Stephen Rabent

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 Securing Access to Networks in Disasters Act of 2016 (S 2997) would direct the Federal Communications Commission to study ways to enhance access to telecommunications services during emergencies when mobile service is unavailable. The bill also would redefine the term “essential service provider” to explicitly include certain telecommunication mediums, such as Internet and cable services, in a list of entities that provide essential services. (Providers of essential services are generally provided access to disaster sites in order to restore and repair services during emergency situations.) Finally, S. 2997 would direct the General Accountability Office (GAO) to study ways the federal government could increase the resiliency of essential communication services during emergencies.

On the basis of information provided by the FCC, CBO estimates that carrying out the analysis required by the bill would increase the agency’s administrative costs by less than $500,000; such spending would be subject to the availability of appropriated funds. 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 those provisions would be negligible, assuming appropriation actions consistent with the agency’s authorities. Based on the costs of similar reports conducted by GAO, CBO estimates that the increased costs to GAO to conduct the required study would be insignificant. Enacting S. 2997 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting S. 2997 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027.

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).

S. 2607 would direct the Department of Commerce (DOC) to convene a working group of various federal agency representatives and a steering committee of private stakeholders to produce reports and recommendations to the Congress to improve intragovernmental coordination and to encourage the development of the Internet of things. (The Internet of things refers to the growing number of devices that connect to the Internet and interact with one another.) It also would direct the Federal Communications Commission to prepare a report assessing the need for spectrum to support such development.

On the basis of information from DOC and the Federal Trade Commission, CBO estimates that implementing S. 2607 would require about a dozen employees and would cost $3 million to convene the working group and to develop the reports required under the bill. Those costs would be spread among the federal agencies that would be a part of the working group and such spending would be subject to the availability of appropriated funds. Enacting S. 2607 would not affect direct spending or revenues; therefore, pay-as-you-go procedures do not apply. CBO estimates that enacting S. 2607 would not increase net direct spending or on-budget deficits in any of the four consecutive 10-year periods beginning in 2027. S. 2607 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act and would not affect the budgets of state, local, or tribal governments.