LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE 74th Regular Session April 24, 1995 TO: Honorable Robert M. Saunders, Chair IN RE: House Bill No. 396 Committee on Land and Resource By: Turner, Bob Management House of Representatives Austin, Texas FROM: John Keel, Director In response to your request for a Fiscal Note on House Bill No. 396 (Relating to prohibiting certain entities from condemning property in certain circumstances.) this office has determined the following: The bill would prohibit the state from using eminent domain authority to condemn property for the purpose of offsetting the adverse effect of land use in environmentally sensitive areas as required by the federal government (i.e., environmental mitigation). The bill would require the Texas Department of Transportation (TDOT) to avoid properties needed for environmental mitigation purposes in highway construction projects. Because the TDOT will not know whether it is prohibited from using its powers of eminent domain to acquire properties needed for environmental mitigation purposes until the time that an offer to acquire property is made and a property owner chooses not to sell, the possibility exists that a given highway project would subsequently need to be reconsidered in its entirety in order to comply with the provisions of the bill. Based on the number of recent highway construction projects involving the use of eminent domain for the purpose of meeting environmental mitigation requirements, the TDOT estimates that it will incur additional preliminary design costs of approximately $2 million annually to avoid properties which would otherwise be subject to condemnation for the purpose of environmental mitigation. The probable fiscal implication of implementing the provisions of the bill during each of the first five years following passage is estimated as follows: Fiscal Probable Cost Out Year of State Highway Fund 006 1996 $2,025,000 1997 2,025,000 1998 2,025,000 1999 2,025,000 2000 2,025,000 Similar annual fiscal implications would continue as long as the provisions of the bill are in effect. The fiscal implication to units of local government cannot be determined. Source: Texas Department of Transportation, Natural Resource Conservation Commission, Parks and Wildlife Department LBB Staff: JK, JB, DF