LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session March 28, 1999 TO: Honorable Gary Walker, Chair, House Committee on Land & Resource Management FROM: John Keel, Director, Legislative Budget Board IN RE: HB1186 by Hilbert (Relating to the fair administration of a condemnation proceeding; and declaring an emergency.), As Introduced ************************************************************************** * No significant fiscal implication to the State is anticipated. * * * * The bill would make no appropriation but could provide the legal * * basis for an appropriation of funds to implement the provisions of * * the bill. * ************************************************************************** Fiscal Analysis The bill would dismiss any condemnation proceeding in which the evidentiary hearing would not commence before the 90th day after a condemnation petition is filed. The dismissal could be waived in cases where the condemnor and condemnee agree to a hearing date beyond the 90 days and in cases where the delay is not attributable to the condemnor. In cases where a proceeding is dismissed, the court could order the condemnor, which could be a state agency or a political subdivision, to reimburse a property owner for reasonable and necessary attorneys' fees, appraisers, photographers and other expenses. Methodology According to the Attorney General's Office, the bill could result in numerous condemnation proceedings by state agencies being dismissed, since the majority of special commissioners' hearings are scheduled more than 90 days after a petition is filed. The Texas Department of Transportation (TXDOT) estimates that approximately half, or 62, of the 125 eminent domain cases the agency handles per year could be dismissed because of the 90-day hearing limit. TXDOT estimates that the dismissal and subsequent refiling of cases will result in significant delays in obtaining possession of parcels of land needed for highway construction. The delays could result in substantial cost, depending on the length of the delay. Local Government Impact Units of local government condemning property could incur costs, depending on the number of eminent domain proceedings that would be dismissed and the delay this would cause to infrastructure projects. Source Agencies: LBB Staff: JK, DE, TL