MR CHAIRMAN, THANK YOU FOR HAVING THIS HEARING TODAY ON HR 3489 --THE WIRELESS TELECOMMUNICATIONS SOURCING AND PRIVACY ACT.

I BELIEVE THE PROVISIONS IN THIS LEGISLATION TAKE US A LONG WAY TO IMPROVING WIRELESS TELECOMMUNICATIONS SERVICES FOR CONSUMERS – SIMPLIFYING THEIR MONTHLY BILLS, IMPROVING THEIR PRIVACY, AND REDUCING THE POSSIBILITY OF DOUBLE OR EVEN TRIPLE TAXATION.

TODAY, OVER 84 MILLION AMERICANS ARE WIRELESS USERS AND MORE AND MORE OF THEM ARE USING THEIR WIRELESS TELEPHONES AS THEIR SOLE MEANS OF MAKING TELEPHONE CALLS. JUST A FEW YEARS AGO WIRELESS PHONES WERE A NOVELTY ITEM FOR A PRIVILEGED FEW – TODAY, THEY ARE AN ACCESSORY – AND FOR MANY, A NECESSITY.

THIS LEGISLATION IS SPECIFICALLY TARGETED TO ADDRESS SEVERAL KEY ISSUES THAT AFFECT WIRELESS TELECOMMUNICATIONS. THE INCLUSION OF THESE PROVISIONS IN A SINGLE BILL IS A NATURAL PARTNERING OF WIRELESS TELECOMMUNICATIONS ISSUES AND WILL EASE MEMBER CONSIDERATION OF THESE IMPORTANT CONCEPTS.

AT ITS CORE, THIS BILL OFFERS A NEW FRAMEWORK TO SIMPLIFY HOW STATE AND LOCAL JURISDICTIONS ADMINISTER EXISTING TAXES ON WIRELESS CALLS. UNDER THIS LEGISLATION, ALL OF A CUSTOMER’S STATE AND LOCAL WIRELESS TAXES WOULD BE ASSIGNED TO ONE ADDRESS, THE CUSTOMER’S PLACE OF PRIMARY USE – WHICH MUST EITHER BE THE CUSTOMER’S HOME OR BUSINESS ADDRESS.

THERE ARE SOME VERY REAL PRACTICAL PROBLEMS THAT CAN ARISE IN THE ADMINISTRATION OF THE VARIOUS STATE AND LOCAL TAXES. DIFFERENT JURISDICTIONS MAY FOLLOW DIFFERENT METHODOLOGIES MAKING THE DETERMINATION OF THE CORRECT TAXATION VERY DIFFICULT. DEPENDING ON THE METHODOLOGY, A CALL COULD BE TAXED IN THE CITY WHERE THE CUSTOMER IS LOCATED, IN THE TOWN WHERE THE WIRELESS ANTENNA IS LOCATED, OR, EVEN IN THE CITY WHERE THE WIRELESS SWITCH IS LOCATED. THE BOTTOM LINE .... IT’S CONFUSING, IT’S COSTLY AND IT’S A PROBLEM THAT WE CAN FIX WITH THIS LEGISLATION.

LET ME BE CLEAR, THIS LEGISLATION IS ABOUT HOW THE WIRELESS INDUSTRY ADMINISTERS STATE AND LOCAL TAXES – IT DOES NOT REDUCE OR CHANGE THE INDUSTRY’S OR CONSUMERS’ TAX OBLIGATIONS.

FURTHERMORE, I WOULD LIKE THE COMMITTEE TO KNOW THAT EXTENSIVE DISCUSSIONS AND NEGOTIATIONS HAVE TAKEN PLACE OVER THE LAST FEW YEARS AMONG SEVERAL STATE AND LOCAL GOVERNMENT ORGANIZATIONS – INCLUDING THE NATIONAL GOVERNOR’S ASSOCIATION, THE NATIONAL LEAGUE OF CITIES, THE MULTISTATE TAX COMMISSION, THE FEDERATION OF TAX ADMINISTRATORS AND OTHERS – ALONG WITH THE CELLULAR TELECOMMUNICATIONS INDUSTRY ASSOCIATION. TOGETHER, THEY HAVE DEVELOPED A NEW METHODOLOGY FOR DEALING WITH A COMPLEX PROBLEM – AND THAT NEW METHODOLOGY IS EMBODIED IN THIS LEGISLATION.

THE SECOND PROVISION OF THIS BILL INCLUDES THE LANGUAGE OF A BILL INTRODUCED AND LED THROUGH THE CONGRESS BY MY COLLEAGUE, MRS. WILSON. HER BILL, HR 514, IMPROVES THE PRIVACY PROTECTIONS AFFORDED TO USERS OF WIRELESS COMMUNICATIONS DEVICES AND IT OVERWHELMINGLY PASSED THE HOUSE LAST YEAR BUT HAS NOT BEEN TAKEN UP BY THE SENATE.

FINALLY, THE BILL REQUIRES THE GAO TO EXAMINE THE FCC’S IMPLEMENTATION OF PROVISIONS OF CURRENT LAW WHICH REQUIRE THE TELECOMMUNICATIONS INDUSTRY TO PAY FEES TO RECOUP COSTS OF REGULATORY FUNCTIONS. THERE HAS BEEN CONCERN THAT THESE FEES HAVE NOT AND ARE NOT BEING PROPERLY ASSESSED. WHILE I HAVE NOT TAKEN A POSITION ON THIS MATTER, I DO THINK IT IS IMPORTANT TO GET A THOROUGH EXAMINATION OF THE ISSUE – THE GAO STUDY WILL PROVIDE SUCH A REVIEW.

IN CLOSING, I WOULD LIKE TO AGAIN THANK THE COMMITTEE FOR HAVING THIS HEARING AND TO THE WITNESSES FOR APPEARING TODAY TO TESTIFY ON MY LEGISLATION. THANK YOU.

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SUMMARY

This legislation takes us a long way in improving wireless telecommunications services for consumers by simplifying their monthly bills, improving their privacy and reducing the possibility of double or even triple taxation.

HR 3489 offers a new framework to simplify how state and local jurisdictions administer existing state and local wireless telephone calls. Under this legislation, all of a customer’s state and local wireless taxes would be assigned to one address, the customer’s place of primary use – which must either be the customer’s home or business address.

The methodology included in HR 3489 is the result of negotiations by the National Governor’s Association, the National League of Cities, the Multistate Tax Commission, the Federation of Tax Administrators and others – along with the Cellular Telecommunications Industry Association.

The second provision of this legislation is the language included in Rep. Heather Wilson’s bill HR 514, which improves the privacy protections afforded to users of wireless communications devices. Her legislation overwhelmingly passed the House last year but has not been taken up by the Senate.

Finally, my bill requires the GAO to examine provisions in current law which require the telecommunications industry to pay fees to recoup costs of regulatory functions performed by the FCC.