Fiscal Note & Local Impact Statement

126 th General Assembly of Ohio

Ohio Legislative Service Commission

77 South High Street, 9th Floor, Columbus, OH 43215-6136 ˛ Phone: (614) 466-3615

˛ Internet Web Site: http://www.lsc.state.oh.us/

BILL:

Sub. S.B. 167

DATE:

October 26, 2005

STATUS:

As Reported by House Civil and Commercial Law

SPONSOR:

Sen. Grendell

LOCAL IMPACT STATEMENT REQUIRED:

No —

Minimal cost

 


CONTENTS:

To establish, until December 31, 2006, a moratorium on the use of eminent domain in certain circumstances by any entity of the state government or any political subdivision and to create the Legislative Task Force to Study Eminent Domain; declares an emergency

 

State Fiscal Highlights

 

STATE FUND

FY 2006

FY 2007

FUTURE YEARS

General Revenue Fund

     Revenues

Potential temporary loss

Potential temporary loss

- 0 -

     Expenditures

Increase due to Task Force funding; potential reduction in project acquisition costs

Increase due to Task Force funding; potential reduction
in project acquisition costs

- 0 -

Other State Funds

     Revenues

Potential temporary loss

Potential temporary loss

- 0 -

     Expenditures

Potential reduction in project acquisition costs

Potential reduction in
project acquisition costs

- 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.


Local Fiscal Highlights

 

LOCAL GOVERNMENT

FY 2006

FY 2007

FUTURE YEARS

Counties

     Revenues

Potential temporary loss

Potential temporary loss

- 0 -

     Expenditures

Potential reduction in project acquisition costs

Potential reduction in project acquisition costs

- 0 -

Other Local Governments

     Revenues

Potential temporary loss

Potential temporary loss

- 0 -

     Expenditures

Potential reduction in project acquisition costs

Potential reduction in project acquisition costs

- 0 -

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.

 


 

Detailed Fiscal Analysis

 

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

 

SB0167HR/lb