Date Requested: February 26, 2015
Time Requested: 02:03 PM
Agency: WV Network for Educational Telecomputing (WVNET)
CBD Number: Version: Bill Number: Resolution Number:
2319 Introduced SB459
CBD Subject: Corporations


FUND(S):



Sources of Revenue:

Other Fund Water Board bonds

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    This bill provides for the construction of a state-wide, fiber optic broadband infrastructure network, known as broadband middle mile, to be purchased and owned by the state. The bill adds and defines new terms and creates a separate infrastructure fund for broadband middle mile infrastructure projects. The bill provides additional powers to the West Virginia Network (WVNET) and Water Development Authority and creates the West Virginia Broadband Middle Mile Infrastructure Revenue Debt Service Fund. The bill authorizes the issuance of broadband middle mile revenue bonds, provides for contents of trust agreement and trustee for bonds, and specifies remedies available to bondholders, noteholders and trustees. The bill makes broadband middle mile infrastructure revenue bonds lawful investments and provides for purchase, cancellation and refunding of bonds. The bill declares that the bonds are not state debts and are exempt from state taxation.
    According to the Economic Impact Study: West Virginia’s Middle Mile Broadband Network, written by David Bejou, PhD, “The estimated cost of building the network backbone is to be between $78 million to $100 million in initial investment funding. The estimated annual maintenance cost of the 2,600 mile backbone is $2.1 million.”



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 78,000,000 0 78,000,000
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    This bill provides for the construction of a state-wide, fiber optic broadband infrastructure network, known as broadband middle mile, to be purchased and owned by the state. The bill adds and defines new terms and creates a separate infrastructure fund for broadband middle mile infrastructure projects. The bill provides additional powers to the West Virginia Network (WVNET) and Water Development Authority and creates the West Virginia Broadband Middle Mile Infrastructure Revenue Debt Service Fund. The bill authorizes the issuance of broadband middle mile revenue bonds, provides for contents of trust agreement and trustee for bonds, and specifies remedies available to bondholders, noteholders and trustees. The bill makes broadband middle mile infrastructure revenue bonds lawful investments and provides for purchase, cancellation and refunding of bonds. The bill declares that the bonds are not state debts and are exempt from state taxation.
    According to the Economic Impact Study: West Virginia’s Middle Mile Broadband Network, written by David Bejou, PhD, “The estimated cost of building the network backbone is to be between $78 million to $100 million in initial investment funding. The estimated annual maintenance cost of the 2,600 mile backbone is $2.1 million.”



Memorandum


    



    Person submitting Fiscal Note: Ed McGee
    Email Address: emagee@hepc.wvnet.edu