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