S.B. 887 - Enhanced 911 Services Summary

• Establishes a 1.5% prepaid wireless E911 surcharge on prepaid wireless telecommunications service purchased at point of sale, with liability on the consumer rather than the seller or provider.

• Requires sellers to separately list the surcharge on invoices and remit collected amounts to the Enhanced 911 Fund monthly, quarterly, or semi-annually depending on expected annual collection amounts ($4,000+ threshold for monthly, $2,000-$4,000 for quarterly, under $2,000 for semi-annual).

• Allows sellers to deduct and retain 3% of collected surcharges to offset administrative expenses associated with collection.

• Exempts transactions involving minimal service (10 minutes or less or $5 or less bundled with a device) from the surcharge and clarifies that the surcharge applies only to transactions occurring within Hawaii based on shipping address, billing address, or device association.

• Specifies that the prepaid wireless E911 surcharge is the only funding obligation for enhanced 911 services on prepaid wireless telecommunications, prohibiting any other state, county, or local taxes or fees for this purpose, and takes effect July 1, 2090.