LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 18, 1997 TO: Honorable Clyde Alexander, Chair IN RE: House Bill No. 1437, Committee Report 1st House, Substituted Committee on Transportation By: Carter House Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on HB1437 ( Relating to the creation of an emergency telephone call box system for highway users in this state.) this office has detemined the following: Biennial Net Impact to General Revenue Funds by HB1437-Committee Report 1st House, Substituted Implementing the provisions of the bill would result in a net impact of $0 to General Revenue Related Funds through the biennium ending August 31, 1999. Fiscal Analysis The bill would require the department to establish an emergency call box program along the state highway system. Farm-to-Market and Ranch-to-Market roads would be excluded. The department would be required to implement the system by June 1, 1998. The department has estimated that installation of approximately 11,000 call boxes would be accomplished over a ten year period. The provisions of the bill would be subject to the Texas Sunset Act and unless continued would be abolished on September 1, 2007. The effective date of the bill would be September 1, 1997. Methodolgy The department has estimated that installation of approximately 11,000 call boxes would be accomplished over a ten year period. The bill requires a fee to be paid to the Comptroller by each insurer by March 1 of each year in an amount of one dollar multiplied by the total number of motor vehicle years of insurance for insurance policies delivered, issued for delivery, or renewed by the insurer during the proceeding calendar year. The fee amounts for the March 1, 1998 would only include applicable policies issued after the effective date of the act. The fee would be deposited into a separate account in the State Highway Fund for the purpose of designing, implementing, operating, and maintaining an emergency telephone call box system. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Five Year Impact: Fiscal Year Probable Probable Revenue Savings/(Cost) Gain/(Loss) from from State State Highway Fund Highway Fund 0006 0006 1998 ($3,144,900) $3,865,545 1998 (6,115,800) 11,482,500 2000 (6,857,200) 11,598,000 2001 (7,598,600) 11,713,500 2002 (8,340,000) 11,808,000 Net Impact on General Revenue Related Funds: The probable fiscal implication to General Revenue related funds during each of the first five years is estimated as follows: Fiscal Year Probable Net Postive/(Negative) General Revenue Related Funds Funds 1998 $0 1999 0 2000 0 2001 0 2002 0 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. No fiscal implication to units of local government is anticipated. Source: Agencies: LBB Staff: JK ,PE ,ML