Logan Smith

The Improving Rural Call Quality and Reliability Act of 2017 (S. 96) would require certain providers of voice communication services to register with the Federal Communications Commission. It also would require the agency to issue rules establishing service quality standards for those providers. CBO assumes that S. 96 will be enacted in the first half of fiscal year 2017.

On the basis of an analysis of information from the FCC, CBO estimates that implementing S. 96 would cost $4 million over the 2017-2022 period for the agency to establish and operate the registry of voice communication service providers and to promulgate rules establishing service quality standards. However, the FCC is authorized to collect fees sufficient to offset the costs of its regulatory activities each year. Therefore, CBO estimates that the net cost to implement S. 96 would be negligible, assuming annual appropriation actions consistent the agency’s authorities. Enacting S. 96 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting S. 96 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2028.
S. 96 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform Act (UMRA) and would not affect the budgets of state, local, or tribal governments.

The Improving Rural Call Quality and Reliability Act of 2016 (H.R. 2566) would require certain providers of voice communication services to register with the Federal Communications Commission. It also would require the FCC to issue rules establishing service quality standards for those providers.

Based on an analysis of information from the FCC about the effort needed to create those service standards, CBO estimates that implementing H.R. 2566 would cost $3 million over the 2017-2021 period. However, under current law the FCC is authorized to collect fees sufficient to offset the cost of its regulatory activities each year. Therefore, CBO estimates that the net cost to implement H.R. 2566 would be negligible, assuming annual appropriation actions consistent with the agency’s authorities. Enacting H.R. 2566 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting H.R. 2566 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. H.R. 2566 contains no intergovernmental mandates as defined in the Unfunded Mandates Reform (UMRA) and would not affect the budgets of state, local, or tribal governments.

The FCC Reauthorization Act of 2016 (S 2644) would authorize appropriations totaling $728 million for the operations of the Federal Communication Commission (FCC) for 2017 and 2018. Assuming appropriation of those amounts, CBO estimates that implementing S. 2644 would have a gross cost of $705 million over the 2017-2021 period.

CBO estimates that all appropriations to the FCC would be offset by fees authorized to be collected under current law. Assuming that future appropriation acts allow the FCC to continue to collect such fees, CBO estimates that net discretionary spending under S. 2644 would be reduced by $23 million over the 2017-2021 period. Enacting S. 2644 would affect direct spending; therefore, pay-as-you-go procedures apply. However, CBO estimates that the net effects would be negligible over the 2017-2026 period. Enacting the bill would not affect revenues. CBO estimates that enacting the legislation would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. S. 2644 contains an intergovernmental mandate as defined in the Unfunded Mandates Reform Act (UMRA), but CBO estimates that the mandate would impose no costs on state, local, or tribal governments. S. 2644 would impose private-sector mandates, as defined in UMRA. Based on information from industry sources and information about existing state laws, CBO estimates that the aggregate costs of the mandates would fall below the annual threshold established in UMRA for private-sector mandates ($154 million in 2016, adjusted annually for inflation).