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H.R. 2566, Improving Rural Call Quality and Reliability Act of 2016 1 (October 12, 2016)

handle is hein.congrec/cbo3250 and id is 1 raw text is: 




                  CONGRESSIONAL BUDGET OFFICE
                             COST ESTIMATE

                                                                  October 12, 2016


                                  H.R. 2566
         Improving Rural Call Quality and Reliability Act of 2016

         As ordered reported by the House Committee on Energy and Commerce
                              on September 21, 2016


The Federal Communications Commission (FCC) is an independent agency that regulates
various aspects of wireline (telephone, for example), wireless, cable, and satellite
communications. H.R. 2566 would require certain providers of voice communication
services to register with the FCC. 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 bill contains private-sector mandates as defined in UMRA. Specifically, the bill would
require all intermediate providers of voice communications services to register with the
FCC and to comply with service quality standards established by the agency. (Intermediate
providers contract with other telecommunication providers to transmit voice calls from one
destination to another.) The bill also would require telecommunications providers that
contract with intermediate providers to use only those providers that are registered with the
FCC. Lastly, if the FCC increases annual fee collections to offset the costs of implementing
its additional regulatory activities, the bill would increase the cost of an existing mandate
on commercial entities required to pay those fees. On the basis of information about current

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