65.7635 Duty of commercial mobile radio service providers to act as collection agents for fund -- Procedure for collection of service and prepaid service charges.
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65.7635 Duty of commercial mobile radio service providers to act as collection
agents for fund -- Procedure for collection of service and prepaid service <br>charges.
(1) Each CMRS provider shall act as a collection agent for the CMRS fund. From its
customers, the provider shall, as part of the provider's billing process, collect the <br>CMRS service charges levied upon CMRS connections under KRS 65.7629(3) from <br>each CMRS connection to whom the billing provider provides CMRS. Each billing <br>provider shall list the CMRS service charge as a separate entry on each bill which <br>includes a CMRS service charge. If a CMRS provider receives a partial payment for <br>a monthly bill from a CMRS customer, the provider shall first apply the payment <br>against the amount the CMRS customer owes the CMRS provider. For CMRS <br>customers who purchase CMRS services on a prepaid basis, the CMRS service <br>charge shall be determined according to one (1) of the following methodologies as <br>elected by the CMRS provider: <br>(a) The CMRS provider shall collect, on a monthly basis, the CMRS service
charge specified in KRS 65.7629(3) from each active customer whose account <br>balance is equal to or greater than the amount of service charge; or
(b) The CMRS provider shall divide its total earned prepaid wireless telephone
revenue received with respect to its prepaid customers in the Commonwealth <br>within the monthly 911 emergency telephone service reporting period by fifty <br>dollars ($50), multiply the quotient by the service charge amount, and pay the <br>resulting amount to the board; or
(c) In the case of CMRS providers that do not have the ability to access or debit
end-user accounts, and do not have retail contact with the end user or <br>purchaser of prepaid wireless airtime, the CMRS service charge and collection <br>methodology may be determined by administrative regulations promulgated <br>by the board to collect the service charge from such end users.
(2) A CMRS provider has no obligation to take any legal action to enforce the
collection of the CMRS service charges for which any CMRS customer is billed. <br>Collection actions to enforce the collection of the CMRS service charge against any <br>CMRS customer may, however, be initiated by the state, on behalf of the board, in <br>the Circuit Court of the county where the bill for CMRS service is regularly <br>delivered, and the reasonable costs and attorneys' fees which are incurred in <br>connection with any such collection action may be awarded by the court to the <br>prevailing party in the action.
(3) State and local taxes shall not apply to CMRS service charges. <br>(4) To reimburse itself for the cost of collecting and remitting the CMRS service
charge, each CMRS provider may deduct and retain from the CMRS service <br>charges it collects during each calendar month an amount not to exceed one and <br>one-half percent (1.5%) of the gross aggregate amount of CMRS service charges it <br>collected that month.
(5) All CMRS service charges imposed under KRS 65.7621 to 65.7643 collected by
each CMRS provider, less the administrative fee described in subsection (4) of this
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section, are due and payable to the board monthly and shall be remitted on or before <br>sixty (60) days after the end of the calendar month. Collection actions may be <br>initiated by the state, on behalf of the board, in the Franklin Circuit Court or any <br>other court of competent jurisdiction, and the reasonable costs and attorneys' fees <br>which are incurred in connection with any such collection action may be awarded <br>by the court to the prevailing party in the action.
Effective: July 12, 2006 <br>History: Amended 2006 Ky. Acts ch. 219, sec. 7, effective July 12, 2006. -- Created
1998 Ky. Acts ch. 535, sec. 8, effective July 15, 1998.
Legislative Research Commission Note (7/12/2006). Although 2006 Ky. Acts ch. 219,
sec. 7, subsec. (5), contains a reference to "subsection (3) of this section," that <br>reference has been codified as "subsection (4) of this section" because subsection (2) <br>which was struck in the introduced version of the bill, was restored in the House <br>Committee Substitute, but the necessary adjustment to this internal reference was not <br>made. This manifest typographical or clerical error has been corrected in codification <br>under KRS 7.13(1)(h).
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