Division of the Budget
Landon State Office Building Phone: (785) 296-2436
900 SW Jackson Street, Room 504 adam.c.proffitt@ks.gov
Topeka, KS 66612 Division of the Budget http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor


February 14, 2024


The Honorable Kellie Warren, Chairperson
Senate Committee on Judiciary
300 SW 10th Avenue, Room 346-S
Topeka, Kansas 66612
Dear Senator Warren:
SUBJECT: Fiscal Note for SB 441 by Senate Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning SB 441 is
respectfully submitted to your committee.
SB 441 would create the Fairness in Condemnation Act. The bill would require the plaintiff
condemning authority to provide each owner of record of a condemned property with a written
notice concerning the intended condemnation at least 60 days before filing a condemnation
petition. The bill outlines the information the notice would have to include and how the notice
would be delivered. The bill would require the condemning authority to present a written offer to
each owner of record of the property at least 30 days before filing a condemnation petition. The
plaintiff condemning authority, at the time of the offer, would be required to provide the property
owner with an appraisal by a state certified or licensed appraiser or an explanation with supporting
financial data for its determination of the value of the property. The bill would require a district
court to make a finding that the condemning authority engaged in good faith negotiations prior to
filing the condemnation petition. The bill lists certain conditions the court would consider in
determining whether the condemning authority engaged in good faith negotiations. If a court finds
that good faith negotiations did not occur, the court would be required to dismiss the condemnation
petition and order the condemning authority to reimburse the owner for reasonable attorney fees
and costs.
The Department of Transportation (KDOT) indicates enactment of the bill would lead to
delays in certain projects as a result of the 60-day timeframe for condemnation petitions. Due to
inflation, the agency estimates that delays could increase project costs by as much as 4.5 percent
annually, which would significantly increase the costs of larger projects. The agency took a sample
of 13 prior KDOT projects in which property was acquired within 60 days of letting, and
construction costs for the combined projects totaled approximately $682.0 million. A delay of six
The Honorable Kellie Warren, Chairperson
Page 2—SB 441

months, for example, would bring that total to over $697.0 million. KDOT also notes that delays
in projects would have indirect economic effects on businesses and taxpayers. Further, if the good
faith negotiation requirements are not met, the condemnation petition would be dismissed without
prejudice, which would likely lead to an additional filling by KDOT and further costly delays. The
agency would also be responsible to reimburse property owners for attorney fees and costs
associated with failed petitions. KDOT indicates it is unlikely that the bill could be implemented
within its existing resources and staffing levels. However, a precise fiscal effect cannot be
estimated.
The Office of Judicial Administration indicates enactment of the bill could increase the
number of cases filed in district courts. This could increase the time spent by district court judicial
and nonjudicial personnel in processing, researching, and hearing cases. The bill could also result
in the collection of docket fees in cases filed under the provisions of the bill, which would be
deposited into the State General Fund. However, the Office indicates it cannot provide an accurate
estimate of the fiscal effect until the courts have had an opportunity to operate under the provisions
of the bill. Any fiscal effect associated with SB 441 is not reflected in The FY 2025 Governor’s
Budget Report.
The League of Kansas Municipalities indicates enactment of the bill would result in
increased costs to cities that carry out eminent domain proceedings. The costs would stem from
mailing additional individual notices and offers required by the bill. However, a precise fiscal
effect on cities cannot be estimated.
The Kansas Association of Counties states that enactment of the bill would increase costs
to county governments to utilize eminent domain for infrastructure projects, which could affect
the timeline or completion of such projects. However, a precise fiscal effect cannot be determined.

Sincerely,

Adam C. Proffitt
Director of the Budget

cc: Trisha Morrow, Judiciary
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties