LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE

                       74th Regular Session

                          April 25, 1995



 TO:     Honorable Robert M. Saunders, Chair    IN RE: Committee Substitute
         Committee on Land and Resource                       for Senate
         Management                             Bill No. 14
         House of Representatives
         Austin, Texas








FROM: John Keel, Director

In response to your request for a Fiscal Note on Senate Bill No.
14 (Relating to protecting private real property rights from
certain actions of this state or a political subdivision of this
state.) this office has determined the following:

The bill creates a new cause of action: a statutory taking that
goes beyond current law regarding the unconstitutional taking of
private property rights.  It also waives sovereign immunity as
provided in the bill and permits the State and other governmental
entities to be sued for compensation for actions taken by the
government entity on or after September 1, 1995, that are the
producing cause of a reduction in the market value of the
affected private real property of 25 percent or more.

A private real property owner may recover compensation under the
bill only if waiver of immunity to suit for compensation is
granted by legislative resolution.   Any judgment awarding
compensation to a property owner would be subject to an
appropriation by the legislature.

The bill would allow the owners of private property who prevails
in a suit to recover loss of market value, reasonable and
necessary attorneys fees, court costs and all prejudgment
interest.

The bill also imposes a duty on the Office of The Attorney    




General to prepare guidelines to assist governmental entities in
identifying and evaluating those governmental actions  that may 
constitute a taking.  These guidelines must be completed  no
later than January 1, 1996, and must be published in the Texas
Register and revised annually.

Like the State, local governments would be required to go through
a formalized procedure for performing "taking" assessments and
would be required to pay monetary compensation for reductions in
the market value of private real property interest.

In addition, the bill would require a Chief Appraiser to consider
the effect of governmental actions on the market value of private
real property when appraising  for ad valorem tax purposes.










The fiscal implication to the State or units of local government
cannot be determined due to insufficient information regarding
the number of successful actions, amount of market value loss or
parcels of property which may be affected.


The fiscal implication to the State or units of local government
cannot be determined.
    

    







Source:   LBB Staff: JK, BR, DF
                                 Office of the Attorney General,
Texas Natural Resource Conservation Commission,
                                  Texas Department of
Transportation, Texas Department of Parks and Wildlife