LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION May 6, 2011 TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB773 by Zaffirini (Relating to telecommunications service discounts for educational institutions, libraries, hospitals, and telemedicine centers.), As Engrossed There would be an indeterminate savings to the state under the provisions of this bill because it would continue the prohibition on rate increases for private network services, the provision of discounted rates for private network services, and other benefits currently provided to educational institutions, libraries, hospitals and telemedicine centers under Chapters 58 and 59 of the Utilities Code. The bill would amend the Utilities Code to continue the prohibition on rate increases for private network services, the provision of discounted rates for private network services, and other benefits currently provided to educational institutions, libraries, hospitals and telemedicine centers under Chapters 58 and 59 of the Utilities Code for another 4 years through January 1, 2016. The bill would also amend the maximum rate for private network services and clarify the definition of "health center" and add nonprofit health centers to the list of entities to which an electing company must provide private network services. The exact savings due to implementing the provisions of the bill cannot be estimated because the fiscal impact would depend on the actions of telecommunications service providers in setting rates. Since the potential increased costs would vary by entity if the date on which the benefits provided in Chapters 58 and 59 are set to expire were not changed by the bill, there is an indeterminate savings to the state. Information reported by The University of Texas anticipates cost savings of $20.3 million dollars annually in 2012-2015 and a savings of $6.8 million in 2016 from implementation of the bill. Local Government Impact It is anticipated that there would be an indeterminate savings to local governmental entities that are currently benefitting from provisions in Chapter 58 and 59. However, the amount of savings due to implementing the provisions of the bill cannot be estimated because the fiscal impact would depend on the actions of telecommunications service providers in setting rates. Since the potential increased costs would vary by entity if the date on which the benefits provided in Chapters 58 and 59 are set to expire were not changed by the bill, there is an indeterminate savings to local entities. Source Agencies:720 The University of Texas System Administration, 473 Public Utility Commission of Texas LBB Staff: JOB, KJG, MW, RAN, AG, TP
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 82ND LEGISLATIVE REGULAR SESSION
May 6, 2011
TO: Honorable Byron Cook, Chair, House Committee on State Affairs FROM: John S O'Brien, Director, Legislative Budget Board IN RE:SB773 by Zaffirini (Relating to telecommunications service discounts for educational institutions, libraries, hospitals, and telemedicine centers.), As Engrossed
TO: Honorable Byron Cook, Chair, House Committee on State Affairs
FROM: John S O'Brien, Director, Legislative Budget Board
IN RE: SB773 by Zaffirini (Relating to telecommunications service discounts for educational institutions, libraries, hospitals, and telemedicine centers.), As Engrossed
Honorable Byron Cook, Chair, House Committee on State Affairs
Honorable Byron Cook, Chair, House Committee on State Affairs
John S O'Brien, Director, Legislative Budget Board
John S O'Brien, Director, Legislative Budget Board
SB773 by Zaffirini (Relating to telecommunications service discounts for educational institutions, libraries, hospitals, and telemedicine centers.), As Engrossed
SB773 by Zaffirini (Relating to telecommunications service discounts for educational institutions, libraries, hospitals, and telemedicine centers.), As Engrossed
There would be an indeterminate savings to the state under the provisions of this bill because it would continue the prohibition on rate increases for private network services, the provision of discounted rates for private network services, and other benefits currently provided to educational institutions, libraries, hospitals and telemedicine centers under Chapters 58 and 59 of the Utilities Code.
There would be an indeterminate savings to the state under the provisions of this bill because it would continue the prohibition on rate increases for private network services, the provision of discounted rates for private network services, and other benefits currently provided to educational institutions, libraries, hospitals and telemedicine centers under Chapters 58 and 59 of the Utilities Code.
The bill would amend the Utilities Code to continue the prohibition on rate increases for private network services, the provision of discounted rates for private network services, and other benefits currently provided to educational institutions, libraries, hospitals and telemedicine centers under Chapters 58 and 59 of the Utilities Code for another 4 years through January 1, 2016. The bill would also amend the maximum rate for private network services and clarify the definition of "health center" and add nonprofit health centers to the list of entities to which an electing company must provide private network services. The exact savings due to implementing the provisions of the bill cannot be estimated because the fiscal impact would depend on the actions of telecommunications service providers in setting rates. Since the potential increased costs would vary by entity if the date on which the benefits provided in Chapters 58 and 59 are set to expire were not changed by the bill, there is an indeterminate savings to the state. Information reported by The University of Texas anticipates cost savings of $20.3 million dollars annually in 2012-2015 and a savings of $6.8 million in 2016 from implementation of the bill.
Local Government Impact
It is anticipated that there would be an indeterminate savings to local governmental entities that are currently benefitting from provisions in Chapter 58 and 59. However, the amount of savings due to implementing the provisions of the bill cannot be estimated because the fiscal impact would depend on the actions of telecommunications service providers in setting rates. Since the potential increased costs would vary by entity if the date on which the benefits provided in Chapters 58 and 59 are set to expire were not changed by the bill, there is an indeterminate savings to local entities.
Source Agencies: 720 The University of Texas System Administration, 473 Public Utility Commission of Texas
720 The University of Texas System Administration, 473 Public Utility Commission of Texas
LBB Staff: JOB, KJG, MW, RAN, AG, TP
JOB, KJG, MW, RAN, AG, TP