TO: | Honorable David Dewhurst, Lieutenant Governor, Senate Honorable Joe Straus, Speaker of the House, House of Representatives |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | SB18 by Estes (Relating to the use of eminent domain authority.), Conference Committee Report |
There would be an indeterminate cost to the state from the provisions of the bill.
The bill would amend various statutes related to the scope and process of private property condemnation under the power of eminent domain. The bill also amends Vernon's Texas Civil Statutes regarding the eminent domain authority of certain charitable corporations in obtaining a residential property. The bill would take effect September 1, 2011.
Based on an analysis by state agencies, it is anticipated the bill would result in increased costs for the acquisition of property through condemnation proceedings, specifically those related to highway right-of-way projects and actions by institutions of higher education. Due to the number of project specific variables involved in state property acquisitions and an unknown projected number of such projects during the 2012-13 biennium, any additional costs or negative fiscal implications to the state cannot be determined.
Based on the analysis of the Texas Department of Transportation, it is assumed the bill would result in increased costs for the acquisition of highway right-of-way through condemnation, primarily due to right of repurchase provisions and the creation of new standards for the determination of damages for access and assessment of attorney and professional fees. Because the factors considered in evaluating the value of the property to be condemned and estimating damages to a property owner would vary case by case, any additional costs or negative fiscal implications to the state cannot be determined.
Institutions of higher education also reported anticipated increased costs to property acquisitions given the provisions of the bill. These additional costs include: additional record keeping and document storage requirements; obligations to make offers for property at or above appraisal values; loss of investment value from property repurchased by previous owners; and the payment of relocation services and expenses for persons displaced by the transfer of the property to the condemning entity. The fiscal impact of these requirements is indeterminate because the number and type of condemnation proceedings to be conducted during the 2012-13 biennium is unknown.
Source Agencies: | 103 Legislative Council, 305 General Land Office and Veterans' Land Board, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 802 Parks and Wildlife Department, 304 Comptroller of Public Accounts, 601 Department of Transportation
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LBB Staff: | JOB, KY, KM, JI, SZ, KJG, TP
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