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HB 1096

Housing opportunity; increases tax credit.

2025 Regular Session Introduced by Josh Thomas

Reduces the maximum carrier retention of assessed communications fees from 5% to 2.5%, requiring providers to remit fee proceeds within 30 days (or quarterly for very small provide

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Bill Summary · HB 1096

Summary — HB 1096 (North Dakota, 2025)

AN ACT to amend and reenact section 57-40.6-04 of the North Dakota Century Code — relating to assessed communication service fees.

Main purpose

Reduce the maximum percentage of assessed communications fees that a communications service provider may retain to cover actual administrative collection costs (and certain 911 database management charges), and restate the payment timing rules for remitting fee proceeds to the jurisdiction.

Key provisions

  • Amends NDCC § 57-40.6-04 (fee collection procedure).
  • Administrative retention cap:
    • Lowers the maximum retention from 5% to 2.5% of the fee collected (expressed in the enrolled bill as “two and one‑half percent”).
    • Providers may retain actual costs of administration and any telephone exchange access service provider charges for 911 database management, up to that cap.
  • Payment timing:
    • Providers must remit fee proceeds within 30 days after collection from the subscriber/customer.
    • Exception: a provider with fewer than ten subscribers/customers in a jurisdiction may remit quarterly.
  • The amendment is a reenactment (revises present law wording rather than creating a separate new section).

Who or what is affected

  • Assessed communications service providers that collect the statutory communication/911-related fee (e.g., telecom, VoIP or other communications service providers subject to the assessed-fee regime).
  • Local jurisdictions and entities that receive the fees (e.g., 911 systems or emergency communications funds) — they should receive a larger share of collected fees because providers retain a smaller administrative portion.
  • Small providers (fewer than ten subscribers per jurisdiction) retain quarterly remittance flexibility.

Procedural/timeline notes

  • Introduced: November 12, 2024.
  • Sponsors (ND bill): Representatives Porter, Bosch, Heinert, Schreiber‑Beck; Senators Davison, Patten, Weber.
  • Legislative action (ND): Passed both chambers (House vote 89–0; Senate vote 43–2). Emergency clause adopted.
  • Governor signed the enrolled bill March 17, 2025; filed with the Secretary of State March 18, 2025. The enrolled bill was identified as Act 786 (2025) — with the emergency clause, the change is effective upon signing.

Potential impact

  • Revenue: More of each collected fee will be remitted to recipients (911/emergency funds) because providers can no longer retain up to 5%; the practical increase depends on providers’ prior retained amounts (some providers previously retained less than 2.5%).
  • Provider costs/cash flow: Providers will absorb a larger share of collection costs or must reduce administrative expenses to fit the lower cap; quarterly remittance relief for very small providers mitigates cash-flow impacts for those entities.
  • Administrative: Minimal statutory change in remittance timing; primary operational change is compliance with the lower retention cap.

If you want, I can: (1) extract the exact enrolled statutory language; (2) compare the prior and current NDCC text line‑by‑line; or (3) draft a short advisory memo for affected providers and local jurisdictions.

Compiled from official sources — confirm details with the bill’s official record.

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