LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 7043 NOTE PREPARED: Jan 27, 2022
BILL NUMBER: SB 288 BILL AMENDED: Jan 27, 2022
SUBJECT: Eminent Domain by Public Utilities.
FIRST AUTHOR: Sen. Buchanan BILL STATUS: CR Adopted - 1
st
House
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) The bill defines a "pipeline company" and a "public utility" for
purposes of the statute governing the general procedures to be used in acquiring property by eminent domain.
It provides that in certain eminent domain actions filed by a public utility or a pipeline company after June
30, 2022:
(1) the report of the court appointed appraisers, including the amount of the court appointed
appraisers' assessment of damages upon which the defendant's exceptions are based; and
(2) the individual testimony of any of the court appointed appraisers; are admissible as evidence in
the proceedings, notwithstanding Indiana case law to the contrary.
The bill changes the amount of litigation expenses a court shall allow a defendant in any trial in an eminent
domain proceeding in which the amount of damages awarded to the defendant by the judgment is greater than
the amount specified in the plaintiff's last offer of settlement.
Effective Date: July 1, 2022.
Explanation of State Expenditures: (Revised) INDOT Legal Fees: This bill changes the maximum
attorney’s fees that can be awarded to a property owner by the court. The changes to the statute include that
a defendant’s litigation expenses, including reasonable attorney’s fees, can be compensated in an amount not
to exceed the greater of $50,000 or 1/3 of the fair market value of the property or easement. The overall
impact of these provisions may be significant for INDOT when engaged in eminent domain condemnation
cases. [From 2018 to 2020, INDOT settled all condemnation cases. No case was decided by a court.
Additionally, LSA has requested updated information for FY 2021 and will update this fiscal note
SB 288 1 accordingly.]
Explanation of State Revenues: Court Fee Revenue: If additional civil actions occur and court fees are
collected, revenue to the state General Fund may increase. A civil costs fee of $100 would be assessed when
a civil case is filed, 70% of which would be deposited in the state General Fund if the case is filed in a court
of record or 55% if the case is filed in a city or town court.
In addition, some or all of the judicial salaries fee ($20), public defense administration fee ($5), court
administration fee ($5), and the judicial insurance adjustment fee ($1) are deposited into the state General
Fund. The proceeds from the automated record keeping fee ($20) are deposited into the State User Fee Fund.
Additional fees may be collected at the discretion of the judge and depending upon the particular type of
case.
Explanation of Local Expenditures: (Revised) Legal Fees: This bill changes the maximum attorney’s fees
that can be awarded to a property owner by the court. The changes to the statute include that a defendant’s
litigation expenses including reasonable attorney’s fees can be compensated in an amount not to exceed the
greater of $50,000 or 1/3 of the fair market value of the property or easement. The overall impact of these
provisions may be significant for municipalities or municipal utilities when engaged in eminent domain
condemnation cases.
Explanation of Local Revenues: Court Fee Revenue: If additional civil actions occur, local governments
would receive revenue from the following sources. The county general fund would receive 27% of the $100
civil costs fee that is assessed in a court of record. Cities and towns maintaining a law enforcement agency
that prosecutes at least 50% of its ordinance violations in a court of record may receive 3% of court fees. If
the case is filed in a city or town court, 20% of the court fee would be deposited in the county general fund
and 25% would be deposited in the city or town general fund. Additional fees may be collected at the
discretion of the judge, depending upon the particular type of case.
Persons filing a civil case are also required to pay the following fees that are deposited in local funds.
The document storage fee ($5) is deposited into the clerk record perpetuation fund.
The following fees are deposited into the general fund of the county in which the court is located:
• Document fees ($1 per page) are charged for preparing transcripts or copies of record or certificate
under seal.
• A civil garnishee defendant service fee ($10) is collected from the filing party for each defendant
beyond the first three garnishee defendants cited in the lawsuit.
State Agencies Affected: INDOT.
Local Agencies Affected: Municipal utilities, municipalities, trial courts, city and town courts.
Information Sources: INDOT.
Fiscal Analyst: Olivia Smith, 317-232-9869.
SB 288 2