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





SPONSOR: SCORC DATE TYPED: 2/15/00 HB
SHORT TITLE: Eminent Domain Over State Property SB CS475/aSCORC
ANALYST: Valenzuela


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY00 FY01 FY00 FY01
$ 40.0 Recurring General Fund



(Parenthesis ( ) Indicate Expenditure Decreases)



Duplicates/Conflicts with/Companion to/Relates to



SOURCES OF INFORMATION



LFC Files

State Land Office



SUMMARY



Synopsis of the Amendment



The amendment allows private railroads and telecommunications companies the ability to condemn state trust land.



Synopsis of Bill



The Senate Corporations and Transportation Committee substitute for Senate Bill 475 appropriates $40.0 to the State Land Office to pay costs associated with eminent domain proceedings. The bill would give private railroads and telecommunications companies the ability to condemn state property.



Significant Issues



According to the State Land Office, the bill would permit the assets of the trust to be depleted by allowing the condemnation of fee simple title to State Trust Lands (including surface and mineral rights) by private railroad and telecommunications companies and by allowing the condemnation of easements across State Trust Lands by such companies. Additionally, the bill would deprive the State Trust Land beneficiaries of ongoing revenues, which are collected from railroad and telecommunications companies for easements across State Trust Lands.



FISCAL IMPLICATIONS



The bill contains an appropriation of $40.0 to provide for increased operational costs associated with the provisions of the bill. The bill would substantially increase the legal and appraisal costs of the State Land Office as a result of the additional workload from condemnation proceedings.



MFV/njw