LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
May 12, 1999
TO: Honorable David Sibley, Chair, Senate Committee on
Economic Development
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1983 by Bosse (Relating to the functions of the
Advisory Commission on State Emergency Communications and
emergency communication districts and to the
continuation of the Advisory Commission on State
Emergency Communications ), Committee Report 2nd House,
Substituted
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1983, Committee Report 2nd House, Substituted: positive impact *
* of $0 through the biennium ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
**************************************************************************
This bill would continue the Advisory Commission on State Emergency
Communications, create a new dedicated account in the General Revenue
Fund, and result in an annual revenue gain of more than $173,000 in the
General Revenue-Dedicated Account No. 5007, Advisory Commission on
Emergency Communications.
General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
***********************************************************************
*Fiscal Probable Probable Probable Probable Change in *
* Year Savings/ Revenue Savings/ Revenue Number of *
* (Cost) from Gain/(Loss) (Cost) from Gain/(Loss) State *
* Advisory from 9-1-1 from 9-1-1 Employees *
* Commission Advisory Services Services from FY 1999 *
* on Commission Fee Account Fee Account *
* Emergency on - GR - GR *
* Communicat- Emergency Dedicated Dedicated *
* ion Communicat- *
* Account/ ion *
* GR- Account/ *
* Dedicated GR- *
* 5007 Dedicated *
* 5007 *
* 2000 $(73,022) $1,535,000 $29,830,000 3.0 *
* $(29,830, *
* 000) *
* 2001 (68,022) 173,000 28,795,000 3.0 *
* (28,795,000) *
* 2002 (68,022) 179,000 29,373,000 3.0 *
* (29,373,000) *
* 2003 (68,022) 185,000 29,985,000 3.0 *
* (29,985,000) *
* 2004 (68,022) 191,000 30,635,000 3.0 *
* (30,635,000) *
***********************************************************************
Technology Impact
Microcomputer and related equipment and software for the additional
employees the Advisory Commission on State Emergency Communications
estimates will be needed to implement the bill.
Fiscal Analysis
This bill continues the Advisory Commission on State Emergency
Communications, reduces the size of the Commission and: requires the
Commission to contract with the Councils of Government (COG) for 9-1-1
services; aligns the 9-1-1 regional planning process with the state's
strategic planning and budgeting process; limits COG administrative
expenses for the 9-1-1 program to 10%; requires the COGs to report on the
progress of 9-1-1 implementation in their service areas, allows 9-1-1
entities in mid-size counties to withdraw from the statewide system, and
requires the Commission to implement Phase I of wireless 9-1-1
enhancements for 75% of the population served by the statewide system
within one year of the effective date of the bill.
The bill makes the following changes to the state funding structure for
9-1-1 services:
* reduces the amount of time telephone providers may retain the wireline
emergency service fee and the 9-1-1 and poison control surcharge from 60
to 30 days;
* transfers responsibility for collection, assessment of late payment
penalties, and auditing of telephone providers from the Advisory
Commission to the Office of the Comptroller;
* reduces the administrative fee retained by the telephone providers from
2 to 1 percent;
* requires that the emergency service fees for wireline and wireless
calls be remitted to the State Treasury, instead of the COGs; and,
* establishes a dedicated account in the General Revenue fund to receive
emergency service fees and requires that this account only be used to
fund 9-1-1 service.
It is anticipated that three additional employees will be required to
implement a formal contracting and contract monitoring process with the
COGs and other provisions of the bill. Annual cost savings due to the
transfer of telephone provider audits to the Office of the Comptroller
are $58,500.
All revenue in the new general revenue dedicated account for 9-1-1
service fees would be disbursed to the COGs through the 9-1-1 service
contracts. There would be a one-time revenue gain in the existing
general revenue dedicated account for the Advisory Commission of $1.5
million due to the reduction in the administrative fee and the
remittance period. A similar one-time revenue gain would occur in the
new account for 9-1-1 service fees. Annual revenue gains to the general
revenue dedicated account no. 5007 are due to the reduction in the
administrative fee.
Methodology
These cost and revenue projections are based on information provided by
the Advisory Commission, the Sunset Advisory Commission, and from
amounts included in the Comptroller's Biennial Revenue Estimate. Since
a reliable estimate of the number and amount of late payments is not
available, no revenue gains from late payment penalties are included in
this fiscal impact statement.
Local Government Impact
No significant fiscal implication to units of local government is
anticipated. Councils of Government will continue to receive emergency
service fees, and if needed, surcharge demand revenue to fund 9-1-1
services.
Source Agencies: 477 Advisory Commission on State Emergency
Communications, 116 Sunset Advisory Commission, 304
Comptroller of Public Accounts
LBB Staff: JK, TH, MD, PH, ZS