LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session April 5, 2001 TO: Honorable Bob Turner, Chair, House Committee on Public Safety FROM: John Keel, Director, Legislative Budget Board IN RE: HB1471 by Turner, Bob (relating to the emergency highway call box system.), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * HB1471, Committee Report 1st House, Substituted: negative impact * * of $(20,698,234) through the biennium ending August 31, 2003. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** General Revenue-Related Funds, Five-Year Impact: **************************************************** * Fiscal Year Probable Net Positive/(Negative) * * Impact to General Revenue Related * * Funds * * 2002 $(17,929,117) * * 2003 (2,769,117) * * 2004 (2,769,117) * * 2005 (2,769,117) * * 2006 (2,769,117) * **************************************************** All Funds, Five-Year Impact: *************************************************************************** *Fiscal Probable Savings/(Cost) from Change in Number of State * * Year General Revenue Fund Employees from FY 2001 * * 0001 * * 2002 $(17,929,117) 2.0 * * 2003 (2,769,117) 2.0 * * 2004 (2,769,117) 2.0 * * 2005 (2,769,117) 2.0 * * 2006 (2,769,117) 2.0 * *************************************************************************** Technology Impact None. Fiscal Analysis The bill amends the Health and Safety Code to require the Commission on State Emergency Communications (CSEC) to implement a call box program along roads located in a county with a population of 20,000 or less and part of the national system of interstate and defense highways, or roads designated as US highways. The bill requires CSEC to award one or more contracts to implement the system no later than June 1, 2002 and that installation begins by no later than September 1, 2002 in each area of the state with cellular telephone service. The bill authorizes CSEC to use the General Revenue Fund to fund implementation, operation, and maintenance of the call box system, and specifically prohibits the use of telecommunication fees, like the emergency service fee, the wireless service fee and the equalization surcharge on intra-state long distance charges, to fund the call box system. The bill requires CSEC to implement the emergency call box system in accordance with the General Appropriations Act. The bill deletes Section 226.004 of the Transportation Code, which requires the existing program to be funded from public or private entities. The bill requires CSEC to submit a report concerning program activities to the Lieutenant Governor, the Speaker of the House of Representatives, and the Legislative Budget Board by November 1 of each year. The bill provides a sunset provision to make the program expire, unless reauthorized, on September 1, 2011. This bill would take effect September 1, 2001. Methodology Based on information provided by TxDOT, the cost of installing emergency call boxes in counties with a population of 20,000 or less is $17,829,140. Annual operating and maintenance costs are estimated to be $2,673,140. These estimates are based on the following assumptions: *One call box for every two miles of eligible state highway, which translates into 3,789 call boxes with a unit cost of $4,000 per box; *Knockdown rate of 7 percent; *Annual air time per box of $120; *Motorist assistance answering service for 60 calls per box per year, or a total annual call volume of 227,340 at $3 per call; *Vandalism rate of 6 percent; and *Annual maintenance costs of $300 per unit. For purposes of this analysis, it is assumed that all call boxes would be installed in fiscal year 2002. In addition to installation costs, CSEC estimates that two Telecommunications specialists would be required to manage contracts to install, operate and maintain the emergency call box system. Because this bill specifically prohibits the use of telecommunication fees, like those deposited to General Revenue-Dedicated Account No. 5050 and General Revenue-Dedicated Account No. 5007, it is assumed that General Revenue would fund the emergency call box program. Local Government Impact The bill requires local government authorities to support statewide public relations efforts with local media. Support would vary by units of local government depending on the size of the area to be covered by a public relations campaign and what the media campaign developed by CSEC would involve. It should be possible for the campaign to be developed as public service announcements, much like prior CSEC public education campaigns for the Poison Control Hotline, which would mean no costs to local governments. Source Agencies: 477 Commission on State Emergency Communications, 304 Comptroller of Public Accounts, 601 Texas Department of Transportation LBB Staff: JK, JC, ZS