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1 H.R. 2409, a Bill to Allow Servicemembers to Terminate Their Cable, Satellite Television, and Internet Access Service Contracts While Deployed 1 (July 19, 2018)

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                   CONGRESSIONAL BUDGET OFFICE

C                             COST ESTIMATE
                                                                     July 19, 2018


                                  H.R.   2409
      A  bill to allow servicemembers   to terminate  their cable, satellite
      television, and  Internet  access service contracts  while deployed

           As ordered reported by the House Committee on Veterans' Affairs
                                 on July 12, 2018


 Under current law, service members may terminate cellular and landline telephone
 service contracts without penalty if the service member receives orders to move to a
 location in which the telephone service provider does not provide service. H.R. 2409
 would add contracts for Internet and multichannel video programming services to the list
 of covered service contracts. The bill would require service members to return any
 provider-owned equipment to the service provider within 10 days of the disconnection of
 service. CBO estimates that H.R. 2409 would have no effect on the federal budget.

 Enacting H.R. 2409 would not affect direct spending or revenues; therefore, pay-as-you-
 go procedures do not apply.

 CBO  estimates that enacting H.R. 2409 would not increase net direct spending or on-
 budget deficits in any of the four consecutive 10-year periods beginning in 2029.

 By prohibiting multichannel video programming and Internet providers from imposing
 early termination or reconnection fees, H.R. 2409 would impose an intergovernmental
 and private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA).
 Because some municipal governments provide Internet access, the bill would impose an
 intergovernmental mandate in addition to the private-sector mandate on private providers
 of those services. CBO estimates that the costs of the mandate would not exceed the
 thresholds established in UMRA for intergovernmental or private-sector mandates
 ($80 million and $160 million in 2018, respectively, adjusted annually for inflation).

 The CBO  staff contacts for this estimate are Logan Smith (for federal costs) and Andrew
 Laughlin (for mandates). The estimate was reviewed by Leo Lex, Deputy Assistant
 Director for Budget Analysis.

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