LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                            February 27, 2001
  
  
          TO:  Honorable Clyde Alexander, Chair, House Committee on
               Transportation
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  SB416  by Ogden (Relating to the authority of the Texas
               Department of Transportation in connection with the
               mitigation of an adverse environmental impact resulting
               from a state highway improvement project.), As Engrossed
  
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*  No significant fiscal implication to the State is anticipated.        *
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The bill would amend the Transportation Code to allow the Texas
Department of Transportation to pay a fee, if authorized by the
applicable regulatory authority, to an appropriate public agency or
private entity in lieu of acquiring or agreeing to manage property for
the mitigation of an adverse environmental impact that is a direct result
of a state highway improvement project.  The agency estimates the cost
difference between acquiring or agreeing to manage properties and paying
fees to be insignificant.

The bill would take effect immediately upon a vote of two-thirds of all
the members elected to each house; otherwise, it would take effect
September 1, 2001.
  
Local Government Impact
  
If the Texas Department of Transportation (TXDOT) chose to pay a local
government agency a fee for mitigation of an environmental impact
created by a state highway improvement project, the local agency would
receive a revenue gain to offset the costs of the mitigation effort.  If
the fee paid by TXDOT were insufficient to fully cover this effort, the
local government agency would have to pay the difference between the
cost and the amount covered by fees received, which might be
significant.
  
  
Source Agencies:   601   Texas Department of Transportation, 302
                   Office of the Attorney General
LBB Staff:         JK, JO, CL, RT, MW, DB