LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
                                Revision 1
  
                              March 12, 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.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB1662, As Introduced:  positive impact of $0 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                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year   Probable Savings/(Cost) from State   *
         *                          Highway Fund              *
         *                              0006                  *
         *      2002                            $(37,173,450) *
         *      2003                             (42,746,900) *
         *      2004                             (48,320,350) *
         *      2005                             (53,893,800) *
         *      2006                             (59,467,250) *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend the Transportation Code to require the Texas
Department of Transportation (TxDOT) to implement an automatic location
identification (ID) call box system along roads that are part of the
state highway system.  The bill would require that the distance between
two ID call boxes could not exceed two miles, except under certain
conditions.  The bill would require TxDOT to award one or more contracts
to implement the system no later than June 1, 2002 and that installation
would have to begin no later than September 1, 2002.  The bill would also
allow TxDOT to enter into one or more lease-purchase agreements and to
request technical assistance from the Commission on State Emergency
Communications regarding the proper routing of calls made from the call
boxes and any emergency response to those calls.  The bill would delete
the statutory language in the Transportation Code requiring the existing
program to be funded from public or private entities and would require
TxDOT to use funds deposited to the credit of the State Highway Fund No.
006 for the implementation, operation, and maintenance of the ID call box
system.  The bill would require TxDOT 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 would take effect September 1, 2001.
  
  
Methodology
  
TxDOT estimates that placing an ID call box every two miles along the
state highway system would require installing 39,500 units.  The agency
estimates that 7,900 units would be installed each year for five years.
Assumptions in estimating the cost include a cost of $4,000 per box; a 7
percent knockdown rate with a repair cost of $1,250 per knockdown;
annual air-time costs of $120 per box; a 6 percent vandalism rate with a
cost of $300 per vandalized unit; maintenance costs of $300 per unit;
and call answering contract costs of $180 per box based on $3 per call
at 60 calls per year.  TxDOT estimates approximately $37.1 million would
be realized in installation, operation, and maintenance costs in fiscal
year 2002 and that similar costs would continue to increase by
approximately $5.5 million in each year through fiscal year 2006.  The
agency estimates annual maintenance and operation costs would be
approximately $27.8 million in each subsequent year.
  
  
Local Government Impact
  
The bill would require local governmental 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 TxDOT would involve.  It should be possible for the campaign
to be developed as public service announcements, which would mean no
costs to the local governments if TxDOT provides the radio, television,
and newspaper announcements. If, however, the local government entities
must develop the announcements, they would incur production costs that
would vary by media market.

The bill would also require the Commission on State Emergency
Communications (CSEC) to coordinate with local councils of government
(COGs) and 9-1-1 districts for the operation and maintenance of the
emergency response system.  The cost would vary by COG and district
depending on existing equipment, system, and service ability in the
area; level of need within each COG region or 9-1-1 district; and, level
of involvement by local government expected by CSEC.
  
  
Source Agencies:   601   Texas Department of Transportation
LBB Staff:         JK, JC, RT, MW