LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 76th Regular Session
  
                              March 21, 1999
  
  
          TO:  Honorable Steven Wolens, Chair, House Committee on State
               Affairs
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB1777 by Wolens (relating to compensation a municipality
               may receive from a provider of communications services in
               the municipality), As Introduced
  
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*  No significant fiscal implication to the State is anticipated.        *
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Local Government Impact
  
The bill would not affect the authority of a municipality regarding
compensation for use of rights-of-way and would allow a municipality to
obtain revenues from communication providers based on gross receipts.
Franchise agreements in effect before September 1, 1999 would not be
affected.  However, since the bill would limit future franchise fees to
a percentage of a communication provider's gross receipts, a
municipality could be limited in its ability to increase its revenues
from this source.
  
  
Source Agencies:   
LBB Staff:         JK, BB, TL, CB