A BILL TO BE ENTITLED
AN ACT to remove the sunset on the e‑Nc authority and to increase the distribution to local governments of the sales tax on telecommunications and video programming services.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 4 of S.L. 2003‑425, as rewritten by Section 12.3(a) of S.L. 2006‑66, reads as rewritten:
"SECTION 4.  Sections 1 and 2 of this act become effective December 31, 2003, with the e‑NC Authority hereby designated as the successor entity of the Rural Internet Access Authority that will dissolve on that date, as provided by Section 5 of S.L. 2000‑149. The remainder of this act is effective when it becomes law."
SECTION 2.  G.S. 105‑164.44F(a)(2) reads as rewritten:
"(a)	Amount. – The Secretary must distribute part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and ancillary service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the following percentages of the net proceeds of the taxes collected during the quarter:
…
(2)	Eight and six‑tenths percent (8.6%) must be distributed to counties and cities as provided in G.S. 105‑164.44I."
SECTION 3.  G.S. 105‑164.44I(a) reads as rewritten:
"(a)	Distribution. – The Secretary must distribute to the counties and cities part of the taxes imposed by G.S. 105‑164.4(a)(4c) on telecommunications service and G.S. 105‑164.4(a)(6) on video programming service. The Secretary must make the distribution within 75 days after the end of each calendar quarter. The amount the Secretary must distribute is the sum of the revenue listed in this subsection. The Secretary must distribute seven million dollars ($7,000,000) of this amount in accordance with subsection (b) of this section and the remainder in accordance with subsections (c) and (d) of this section. The revenue to be distributed under this section consists of the following:
(1)	The amount specified in G.S. 105‑164.44F(a)(2).
(2)	Twenty‑six and nine‑tenths percent (26.9%) of the net proceeds of the taxes collected during the quarter on video programming, other than on direct‑to‑home satellite service.(3)	Forty and four‑tenths percent (40.4%) of the net proceeds of the taxes collected during the quarter on direct‑to‑home satellite service."
SECTION 4.  G.S. 105‑164.44I(b) reads as rewritten:
"(b)	Supplemental PEG Support. – The Secretary must include the applicable amount of supplemental PEG channel support in each quarterly distribution to a county or city. The amount to include is one‑fourth of twenty‑five thousand dollars ($25,000) for each qualifying PEG channel operated by the county or city. The amount of money distributed under this subsection may not exceed seven million dollars ($7,000,000) in a fiscal year. If the amount to be distributed for qualifying PEG channels in a fiscal year would otherwise exceed this maximum amount, the Secretary must proportionately reduce the applicable amount distributable for each PEG channel. If the amount to be distributed for qualifying PEG channels in a fiscal year is less than seven million dollars ($7,000,000), the Secretary must credit the excess amount to the PEG Channel Fund established in G.S. 66‑359.
A county or city must certify to the Secretary by July 15 of each year the number of qualifying PEG channels it operates. A qualifying PEG channel is one that meets the programming requirements under G.S. 66‑357(d). A county or city may not receive PEG channel support under this subsection for more than three qualifying PEG channels.
The amount included under this subsection in a distribution to a county or city is intended to supplement the PEG channel support available in the amount distributed under this section. The money distributed to a county or city under this subsection must be used by it for the operation and support of PEG channels. For purposes of this subsection, the term "PEG channel" has the same meaning as in G.S. 66‑350."
SECTION 5.  This act becomes effective July 1, 2009, and applies to distributions for months beginning on or after that date.