SENATE BILL 411

53rd legislature - STATE OF NEW MEXICO - first session, 2017

INTRODUCED BY

Nancy Rodriguez

AN ACT

RELATING TO TELECOMMUNICATIONS; EXPANDING THE APPLICATION OF THE TELECOMMUNICATIONS RELAY SERVICE SURCHARGE TO INCLUDE MODERN TELECOMMUNICATIONS TECHNOLOGIES; EXEMPTING CERTAIN TELECOMMUNICATIONS SERVICES CUSTOMERS FROM THE SURCHARGE; CLARIFYING PROVISIONS OF THE TELECOMMUNICATIONS ACCESS ACT.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. Section 63-9F-3 NMSA 1978 (being Laws 1993, Chapter 54, Section 3, as amended) is amended to read:

     "63-9F-3. DEFINITIONS.--As used in the Telecommunications Access Act:

          A. "commission" means the commission for deaf and hard-of-hearing persons;

          B. "communications assistant" means an individual who translates conversation from text to voice and from voice to text between two end users of a telecommunications service;

          C. "home service provider" means a facilities-based carrier or reseller with which a customer contracts for the provision of mobile telecommunications services;

          [C.] D. "impaired" means having an impairment of or deficit in the ability to hear or speak, or both;

          E. "interconnected voice over internet protocol service" means a service that:

                (1) enables real-time, two-way voice communications;

                (2) requires a broadband connection from the user's location;

                (3) requires internet protocol-compatible customer premises equipment; and

                (4) permits users generally to receive calls that originate on the public-switched telephone network and to terminate calls to the public-switched telephone network;

          [D.] F. "intrastate [telephone services means all charges for] telecommunications service":

                (1) means the provision of access lines, special services and intrastate toll services [including all] for telephone calls originating and terminating in the state;

                (2) includes interconnected voice over internet protocol service and nomadic interconnected voice over internet protocol service; and

                (3) does not include intrastate mobile telecommunications service;

          G. "mobile telecommunications service" means radio communication voice service between mobile and land or fixed stations, or between mobile stations;

          H. "place of primary use" means the street address representative of where a customer's use of a mobile telecommunications service primarily occurs and that is:

                (1) the residential street address or the primary business street address of the customer; and

                (2) within the licensed service area of the home service provider;

          I. "prepaid mobile telecommunications service":

                (1) means radio communication voice service between mobile and land or fixed stations, or between mobile stations, that is paid for in advance and sold in units of time or in monetary units; and

                (2) does not include any portion of a product sold as a package that does not constitute prepaid mobile telecommunications service;

          [E.] J. "specialized telecommunications equipment" means devices that enable or assist an impaired individual to communicate with another individual using the telephone network;

          [F.] K. "telecommunications company" means an individual, corporation, partnership, joint venture, company, firm, association, proprietorship or other entity that provides public telecommunications services, and includes cellular service companies as defined in Subsection B of Section 63-9B-3 NMSA 1978; and

          [G.] L. "telecommunications relay system" means a statewide telecommunications system through which an impaired individual using specialized telecommunications equipment is able to send or receive messages to and from an individual who is not impaired and whose telephone is not equipped with specialized telecommunications equipment and through which the unimpaired individual is able, by using voice communications, to send and receive messages to and from an impaired person."

     SECTION 2. Section 63-9F-11 NMSA 1978 (being Laws 1993, Chapter 54, Section 11, as amended) is amended to read:

     "63-9F-11. IMPOSITION OF SURCHARGE.--

          A. A telecommunications relay service surcharge of thirty-three hundredths percent is imposed on the gross amount paid:

                (1) by customers, except customers whose telephone service rates are reduced as authorized by the Low Income Telephone Service Assistance Act, for [(1)] intrastate [telephone] telecommunications services [other than mobile telecommunications services] provided in this state; [and]

                (2) by customers for intrastate mobile telecommunications services that originate and terminate in the same state, regardless of where the mobile telecommunications services originate, terminate or pass through, provided by home service providers to customers whose place of primary use is in New Mexico; and

                (3) by customers for retail prepaid mobile telecommunications services in transactions occurring in this state.

          B. The telecommunications relay service surcharge shall be included on the monthly bill of each customer of a local exchange company or other telecommunications company providing intrastate [telephone] telecommunications services or intrastate mobile telecommunications services and paid at the time of payment of the monthly bill. Receipts from selling [a service] those services to any other telecommunications company or provider for resale [shall] are not [be] subject to the surcharge. The customer [shall be] is liable for the payment of [this] the surcharge to the local exchange company or other telecommunications company providing intrastate [telephone] telecommunications services to the customer. [For the purposes of Subsections A and B of this section, "home service provider", "mobile telecommunications services" and "place of primary use" have the meanings given in the federal Mobile Telecommunications Sourcing Act.]

          C. A customer of prepaid mobile telecommunications service is liable for the payment of the telecommunications relay service surcharge and shall pay the surcharge at the time of sale of that service. At the time of sale, the surcharge amount shall be separately stated on an invoice, receipt or other similar document provided to the customer or be otherwise disclosed to the customer. Receipts from selling prepaid mobile telecommunications services for resale are not subject to the surcharge.

          [C.] D. A telecommunications company providing intrastate [telephone] telecommunications services, a home service provider providing intrastate mobile telecommunications services and a seller of prepaid mobile telecommunications services shall, [be responsible for assessing, collecting and remitting] on sales subject to the telecommunications relay service surcharge, [to the taxation and revenue department. The amount of the telecommunications relay service] assess and collect the surcharge and remit the surcharge collected [by a telecommunications company shall be remitted] monthly to the taxation and revenue department on or before the twenty-fifth day of the month following collection [which]. The department shall administer and enforce the collection of the surcharge [pursuant to the provisions of] in accordance with the Tax Administration Act.

          [D.] E. The taxation and revenue department shall [remit] transfer to the telecommunications access fund the amount of the telecommunications relay service surcharge collected less any amount deducted [pursuant to the provisions of] in accordance with Subsection [E] F of this section. Transfer of the net receipts from the surcharge to the telecommunications access fund shall be made within the month following the month in which the surcharge is collected.

          [E.] F. The taxation and revenue department may deduct an amount not to exceed three percent of the telecommunications relay service surcharge collected as a charge for the administrative costs of collection [which] and shall remit that amount [shall be remitted] to the state treasurer for deposit in the general fund each month.

          [F.] G. The commission shall report to the revenue stabilization and tax policy committee annually by September 30 the following information with respect to the prior fiscal year:

                (1) the amount and source of revenue received by the telecommunications access fund;

                (2) the amount and category of expenditures from the fund; and

                (3) the balance of the fund on that June 30."

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2017.

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