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