LEGISLATIVE BUDGET BOARD
                                   Austin, Texas
         
                                   FISCAL NOTE
                               75th Regular Session
         
                                  April 30, 1997
         
         
      TO: Honorable Fred M. Bosse, Chair            IN RE:  House Bill No. 3339, Committee Report 1st House, Substituted
          Committee on Land and Resource Management                              By: Hilbert
          House
          Austin, Texas
         
         
         
         
         FROM:  John Keel, Director    
         
In response to your request for a Fiscal Note on HB3339 ( Relating 
to dismissal of a condemnation proceeding.) this office has 
detemined the following:
         
         Biennial Net Impact to General Revenue Funds by HB3339-Committee Report 1st House, Substituted
         

No significant fiscal implication to the State is anticipated.
         
The bill would require the court that dismisses a condemnation 
proceeding to make an allowance to the property owner for the 
market value of the condemnor's use of the property during possession, 
any damages that the condemnation may have caused the property 
owner, and for all expenses including attorneys' fees that the 
property owner incurs in connection with the condemnation.

The 
Department of Transportation (TxDOT) states that during fiscal 
year 1996, it had two condemnation cases dismissed out of approximately 
200 to 300 cases (one percent or less) during the year and that 
it currently pays for attorneys' fees when it dismisses a condemnation 
case.  This bill would require the payment of damages to the 
property owner caused by the condemnation in instances where 
the condemnor seeks to dismiss the condemnation proceeding. 
 Given the number of cases likely to be affected by the bill, 
no significant fiscal implication to the State is anticipated. 
 However, since TxDOT, as the condemnor,  would now be liable 
for loss of value while property was in its possession, the 
potential for additional cost to the department exists.  The 
cost would depend upon the number of dismissed cases and the 
amount of damages awarded by the court.  

The Office of the 
Attorney General estimates that any legal work as a result of 
the passage of this bill could be absorbed with current staff. 

         
 
          
The bill would apply to local governments acting as condemnors 
and would, therefore, have similar fiscal impact.  The fiscal 
implications would not be expected to be significant, but could 
increase depending upon the number of dismissed cases and amounts 
of damage awards.  
          
   Source:            Agencies:   302   Office of the Attorney General
                                         601   Department of Transportation
                                         
                      LBB Staff:   JK ,BB ,TL