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