Honorable Dade Phelan, Chair, House Committee on State Affairs
FROM:
John McGeady, Assistant Director Sarah Keyton, Assistant Director Legislative Budget Board
IN RE:
HB669 by King, Ken (Relating to eligibility of certain local exchange companies for support from the universal service fund for the provision of broadband service.), As Introduced
No significant fiscal implication to the State is anticipated.
The Public Utility Commission (PUC) estimates that implementing the provisions of the bill would require two additional full-time equivalents: an Engineer VI, at $95,000, to aid in the establishment of standards for networks built or maintained, and a Financial Analyst III, at $75,000, to oversee the financial aspects of the program. Training costs for these employees would be $2,000 per year. Therefore, the total personnel cost associated with implementing the provisions of this bill would be $172,000.
The associated costs would be funded by the Texas Universal Service Fund (TUSF), a fund held outside the treasury. Therefore, the bill would have no significant fiscal impact to the state. The PUC is not able to determine the cost to the TUSF to finance the program because there are too many variables to make that prospective calculation at this time.
One item of note: broadband providers do not pay into the TUSF under current law and the changes to law made by the bill do not require those providers to pay into the fund upon the bill's enactment.
Local Government Impact
No fiscal implication to units of local government is anticipated.
Source Agencies:
304 Comptroller of Public Accounts, 473 Public Utility Commission of Texas