LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION

May 4, 2009

TO:	Honorable Kip Averitt, Chair, Senate Committee on Natural Resources
FROM:	John S. O'Brien, Director, Legislative Budget Board
IN RE:	SB2433 by Davis, Wendy (Relating to condemnation of municipal property for and municipal regulation of pipeline operations.), As Introduced

No fiscal implication to the State is anticipated.

The bill would permit a municipality that receives a notice from a pipeline operator with eminent domain authority seeking to acquire an easement owned by a municipality to not later than 60 days after receipt of a notice take certain actions, including consent to the pipeline placement or suggest an alternative placement. A municipality that proposed an alternative pipeline placement could request that a court make a judgment. The bill would take effect September 1, 2009.

Local Government Impact

A municipality that chose to seek a court's decision for a pipeline placement could incur additional costs; however, those costs are not anticipated to be significant and would vary depending on the number of proceedings filed by a municipality.

Source Agencies:

LBB Staff:

JOB, SD, TP