LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE
75th Regular Session
March 20, 1997
TO: Honorable Kenneth Armbrister, Chair IN RE: Senate Bill No. 927
Committee on State Affairs By: Lindsay
Senate
Austin, Texas
FROM: John Keel, Director
In response to your request for a Fiscal Note on SB927 ( Relating
to the authority of the Texas Department of Transportation to
acquire certain real property.) this office has detemined the
following:
Biennial Net Impact to General Revenue Funds by SB927-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 allow the Texas Department of Transportation
(TxDOT) to acquire remainders of property if the commission
determines that the remainder is of minimal value or the entire
tract could be acquired for substantially the same amount as
the partial tract. The department would only be able to acquire
the remainder with the owner's consent.
Methodolgy
The department is currently allowed to only acquire property
that is necessary for the State Highway System. When an entire
piece of property is not acquired, a remainder tract is left.
Most acquisitions fall into this category. State law requires
the department to compensate a landowner not only for the value
of the property being acquired, but also for any damages caused
to the remainder tract. The department estimated that damages
computed against the small or uneconomical remainders, when
added to the compensation paid for the land actually acquired,
is usually about 90 to 95% of the value of the entire tract.
The uneconomical remainders may, at a later date, be acquired
for expansion of a road. The department estimates that the administrative
costs to the department to acquire a parcel of right of way
is approximately $8,000, if acquired through negotiation. The
department estimates that of all acquisitions, approximately
20% of result in the creation of an uneconomic remainder. Of
those, approximately (or 10% of all acquisitions) would need
to be acquired for later road widenings. Approximately 1,000
parcels are acquired for right of way purposes each year. TxDOT
assumed that 10% of those remnants would be acquired each year.
The savings identified by the department from acquiring the
entire tract, was estimated to be $800,000.
The department
estimates that the cost of an appraisal of a tract involving
a remainder is approximately $700 more than the cost of appraising
the identical tract as a whole. Approximately 200 parcels that
are currently appraised with remainder damages could be appraised
as a whole at a savings in appraisal costs of $140,000.
The probable fiscal implications of implementing the provisions
of the bill during each of the first five years following passage
is estimated as follows:
Six Year Impact:
Fiscal Year Probable
Savings/(Cost)
from State
Highway Fund
0006
1997 $940,000
1997 940,000
1999 940,000
2000 940,000
2001 940,000
2002
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
1997 $0
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: 601 Department of Transportation
304 Comptroller of Public Accounts
LBB Staff: JK ,JD ,ML