TO: | Honorable Robert Duncan, Chair, Senate Committee on State Affairs |
FROM: | John S O'Brien, Director, Legislative Budget Board |
IN RE: | SB18 by Estes (Relating to the use of eminent domain authority.), As Introduced |
There is an indeterminate fiscal impact to the state from the provisions of this bill due to the case by case nature of the requirements on future condemnation proceedings.
SB 18 would amend Government Code, Property Code, Transportation Code, and Water Code related to the scope and process of private property condemnation under the power of eminent domain. 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.
However, 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.
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 (page 16, line 12) and the creation of new standards for the determination of damages for access (page 20, line 21). 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 SB 18. These additional costs include: additional record keeping and document storage requirements (page 8, line 1); obligations to make offers for property at or above appraisal values (page 10, line 1); loss of investment value from property repurchased by previous owners (page 20, line 12); and the payment of relocation services and expenses for persons displaced by the transfer of the property to the condemning entity (page 15, line 13). 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, 304 Comptroller of Public Accounts, 305 General Land Office and Veterans' Land Board, 601 Department of Transportation, 710 Texas A&M University System Administrative and General Offices, 720 The University of Texas System Administration, 802 Parks and Wildlife Department
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LBB Staff: | JOB, KJG, JI, KY, TP
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