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6.H. - Page 6 of 16 (OES) to fund the state's 911 emergency response system. AB 1717 also enacted the Local Prepaid Mobile Telephony Services Collection Act, which created the second part of the MTS fee–the local charge–which adds together local UUTs and any charges to fund local 911 emergency fees that apply in the jurisdiction where the customer purchases the prepaid MTS services. Currently this law is set to sunset January 1, 2021. Senate Bill 1441 removes the January 1, 2021 sunset date on the Local Prepaid Mobile Telephony Services Surcharge Collections Act. SB 1441 also adds into the Local Act several provisions of law that were previously part of the Prepaid Mobile Telephony Services Surcharge Collections Act. Clarifies that the local charge applies to bundled transactions when: • Prepaid MTS is sold in combination with mobile data services or any other services or products that are not subject to the local charges for a single price, in which case local charges apply to the entire price unless the seller can identify the mobile data services and other services or products from its books and records kept in the ordinary course of business. • Prepaid MTS is sold with a device such as a telephone, for a single, nonitemized price, in which case local charges apply to the entire nonitemized price, except if the purchase price for the cellular telephone component of the bundled charge is disclosed to the prepaid consumer on a receipt, invoice, or other written or electronic documentation, in which case the local charges the separately stated price of the cellular telephone can be excluded. • A minimal amount (less than ten minutes or five dollars) of prepaid mobile telephony service is sold for a single, nonitemized price with a mobile telephony service communications device, in which case local charges do not apply to the transaction. Specifies that California Department of Tax and Fee Administration (CDTFA) must collect and administer the local charges pursuant to the Fee Collection Procedures Law. Bill Status: The Bill has been set for a hearing on June 1, 2020 as of May 26, 2020. Redwood City Legislative Advocacy Policy and Legislative Platform: Per the City Council adopted Legislative Advocacy Policy, the City Council may support legislation intended to protect or increase local revenues. The City currently receives approximately $70,000 annually in local AB 1717 MTS fees. The City Council directed these funds to support the City's Housing Programs. For purposes of the legislative platform the revenue generated from SB 1441 would fall in line with the "Housing and Homelessness". Specifically: • "Support legislation and/or funding mechanisms that promote regional programs to address homelessness and support formerly homeless individuals—including funding for temporary emergency shelters and other supportive services for vulnerable populations." Page 6 of 8 City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org 315