LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 80TH LEGISLATIVE REGULAR SESSION

February 20, 2007

TO:	Honorable John Carona, Chair, Senate Committee on Transportation & Homeland Security
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB125 by Carona (Relating to the deposit of revenue collected from certain traffic penalties in the designated trauma facility and emergency medical services account.), As Introduced

The fiscal impact on the state and units of local government cannot be definitively estimated because it is unknown how many cameras might be installed, how many municipalities would install them, at what schedule, and at what allowable expense, among other factors.

The bill would amend Chapter 542 of the Transportation Code to define "photographic traffic signal enforcement system" (system) and require certain local authorities to remit system revenues to the state for deposit into GR Account 5111—Trauma Facilities and Emergency Medical Services.  Under current law, cities retain all of the revenue from red light violations caught by the system.

The bill would define system expenses and allow local authorities to retain expenses up to 50 percent of total revenues before remittance to the state; and it would make a conforming amendment to Section 780 of the Health and Safety Code on the deposit of revenues to the account.

The bill would require the Comptroller to adopt rules to implement and enforce the bill. The bill would take effect September 1, 2007, and it would apply to penalties received by local authorities on or after that date.

There are 21 Texas cities that have implemented or are in the process of implementing "photographic traffic signal enforcement systems," also known as red-light cameras. The 21 cities the Texas Department of Transportation is aware of with operating or implementing systems include Amarillo, Balcones Heights, Copperas Cove, Corpus Christi, Dallas, Denton, Diboll, Duncanville, El Paso, Frisco, Garland, Grand Prairie, Houston, Hutto, Irving, Lubbock, Marshall, North Richland Hills, Plano, Richardson, Richland Hills, Rowlett, Sherman and University Park.

The system in the City of Garland has been in operation the longest. The city generated over $1 million in the first year of operation (2004), followed by $1.4 million in 2005, the first full year of operation. Since then, revenues have dropped substantially, with receipts of $0.8 million in 2006 and $0.09 million for 2007 year-to-date.

The cities of Plano, Denton, and Richardson are in the first year of system implementation, but their data are insufficient to forecast revenues at this time. For reference purposes, Richardson and Plano have generated $660,000 and $560,000, respectively, since March 2006. Based on the monthly data from Richardson, revenues already may have peaked in October 2006. These data are gross revenue and do not include expenses.

Local Government Impact

The fiscal implication to units of local government cannot be estimated for reasons outlined above.

Source Agencies:

304 Comptroller of Public Accounts, 601 Department of Transportation

LBB Staff:

JOB, KJG, CT, SD