LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
January 28, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 249
Committee on Economic Development By: Sibley
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB249 ( Relating
to the telecommunications infrastructure fund.) this office
has detemined the following:
Biennial Net Impact to General Revenue Funds by SB249-As Introduced FN Revision 1
Implementing the provisions of the bill would result in a net
impact of $0 to General Revenue Related Funds through the biennium
ending August 31, 1999.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
SB 249 amends Section 3.606 of the Public Utility Regulatory
act of 1995 (Article 1446c-O, Vernon s Texas Civil Statutes)
to change the annual amount assessed from the telecommunications
industry. The bill sets a single assessment of 1.25% of the
taxable telecommunications receipts of each telecommunications
utility and commercial mobile service provider instead of the
current $75 million for each.
The bill would replace the
current assessment on utilities and mobile service providers
(the mechanism in PURA 95 for assessing the latter was found
to be unconstitutional) with an annual assessment of 1.25 percent
of taxable telecommunications receipts, as defined in Chapter
151 of the Tax Code, upon each telecommunications utility and
each mobile service provider doing business in Texas. Further,
the bill removes the 10 year limit on deposits to the fund,
and instead places a cap on the fund of $1.5 billion, excluding
interest and loan repayments.
In any year after the fund
reached or exceeded $1.2 billion, excluding interest and loan
repayments, the Comptroller is directed to impose the assessment
during the next year at a rate sufficient to produce the amount
necessary to result in a total deposit not exceeding $1.5 billion.
The
bill would eliminate the existing Telecommunications Utilities
Account and the Commercial Mobile Service Providers Account.
These accounts would be replaced by two new accounts within
fund 345: the Public Schools Account and the Qualifying Entities
Account. Fifty percent of the revenue collected would be deposited
to the credit of the Public Schools Account, and fifty percent
to the credit of the Qualifying Entities Account.
Upon this
bill's effective date, October 1, 1997, existing balances in
the Utilities and Mobile Service Providers accounts would be
transferred to the new accounts.
Methodolgy
The analysis detailed below was based on estimates provided
by the office of the Comptroller of Public Accounts.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Five Year Impact:
Fiscal Year Probable Revenue
Gain/(Loss) from
Telecommunications
Infrastructure
Fund
0345
1998 $41,029,000
1998 49,067,000
2000 57,900,000
2001 67,633,000
2002 79,384,000
Net Impact on General Revenue Related Funds:
The probable fiscal implication to General Revenue related funds
during each of the first five years is estimated as follows:
Fiscal Year Probable Net Postive/(Negative)
General Revenue Related Funds
Funds
1998 $0
1999 0
2000 0
2001 0
2002 0
Similar annual fiscal implications would continue as long as
the provisions of the bill are in effect.
Local school districts may benefit from the provisions of this
bill.
Source: Agencies: 475 Office of the Public Utility Counsel
701 Texas Education Agency - Administration
473 Public Utility Commission of Texas
304 Comptroller of Public Accounts
LBB Staff: JK ,TH ,UP