LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
February 3, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 249, As Amended 1st House
Committee on Economic Development By: Sibley
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB249 ( SB
249) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB249-As Amended 1st House
Implementing the provisions of the bill would result in no impact
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 existing balances in the Utilities and
Mobile Service Providers accounts would be transferred to the
new accounts.
This bill would become effective upon enactment
assuming it receives two-thirds majority in both houses. Otherwise,
it would become effective 90 days after adjournment.
The
provisions of the bill apply to assessments that accrue on or
after the effective date.
Methodolgy
The analysis detailed below is 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. Table I is the estimated impact if
the bill takes immediate effect, thereby making it applicable
to assessments accruing on or after June 1, 1997. Table II
is the estimated impact if the bill takes effect September 1,
1997, making it applicable to assessments accruing on or after
October 1, 1997:
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
Fiscal Year Probable Revenue
Gain/(Loss) from
Telecommunications
Infrastructure
Fund
0345
1998
1999 49,067,000
2001 67,633,000
2002 79,384,000
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: 304 Comptroller of Public Accounts
LBB Staff: JK ,TH ,UP