LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 15, 1997 TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 667 Committee on Economic Development By: Barrientos Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB667 ( Relating to the creation and administration of a program to assist individuals who are deaf or hard of hearing or who have an impairment of speech to purchase specialized telecommunications) this office has detemined the following: Biennial Net Impact to General Revenue Funds by SB667-As Introduced 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. The bill would amend the Public Utility Regulatory Act (PURA) to require the Texas Commission for the Deaf and Hard of Hearing (TCDHH) and the Public Utility Commission to establish a program to provide financial assistance for individual purchase of specialized equipment to provide telephone network access for individuals who are deaf, hearing impaired, or speech impaired. Fiscal Analysis The fiscal implications of the bill include the addition of (6.7) FTEs for the Public Utility Commission (PUC), (7) for the Commission for the Deaf and Hard of Hearing (TCDHH). Phone lines and office space would be required for TCDHH to support the additional staff. Methodolgy Fiscal implications are based on the following assumptions: The program would be based on a voucher concept. The Commission for the Deaf and Hard of Hearing would determine a reasonable price for a basic tele-typewriter and issue vouchers with that face value amount. Eligible individuals would purchase the vouchers for $35.00 from the Commission for the Deaf and Hard of Hearing and exchange them for a new specialized device. The money paid by individuals to the Commission for the Deaf and Hard of Hearing for the vouchers would be deposited to the Texas Universal Service Fund (USF) held outside of the State Treasury. The USF would also fund costs incurred by the Commission for the Deaf and Hard of Hearing, Public Utility Commission, and the Relay Texas Advisory Committee for administration and oversight of the voucher program. The costs for the Commission for the Deaf and Hard of Hearing would be $481,531 for fiscal year 1998, and $394,531 per year, each year after for a total of $2,439,186 for fiscal years 1998-02. The Public Utility Commission impact would be $162,070 for fiscal year 1998, $101,946 in 1999, and dropping to $34,012 in the year 2000. In fiscal year 2001 increases to $64,012, but drops back down to 34,012 in 2002. All costs would be paid out of the Universal Service Fund. According to the Comptroller of Public Accounts, the Public Utility Regulatory Act requires the local exchange companies to establish the Universal Service Fund. This fund is maintained outside the State Treasury. Assuming it is within the statewide accounting guidelines for the TCDHH to deposit the money it would collect from the voucher fee into a fund outside the State Treasury, and assuming it is within guidelines for the PUC to pay distributors from a fund outside the State Treasury, this bill would have no effect on the state's finances, other than marginally higher phone bills for state and local government. 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 Change in Number Savings/(Cost) of State from Other - Employees from Texas Universal FY 1997 Service Fund OTHER-OTH 1998 ($644,601) 9.7 1998 (496,477) 11.3 2000 (424,543) 10.1 2001 (454,543) 10.9 2002 (424,543) 10.9 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 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No significant fiscal implication to units of local government is anticipated. Source: Agencies: 475 Office of the Public Utility Counsel LBB Staff: JK ,TH ,ER