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F I S C A L   I M P A C T   R E P O R T

 

 

 

SPONSOR:

Luna

 

DATE TYPED:

01/28/03

 

HB

129

 

SHORT TITLE:

Condemnation for Sewer Facilities

 

SB

 

 

 

ANALYST:

Valenzuela

 

APPROPRIATION

 

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY03

FY04

FY03

FY04

 

 

 

NFI

 

 

 

 

 

 

 

 

 

 

(Parenthesis ( ) Indicate Expenditure Decreases)

 

SOURCES OF INFORMATION

 

LFC Files

Department of Environment

Office of the Attorney General

 

SUMMARY

 

     Synopsis of Bill

 

House Bill 129 amends Section 3-26-1 of the Municipal Code regarding condemnation of private lands for sanitary sewer systems. The bill would impose certain criteria on municipalities before asserting its powers under eminent domain for condemnation of private property. These conditions require the municipality to seek the State Engineer determination that water rights appurtenant to the land being condemned have been severed, that no suitable land exits in the public domain, that the municipality has no other alternatives than condemnation, and that condemnation is the most economical alternative.

 

HB 129 also makes minor changes to the existing statute.

 

     Significant Issues

 

The bill would limit the authority of municipalities in exercising its powers under eminent domain. These conditions could likely extend the length of time and increase the cost of condemnation. To comply with the first condition, the municipality would have to wait until the private landowner received approval from the State Engineer to transfer the water rights appurtenant with the land. According to the Environment Department, the second requirement, regarding land in the public domain, would require the municipality to pursue state and federal lands for which they exercise no control and which could involve time-consuming  environmental reviews. 

 

FISCAL IMPLICATIONS

 

HB129 does not contain an appropriation. Enactment would not have an administrative or fiscal impact on any state agency. Any administrative burden, likely, would be shouldered by municipalities, who would be required to demonstrate its compliance with these new criteria.

 

Because water rights will  not be included in the condemnation, the market price paid to the private landowner may decrease.

 

MFV/njw