LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                              March 25, 2001
  
  
          TO:  Honorable Gary Walker, Chair, House Committee on Land &
               Resource Management
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB2684  by Kuempel (Relating to the condemnation
               authority of the Texas Department of Transportation.), As
               Introduced
  
**************************************************************************
*  Estimated Two-year Net Impact to General Revenue Related Funds for    *
*  HB2684, As Introduced:  positive impact of $0 through the biennium    *
*  ending August 31, 2003.                                               *
*                                                                        *
*  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                *
          *       2002                                   $0  *
          *       2003                                    0  *
          *       2004                                    0  *
          *       2005                                    0  *
          *       2006                                    0  *
          ****************************************************
  
All Funds, Five-Year Impact:
  
         *****************************************************
         * Fiscal Year   Probable Savings/(Cost) from State   *
         *                          Highway Fund              *
         *                              0006                  *
         *      2002                             $(1,950,000) *
         *      2003                                        0 *
         *      2004                              (1,950,000) *
         *      2005                                        0 *
         *      2006                              (1,950,000) *
         *****************************************************
  
Fiscal Analysis
  
The bill would amend the Transportation Code to prohibit the
Transportation Commission from condemning any property that belongs to a
permittee or subpermittee under a Federal Fish and Wildlife permit and
that is part of a habitat conservation plan to restore or manage an
endangered species.

The bill would take effect September 1, 2001.
  
  
Methodology
  
The Texas Department of Transportation (TxDOT) estimates that dredging
disposal costs would increase by  approximately $1.95 million every other
year for required dredging activities along the Gulf Intercoastal
Waterway (GIW) above Corpus Christi as a result of TxDOT being unable to
obtain land for upland disposal sites in this area.  The department
estimates that approximately 330,000 cubic yards of dredge material would
have to be removed every other year by pumping it offshore to the Gulf
at a cost of $10 per cubic yard.  Appropriations for TxDOT have included
$1.35 million in the first year of each biennium since fiscal year 1998.

TxDOT currently uses an open water disposal method for material collected
through dredging along the GIW below Corpus Christi every three years
and this analysis assumes that this practice will continue.  TxDOT
reported that a federal study is in progress to determine if open water
disposal in the GIW may continue after fiscal year 2001.  If TxDOT is
prohibited from using open water disposal, the department estimates that
dredging disposal costs would increase by approximately $30 million
every third year as a result of TxDOT being unable to obtain land for
upland disposal sites in this area.  The department assumes the bill
would require approximately 1 million cubic yards to be moved offshore
to the Gulf by barge at a cost of $30 per cubic yard.
  
  
Local Government Impact
  
No fiscal implication to units of local government is anticipated.
  
  
Source Agencies:   601   Texas Department of Transportation
LBB Staff:         JK, CL, MW