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