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 http://budget.kansas.gov
Adam C. Proffitt, Director Laura Kelly, Governor
Division of the Budget
February 26, 2025
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 2187 by Representative Fairchild, et al.
In accordance with KSA 75-3715a, the following fiscal note concerning HB 2187 is
respectfully submitted to your committee.
HB 2187 would require agencies filing certain petitions for eminent domain takings to
provide notice to the owner of the property at least 30 days prior to filing a petition. The bill would
specify that if an agency makes a subsequent offer prior to the filing of the petition that is a greater
amount than the initial good faith offer, the subsequent greater amount would be the minimum
award of compensation for the property. The bill would define “agency” to mean state agencies,
municipalities, public utilities, and other entities. The bill would specify that “public use” does
not include the use of property for recreational trails. The bill would remove language in statute
authorizing the Legislature to take land through eminent domain for private economic
development purposes. The bill would also require a petition for eminent domain takings to
include clear and convincing evidence that the taking is necessary, for a public use, and that the
agency has authority for the taking.
Estimated State Fiscal Effect
FY 2025 FY 2026 FY 2027
Expenditures
State General Fund -- -- --
Fee Fund(s) $106,081 $20,065,725 $20,065,725
Federal Fund -- -- --
Total Expenditures $106,081 $20,065,725 $20,065,725
Revenues
State General Fund -- -- --
Fee Fund(s) -- -- --
Federal Fund -- -- --
Total Revenues -- -- --
FTE Positions 8.00 8.00 8.00 The Honorable Susan Humphries, Chairperson
Page 2—HB 2187
The Kansas Department of Transportation (KDOT) indicates enactment of the bill would
increase the required legal standard of proof for the condemning authority to show that each taking
is necessary and for a public purpose, which would require the courts to state that KDOT has
fulfilled these requirements. KDOT estimates that these requirements would increase the number
of tracts on each project that fail to settle and must go through the condemnation process. In the
acquisition process, KDOT engages in negotiations with landowners to identify potential issues
with design or construction, or potential damages. KDOT works with landowners in good faith to
reach an acquisition value that is acceptable to all. If negotiations fail, the landowner may go to
condemnation but risks the court appraisers returning a value lower than the one negotiated for
with KDOT. KDOT indicates that this risk incentivizes landowners to actively engage in
negotiations with KDOT. KDOT states that enactment of the bill would remove this incentive and
would require the agency to expend resources as though landowners were actively pursuing
condemnation as a result of failed negotiations.
KDOT indicates that enactment of the bill would increase expenditures by $106,081 from
the State Highway Fund to add 8.00 positions in FY 2025 to handle the increased workload. Of
this amount, $32,804 would be for 2.00 Attorney positions, $34,493 would be for 3.00 Paralegal
positions, $38,784 would be for 3.00 Right of Way Agent positions. The FY 2025 amounts reflect
expenditures for the last two months of the fiscal year. KDOT states it would need to hire the
positions prior to the bill becoming effective to prepare for the increased workload. Beginning in
FY 2026, KDOT estimates enactment of the bill would increase expenditures by $20,065,725 for
the 8.00 positions as well as condemnation costs. Of this amount, $644,261 would be for the 8.00
additional positions and $19,421,464 would be for additional condemnation costs, including
estimated tract awards and appraiser’s fees. KDOT states that currently, an average of
approximately 40 tracts go to condemnation per year and approximately 283 tracts are purchased
through eminent domain. The FY 2026 estimate assumes that all 283 tracts would go to
condemnation, which would increase IKE Program project costs for land acquisition and other
costs. To calculate the condemnation costs, KDOT sampled projects from the last five years that
had at least one tract complete the condemnation process in its entirety. Base numbers of tracts
settled and condemned, and their actual offers and awards, were averaged to gauge a per-tract cost
in order to estimate a speculative cost had all tracts been condemned. KDOT notes that the
estimates do not account for inflation, the costs of delaying projects, or the costs of potential safety
concerns that could not be addressed timely as a result of project delays. KDOT also indicates the
estimate does not include the costs of traveling to hearings, lodging, per diem, appraiser’s fees for
testifying on KDOT’s behalf, or outside counsel costs. KDOT notes that expenditures for
condemnations could be handled within existing fund limitations, but that expenditures for the
8.00 positions would require an increase to the agency operations expenditure limitation of
$106,081 in FY 2025 and $644,261 in FY 2026.
The Office of Judicial Administration indicates enactment of the bill would have a minimal
fiscal effect that could be absorbed within existing resources. The Kansas Corporation
Commission and the Citizens’ Utility Ratepayer Board indicate enactment of the bill would not
have a fiscal effect. Any fiscal effect associated with HB 2187 is not reflected in The FY 2026
Governor’s Budget Report.
The Honorable Susan Humphries, Chairperson
Page 3—HB 2187
The League of Kansas Municipalities and the Kansas Association of Counties indicates
enactment of the bill would not have a fiscal effect on cities or counties.
Sincerely,
Adam C. Proffitt
Director of the Budget
cc: Lynn Retz, Kansas Corporation Commission
Shonda Rabb, Citizens Utility Ratepayer Board
Wendi Stark, League of Kansas Municipalities
Jay Hall, Kansas Association of Counties
Brendan Yorkey, Department of Transportation
Trisha Morrow, Judiciary