COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         4260-03

Bill No.:          Perfected HCS for HB 1779

Subject:           Public Service Commission: Utilities; Telecommunications

Type:              Original

Date:               March 5, 2008

Bill Summary:           Changes provisions relating to Voice Over Internet Protocol Service.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).

☐ Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Economic Development - Public Service Commission and Office of Public Counsel state there would be no fiscal impact to their respective agencies resulting from this proposed legislation.

Officials from the Office of Secretary of State (SOS) assume many bills considered by the General Assembly include provisions allowing or requiring agencies to submit rules and regulations to implement the act. The SOS is provided with core funding to handle a certain amount of normal activity resulting from each year’s legislative session. The fiscal impact to the SOS office for Administrative Rules for this proposal is less than $2,500. The SOS recognizes this is a small amount and does not expect additional funding would be required to meet these costs. However, SOS also recognizes that many such bills may be passed in a given year and that collectively the costs may be in excess of what the SOS can sustain with their core budget. Any additional required funding would be handled through the budget process.

Officials from the Public Service Commission stated the impact on local city governments will probably be positive given the proposed language in §392.550.3(5)(c) and (d) requiring Voice Over Internet Providers to help pay for 911 plus pay applicable license and taxes.

FISCAL IMPACT - Small Business

Incumbent local exchange companies may see an increase in revenue due to the receipt of access charge revenue from Voice Over Internet providers as mandated by this proposal.

FISCAL DESCRIPTION

This proposal changes the laws regarding telecommunications services.

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 Economic Development

            Public Service Commission

            Office of Public Counsel

Office of Secretary of State

            Administrative Rules Division

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                March 5, 2008