LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 75th Regular Session April 2, 1997 TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 1133 Committee on State Affairs By: Sibley Senate Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on SB1133 ( 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 SB1133-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. Fiscal Analysis The bill would require the Department of Transportation (TxDot) to establish a system of telephone emergency call boxes along highways in the state that are numbered U.S. highways, part of a national system of interstate and defense highways, or numbered state highways (approximately 31,600 centerline miles). The bill would require that, when fully implemented, the distance between two call boxes would be no more than two miles. The department would be required to award one or more contracts to implement the system by June 1, 1998, require that installation of the system begin not later than September 1, 1998, and implement the system in each area of the state that has cellular telephone coverage not later than May 1, 2003. Methodolgy The bill requires the department to collect a fee of $1 in addition to the existing registration fees for each vehicle registered on or after September 1, 1997. 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. TxDot estimates that, within the estimated revenues available, they would install approximately 15,400 call boxes across the state. The department assumes a 10 year lease option with the total cost per system at $4,080 at the end of the 10 years. Initial cost is estimated to be $2,800 per call box. TxDot has estimated the cost of implementation and operation of the system for a six year period from fiscal year 1997 through fiscal year 2002 to be almost $62.0 million with revenues for the same period to be $76.6 million. The probable fiscal implications of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Six Year Impact: Fiscal Year Probable Probable Revenue Savings/(Cost) Gain/(Loss) from from State State Highway Fund Highway Fund 0006 0006 1997 ($55,727) $0 1997 (1,821,084) 15,009,000 1999 (9,981,013) 15,159,000 2000 (14,476,258) 15,310,000 2001 (17,827,854) 15,464,000 2002 (17,827,854) 15,618,000 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 1997 $0 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 significant fiscal implication to units of local government is anticipated. Source: Agencies: 477 Advisory Commission on State Emergency Communications 501 Department of Health 405 Department of Public Safety 601 Department of Transportation LBB Staff: JK ,JD ,ML