| TO: | Honorable Anna Mowery, Chair, House Committee on Land & Resource Management |
| FROM: | John S. O'Brien, Deputy Director, Legislative Budget Board |
| IN RE: | HB2833 by Cook, Robby (Relating to the protection of private real property from regulatory takings.), Committee Report 1st House, Substituted |
The bill would expand the applicability and remedies of the Texas Private Real Property Rights Preservation Act, Chapter 2007 of the Texas Local Government Code, relating to a statutory "taking" cause of action, and would impose additional requirements on government actions that adversely affect private real property rights.
Implementation of the legislation could result in new complaints, investigations and cases by the Office of the Attorney General, however it is projected that any increase could be absorbed by current resources.
According to the Texas Municipal League, costs to local governments to implement the provisions of the the bill would vary. There would be costs associated with preparing the takings assessments and certifying that all actions meet the requirements established by the attorney general. Additionally, if a private real property owner brings suit, a local government would have to bear the costs of legal fees.
The financial impact on cities is anticipated to be substantial, especially in fast-growing areas of the state. Municipal land use regulations are implemented and changed frequently pursuant to the demands of city residents. Each implementation or change could result in a twenty-five percent reduction in value to property. Thus, a city would be prudent to prepare a takings impact assessment for each regulation rather than subject the regulation to challenge.
Compliance with the takings impact assessment provisions alone could range from $12,000 to over $500,000 per year for advertising, preparation of assessments, and legal fees. If a city must defend a regulation in court, the costs of attorneys and consultants would also be included.
Further, certain city regulations may qualify as a taking under the bill, which would require compensation by the city. The costs are expected to be high, although they are difficult to quantify because no such requirement has as yet been applied to cities. Also, the uncertainty created by the bill could result in high legal fees to determine whether appraisals are correct and whether, in fact, property value was reduced by more than twenty-five percent.
| Source Agencies: | 302 Office of the Attorney General
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| LBB Staff: | JOB, WK, MS, KJG
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