Senate Bill 500 Summary

• Establishes a 65-cent monthly emergency telephone service charge on prepaid wireless phone subscribers with phone numbers assigned to Arkansas, collected either monthly from account balances or through revenue-based allocation method.

• Creates new Arkansas Code § 12-10-326 requiring retailers to collect a 65-cent prepaid wireless E911 charge from consumers at point of sale for each retail transaction occurring in the state.

• Directs prepaid wireless E911 charges to be reported and paid to the Department of Finance and Administration alongside gross receipts taxes, with sellers retaining 3% if meeting prompt payment requirements.

• Allocates 83.5% of collected 911 emergency service revenues to political subdivisions operating 911 centers on a population basis, with $120,000 annually directed to law enforcement training and up to 15% held in reserve account.

• Makes prepaid wireless E911 charge the exclusive E911 funding obligation for prepaid wireless telecommunications services in the state, prohibiting additional emergency service taxes or fees.

• Effective January 1, 2014.