LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
April 4, 1997
TO: Honorable Steven Wolens, Chair IN RE: House Bill No. 2129
Committee on State Affairs By: Carter
House
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on HB2129 ( Relating
to the administration and financing of wireless service providers
of 9-1-1 service.) this office has detemined the following:
Biennial Net Impact to General Revenue Funds by HB2129-As Introduced
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.
The bill would make no appropriation but could provide the legal
basis for an appropriation of funds to implement the provisions
of the bill.
Fiscal Analysis
The bill would standardize the emergency service fee assessed
on wireless service by establishing a single, statewide rate
capped at 35 cents per month per wireless service connection.
The fees would be remitted to the Advisory Commission on State
Emergency Communications (ACSEC) which would then redistribute
the fees to the 911 administrative entities in the state based
on population. The service fees collected would remain outside
the state treasury.
Methodolgy
Currently, emergency service fees are collected by the 911 administrative
entities at the local level. In order to perform the administrative
and accounting responsibilities related to the collection and
distribution of the wireless emergency service fees as mandated
by this bill, ACSEC estimates that one additional FTE would
be needed.
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 Change in Number
Savings/(Cost) of State
from Advisory Employees from
Commission on FY 1997
Emergency
Communication
Account/
GR-Dedicated
5007
1998 ($42,136) 1.0
1998 (40,943) 1.0
2000 (40,943) 1.0
2001 (42,311) 1.0
2002 (42,311) 1.0
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.
The bill caps the emergency service fee at 35 cents per month.
Some of the current 911 administrative entities, such as home
rule cities, currently assess a fee that is higher than the
proposed cap. This bill would reduce the amount of revenue
raised. However, the bill also mandates that service fees be
distributed based on population. According to current statute,
the administrative entity receiving the fee is determined by
the billing address of the wireless service customer. For cities
with larger populations, the change in the distribution method
may result in a net increase in service fee revenues, despite
the lower assessment rate.
Source: Agencies: 477 Advisory Commission on State Emergency Communications
LBB Staff: JK ,JD ,SC