COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION



FISCAL NOTE



L.R. No.: 3779-01

Bill No.: SB 886

Subject: Political Subdivisions: Telecommunication Utilities

Type: Original

Date: February 4, 2002




FISCAL SUMMARY



ESTIMATED NET EFFECT ON STATE FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

State Funds

$0 $0 $0



ESTIMATED NET EFFECT ON FEDERAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Total Estimated

Net Effect on All

Federal Funds

$0 $0 $0



ESTIMATED NET EFFECT ON LOCAL FUNDS
FUND AFFECTED FY 2003 FY 2004 FY 2005
Local Government

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 3 pages.



FISCAL ANALYSIS



ASSUMPTION



Officials of the Department of Economic Development - Public Service Commission and the Department of Economic Development - Office of the Public Counsel stated that the proposal would not significantly affect their agencies.



Officials of the City of Kansas City stated that while the proposal would not affect any sources of city revenue it would, by making permanent the prohibition on city-provided telecommunication services, eliminate a possible future source of revenue.



FISCAL IMPACT - State Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Local Government FY 2003

(10 Mo.)

FY 2004 FY 2005
$0 $0 $0



FISCAL IMPACT - Small Business



Small telecommunications businesses could be affected by this proposal.



DESCRIPTION



This proposal would removes the August 28, 2002, sunset date for the prohibition against political subdivisions providing or selling telecommunication services that require a certificate of service authority from the Public Service Commission.



Municipal utilities could offer telecommunication facilities or services within their service boundaries on a nondiscriminatory, competitively-neutral basis at a price that covers costs, including imputed costs that a subdivision would incur if it were a for-profit business.



This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space. This legislation would not affect Total State Revenue.



SOURCES OF INFORMATION



Department of Economic Development - Public Service Commission

SOURCES OF INFORMATION (continued)



Department of Economic Development - Office of the Public Counsel

Kansas City











Mickey Wilson, CPA

Acting Director

February 4, 2002