Governor Henry Signs Prepaid Wireless 9-1-1 Bill

Oklahoma Governor Brad Henry signed House Bill 2556 earlier this month. The legislation ensures that all mobile phones are assessed a 50-cent monthly service fee that will fund 9-1-1 systems.

Even though a wireless fee was approved by voters in December 2005, some wireless carriers were not remitting the service fee that funds the infrastructure, maintenance and operation of regional 9-1-1 systems. HR 2556 bill assesses the fee to the consumer by adding it to the transaction when purchased at the retail level, or “point of sale.” Retailers will remit the 50-cent service fee to the Oklahoma Tax Commission who will then distribute the funds to the 9-1-1 entities in the state, based upon population.

One of the challenges of monitoring prepaid cell service is that the service is often sold in bulk to retailers and it is sometimes unclear where the service is used or purchased. With more and more mobile phone users opting for prepaid minutes, the chasm in funding was becoming less manageable. Customers have been demanding more innovative mobile technology and the traditional process of placing the fee on a monthly phone bill is becoming increasingly obsolete.

Numerous stakeholders are to be lauded for their efforts in getting the bill passed, including public safety advocates, the wireless industry, model legislation from the National Conference of State Legislators, and Rep. Steve Martin (R-District 10) and Sen. Brian Bingman (R-District 12), who authored the bill.

“This legislation is important for long-term financial sustainability of 9-1-1 systems in the state,” said Rep. Martin. “Prepaid cell phones make up over 20 percent of the wireless market, and this group (of consumers) is expected to grow 10 to 15 percent each year in the future, according to the Cellular Telephone Industry Association.” The law goes into effect on January 1, 2011.