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:  HB1662  by Alexander (relating to the automatic location
               identification system along state highways.), Committee
               Report 1st House, Substituted
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1662, Committee Report 1st House, Substituted:  negative impact     *
*  of $(80,114,244) 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                        $(37,272,397)  *
          *       2003                         (42,841,847)  *
          *       2004                         (48,415,297)  *
          *       2005                         (53,988,747)  *
          *       2006                         (59,562,197)  *
          ****************************************************
  
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                     $(37,272,397)                             2.0 *
*  2003                      (42,841,847)                             2.0 *
*  2004                      (48,415,297)                             2.0 *
*  2005                      (53,988,747)                             2.0 *
*  2006                      (59,562,197)                             2.0 *
***************************************************************************
  
Technology Impact
  
ALI call box system would provide automatic location identification for
9-1-1 dispatchers for all callers using the ALI call box systems to
report emergencies.
  
  
Fiscal Analysis
  
The bill amends the Health and Safety Code to authorize the Commission on
State Emergency Communications (CSEC) to implement an automatic location
identification (ALI) telephone call box system along roads that are part
of the state highway system.  If CSEC implements the system, the bill
requires the system to begin along rural interstate highways, including
rest stops and roadside parks.  Call boxes could be no more than two
miles apart, except where 24-hour communication services exist or roadway
conditions prohibit installation of a call box.  If  CSEC chooses to
implement the system, the agency must award one or more contracts to
implement the system by no later than June 1, 2002 and installation of
the system must begin by no later than September 1, 2002.  The bill
authorizes CSEC to use the General Revenue Fund to fund implementation,
operation, and maintenance of the ALI 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 ALI call box system. The
bill requires CSEC to implement the ALI 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.  If CSEC implements the system, CSEC would be required 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.

This bill would take effect September 1, 2001.
  
  
Methodology
  
For purposes of analysis, it is assumed that an ALI call box will be
installed for every two miles of state highway.  This results in an
installation cost over a five year period of $241.6 million, and that
annual maintenance and operating costs for the system once installed is
$27.9 million.  The following assumptions were used to estimate costs:

*39,500 call boxes at a unit cost of $4,000 per box;
*Knockdown rate of 7 percent;
*Vandalism rate of 6 percent;
*Annual air time per box is $120 per unit;
*Motorist assistance call-answering to minimize impact on public safety
answering points of 60 calls per box per year; and
*Annual maintenance costs of $300 per year per box.

It is assumed that if CSEC implements the ALI call box system, the agency
will require two additional positions to oversee and manage contracts
for installation, operations and maintenance of the ALI call box system.

  
  
Local Government Impact
  
No significant fiscal implication to units of local government is
anticipated.
  
  
Source Agencies:   477   Commission on State Emergency Communications,
                   304   Comptroller of Public Accounts, 601   Texas
                   Department of Transportation
LBB Staff:         JK, JC, ZS