LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 26, 2001
  
  
          TO:  Honorable David Sibley, Chair, Senate Committee on
               Business & Commerce
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2345  by Naishtat (Relating to the specialized
               telecommunications assistance program.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend Sections 56.152 and 56.153 of the Utilities Code,
which relate to eligibility for the Specialized Telecommunications
Assistance Program (STAP).  The bill would remove the requirement that an
individual have access to a telephone line in the individual's home or
place of business and remove the $35 application fee currently required.
The bill would also change the length of time a recipient must wait
before he/she is eligible for another voucher from seven years to five
years.

In addition, the bill would add Section 56.156, Promotion of Program, to
allow the Public Utility Commission to promote the program.  Section
55.203 would be amended to add a requirement that a telecommunications
utility publisher must prominently list STAP contact information for the
program.  Finally, the bill would require the Public Utility Commission
to adopt rules to reflect the changes made by the bill and have them
apply to directories published on or after January 1, 2002.

The elimination of the $35 application fee for the program would result
in a minor impact on the Universal Service Fund (USF) rate charged to
customers and have no fiscal impact to the State.  In FY 2000,
approximately 2048 vouchers were issued.  Assuming the same number of
applications, the changes in the bill would result in a loss of 2,048 x
$35 = $71,680 per year to the USF.  The other changes required by the
bill could be accomplished within current agency resources.
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   335   Texas Commission for the Deaf and Hard of
                   Hearing, 473   Public Utility Commission of Texas
LBB Staff:         JK, DB, HD, KF, MB