LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              April 4, 2001
  
  
          TO:  Honorable Jim Solis, Chair, House Committee on Economic
               Development
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2824  by Smithee (Relating to the eligibility of public
               schools and libraries for certain funds.), As Introduced
  
**************************************************************************
*  No significant fiscal implication to the State is anticipated.        *
**************************************************************************
  
The bill would make ineligible for Telecommunications Infrastructure Fund
grants or loans or for reduced telecommunications rates, any school
district that does not install a "technology protection measure"
designed to block or filter visually obscene Internet material.  Public
libraries that do not restrict minors from accessing such information or
do not install a technology protection measure are also made ineligible
for TIF funding.
  
Local Government Impact
  
To the extent that local school districts or public libraries do not
conform with the requirements in the bill, they would not be eligible
for certain grant funds and would therefore experience a loss of
revenue.  It is estimated that it could cost local school districts
$5,000,000 in 2002 and $3,000,000 in subsequent years to install the
appropriate technology protection measure.  If they did not opt to
install such devices, the district would not be eligible for
Telecommunications Infrastructure Fund grants and/or loans.
  
  
Source Agencies:   306   Texas State Library and Archives Commission,
                   701   Texas Education Agency
LBB Staff:         JK, JO, UP