LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 76th Regular Session
April 30, 1999
TO: Honorable Gary Walker, Chair, House Committee on Land &
Resource Management
FROM: John Keel, Director, Legislative Budget Board
IN RE: HB 3700 by Shields (relating to notice of intent to use
real property for a public purpose), Committee Report 1st
House, Substituted
**************************************************************************
* Estimated Two-year Net Impact to General Revenue Related Funds for *
* HB3700, Committee Report 1st House, Substituted: 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. *
**************************************************************************
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 $(165,000) *
* 2001 (165,000) *
* 2002 (165,000) *
* 2003 (165,000) *
* 2004 (165,000) *
*****************************************************
Fiscal Analysis
The bill would require governmental entities, including state agencies
and political subdivisions, and non-profit corporations to send notices
to residents or owners of real estate property any part of which is
located within one-fourth mile of a boundary of the property that the
entity intends to purchase, lease or use.
Methodology
According to the Texas Department of Transportation (TXDOT), TXDOT
acquires approximately 1,300 parcels of land per year. TXDOT estimated
that if 500,000 notices are sent by first class mail, the cost would be
$165,000 per year.
According to the General Land Office (GLO), GLO estimates that the costs
of research and mailing for each acquisition could range from $2,000 to
$10,000 for each acquisition or lease for a typical lot size. GLO,
however, could not estimate the total increased costs per year due to the
complexity of various projects.
Local Government Impact
Fiscal Analysis
The bill could result in increased administrative and postage costs to
units of local government with operations within the corporate limits of
either the City of Houston or the City of Dallas. The costs would depend
on the following factors: the number of properties that an entity would
buy or lease; the number of properties upon which programs receiving
governmental assistance an entity would operate; the resources necessary
to create a database of property owners throughout the municipality for
notification purposes; and the density of population within the area
surrounding affected properties. In some cases, the increased
administrative workload associated with notifying residents could require
additional staff. There could also be costs associated with delays
caused by the bill's requirement that notice be made at least 30 days
before a transition.
Fiscal Impact
Dallas County estimates that the bill would result in increased postage
costs of $70,000 to $80,000 per year.
The City of Dallas estimates additional costs of $900,000 per year as a
result of the bill's enactment. This estimate is based on transactions
occurring on 900 to 1,000 parcels of land per year, with a notification
cost of $1,000 per parcel.
The City of Houston and Harris County both anticipate significant costs
to implement the provisions of the bill, but neither entity could provide
precise estimates of the costs.
According to the Texas Higher Education Coordinating Board (THECB), THECB
estimated the cost of notification would be $2,000 per transaction for
local community college districts that lease office and classroom space
and purchase property for expansion.
Source Agencies: 302 Office Of The Attorney General, 332
Department of Housing and Community Affairs, 405
Department of Public Safety, 501 Department of
Health, 655 Texas Department of Mental Health and
Mental Retardation, 781 Higher Education
Coordinating Board, 305 General Land Office and
Veterans' Land Board
LBB Staff: JK, DE, TT