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(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