LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION May 4, 2015 TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB737 by Aycock (Relating to the creation of regional emergency communications districts; authorizing the issuance of bonds; authorizing a fee.), As Engrossed Estimated Two-year Net Impact to General Revenue Related Funds for HB737, As Engrossed: an impact of $0 through the biennium ending August 31, 2017.
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 84TH LEGISLATIVE REGULAR SESSION
May 4, 2015
TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations FROM: Ursula Parks, Director, Legislative Budget Board IN RE:HB737 by Aycock (Relating to the creation of regional emergency communications districts; authorizing the issuance of bonds; authorizing a fee.), As Engrossed
TO: Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
FROM: Ursula Parks, Director, Legislative Budget Board
IN RE: HB737 by Aycock (Relating to the creation of regional emergency communications districts; authorizing the issuance of bonds; authorizing a fee.), As Engrossed
Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
Honorable Eddie Lucio Jr., Chair, Senate Committee on Intergovernmental Relations
Ursula Parks, Director, Legislative Budget Board
Ursula Parks, Director, Legislative Budget Board
HB737 by Aycock (Relating to the creation of regional emergency communications districts; authorizing the issuance of bonds; authorizing a fee.), As Engrossed
HB737 by Aycock (Relating to the creation of regional emergency communications districts; authorizing the issuance of bonds; authorizing a fee.), As Engrossed
Estimated Two-year Net Impact to General Revenue Related Funds for HB737, As Engrossed: an impact of $0 through the biennium ending August 31, 2017.
Estimated Two-year Net Impact to General Revenue Related Funds for HB737, As Engrossed: an impact of $0 through the biennium ending August 31, 2017.
General Revenue-Related Funds, Five-Year Impact: Fiscal Year Probable Net Positive/(Negative) Impact to General Revenue Related Funds 2016 $0 2017 $0 2018 $0 2019 $0 2020 $0
2016 $0
2017 $0
2018 $0
2019 $0
2020 $0
All Funds, Five-Year Impact: Fiscal Year Probable Revenue (Loss) from911 Service Fees5050 Probable Savings from911 Service Fees5050 2016 ($3,084,799) $3,557,051 2017 ($3,091,445) $3,533,950 2018 ($3,098,249) $3,545,500 2019 ($3,105,212) $3,545,500 2020 ($3,112,333) $3,545,500
Fiscal Year Probable Revenue (Loss) from911 Service Fees5050 Probable Savings from911 Service Fees5050 2016 ($3,084,799) $3,557,051 2017 ($3,091,445) $3,533,950 2018 ($3,098,249) $3,545,500 2019 ($3,105,212) $3,545,500 2020 ($3,112,333) $3,545,500
2016 ($3,084,799) $3,557,051
2017 ($3,091,445) $3,533,950
2018 ($3,098,249) $3,545,500
2019 ($3,105,212) $3,545,500
2020 ($3,112,333) $3,545,500
Fiscal Analysis
The bill would amend Chapter 772 of the Health and Safety Code to authorize a county or amunicipality in a region with a population of at least 425,000 and composed of counties each witha population of 4,500 or more, but less than 311,000, and that operates a 9-1-1 system solelythrough a regional planning commission (RPC) to create a regional emergency communicationdistrict.The Commission on State Emergency Communications (CSEC) estimates that this would result inan estimated loss of fee collected revenue deposited into General Revenue - Dedicated AccountNo. 5050 (GR-D 5050) of $3,084,799 in fiscal year 2016, $3,091,445 in fiscal year 2017,$3,098,249 in fiscal year 2018, $3,105,212 in fiscal year 2019, and $3,112,333 in fiscal year2020.CSEC also estimates the creation of a related regional emergency communication district wouldresult in a decrease in expenditures out of GR-D 5050 by $3,557,051 in fiscal year 2016,$3,533,950 in fiscal year 2017, and $3,545,500 each fiscal year from 2018-2020 due to the RPCno longer participating in the state-run 9-1-1 system.Legislative Budget Board (LBB), CSEC and the Comptroller of Public Accounts assume anyadditional work resulting from the passage of the bill could be reasonably absorbed with incurrent resources.This bill would take effect September 1, 2015.
Methodology
Based on CSEC analysis, it is assumed that the creation of a regional emergency communicationdistrict in a qualified region would also result in the region opting to no longer collect fees inorder to participate in the state-run 9-1-1 system.Based on data provided by the state demographer, CSEC identified the Central Texas Council ofGovernment (CTCOG) as an RPC that meets the bill provisions. CSEC determined the growth rate in feescollected from wireline and wireless services deposited in GR-D 5050 to be constant by theregional planning commission. CSEC then applied that growth rate to estimate the loss in revenuecollected.CSEC calculated the average estimated expenditures from GR-D 5050 for grants to the CentralTexas Council of Government for each fiscal year of the 2014-15 biennium and applied that figureto each fiscal year.
Local Government Impact
The Central Texas Council of Governments (CTCOG) reported that the bill would increase the proportion of 9-1-1 service fees collected to 100 percent; CTCOG estimates an increase inrevenue of approximately $1,000,000 each fiscal year.
Source Agencies: 304 Comptroller of Public Accounts, 477 Commission on State Emergency Communications
304 Comptroller of Public Accounts, 477 Commission on State Emergency Communications
LBB Staff: UP, KVe, EP, KPe
UP, KVe, EP, KPe