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 26, 2024


The Honorable Susan Humphries, Chairperson
House Committee on Judiciary
300 SW 10th Avenue, Room 582-N
Topeka, Kansas 66612
Dear Representative Humphries:
SUBJECT: Fiscal Note for HB 2691 by House Committee on Judiciary
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2691 is
respectfully submitted to your committee.
HB 2691 would increase the statutory compensation for private property taken by eminent
domain for electric transmission lines. If the entire tract of land is taken, the compensation would
be the fair market value of the property, multiplied by 150.0 percent. If only a part of a tract of
land is taken, the compensation would be the greater of: (1) the difference between the fair market
value of the entire property before the taking and the value of the portion remaining after the taking,
multiplied by 150.0 percent, or (2) the fair market value of the of the property taken, multiplied by
150.0 percent.
The Department of Transportation (KDOT) indicates enactment of the bill could increase
the compensation given to public utilities by KDOT through eminent domain who are forced to
relocate electric transmission lines due to KDOT highway projects. In calendar year 2023, KDOT
had 37 projects which required utility relocation. Of those 37 projects, 25 involved the relocation
of electric transmission lines. The combined expense for the compensation associated with these
relocations totaled $742,292. A 150.0 percent increase in these projects would increase the
eminent domain compensation to approximately $1,113,438, an increase of $371,146. KDOT
notes that landowners could assert that because property acquired by KDOT through eminent
domain could eventually be used to house electric transmission lines, the amount given in just
compensation should be increased by 150.0 percent. In addition, if public utilities relocate electric
transmission lines to private property through eminent domain, KDOT’s reimbursement amounts
to acquire those properties would also increase by 150.0 percent. While the bill would increase
expenditures to KDOT, it states that it is unlikely that additional staff would be required.
The Office of Judicial Administration indicates enactment of the bill would have a
negligible fiscal effect that could be absorbed within existing resources.
The Honorable Susan Humphries, Chairperson
Page 2—HB 2691

The Office of the Attorney General and the Kansas Corporation Commission indicate
enactment of the bill would not have a fiscal effect on either of the agencies. Any fiscal effect
associated with HB 2691 is not reflected in The FY 2025 Governor’s Budget Report.
The League of Kansas Municipalities states enactment of the bill could affect cities that
qualify as a public utility under state law. The League notes that cities would qualify if they
provide utility services more than three miles outside the corporate limits of the city. If one such
city would choose to acquire property by eminent domain for transmission lines in its
extraterritorial service area, its costs would increase significantly. However, a precise fiscal effect
cannot be estimated.
The Kansas Association of Counties states enactment of the bill could increase
expenditures to counties if additional litigation is required regarding fair market value for
transmission line sites taken through eminent domain. However, a precise fiscal effect cannot be
estimated.

Sincerely,

Adam C. Proffitt
Director of the Budget


cc: Trisha Morrow, Judiciary
William Hendrix, Office of the Attorney General
Peter Barstad, Kansas Corporation Commission
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties


Statutes affected:
As introduced: 26-513