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 6578 NOTE PREPARED: Dec 21, 2023 BILL NUMBER: SB 155 BILL AMENDED: SUBJECT: Compensation for Business Losses. FIRST AUTHOR: Sen. Buck BILL STATUS: As Introduced FIRST SPONSOR: FUNDS AFFECTED:XGENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: This bill provides that a person operating a business on a property may be compensated for business losses resulting from a condemnation of the property. It provides that a municipality may not acquire property using an alternative condemnation procedure if the municipality is notified of the person's intent to claim compensation for business losses. Effective Date: Upon passage. Explanation of State Expenditures: Explanation of State Revenues: Court Fee Revenue: If additional civil cases pertaining to eminent domain for loss of going concern occur and court fees are collected, revenue to the state General Fund will increase. The total revenue per case would range between $100 and $122. The amount deposited will vary depending on whether the case is filed in a court of record or a municipal court. The following linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims cases. Explanation of Local Expenditures: This bill expands the circumstances under which a property owner can claim compensation for losses due to an eminent domain condemnation. This bill’s provisions may result in an increase a municipality’s costs associated with eminent domain condemnation proceedings and increase the likelihood that, after property has been taken through condemnation, a property owner will bring suit against the municipality. The overall impact of these provisions could be significant for municipalities engaged in eminent domain condemnations but the actual fiscal impact will vary from case to case and be contingent on the compensation for loss of value ultimately awarded to a property owner for their going SB 155 1 concern. Civil Actions: This bill may increase the number of civil suits filed in Indiana courts, creating an increase in workload for the courts system. This additional workload is within the system’s routine administrative functions and should be able to be met with no additional appropriations, assuming near customary agency staffing and resource levels. Explanation of Local Revenues: Court Fee Revenue: If additional civil cases pertaining to eminent domain for loss of going concern occur, revenue will be collected by certain local units. If the case is filed in a court of record, the county will receive $32 and qualifying municipalities will receive a share of $3. If the case is filed in a municipal court, the county receives $20, and the municipality will receive $37. The following linked document describes the fees and distribution of the revenue: Court fees imposed in civil, probate, and small claims cases. State Agencies Affected: Local Agencies Affected: Municipalities; Trial courts, city and town courts. Information Sources: Indiana Supreme Court, Indiana Trial Court Fee Manual Fiscal Analyst: James Johnson, 317-232-9869. SB 155 2