COMMITTEE ON LEGISLATIVE RESEARCH
OVERSIGHT DIVISION
FISCAL NOTE
L.R. No.: 4591-01
Bill No.: Perfected HB 1504
Subject: Roads and Highways; Transportation; Transportation Dept.
Type: Original
Date: March 16, 2004
FISCAL SUMMARY
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on General Revenue Fund |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on Other State Funds |
$0 | $0 | $0 |
Numbers within parentheses: ( ) indicate costs or losses.
This fiscal note contains 4 pages.
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Total Estimated
Net Effect on All Federal Funds |
$0 | $0 | $0 |
| FUND AFFECTED | FY 2005 | FY 2006 | FY 2007 |
| Local Government | $0 | $0 | $0 |
ASSUMPTION
Officials from the Office of State Courts Administrator stated this proposal would have no fiscal impact on the Courts.
Officials from the Department of Transportation (MoDOT) assume this proposal would require jurors to consider loss of access when awarding condemnation damages. They state that this is contrary to current law and practice in which the fair market value is considered before and after the taking. Typically, particularly in urban areas, damages awarded for loss of access represents a large portion of the ultimate costs of acquiring the right of way for completion of highway projects. Recent awards in the St. Louis area have resulted in the right of way cost increasing from $1,000,000 to $5,000,000, on a single commercial tract.
MoDOT further assumes the proposal would also direct appraisers, commissioners, and jurors to "consider" loss of direct access, including the prohibition of making right or left turns into or out of a property, in assessing damages. This expansion of the parameters for inclusion of damages is anticipated to lead to greater condemnation awards. The fiscal impact on MoDOT would be significant, however the amount is unknown.
Based on information provided by MoDOT, Oversight assumes MoDOT appraisers are trained as part of policy and procedure to consider loss of access damages with regard to highest and best
ASSUMPTION (continued)
use when performing an appraisal. Condemnation commissioners and juries are also directed to consider damages due to loss of access when formulating their awards in conjunction with realistic highest and best use of the property. Loss of access has always been compensable if it affects the ability of the owner to develop and operate his/her land for its highest and best use. Damages awarded for loss of access already represent a large portion of the ultimate costs of acquiring right of way for completion of highway projects in urban areas. Oversight assumes the unknown negative fiscal impact is speculation on the potential secondary effects of this proposal and no direct fiscal impact was noted.
| FISCAL IMPACT - State Government | FY 2005 | FY 2006 | FY 2007 |
| $0 | $0 | $0 |
| FISCAL IMPACT - Local Government | FY 2005 | FY 2006 | FY 2007 |
| $0 | $0 | $0 |
FISCAL IMPACT - Small Business
No direct fiscal impact to small businesses would be expected as a result of this proposal.
DESCRIPTION
This proposal requires that when the Missouri Highways and Transportation Commission acquires real estate through eminent domain the restriction or loss of access to any adjacent highway be considered when assessing damages. "Restriction or loss of access" includes the prohibition of making right or left turns into or out of the real estate involved, if access was present before the proposed improvement was built.
The proposal contains an emergency clause.
This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.
SOURCES OF INFORMATION
Department of Transportation
Office of State Courts Administrator
Mickey Wilson, CPA
Director
March 16, 2004