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