LEGISLATIVE SERVICES AGENCY OFFICE OF FISCAL AND MANAGEMENT ANALYSIS FISCAL IMPACT STATEMENT LS 6682 NOTE PREPARED: Dec 17, 2024 BILL NUMBER: SB 225 BILL AMENDED: SUBJECT: Speed Control in School Zones. FIRST AUTHOR: Sen. Hunley BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill authorizes a county or municipality to adopt and enforce an ordinance that regulates the use of a school zone speed control system to detect certain violations. It provides a civil penalty for a violation. It also specifies that a civil penalty must first be applied to defray the cost of the installation, operation, and maintenance of the system. The bill specifies the manner in which the remaining money from the civil penalty must be distributed. The bill also requires a county or municipality to report data to the Interim Study Committee on Roads and Transportation. It also makes conforming changes. Effective Date: July 1, 2025. Explanation of State Expenditures: Explanation of State Revenues: To the extent individuals contest citations issued by automated traffic enforcement devices where a court hearing occurs, the General Fund could receive additional revenue from court fees. Increases in General Fund revenue are expected to be minimal. [The total court fee revenue per case would range between $85.50 and $103. The amount of court fees deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.] Explanation of Local Expenditures: This bill will increase the workload of counties and municipalities to the extent they enter into agreements with vendors for the installation and administration of automated traffic enforcement cameras. Any increase in workload and/or expenditures would be financed with the collection of ordinance violation revenue. Explanation of Local Revenues: Summary - To the extent counties or municipalities elect to enter into agreements with automated traffic enforcement camera vendors, local revenue is expected to increase from SB 225 1 ordinance violation revenue collections. The total amount of increased revenue is unknown, but expected to be significant. Additional Information - The bill allows counties or municipalities to install automated traffic enforcement cameras in school zones. Revenue received from ordinance violations is to be used first to defray the costs of the installation, maintenance, and operation of the automated traffic enforcement devices. The bill establishes the fine for an ordinance violation is (1) $75 for a second violation and (2) $150 for each violation after that. At least 50% of civil penalty revenue collected from violations is to be used to defray the costs of administering automated traffic enforcement devices, with the remaining amounts deposited in the general fund of the enacting county or municipality. Information obtained concerning automated traffic enforcement devices installed in a local jurisdiction in North Carolina shows the devices increased local revenue by approximately $3.34 M over an almost three- year period after accounting for program administration expenses paid to their vendor (an additional $1.1 M). Additional information obtained from a local jurisdiction in Iowa (Cedar Rapids) shows that revenue from automated traffic enforcement devices provided approximately $5.9 M into the local unit’s budget for FY 2023 and $5.6 M during FY 2022. Contesting Citations - To the extent individuals contest a citation issued by an automated traffic control device, local governments would receive revenue from court fees. However, any additional revenue is likely to be small. [If the case is filed in a court of record, the county will receive $33.90 and qualifying municipalities will receive a share of $2.10. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $33.50. The following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal, juvenile, and civil violation cases.] State Agencies Affected: Local Agencies Affected: Counties; municipalities; trial courts. Information Sources: Elizabeth Johnson, the Daily Reflector, and associated data provided by vendor American Traffic Solutions for public dissemination; Cedar Rapids Police Department Automated Traffic Enforcement Program Annual Report, 2022 & 2021. Fiscal Analyst: Bill Brumbach, 317-232-9559. SB 225 2