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The fiscal impact to the state would depend on the number of proceedings to which the bill would apply. There could be an indeterminate loss depending on the number of proceedings requiring the State to reimburse property owners for attorney's and professional fees.
There could be a negative fiscal impact associated with changes in procedures that would vary depending on the number of proceedings to which the bill would apply in which a local government entity would have to reimburse property owners for attorney's and professional fees.
During eminent domain proceedings, owners are typically forced to accept lower compensation for their land because they cannot afford the costs of litigation to challenge the offer.By requiring condemnors to cover the costs of attorney's fees and professional fees if the condemnor's offer is found to be significantly lower than the property value, property owners would be more likely to challenge offers and receive more fair compensation for their property.
In a normal free market scenario, a property owner selling his or her property would receive proper compensation determined by the market. This bill helps move eminent domain proceedings closer to a fair free market price, which is why it would positively impact the principle of a free market. Since SB 474 would also protect the right of a property owners to receive fair compensation for their property, the legislation would also positively impact the principle of property rights.
This bill would have a positive impact on the principle of a free market and the principle of property rights, therefore we support this legislation.