LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 18, 1997
TO: Honorable David Sibley, Chair IN RE: Senate Bill No. 667, Committee Report 1st House, Substituted
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 devices for
telephone service access.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by SB667-Committee Report 1st House, Substituted
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. The bill would require that a utility collect
a surcharge only if it has been added to a bill within a twelve
month period prior to deposit into 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:
LBB Staff: JK ,TH ,ER