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