LEGISLATIVE BUDGET BOARD
                          Austin, Texas

                           FISCAL NOTE
                       74th Regular Session

                          April 12, 1995



 TO:     Honorable Ken Armbrister, Chair        IN RE: Committee Substitute
         Committee on State Affairs             for
         Senate                                                Senate Bill
         Austin, Texas                          No. 14










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 that are the producing cause of a reduction in
the market value of the affected private real property of 20
percent or more.

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
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 Texas Department of Transportation has estimated that the
cost specific to the Department would be as follows:









          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       Change in
           Year     of  State Highway    Number of State
                         Fund 006        Employees from
                                             FY 1995

        1996               $13,124,028              28.0
        1997                13,124,028              28.0

        1998                13,124,028              28.0

        1999                13,124,028              28.0
        2000                13,124,028              28.0



       Similar annual fiscal implications would continue as long as the
provisions of the bill are in effect.    




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