Prepaid Wireless Telecom Services Modifications

Plain English Breakdown

The official summary confirms the TDA charge replaced a former relay service charge but does not explicitly define 'telephone disability access' beyond that replacement context.

Changes to Fees on Prepaid Wireless Services in Colorado

This law updates the rules for three fees charged when people buy prepaid wireless phone services, including calls to 911 and 988.

What This Bill Does

• Updates the definition of a prepaid wireless service to include plans paid in advance or sold with fixed time limits that allow 911 calls.
• Makes sure the same definition applies to all three fees: the 911 charge, the 988 charge, and the telephone disability access (TDA) charge.
• Adds providers of prepaid wireless services to the rules for sending money owed on the 911 charge to the state.
• Allows the Department of Revenue to share certain tax information about the TDA and 988 fees with related agencies and commissions.
• Gives the Department of Revenue the power to require electronic filing and payment for the prepaid wireless 988 charge.

Who It Names or Affects

• Providers who sell prepaid wireless telecommunications services in Colorado
• The Colorado Department of Revenue
• The Public Utilities Commission

Terms To Know

Prepaid Wireless Telecommunications Service

A phone service paid for before use, sold by time or money units that go down with use, or offering unlimited use for a set period.

988 Charge

A fee added to prepaid wireless sales administered by the Department of Revenue.

Telephone Disability Access (TDA) Charge

A charge that replaced the former telecommunications relay service charge effective January 1, 2026.

Limits and Unknowns

• The official text does not state the exact dollar amount of any new or existing fees.
• While the law is enacted and takes effect on January 1, 2026, specific enforcement start times are not detailed in this summary.

Official Summary Text

Colorado imposes 3 charges on all retail sales of prepaid wireless telecommunications services: A prepaid wireless 911 charge, a prepaid wireless 988 charge, and a prepaid wireless telephone disability access (TDA) charge, which, effective January 1, 2026, replaced the former telecommunications relay service charge. The act makes the following modifications to the laws implementing the 3 prepaid wireless telecommunications services:
Corrects erroneous cross references in connection with the prepaid wireless telecommunications services;
Modifies the definition of 'prepaid wireless telecommunications service' (prepaid wireless definition) in the statute that implements the prepaid wireless 911 charge to include a wireless telecommunications service that is paid in advance, sold in predetermined units of time or money that decline with use or provides unlimited use of the service for a fixed time, and allows a user to make 911 calls. In addition, the act harmonizes the prepaid wireless definition for all 3 of the prepaid wireless telecommunication services.
Adds providers of prepaid wireless telecommunications services (providers) to the definition of 'retail transaction' and to surcharge remittance procedures for the prepaid wireless 911 charge;
Includes the prepaid wireless 988 charge in the list of taxes or fees that are administered by the department of revenue (department);
Consistent with the treatment of confidential tax information regarding the prepaid wireless 911 charge, allows the department to disclose confidential tax information regarding the prepaid wireless TDA charge and the prepaid wireless 988 charge to their respective enterprises and to the public utilities commission;
Consistent with the requirement for electronic filing and payment for the prepaid wireless 911 charge and the TDA charge, allows the department to require electronic filing and payment for the prepaid wireless 988 charge;
Consistent with the prepaid wireless 911 charge, clarifies that telecommunications services that are not subject to the prepaid wireless TDA charge are subject to other TDA charges imposed by law and makes the same clarification regarding the prepaid wireless 988 charge; and
Consistent with the prepaid wireless 911 charge, imposes the prepaid wireless 988 charge on providers that use federally supported services to provide free prepaid wireless telecommunications services.
(Note: This summary applies to this bill as enacted.)