SB 0737 - Fiscal Note

Fiscal Note - SB 0737 - Changes Governmental Liabilities in Condemnation Procedures

L.R. NO.  1763-01
BILL NO.  SB 737
SUBJECT:  Property, Real and Personal
TYPE:     Original
DATE:     January 17, 1996



                              FISCAL SUMMARY
                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
NONE

Total Estimated
Net Effect on All
State Funds                     $0                  $0                $0

                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
NONE

Total Estimated
Net Effect on All
Federal Funds                   $0                  $0                $0

                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1997             FY 1998           FY 1999
Local Government         (Unknown)                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of the State Courts Administrator (CTS) assume the
proposed legislation would not have a significant fiscal impact on the
workload of the judiciary.

Officials from the City of Kansas City (CKC) assumed in a response to an
identical proposal from the previous legislative session that it would bring
costs to the CKC between $30,000 to $50,000 each year because CKC does
occasionally abandon condemnation proceedings after they are begun.  The
reference to "other damages" in Section 523.045 increases substantially the
fiscal impact on CKC.

Oversight assumes that first year costs would be incurred but that costs
could be significantly reduced and possibly eliminated for CKC in succeeding
fiscal years if condemnation proceedings are more thoroughly investigated and
evaluated to determine the value of pursuing them.  This would eliminate the
need to abandon such proceedings and thereby incur the costs delineated in
the proposed legislation.  By complying with the proposed legislation,
therefore, no costs would be incurred by CKC.

Officials from the Department of Natural Resources (DNR) assume the proposed
legislation would not fiscally impact their department because DNR uses
negotiation proceedings rather than condemnation.  Since DNR has the
authority to use condemnation, the department recognizes the need to
incorporate these requirements into those proceedings.

Officials from the Department of Highways and Transportation (DHT) assumes
the fiscal impact from the proposed legislation would be minimal because DHT
very rarely abandons condemnation proceedings.  The actual impact would
depend on the number of cases abandoned and the fees assessed against DHT.

Oversight would assume that given the strong nature of the penalty provisions
of the bill for abandoning condemnation proceedings, DHT would attempt
thoroughly investigate and evaluate condemnation proceedings to avoid having
to abandon the proceeding at a later date.  This would, naturally, reduce
costs that would be normally incurred from this proposal.

Officials from the Missouri Department of Conservation (MDC) assume the
proposed legislation would not fiscally impact their department since MDC
does not condemn property.

Officials from the County of St. Louis (SLC) assumed in response to an
identical proposal from a previous legislative session that it could have
significant costs if SLC elects to abandon condemnation proceedings more than
thirty days after the filing of a commissioner's report.

Further, there could also be unusual circumstances that might cause some
fiscal impact.  However, SLC officials assume the constraints imposed by the
bill would not have a significant fiscal impact on their budget.

Officials from the City of St. Louis - Budget Division did not respond to our
fiscal impact request.


FISCAL IMPACT - State Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

                                       0         0         0


FISCAL IMPACT - Local Government FY 1997   FY 1998   FY 1999
                                (10 Mo.)

LOCAL GOVERNMENTS
There would probably be some first year costs for local government entities
abandoning condemnation proceedings.  Any estimate of costs would be
speculative and is therefore, unknown.  After the first year, Oversight
assumes there would be substantial compliance with the new laws and therefore
no substantial additional costs in order to avoid the harsh penalty
provisions for abandonment.


DESCRIPTION

The proposed legislation would award to condemnees actual and necessary
costs, including reasonable attorney, appraisal and engineering fees and
other damages incurred by the condemnee because of the condemnation
proceeding when the condemnor elects to abandon condemnation proceedings.

Once condemnation proceedings are abandoned, proceedings for condemnation of
the same property shall not be instituted again within five years from the
date of such abandonment.

This legislation is not federally mandated, would not duplicate any other
program and would not require additional capital improvements or rental
space.





SOURCES OF INFORMATION

Office of the State Courts Administrator
Missouri Department of Conservation
Department of Highways and Transportation
Department of Natural Resources
County of St. Louis

NOT RESPONDING - City of St. Louis - Budget Division, St. Louis County, City
of Kansas City