LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 77th Regular Session May 10, 2001 TO: Honorable Florence Shapiro, Chair, Senate Committee on State Affairs FROM: John Keel, Director, Legislative Budget Board IN RE: SB1251 by Gallegos (Relating to the automatic location identification system along state highways.), As Introduced ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1251, 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, RB, JC, RT, MW