LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATURE 1st CALLED SESSION - 2005

July 14, 2005

TO:	Honorable Phil King, Chair, House Committee on Regulated Industries
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	SB21 by Fraser (Relating to furthering competition in the communications industry.), As Engrossed

Estimated Two-year Net Impact to General Revenue Related Funds for SB21, As Engrossed: a negative impact of ($2,091,942) through the biennium ending August 31, 2007.

The bill would make no appropriation but could provide the legal basis for an appropriation of funds to implement the provisions of the bill.

General Revenue-Related Funds, Five-Year Impact:

Fiscal Year	Probable Net Positive/(Negative) Impact to General Revenue Related Funds
2006	($1,045,971)
2007	($1,045,971)
2008	($1,045,971)
2009	($1,045,971)
2010	($1,045,971)

All Funds, Five-Year Impact:

Fiscal Year	Probable Savings/(Cost) from GENERAL REVENUE FUND 1	Probable Savings/(Cost) from APPROPRIATED RECEIPTS 666	Probable Revenue Gain/(Loss) from APPROPRIATED RECEIPTS 666
2006	($1,045,971)	($155,912)	$155,912
2007	($1,045,971)	($155,912)	$155,912
2008	($1,045,971)	($155,912)	$155,912
2009	($1,045,971)	($155,912)	$155,912
2010	($1,045,971)	($155,912)	$155,912

Fiscal Year	Change in Number of State Employees from FY 2005
2006	23.5
2007	23.5
2008	23.5
2009	23.5
2010	23.5

Fiscal Analysis

The bill would restructure telecommunications regulation, allow electric utilities to provide broadband over powerlines (BPL), and provide for a statewide cable and video franchise. The bill also requires the Public Utility Commission to evaluate the Universal Service Fund and report to the Legislature.

Methodology

The bill would require funding for 20.5 additional positions related to telecommunications restructuring, allowing broadband over powerlines and to provide for a statewide cable and video franchise, totaling $1,045,971 in General Revenue each fiscal year. The bill would also require funding for 3.0 additional positions related to evaluation and reporting on the Universal Service Fund (USF) totaling $155,912 in Appropriated Receipts from the USF each year.

Local Government Impact

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

473 Public Utility Commission of Texas, 304 Comptroller of Public Accounts

LBB Staff:

JOB, DLBa, SD, SR, MW, RB