LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 76th Regular Session May 5, 1999 TO: Honorable J.E. "Buster" Brown, Chair, Senate Committee on Natural Resources FROM: John Keel, Director, Legislative Budget Board IN RE: SB 1316 by Armbrister (relating to the requiring of notice and the assessment of damages in a condemnation proceeding), Committee Report 1st House, Substituted ************************************************************************** * Estimated Two-year Net Impact to General Revenue Related Funds for * * SB1316, 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 Net 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 Cost from State Highway * * Fund * * 0006 * * 2000 $(8,203,500) * * 2001 (8,203,500) * * 2002 (8,203,500) * * 2003 (8,203,500) * * 2004 (8,203,500) * ***************************************************** Fiscal Analysis The bill would amend the Texas Property Code on matters relating to assessment of damages in a condemnation proceeding. The bill would have a direct fiscal impact on the Texas Department of Transportation (TXDOT). The bill would, contrary to current law, allow project influence to contribute to the value of property acquired by eminent domain. The effect of allowing project influence to contribute to the establishment of market value would lead to larger judgments against the state. Higher judgments would occur since the valuation at the earlier date would include project influence and other non-compensable factors. The earlier valuation date could be up to five years prior to TXDOT obtaining possession of the property. Methodology TXDOT estimates on establishment of market value in eminent domain cases and includes factors from the City of Austin v. Westgate case. TXDOT estimates that additional costs would be incurred in preparation of the condemnation cases because of the need for additional appraisals. The bill takes effect only if Senate Bill 1547 is enacted and becomes law. If Senate Bill 1547 is not enacted or does not become law the bill has no effect. Local Government Impact The bill would also apply to local governments and should have a similar direct fiscal impact on local governments. Source Agencies: 302 Office Of The Attorney General, 601 Department of Transportation LBB Staff: JK, DE, ML