Fiscal Note & Local Impact Statement
127 th General Assembly of Ohio
|
BILL: |
DATE: |
||||
|
STATUS: |
SPONSOR: |
||||
|
LOCAL IMPACT
STATEMENT REQUIRED: |
|
||||
·
No
direct fiscal effect on the state.
|
LOCAL
GOVERNMENT |
FY 2007 |
FY 2008 |
FUTURE YEARS |
|
|
Local Governments |
||||
|
Revenues |
- 0 - |
- 0 - |
- 0 - |
|
|
Expenditures |
Potential increase in
compensation costs for properties taken by eminent domain |
Potential increase in
compensation costs for properties taken by eminent domain |
Potential increase in
compensation costs for properties taken by eminent domain |
|
Note: For most local governments, the fiscal year is the calendar year. The school district fiscal year is July 1 through June 30.
·
Prohibits
public authorities from taking private properties for public use for the
purpose of increasing revenues.
·
Allows
properties to be taken by eminent domain in certain circumstances, and
establishes compensation guidelines for those takings. The new guidelines, which include provisions
for compensation property owners, may potentially result in higher costs when
eminent domain is invoked.
|
|
Provisions of the bill
The bill prohibits public
authorities from taking private property for a public use for the purpose of
increasing revenues for a public authority.
Public authorities may not use the potential revenues as evidence that
the property to be taken is blighted.
The bill also exempts agricultural lands from being designated as
blighted if the land is used for agricultural purposes as defined by section
303.01 or 519.01 of the Revised Code.
If a public agency acquires
any real property, it must include a statement of the purpose of the
appropriation and indicate that the prior owner possesses a right to repurchase
the property if the public agency decides not to use the land for the stated
purpose.
The bill also sets
restrictions as to what purposes that property claimed by eminent domain may be
used. No such property may be used for
any private commercial enterprise, economic development, or any other private
use unless that property is conveyed or leased to a public utility, a private
entity that occupies an incidental area within a publicly owned project, or a
private entity that shows a preponderance of evidence that the property is
blighted as defined in section 1.08 of the Revised Code. Once a public entity finds an area blighted,
it cannot appropriate the property until it adopts a comprehensive development
plan, and obtains a resolution from the appropriate governing legislative body.
Impact on political subdivisions
There is no immediate direct
fiscal impact on political subdivisions, but some local governments may
experience a loss of revenues in the future that may have been available were
they permitted to take certain private property through the use of eminent domain.
The bill also establishes
some compensation requirements for property taken by eminent domain. The bill requires that any public agency
compensate property owners for any moving or relocation costs, direct losses of
tangible property, reasonable expenses associated with searching for
replacement farms or businesses, and reasonable re-establishment costs. If the final award of compensation for
property exceeds 125% of the public agency's original offer, the court is to
enter judgment in favor of the owner for all costs and expenses.
Should a public agency take
a property through eminent domain, the compensation cost requirements set forth
in the bill could potentially exceed those that exist in current law, thereby
resulting in increased expenditures for the public takings.
LSC fiscal staff: Terry Steele, Budget Analyst