 · 21 sections
ARTICLE 1. Claim for Refund §§ 41100–41106 · 10 sections
- § 41100 (a) If the department determines that any amount, penalty, or interest has been paid more than once or has been erroneously or illegally collected or computed,…
- § 41101 A refund shall not be approved by the department after three years from the last day of the second month following the close of the reporting period for which…
- § 41101.1 (a) The limitation period specified in Section 41101 shall be suspended during any period of a person’s life that the person is financially disabled. (b) (1)…
- § 41101.2 Notwithstanding Section 41101, a refund of an overpayment of any surcharge, penalty, or interest collected by the department by means of levy, through the use…
- § 41101.3 (a) A claim for refund that is otherwise valid under Sections 41101 and 41102 that is made in the case in which the amount of surcharges determined has not…
- § 41102 Every claim shall be in writing and shall state the specific grounds upon which the claim is founded.
- § 41103 Failure to file a claim within the time prescribed in this article constitutes a waiver of any demand against the state on account of overpayment.
- § 41104 Within 30 days after disallowing any claim in whole or in part the department shall give notice of its action to the claimant in the manner prescribed for…
- § 41105 Interest shall be paid upon any overpayment of any amount of surcharges at the modified adjusted rate per month established pursuant to Section 6591.5, from…
- § 41106 (a) If the department determines that any overpayment has been made intentionally or by reason of carelessness, it shall not allow any interest thereon. (b) If…
ARTICLE 2. Cancellations § 41107 · 1 section
- § 41107 If any amount has been illegally determined either by the person filing the return or by the department, the department shall set forth that fact in its…
ARTICLE 3. Suit for Refund §§ 41108–41114 · 7 sections
- § 41108 No injunction, or writ of mandate, judgment of declaratory relief, or other legal or equitable process shall issue in any suit, action, or proceeding in any…
- § 41109 No suit or proceeding shall be maintained in any court for the recovery of any amount alleged to have been erroneously or illegally determined or collected…
- § 41110 Within 90 days after the mailing of the notice of the department’s action upon a claim filed pursuant to Article 1 of this chapter, the claimant may bring an…
- § 41111 If the department fails to mail notice of action on a claim within six months after the claim is filed, the claimant may, prior to the mailing of notice by the…
- § 41112 If judgment is rendered for the plaintiff, the amount of the judgment shall first be credited on any surcharge due and payable from the plaintiff. The balance…
- § 41113 In any judgment, interest shall be allowed at the modified adjusted rate per annum established pursuant to Section 6591.5, upon the amount found to have been…
- § 41114 A judgment shall not be rendered in favor of the plaintiff in any action brought against the department to recover any amount paid when the action is brought…
ARTICLE 4. Recovery of Erroneous Refunds §§ 41114.1–41114.3 · 3 sections
- § 41114.1 (a) The department may recover any refund or part thereof that is erroneously made, and any credit or part thereof that is erroneously allowed, in an action…
- § 41114.2 In any action brought pursuant to subdivision (a) of Section 41114.1, the court may, with the consent of the Attorney General, order a change in the place of…
- § 41114.3 The Attorney General shall prosecute any action brought pursuant to subdivision (a) of Section 41114.1, and the provisions of the Code of Civil Procedure…
CHAPTER 6. Collection of Tax §§ 41115–41127.9 · 21 sections
ARTICLE 1. Suit for Tax §§ 41115–41119 · 5 sections
- § 41115 At any time within 10 years after any surcharge or any amount of surcharge required to be collected becomes due and payable, and at any time after any amount…
- § 41116 The Attorney General shall prosecute the action, and the provisions of the Code of Civil Procedure relating to service of summons, pleadings, proof, trials,…
- § 41117 In the action a writ of attachment may issue, and no affidavit previous to the issuing of the attachment is required.
- § 41118 In the action, a certificate by the department showing the delinquency shall be prima facie evidence of the determination of the surcharges or the amount of…
- § 41119 In any action brought under this part, process may be served according to the Code of Civil Procedure and the Civil Code of this state or may be served upon…
ARTICLE 2. Notice to Withhold §§ 41120–41123.6 · 6 sections
- § 41120 If any person is delinquent in the payment of the amount required to be paid by that person or if a determination has been made against that person that…
- § 41121 After receiving the notice the person so notified shall neither transfer nor make any other disposition of the credits, other personal property, or debts in…
- § 41122 All persons so notified shall forthwith after receipt of the notice advise the department of all credits, other personal property, or debts in their…
- § 41123 If, during the effective period of the notice to withhold, any person so notified makes any transfer or disposition of the property or debts required to be…
- § 41123.5 (a) The department may, by notice of levy, served personally, by first-class mail, or by electronic transmission or other electronic technology, require all…
- § 41123.6 (a) Notwithstanding Article 7 (commencing with Section 706.151) of Chapter 5 of Title 9 of Part 2 of the Code of Civil Procedure, if the department determines…
ARTICLE 2.5. Priority and Lien of Surcharge §§ 41124–41124.1 · 2 sections
- § 41124 The amounts required to be paid by any person under this part together with interest and penalties shall be satisfied first in any of the following cases: (a)…
- § 41124.1 (a) If any person fails to pay any amount imposed under this part at the time that it becomes due and payable, the amount thereof, including penalties and…
ARTICLE 3. Warrant for Collection §§ 41125–41127 · 3 sections
- § 41125 At any time within five years after any person is delinquent in the payment of any amount required to be paid under this part the department or its authorized…
- § 41126 The department shall pay the sheriff or marshal upon the completion of that person’s services pursuant to a warrant, the same fees, commissions, and expenses…
- § 41127 The fees, commissions, and expenses are the obligation of the person required to pay any amount under this part and may be collected from him by virtue of the…
ARTICLE 4. Miscellaneous §§ 41127.5–41127.9 · 5 sections
- § 41127.5 The department shall not be subject to subdivisions (c) and (d) of Section 16307 of the Corporations Code unless, at the time of application for or issuance of…
- § 41127.6 (a) The department may, in its discretion, enter into a written installment payment agreement with a person for the payment of any surcharges due, together…
- § 41127.7 The department, beginning no later than January 1, 2001, shall provide each taxpayer who has an installment payment agreement in effect under Section 41127.6…
- § 41127.8 (a) A collection cost recovery fee shall be imposed on any person that fails to pay an amount of surcharge, interest, penalty, or other amount due and payable…
- § 41127.9 (a) Notwithstanding Sections 706.071, 706.073, 706.080, 706.101, and 706.105 of the Code of Civil Procedure, the California Department of Tax and Fee…
CHAPTER 7. Administration §§ 41128–41176 · 45 sections
ARTICLE 1. Regulations, Records and Reports §§ 41128–41133.4 · 10 sections
- § 41128 The department shall enforce the provisions of this part and may prescribe, adopt, and enforce rules and regulations relating to the administration and…
- § 41129 Every service supplier or seller in this state shall keep such records pertaining thereto in such form as the department may require.
- § 41130 Upon proper notification to the service supplier or seller, the department or its authorized representative shall have the right to inspect and audit all…
- § 41131 The department shall have full access to records of the Public Utilities Commission, and any political subdivision or public agency of this state that…
- § 41132 (a) Except as otherwise provided by law, any person who is engaged in the business of preparing, or providing services in connection with the preparation of,…
- § 41133 (a) The department shall determine which service supplier’s or seller’s accounts are eligible for the managed audit program in a manner that is consistent with…
- § 41133.1 A service supplier’s or seller’s account is eligible for the managed audit program only if the service supplier or seller meets all of the following criteria:…
- § 41133.2 (a) If the department selects a service supplier’s or seller’s account for a managed audit, all of the following apply: (1) The department shall identify all…
- § 41133.3 This article does not limit the department’s authority to inspect and audit all records and returns of a service supplier or seller under Section 41130.
- § 41133.4 Upon completion of the managed audit and verification by the department, interest on any unpaid liability shall be computed at one-half the rate that would…
ARTICLE 2. Disposition of Proceeds §§ 41135–41142 · 10 sections
- § 41135 (a) All amounts required to be paid to the state under this part shall be paid to the department in the form of remittances payable to the California…
- § 41136 (a) From the funds in the State Emergency Telephone Number Account, all amounts of the 911 surcharge collected shall, when appropriated by the Legislature, be…
- § 41136.1 For each fiscal year, moneys in the State Emergency Telephone Number Account not appropriated for a purpose specified in Section 41136 shall be held in trust…
- § 41137 The Office of Emergency Services shall pay, from funds appropriated from the State Emergency Telephone Number Account by the Legislature, as provided in…
- § 41137.1 The Office of Emergency Services shall pay, from funds appropriated from the State Emergency Telephone Number Account by the Legislature, as provided in…
- § 41138 (a) It is the intent of the Legislature that the reimbursement rates for “911” emergency telephone number equipment shall not exceed specified amounts…
- § 41139 From funds appropriated by the Legislature from the Emergency Telephone Number Account, the Office of Emergency Services shall begin paying bills as provided…
- § 41140 The Office of Emergency Services shall reimburse local agencies, from funds appropriated from the Emergency Telephone Number Account by the Legislature, for…
- § 41141 Claims for reimbursement shall be submitted by local agencies to the Office of Emergency Services, which shall determine payment eligibility and shall reduce…
- § 41142 Notwithstanding any other provision of this article, if the Legislature fails to appropriate an amount sufficient to pay bills submitted to the Office of…
ARTICLE 2.5. Violations §§ 41143–41143.8 · 3 sections
- § 41143 Any person who fails or refuses to file a return or report required to be made or who fails or refuses to furnish a supplemental report or other data required…
- § 41143.4 Notwithstanding any other provision of this part, any person who violates this part with intent to defeat or evade the determination of an amount due required…
- § 41143.8 Any prosecution for violation of any of the penal provisions of this part shall be instituted within three years after commission of the offense or within two…
ARTICLE 3. Notices § 41144 · 1 section
- § 41144 A certificate by the department or an employee of the department stating that a notice required by this part was given by mailing or personal service shall be…
ARTICLE 4. Purpose §§ 41150–41152 · 2 sections
- § 41150 (a) The Legislature hereby declares and finds that to enable public agencies to implement “911” emergency phone systems required by the provisions of Chapter…
- § 41152 The Legislature finds and declares all of the following: (a) Access to emergency telephone service has been a longstanding goal of the state. (b) The Emergency…
ARTICLE 5. The California Taxpayers’ Bill of Rights §§ 41160–41176 · 19 sections
- § 41160 The department shall administer this article. Unless the context indicates otherwise, the provisions of this article shall apply to this part.
- § 41161 (a) The department shall establish the position of the Taxpayers’ Rights Advocate. The advocate or that person’s designee shall be responsible for facilitating…
- § 41162 (a) The department shall develop and implement an education and information program directed at, but not limited to, all of the following groups: (1) Taxpayers…
- § 41163 The department shall conduct an annual hearing to allow industry representatives and individual taxpayers to present proposals on changes to the Emergency…
- § 41164 The department shall prepare and publish brief but comprehensive statements in simple and nontechnical language that explain procedures, remedies, and the…
- § 41165 (a) The total amount of revenue collected or assessed pursuant to this part shall not be used for any of the following: (1) To evaluate individual officers or…
- § 41166 The department shall develop and implement a program that will evaluate an individual employee’s or officer’s performance with respect to that person’s contact…
- § 41167 The department shall, in cooperation with the Taxpayers’ Rights Advocate, and other interested taxpayer-oriented groups, develop a plan to reduce the time…
- § 41168 Procedures of the department, relating to appeals staff review conferences before a staff attorney or supervising tax auditor independent of the assessing…
- § 41169 (a) Every taxpayer is entitled to be reimbursed for any reasonable fees and expenses related to a hearing before the department if all of the following…
- § 41170 (a) An officer or employee of the department acting in connection with any law administered by the department shall not knowingly authorize, require, or…
- § 41171 (a) It is the intent of the Legislature that the department, its staff, and the Attorney General pursue settlements as authorized under this section with…
- § 41171.5 (a) Beginning on January 1, 2007, the director of the department, or their delegates, may compromise any final surcharge liability. (b) For purposes of this…
- § 41172 (a) The California Department of Tax and Fee Administration shall release any levy or notice to withhold issued pursuant to this part on any property in the…
- § 41172.5 (a) If any property has been levied upon, the property or the proceeds from the sale of the property shall be returned to the taxpayer if the department…
- § 41173 Exemptions from levy under Chapter 4 (commencing with Section 703.010) of Division 2 of Title 9 of Part 2 of the Code of Civil Procedure shall be adjusted for…
- § 41174 (a) A taxpayer may file a claim with the department for reimbursement of bank charges and any other reasonable third-party check charge fees incurred by the…
- § 41175 (a) At least 30 days prior to the filing or recording of liens under Chapter 14 (commencing with Section 7150) or Chapter 14.5 (commencing with Section 7220)…
- § 41176 (a) If any officer or employee of the department recklessly disregards department-published procedures, a taxpayer aggrieved by that action or omission may…