A BILL TO BE ENTITLED
AN ACT providing that Interconnected VOIP SERVICE PROVIDERS SHALL REMIT THE TELECOMMUNICATIONS RELAY SERVICE SURCHARGE TO THE state treasurer, allowing local exchange, cmrs, and voip providers to choose whether to include the surcharge on customers' bills, directing all providers to remit the fee to the state treasurer, allowing all providers to deduct a one percent administrative fee from the total amount of surcharge revenue, and CLARIFYING the sales tax treatment of certain charges related to TELECOMMUNICATIONS RELAY SERVICE.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 62‑157 reads as rewritten:
"§ 62‑157.  Telecommunications relay service.
(a)	Finding. – The General Assembly finds and declares that it is in the public interest to provide access to public telecommunications services for hearing impaired or speech impaired persons, including those who also have vision impairment, and that a statewide telecommunications relay service for telephone service should be established.
(a1)	Definitions. – For purposes of this section:
(1)	"CMRS" is as defined in G.S. 62A‑40.
(2)	"CMRS connection" is as defined in G.S. 62A‑40.
(3)	"CMRS provider" is as defined in G.S. 62A‑40.
(4)	"Exchange access facility" means the access from a particular telephone subscriber's premises to the telephone system of a local exchange telephone company, and includes local exchange company‑provided access lines, private branch exchange trunks, and centrex network access registers, all as defined by tariffs of telephone companies as approved by the Commission.
(4a)	"Interconnected VoIP service" is as defined in 47 C.F.R. § 9.3.
(5)	"Local service provider" means a local exchange company, competing local provider, or telephone membership corporation.
(6)	"Prepaid wireless telecommunications service" is as defined in G.S. 62A‑40.
(7)	"Voice communications service connection" is as defined in G.S. 62A‑40.
(8)	"VoIP provider" is an entity that provides interconnected VoIP service.
(a2)	Surcharge Remitted by Providers. – A monthly telecommunications relay service surcharge is imposed on each active voice communication service connection provided by local service providers, VoIP providers, and CMRS providers other than prepaid wireless telecommunications service providers. The purpose of the surcharge is to fund a statewide telecommunications relay service by which hearing impaired or speech impaired persons, including those who also have vision impairment, may communicate with others by voice communication. The amount of the surcharge is the amount set by the Commission in subsection (c) of this section. The providers shall remit to the State Treasurer the monthly surcharge imposed by this section. The surcharge is payable by the subscriber to voice communications service provider. The providers may assess the surcharge as a separately stated charge as provided in subsection (c) of this section. The surcharge is not includable in the gross receipts subject to sales tax under G.S. 105‑164.4C.
(b)	Local Exchange Surcharge. – The Commission shall require local service providers to remit a monthly surcharge on all residential and business local exchange access facilities to fund a statewide telecommunications relay service by which hearing impaired or speech impaired persons, including those who also have vision impairment, may communicate with others by telephone to the State Treasurer. This surcharge, however, may not be imposed on participants in the Subscriber Line Charge Waiver Program or the Link‑up Carolina Program established by the Commission.(c)	Specification of Surcharge. – The Department of Health and Human Services shall initiate a telecommunications relay service by filing a petition with the Commission requesting the service and detailing initial projected required funding. The Commission shall, after giving notice and an opportunity to be heard to other interested parties, set the initial monthly surcharge based upon the amount of funding necessary to implement and operate the service, including a reasonable margin for a reserve. If the surcharge is assessed separately on customer bills, the surcharge shall be identified  as a special surcharge for provision of a telecommunications relay service for hearing impaired and speech impaired persons. The Commission may, upon petition of any interested party, and after giving notice and an opportunity to be heard to other interested parties, revise the surcharge from time to time if the funding requirements change. In no event shall the surcharge exceed twenty‑five cents (25¢) per month for each exchange access facility.
(d)	Funds to Be Deposited in Special Account. – The local service providers shall remit the surcharge and deposit the moneys collected with the State Treasurer, who shall maintain the funds in an interest‑bearing, nonreverting account. A local service provider may deduct a one percent (1%) administrative fee from the total amount of surcharge revenue remitted to the State Treasurer. After consulting with the State Treasurer, the Commission shall direct how and when the local service providers shall deposit these moneys. Revenues from this fund shall be available only to the Department of Health and Human Services to administer the statewide telecommunications relay service program, including its establishment, operation, and promotion. The Commission may allow the Department of Health and Human Services to use up to four cents (4¢) per access line per month of the surcharge for the purpose of providing telecommunications devices for hearing impaired or speech impaired persons, including those who also have vision impairment, through a distribution program. The Commission shall prepare such guidelines for the distribution program as it deems appropriate and in the public interest. Both the Commission and the Public Staff may audit all aspects of the telecommunications relay service program, including the distribution programs, as they do with any public utility subject to the provisions of this Chapter. Equipment paid for with surcharge revenues, as allowed by the Commission, may be distributed only by the Department of Health and Human Services.
…
(f)	Charge to Users. – The users of the telecommunications relay service shall be charged their approved long distance and local rates for telephone services (including the surcharge required by this section), but no additional charges may be imposed for the use of the relay service. The local service providers shall collect revenues from the users of the relay service for long distance services provided through the relay service. These revenues shall be deposited in the special fund established in subsection (d) of this section in a manner determined by the Commission after consulting with the State Treasurer. Local service providers shall be compensated for collection, inquiry, and other administrative services provided by said companies, subject to the approval of the Commission. The long distance revenues collected under this subsection are not includable in gross receipts subject to the sales tax levied under G.S. 105‑164.4C.
(g)	Reporting Requirement. – The Commission shall, after consulting with the Department of Health and Human Services, develop a format and filing schedule for a comprehensive financial and operational report on the telecommunications relay service program. The Department of Health and Human Services shall thereafter prepare and file these reports as required by the Commission with the Commission and the Public Staff. The Department shall also be required to report to the Revenue Laws Study Committee.
(h)	Power to Regulate. – The Commission shall have the same power to regulate the operation of the telecommunications relay service program as it has to regulate any public utility subject to the provisions of this Chapter.
(i)	Wireless Surcharge. – A CMRS provider, other than a prepaid wireless communications service provider, must remit the telecommunications relay service surcharge imposed under subsection (a2) of this section for each voice communications service connection. A CMRS provider may deduct a one percent (1%) administrative fee from the total amount of the surcharge collected. A CMRS provider shall remit the surcharge collected, less the administrative fee, to the State Treasurer in the same manner and with the same frequency as the local service providers remit the surcharge to the State Treasurer. The State Treasurer shall deposit the funds remitted by CMRS providers in the special account created under subsection (d) of this section.
(j)	VoIP Surcharge. – A VoIP provider must remit the telecommunications relay service surcharge imposed under subsection (a2) of this section for each voice communications service connection. A VoIP provider may deduct a one percent (1%) administrative fee from the total amount of the surcharge collected. A VoIP provider shall remit the surcharge collected, less the administrative fee, to the State Treasurer in the same manner and with the same frequency as the local service providers remit to the State Treasurer. The State Treasurer shall deposit the funds remitted by VoIP providers in the special account created under subsection (d) of this section."
SECTION 2.  G.S. 105‑164.13(54) is amended by adding new sub‑subdivisions to read:
"f.	The telecommunications relay service surcharge collected from users of telecommunications relay service under G.S. 62‑157. If the surcharge is not assessed separately on customer bills, the seller must maintain records of the surcharge collected in a form that may be accurately and conveniently checked by the Secretary or his duly authorized agent.
g.	The long distance revenues collected from users of  telecommunications relay service under G.S. 62‑157(f).
SECTION 3.  This act becomes effective January 1, 2014, and applies to all telecommunications service relay surcharges collected on or after that date.