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California Laws | Revenue and Taxation Code

(1) Does all of the following: (25695)

(A) Enables real-time, two-way voice communication that originates from and terminates to the user's location using Internet Protocol (IP) or any successor protocol. (25696)

(B) Requires a broadband connection from the user's location. (25697)

(C) Permits users, generally, to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. (25698)

(2) Does at least one of the following: (25699)

(A) Requires Internet protocol-compatible customer premises equipment (CPE). (25700)

(B) When necessary, is converted to or from transmission control protocol (TCP)/IP by the service user's service supplier before or after being switched by the public switched telephone network. (25701)

(C) Is a service that the Federal Communications Commission (FCC) has affirmatively required to provide 911 or E911 service. (25702)

(b) This definition shall only apply to this part. (25703)

41017. "Private communication service" shall mean (25704)

(a) The communication service furnished to a subscriber which entitles the subscriber-- (25705)

(1) To exclusive or priority use of any communication channel or groups of channels, or (25706)

(2) To the use of an intercommunication system for the subscriber' s stations, regardless of whether such channel, groups of channels, or intercommunication system may be connected through switching with a service described in Sections 41015 and 41016, (25707)

(b) Switching capacity, extension lines and stations, or other associated services which are provided in connection with, and are necessary or unique to the use of channels or systems described in subdivision (a), and (25708)

(c) The channel mileage which connects a telephone station located outside a local telephone system area with a central office in such local telephone system, except that such term shall not include any communication service unless a separate charge is made for such service. (25709)

41018. "Communications equipment company" shall mean a manufacturer or vendor that sells or leases communications equipment. (25710)

41019. No surcharge shall be imposed on charges for any types of service or equipment furnished by a service supplier subject to state or federal public utility regulation during any period in which the same or similar services or equipment are also available for sale or lease from persons not subject to state or federal public utility regulation. (25711)

41019.5. (a) It is the intent of the Legislature that telephone quality communication utilizing VoIP shall not be regulated by the enactment of Senate Bill 1040 of the 2007-08 Regular Session. The sole purpose of this act is to ensure that all forms of telephonic quality communications that connect to the "911" emergency system contribute to the State Emergency Telephone Number Account and that this act may not be used by a court or administrative body for any purpose other than to interpret and apply this part. (25712)

(b) For purposes of this section only, "VoIP" means any service that: (25713)

(1) Enables real-time or two-way voice communication that originates or terminates from the user's location using IP or any successor protocol. (25714)

(2) Uses a broadband connection from the user's location, including any service that permits users, generally, to receive calls that originate on the public switched telephone network and to terminate calls to the public switched telephone network. (25715)


Article 1. Imposition of the Surcharge (41020-41027) (25717)(Text)

41020. (a) A surcharge is hereby imposed on amounts paid by every person in the state for both of the following: (25718)

(1) Intrastate telephone communication service in this state commencing on July 1, 1977. (25719)

(2) VoIP service that provides access to the "911" emergency system by utilizing the digits 9-1-1 by any service user in this state commencing on January 1, 2009. The surcharge shall not apply to charges for VoIP service where any point of origin or destination is outside of this state. (25720)

(b) (1) Notwithstanding Section 41025, charges not subject to the surcharge may be calculated by a service supplier based upon books and records kept in the regular course of business, and, for purposes of calculating the interstate revenue portion not subject to the surcharge, a service supplier may also choose a reasonable and verifiable method from the following: (25721)

(A) Books and records kept in the regular course of business. (25722)

(B) Traffic or call pattern studies representative of the service supplier's business within California. (25723)

(C) For VoIP service only, the VoIP safe harbor factor established by the FCC to be used to calculate the service supplier's contribution to the federal Universal Service Fund. The FCC safe harbor factor in effect for VoIP service on September 1 of each year shall apply for the period of January 1 through December 31, inclusive, of the next succeeding calendar year for purposes of this method. At such time as the FCC establishes a safe harbor factor for the federal Universal Service Fund for VoIP service that is greater than 75 percent for interstate revenue or abolishes the safe harbor factor applicable to VoIP service, this method shall become void and of no effect, in which case a VoIP service supplier may use an alternative method approved in advance by the board, which shall be available to all VoIP service suppliers. The FCC safe harbor factor applicable to VoIP service, as described in this subparagraph, is used solely as a mechanism to calculate the charges not subject to the surcharge for VoIP service and is not necessarily reflective of the intrastate portion of VoIP service. The use of the FCC safe harbor factor authorized by this subdivision shall not be interpreted to permit application of any intrastate requirement, other than the surcharge imposed under this part, upon VoIP service suppliers. (25724)

(2) Any method chosen by a service supplier shall remain in effect for at least one calendar year. (25725)

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