HomeMy WebLinkAboutCC AG PKT 2014-04-14 #I i
CALIFORNIA OWN
CITY HALL 211 EIGHTH STREET
SEAL BEACH, 90740
(562)431-2527-www.sealbeachca.gov
April 15, 2014
Honorable Steven Bradford
Chair, Assembly Utilities and Commerce Committee
State Capitol, Room 5136
Sacramento, CA 95814
RE: AB 1717 (Perea) . Telecommunications.
NOTICE OF SUPPORT
Dear Assembly Member Bradford:
The City of Seal Beach is pleased to support AB 1717 (as introduced) and requests an "AYE"
vote when it comes before you in the Assembly Utilities and Commerce Committee. AB 1717
would provide a mechanism for the collection of existing state and local revenues for prepaid
wireless services. The provisions of this year's AB 1717 are similar to AB 300 (Perea), which
would have enacted the Prepaid Telephony Services (MTS) Surcharge and Collections Act.
Last year the City also supported AB 300. As with last year's effort, we will work with
stakeholders to ensure fairness between post-paid and pre-paid wireless customers while
protecting existing utility tax revenues and allowing for shared implementation costs. Over 50%
of all new wireless services are prepaid and one-third of all new smartphones are
prepaid. Consumers across all income levels are purchasing prepaid phones. Local voter-
approved Utility User Tax (UUT) ordinances are technology-neutral and apply to all wireless
customers. California agencies with existing UUT are losing revenues from prepaid wireless (in
some cases the loss is as high as 25% in last 3 years). Extrapolating the increased use of prepaid
wireless over time, $100 million a year of local taxes is at risk without corrective legislation.
We will also continue to work towards additional refinements to AB 1717 to better assist the
Board of Equalization (BOE) with the administration of this measure and empower local
agencies to enforce and administer their local ordinances. We believe these modifications will
bring the reimbursement costs paid by local agencies to the BOE for purposes of administration
to a reasonable level. Such cost reductions will further strengthen the intent of AB 300 and help
garner the widespread support of UUT cities and counties.
The City recognizes that AB 1717 was introduced as a starting point, and as with AB 300, we
look forward to working with the author's office and all stakeholders to help find a solution. For
these reasons we are pleased to support AB 1717 and appreciate the Committee's assistance in
finding a solution to collecting much needed existing local revenues from prepaid wireless
services.
Sincerely,
dOOO
Mayor Ellefy A. Deaton
Cc: Lou Correa, State Senate (34th District)
Travis Allen, State Assemblyman (72nd District)
City of Seal Beach Councilmembers
Jill R. Ingram, City Manager
Quinn Barrow, City Attorney