LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
March 26, 1999
TO: Honorable Gary Walker, Chair, House Committee on Land &
Resource Management
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB1185 by Hilbert (Relating to the preservation of the
rights of property owners through a uniform procedure to
acquire and condemn an interest in property.), As
Introduced
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* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB1185, As Introduced: positive impact of $0 through the biennium *
* ending August 31, 2001. *
* *
* The bill would make no appropriation but could provide the legal *
* basis for an appropriation of funds to implement the provisions of *
* the bill. *
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General Revenue-Related Funds, Five-Year Impact:
****************************************************
* Fiscal Year Probable Net Positive/(Negative) *
* Impact to General Revenue Related *
* Funds *
* 2000 $0 *
* 2001 0 *
* 2002 0 *
* 2003 0 *
* 2004 0 *
****************************************************
All Funds, Five-Year Impact:
*****************************************************
* Fiscal Year Probable Savings/(Cost) from State *
* Highway Fund *
* 0006 *
* 2000 $(550,000) *
* 2001 (550,000) *
* 2002 (550,000) *
* 2003 (550,000) *
* 2004 (550,000) *
*****************************************************
Fiscal Analysis
The bill provides that a landowner can recover all expenses, including
reasonable and necessary attorneys fees, where it is found the
condemnor does not own an interest in property that it has claimed. In
cases of inverse condemnation, this could result in costs to state
agencies or political subdivisions condemning property due to delays
associated with litigation.
Methodology
The Texas Department of Transportation estimates that additional legal
costs would be incurred in certain property claims, especially in cases
of inverse condemnation. The estimate assumes 10 inverse condemnation
cases per year, 200 hours of attorney time per case, $200 per hour for
private attorney fees and a total of $15,000 per case in appraisal fees,
expert witness fees and other fees not covered by attorney fees. This
estimate does not include the cost of delays, the cost of which would
depend on the amount of property for which an entity would be denied
possession, the length of time the property would be lost and the effect
that losing possession could have on an entire project, such as a
highway facility.
Local Government Impact
Political subdivisions that condemn property could likewise incur costs
associated with delays and legal fees. The cost would depend on the
number of claims to property that would be petitioned and any loss due
to the length of time a political subdivision would be denied access to
a property.
Source Agencies:
LBB Staff: JK, DE, TL