LEGISLATIVE BUDGET BOARD

                              Austin, Texas

                    FISCAL NOTE, 77th Regular Session

                              April 29, 2001

          TO:  Honorable Clyde Alexander, Chair, House Committee on

               Transportation

        FROM:  John Keel, Director, Legislative Budget Board

       IN RE:  HB3597  by Capelo (Relating to the authority of a

               municipality to alter speed limits.), As Introduced

**************************************************************************

*  Estimated Two-year Net Impact to General Revenue Related Funds for    *

*  HB3597, 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                             $(4,100,000) *

         *      2003                                 (32,800) *

         *      2004                                 (32,800) *

         *      2005                                 (32,800) *

         *      2006                                 (32,800) *

         *****************************************************

Fiscal Analysis

The bill would amend the Transportation Code to allow the governing body

of a municipality to temporarily lower speed limits on the state highway

system within the boundaries of the municipality for sporting events or

other major attractions and it would require that these be designated by

the use of speed zone speed limit flashers.  The bill would also prohibit

a municipality from establishing a speed limit in excess of 60 miles per

hour.

The bill would take effect immediately upon receiving a two-thirds

majority vote in both houses; otherwise, the bill would take effect

September 1, 2001.

Methodology

The Texas Department of Transportation (TxDOT) estimates that it would be

required to install, operate, and maintain signs for 328 temporary speed

limit zones in cities under 50,000 for a total cost of $4.1 million in

fiscal year 2002.  TxDOT estimates that temporary speed zones would be

implemented by approximately 50 percent of cities with populations from

20,000 to 49,999 and by approximately 25 percent of cities with

populations from 10,000 to 19,999.  For the purpose of this analysis, it

is assumed that 6 cities with populations from 40,000 to 49,999 would

implement 3 temporary speed zones; that 11 cities with populations from

30,000 to 39,999 would implement 2 temporary speed zones; and that 288

cities with populations from 10,000 to 29,999 would implement 1 temporary

speed zone.  TxDOT estimates that each installation would include two

solar signs at $6,000 each and two static regulatory signs at $250 each.

TxDOT also estimates that ongoing maintenance and operations costs would

result in $32,800 ($100 per zone) being realized annually beginning in

fiscal year 2003.

Local Government Impact

No significant fiscal implication to units of local government is

anticipated.

Source Agencies:   405   Texas Department of Public Safety, 601   Texas

                   Department of Transportation

LBB Staff:         JK, JO, MW