TITLE: CONCERNING THE REMEDIES AVAILABLE TO PROPERTY OWNERS FOR VIOLATION OF CONSTITUTIONAL REAL PROPERTY RIGHTS BY GOVERNMENTAL ENTITIES.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund Cash Fund
State Expenditures General Fund Cash Fund
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: None
Effective Date: September 1, 1999 unless a referendum petition is filed and approved
Appropriation Summary for FY 1999-2000: None
Local Government Impact: Increase in local government's legal and operating costs

The bill allows a prevailing party in a legal proceeding involving a constitutional property right violation including eminent domain, rights-of-way, or any other regulatory power exercised by a governmental entity, including the state, state agencies, counties, municipalities, and other political subdivisions, to recoup reasonable attorney fees and costs from such governmental entity. The bill, as amended by the Senate State, Veterans, and Military Affairs Committee, February 3, 1999, makes exception to cases arising under the eminent domain statutes, Articles 1 to 7 of Title 38 and clarifies that the provisions apply to a real property right. These changes eliminate the previously identified state dollar fiscal impact.

Constitutional Takings. Since 1981, four cases of constitutional takings have been filed against state agencies. The Office of the Attorney General, Department of Law, has successfully defended the state in all of these cases. While the law regarding takings continues to evolve in the courts, the number of takings cases which would likely be filed in Colorado under current law is relatively small. The number of cases in which the private property owner would likely prevail is even smaller. Nonetheless, in any case in which a private property owner would prevail, the state would be liable for the property owner’s attorney fees and costs. The total costs to the state are conditional on private property owners filing and prevailing in a legal proceeding against the state.

The fiscal impact to local governments would arise from a property owner initiating a legal proceeding involving the violation of a property right and prevailing in the proceeding. The local government would be required to reimburse the private property owner reasonable attorney fees and costs in cases where the local government did not prevail. The amount of additional expense which a local governmental entity would incur would vary widely. The total cost to local governments is conditional on private property owners filing a legal proceeding and prevailing, and cannot be accurately estimated at this time.

This fiscal note implies that no additional state appropriation would be required.