LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 24, 2001
  
  
          TO:  Honorable Bill Ratliff, Lieutenant Governor,  Senate
  
        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 Passed
               2nd House
  
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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 (TxDOT) 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 bill would also allow TxDOT
to contract with any public agency or private entity for the management
of property used for the mitigation of an adverse environmental impact
directly resulting from the construction or maintenance of a state
highway.  It is estimated that the cost difference between acquiring or
agreeing to manage properties and paying fees would 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:   302   Office of the Attorney General, 601   Texas
                   Department of Transportation
LBB Staff:         JK, JO, RT, MW