AR HB1201

Modifies the definition of "prepaid wireless telecommunications service" to include mobile wireless services and non-telecommunications services (such as digital products and content) paid for in advance and sold in predetermined units or dollars.

Maintains surcharge caps of $0.02 per subject access line per month and $0.02 per working subject telephone number per month, with surcharges to be identical and not applied to prepaid wireless telecommunications service.

Requires local exchange carriers and commercial mobile radio service providers to collect surcharges from customers and remit them to the Department of Finance and Administration for deposit into the Telecommunications Equipment Fund.

Changes the trigger for ceasing surcharge collection from a three-year average of expenditures to when revenues equal or exceed three times the annual expenditures of the equipment distribution program at the close of a fiscal year.

Requires a petition to cease collection of the surcharge to be filed with the commission when the three-times annual expenditures threshold is met, with reinstatement petitions prohibited until one-half of the surplus has been exhausted.