LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  March 31, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 190
          Committee on Land and Resource Management                              By: Turner, Bob
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB190 ( Relating 
to prohibiting certain entities from condemning property in 
certain circumstances.) this office has detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB190-As Introduced
         

Implementing the provisions of the bill would result in a 
net impact of $0 to General Revenue Related Funds through the 
biennium ending August 31, 1999.  
         

         
 
Fiscal Analysis
 
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 (TxDot) to avoid properties needed for environmental 
mitigation purposes in highway construction projects. Because 
the TxDot 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.
 
Methodolgy
 

Based on the number of recent highway construction projects 
involving the use of eminent domain for the purpose of meeting 
environmental mitigation requirements, the TxDot 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 implications of implementing the provisions 
of the bill during each of the first  five years following passage 
is estimated as follows:



 
Five Year Impact:
 
Fiscal Year Probable           
            Savings/(Cost)                                                                                
            from State                                                                                    
            Highway Fund                                                                                  
            0006                                                                                           
       1998      ($2,025,000)                                                                        
       1998       (2,025,000)                                                                        
       2000       (2,025,000)                                                                        
       2001       (2,025,000)                                                                        
       2002       (2,025,000)                                                                        
 
 
 
         Net Impact on General Revenue Related Funds:
 
The probable fiscal implication to General Revenue related funds 
during each of the first five years is estimated as follows:
 
              Fiscal Year      Probable Net Postive/(Negative)
                               General Revenue Related Funds
                                             Funds
               1998                   $0
               1999                    0
               2000                    0
               2001                    0
               2002                    0
 
Similar annual fiscal implications would continue as long as 
the provisions of the bill are in effect.
          
No fiscal implication to units of local government is anticipated.
          
   Source:            Agencies:   802   Parks and Wildlife Department
                                         582   Natural Resources Conservation Commission
                                         601   Department of Transportation
                                         
                      LBB Staff:   JK ,BB ,ML