This Fiscal Note is not an official copy and should not be quoted or cited.
Fiscal Note - SB 0210 - Sets Penalties For Abandoned Condemnation Proceedings

L.R. NO.  0774-01
BILL NO.  SB 210
SUBJECT:  Abandoned Condemnation Proceedings
TYPE:     Original
DATE:     January 28, 1997



                              FISCAL SUMMARY

                    ESTIMATED NET EFFECT ON STATE FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

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


                   ESTIMATED NET EFFECT ON FEDERAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
None

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


                    ESTIMATED NET EFFECT ON LOCAL FUNDS


FUND AFFECTED              FY 1998             FY 1999           FY 2000
Local Government         (Unknown)                  $0                $0


                              FISCAL ANALYSIS

ASSUMPTION

Officials from the Office of State Courts Administrator assume the proposed
legislation would not appreciably impact the workload or budget of the
judiciary.

Officials from the Department of Natural Resources (DNR) assume the proposed
legislation would not fiscally impact their agency because DNR uses
negotiation proceedings rather than condemnation.  Since DNR has the
authority to use condemnation, they recognize there could be a need to
incorporate these requirements into their proceedings at a later date.

Officials from the Missouri Department of Transportation (DOT) assume the
proposal could have a fiscal impact on DOT if a condemnation proceeding is
abandoned.  DOT assumes the actual impact would depend upon the number of
cases abandoned and the fees assessed against their agency.  However, DOT
rarely abandons condemnation proceedings and assumes that the fiscal impact
resulting from this proposal would be minimal.

Officials from the Missouri Department of Conservation and the Office of
Administration assume the proposal would have no fiscal impact on their
agencies.

In response to a similar proposal in a prior session, officials from the
County of St. Louis assumed they could have significant costs if they elected
to abandon condemnation proceedings more than thirty days after the filing of
a commissioner's report.  St. Louis County also noted that there could be
unusual circumstances that might cause some fiscal impact.  However, they
concluded that there would not be a significant fiscal impact on their
budget.

In response to a similar proposal in a prior session, officials from the City
of Kansas City assumed their office would experience costs in the amount of
$30,000 to $50,000 each year because they do occasionally abandon
condemnation proceedings after they are initiated.

Oversight assumes the proposal could result in unknown costs for the City of
Kansas City in FY 1998, but that any costs could be significantly reduced and
possibly eliminated in succeeding years if condemnation proceedings are more
thoroughly investigated and evaluated to determine the value of pursuing them
before legal action is initiated.

Officials from the City of St. Louis and the Jackson County Executive Office
did not respond to our fiscal impact request.


FISCAL IMPACT - State Government FY 1998   FY 1999   FY 2000
                                (10 Mo.)

                                      $0        $0        $0


FISCAL IMPACT - Local Government FY 1998   FY 1999   FY 2000
                                (10 Mo.)


LOCAL GOVERNMENTS

There could be some unknown costs for local governmental entities abandoning
condemnation proceedings in FY 1998.  Oversight assumes the proposal would
result in substantial compliance and there should be zero to minimal local
costs in FY 1999 and thereafter.


FISCAL IMPACT - Small Business

Small businesses involved in condemnation proceedings could be impacted by
this proposal as it would provide additional protection when proceedings are
abandoned.


DESCRIPTION

The proposal would allow attorney fees and other costs in a condemnation
action against a condemnor who abandons the action over thirty days after the
filing of the commissioner's report in certain situations.  The fees and
costs would be paid to the condemnee.  Any condemnor who abandons the
condemnation proceedings would be required to wait at least five years to
institute proceedings against the same property.

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 State Courts Administrator
Missouri Department of Conservation
Missouri Department of Transportation
Department of Natural Resources
Office of Administration


NOT RESPONDING:  City of St. Louis, St. Louis County, City of Kansas City,
and Jackson County.