TO: | Honorable Phil King, Chair, House Committee on Regulated Industries |
FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
IN RE: | HB1581 by Driver (Relating to the imposition of emergency service fees and surcharges on certain telecommunications connections. ), Committee Report 1st House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2006 | $0 |
2007 | $0 |
2008 | $0 |
2009 | $0 |
2010 | $0 |
Fiscal Year | Probable Revenue (Loss) from 911 SERVICE FEES 5050 |
---|---|
2006 | ($2,208,460) |
2007 | ($2,266,075) |
2008 | $0 |
2009 | $0 |
2010 | $0 |
According to the Comptroller of Public Accounts’ Biennial Revenue Estimate, Emergency Service Fee revenue is estimated at $46,527,000 for fiscal year 2006 and $47,737,000 for fiscal year 2007. The Commission on State Emergency Communications estimates that wireless connections account for 47.5 percent of this revenue. Wireless service providers do not report prepaid wireless service fee remittance separately to the Comptroller of Public Accounts. It is estimated that prepaid wireless services are 8 to 12 percent of the wireless market. This analysis assumes an average of 10 percent of the revenue from wireless connections is attributable to prepaid wireless sources. Therefore, a $4,474,535 loss to Account 5050 is estimated for the 2006-07 biennium.
The bill provides that the exemption of prepaid wireless services from the fee expire September 1, 2007. Therefore, no loss to Account 5050 is anticipated after fiscal year 2007.
Source Agencies: | 304 Comptroller of Public Accounts, 477 Commission on State Emergency Communications
|
LBB Staff: | JOB, MS, KJG, JRO, SMi
|