Fiscal Note & Local Impact Statement
126 th General Assembly of Ohio
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BILL: |
DATE: |
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STATUS: |
SPONSOR: |
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LOCAL IMPACT
STATEMENT REQUIRED: |
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STATE FUND |
FY 2006 |
FY 2007 |
FUTURE YEARS |
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General Revenue Fund |
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Revenues |
Potential temporary loss |
- 0 - |
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Expenditures |
Increase due to Task Force
funding; potential reduction in project acquisition costs |
Increase due to Task Force
funding; potential reduction |
- 0 - |
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Other State Funds |
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Revenues |
Potential temporary loss |
Potential temporary loss |
- 0 - |
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Expenditures |
Potential reduction in
project acquisition costs |
Potential reduction in |
- 0 - |
Note: The state
fiscal year is July 1 through June 30.
For example, FY 2006 is July 1, 2005 – June 30, 2006.
·
The
bill places a moratorium on the use of eminent domain resulting in the
development of unblighted property by private parties until December 31,
2006. Such projects under consideration
that would require the use of eminent domain to acquire the necessary property
will be delayed, which could in turn, delay any potential property or sales tax
revenues that would have resulted from such projects.
·
The
creation of the Legislative Task Force to Study Eminent Domain and Its Impact
on Land Use Planning will result in increased expenditures for meetings and the
production of its report of findings.
The task force consists of 25 members representing the General Assembly,
as well as various local and private groups.
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LOCAL
GOVERNMENT |
FY 2006 |
FY 2007 |
FUTURE YEARS |
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Counties |
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Revenues |
Potential temporary loss |
Potential temporary loss |
- 0 - |
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Expenditures |
Potential reduction in
project acquisition costs |
Potential reduction in
project acquisition costs |
- 0 - |
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Other Local Governments |
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Revenues |
Potential temporary loss |
Potential temporary loss |
- 0 - |
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Expenditures |
Potential reduction in
project acquisition costs |
Potential reduction in
project acquisition costs |
- 0 - |
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Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
The
bill places a moratorium on the use of eminent domain in certain economic
development projects until December 31, 2006.
Current projects under consideration requiring the use of eminent domain
to acquire the necessary property will be delayed, which could in turn, delay
any property tax or sales tax revenues that would have resulted from such
projects.
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The bill places a moratorium
on the use of eminent domain in certain circumstances until December 31,
2006. Specifically, any entity of the
state or any political subdivision, during this time, may not take without the
owner’s consent, private property that is in an unblighted area when the
primary purpose for taking the property is economic development that will
ultimately result in ownership of the property being vested in another private
person or entity. This moratorium could
potentially delay anticipated revenues for the state or any political subdivisions
that had anticipated acquiring property through eminent domain for the purpose
of economic development. There would
also be a temporary hold while the moratorium is in effect on any expenditure
that would have been necessary to acquire the property as well.
The bill also creates the
Legislative Task Force to Study Eminent Domain and Its Impact on Land Use
Planning. The task force will be
responsible for studying three facets of eminent domain. The first is the use of eminent domain and
its impact on land use planning in the state.
Second, the task force will examine the Kelo v. City of New London
court decision, and its effects on state law governing the use of eminent
domain. The final area to be studied is
the overall impact of state law governing the use of eminent domain on land use,
economic development, residents, and local governments in Ohio. The task force will be comprised of 24
members. A detailed list of the members
of this task force can be found in the LSC bill analysis. The task force must
prepare and submit a report to the General Assembly by April 1, 2006, including
the findings of the study and any recommendations concerning the use of eminent
domain. Any costs associated with
conducting this study as well as the preparation and dissemination of the
report will be paid by the House and Senate, from the GRF.
LSC fiscal staff: Terry Steele, Budget Analyst