COMMITTEE ON LEGISLATIVE RESEARCH OVERSIGHT DIVISION FISCAL NOTE L.R. No.:4052H.01T Bill No.:Truly Agreed To and Finally Passed HB 2057 Subject:Telecommunications; Utilities Type:Original Date:May 28, 2024Bill Summary:This proposal modifies provisions relating to video service providers. FISCAL SUMMARY ESTIMATED NET EFFECT ON GENERAL REVENUE FUNDFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on General Revenue $0$0$0 ESTIMATED NET EFFECT ON OTHER STATE FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on Other State Funds $0$0$0 Numbers within parentheses: () indicate costs or losses. L.R. No. 4052H.01T Bill No. Truly Agreed To and Finally Passed HB 2057 Page 2 of May 28, 2024 KC:LR:OD ESTIMATED NET EFFECT ON FEDERAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on All Federal Funds $0$0$0 ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)FUND AFFECTEDFY 2025FY 2026FY 2027Total Estimated Net Effect on FTE 000 ☐ Estimated Net Effect (expenditures or reduced revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ☐ Estimated Net Effect (savings or increased revenues) expected to exceed $250,000 in any of the three fiscal years after implementation of the act or at full implementation of the act. ESTIMATED NET EFFECT ON LOCAL FUNDSFUND AFFECTEDFY 2025FY 2026FY 2027Local Government$0 or (Unknown) to Unknown $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown L.R. No. 4052H.01T Bill No. Truly Agreed To and Finally Passed HB 2057 Page 3 of May 28, 2024 KC:LR:OD FISCAL ANALYSIS ASSUMPTION Officials from Kansas City assume this legislation modifies the definition of video service provider to exclude streaming devices. Limiting the definition might have a negative fiscal impact if the City were allowed to include streaming in with video service. In response to a similar proposal from 2022 (SB 1232), officials from the City of Springfield anticipated a possible negative fiscal impact of an indeterminate amount from this bill if a court case in pending litigation involving another city determines that streaming services are obligated to pay video service licensing fees, since this bill would revise the definition of "video service" to exclude businesses offering streaming content. Oversight assumes this proposal may create a fiscal impact to local political subdivisions that collect the franchise entity fee in Section 67.2689, as that fee utilizes the “video service” definition, which is being amended by this bill. Oversight will reflect a $0 to potential unknown revenue and/or potential unknown loss to local political subdivisions. Officials from the Department of Commerce and Insurance assume the proposal will have no fiscal impact on their organization. Oversight does not have any information to the contrary. Therefore, Oversight will reflect a zero impact in the fiscal note. Oversight only reflects the responses received from state agencies and political subdivisions; however, other cities were requested to respond to this proposed legislation but did not. A listing of political subdivisions included in the Missouri Legislative Information System (MOLIS) database is available upon request. FISCAL IMPACT – State GovernmentFY 2025 (10 Mo.) FY 2026FY 2027$0$0$0 L.R. No. 4052H.01T Bill No. Truly Agreed To and Finally Passed HB 2057 Page 4 of May 28, 2024 KC:LR:OD FISCAL IMPACT – Local GovernmentFY 2025 (10 Mo.) FY 2026FY 2027LOCAL POLITICAL SUBDIVISIONS Revenue/Loss – potential Video Service Provider Fees change from definition change to “video service” §67.2677 p.3 $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown ESTIMATED NET EFFECT TO LOCAL POLITICAL SUBDIVISIONS $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown $0 or (Unknown) to Unknown FISCAL IMPACT – Small Business No direct fiscal impact to small video service businesses would be expected as a result of this proposal. FISCAL DESCRIPTION This of bill modifies the definition of “Video Service” for provisions of law relating to video service providers to now include streaming content. This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. SOURCES OF INFORMATION Department of Commerce and Insurance Kansas City City of Springfield Julie MorffRoss StropeDirectorAssistant DirectorMay 28, 2024May 28, 2024