LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 26, 2009 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1023 by Ogden (Relating to the exercise of eminent domain authority.), As Introduced The amount of additional costs and overall negative fiscal impact to a condemner under theprovisions of the bill would vary by condemner and by case, and therefore the fiscal impact to the state cannot be estimated. The bill would amend Chapter 2206, Government Code, to require an entity that exercises the power of eminent domain to obtain a property interest that is less than fee simple title to use the means that is the least intrusive for the property owner for achieving the purpose for which the interest is obtained. The court in which the property interest was condemned would maintain continuing jurisdiction, and an affected property owner would be authorized to petition the court for injunctive relief at any time. The bill would amend Chapter 21 of the Property Code to require the condemner to prove the necessity and minimal intrusiveness of the exercise of eminent domain, and if the condemning entity fails to prove any of the required facts, the court would be required to deny the condemnation and award to the property owner the owner's court costs and reasonable attorney's fees incurred in relation to the condemnation proceeding. The fiscal implication to the state would depend on the number of applicable condemnation events and whether the court was to determine that the state failed to prove it had met the requirements related to proof of necessity and minimal intrusiveness. Because of the number of unknown variables, the costs associated with implementing provisions of the bill cannot be estimated; however, based on assumptions by the Texas Department of Transportation, is is assumed the costs could be significant. Local Government Impact The fiscal implication to units of local government would depend on the number of applicable condemnation events and whether the court was to determine that the entity failed to prove it had met the requirements related to proof of necessity and minimal intrusiveness. Because of the number of unknown variables, the costs associated with implementing provisions of the bill cannot be estimated. Source Agencies:601 Department of Transportation LBB Staff: JOB, KJG, DB LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 81ST LEGISLATIVE REGULAR SESSION April 26, 2009 TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE:SB1023 by Ogden (Relating to the exercise of eminent domain authority.), As Introduced TO: Honorable Robert Duncan, Chair, Senate Committee on State Affairs FROM: John S. O'Brien, Director, Legislative Budget Board IN RE: SB1023 by Ogden (Relating to the exercise of eminent domain authority.), As Introduced Honorable Robert Duncan, Chair, Senate Committee on State Affairs Honorable Robert Duncan, Chair, Senate Committee on State Affairs John S. O'Brien, Director, Legislative Budget Board John S. O'Brien, Director, Legislative Budget Board SB1023 by Ogden (Relating to the exercise of eminent domain authority.), As Introduced SB1023 by Ogden (Relating to the exercise of eminent domain authority.), As Introduced The amount of additional costs and overall negative fiscal impact to a condemner under theprovisions of the bill would vary by condemner and by case, and therefore the fiscal impact to the state cannot be estimated. The amount of additional costs and overall negative fiscal impact to a condemner under theprovisions of the bill would vary by condemner and by case, and therefore the fiscal impact to the state cannot be estimated. The bill would amend Chapter 2206, Government Code, to require an entity that exercises the power of eminent domain to obtain a property interest that is less than fee simple title to use the means that is the least intrusive for the property owner for achieving the purpose for which the interest is obtained. The court in which the property interest was condemned would maintain continuing jurisdiction, and an affected property owner would be authorized to petition the court for injunctive relief at any time. The bill would amend Chapter 21 of the Property Code to require the condemner to prove the necessity and minimal intrusiveness of the exercise of eminent domain, and if the condemning entity fails to prove any of the required facts, the court would be required to deny the condemnation and award to the property owner the owner's court costs and reasonable attorney's fees incurred in relation to the condemnation proceeding. The fiscal implication to the state would depend on the number of applicable condemnation events and whether the court was to determine that the state failed to prove it had met the requirements related to proof of necessity and minimal intrusiveness. Because of the number of unknown variables, the costs associated with implementing provisions of the bill cannot be estimated; however, based on assumptions by the Texas Department of Transportation, is is assumed the costs could be significant. The bill would amend Chapter 2206, Government Code, to require an entity that exercises the power of eminent domain to obtain a property interest that is less than fee simple title to use the means that is the least intrusive for the property owner for achieving the purpose for which the interest is obtained. The court in which the property interest was condemned would maintain continuing jurisdiction, and an affected property owner would be authorized to petition the court for injunctive relief at any time. The bill would amend Chapter 21 of the Property Code to require the condemner to prove the necessity and minimal intrusiveness of the exercise of eminent domain, and if the condemning entity fails to prove any of the required facts, the court would be required to deny the condemnation and award to the property owner the owner's court costs and reasonable attorney's fees incurred in relation to the condemnation proceeding. The fiscal implication to the state would depend on the number of applicable condemnation events and whether the court was to determine that the state failed to prove it had met the requirements related to proof of necessity and minimal intrusiveness. Because of the number of unknown variables, the costs associated with implementing provisions of the bill cannot be estimated; however, based on assumptions by the Texas Department of Transportation, is is assumed the costs could be significant. Local Government Impact The fiscal implication to units of local government would depend on the number of applicable condemnation events and whether the court was to determine that the entity failed to prove it had met the requirements related to proof of necessity and minimal intrusiveness. Because of the number of unknown variables, the costs associated with implementing provisions of the bill cannot be estimated. Source Agencies: 601 Department of Transportation 601 Department of Transportation LBB Staff: JOB, KJG, DB JOB, KJG, DB