Date Requested: February 23, 2021
Time Requested: 12:40 PM
Agency: Transportation, WV Department of
CBD Number: Version: Bill Number: Resolution Number:
2781 Introduced SB400
CBD Subject:


State Road Fund

Sources of Revenue:

Special Fund

Legislation creates:

Increases Revenue From Existing Sources

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

Summarize in a clear and concise manner what impact this measure will have on costs and revenues of state government. The West Virginia Division of Highways (DOH) supports the passage of SB400 as it will substantially reduce the current interest rate obligation associated with condemnation actions and ensure that future interest obligations in condemnation proceedings are consistent with other civil actions. Specifically, the bill will reduce expenses associated with the taking of property that is necessary for the design, development, and construction of roadway projects. Further, it is anticipated that the reduction in interest obligations as proposed in the bill will promote revenue enhancement that can be used for the development of additional roadway projects.

Fiscal Note Detail

Effect of Proposal Fiscal Year
Fiscal Year
(Upon Full
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 1,000,000 1,000,000 1,000,000

Explanation of above estimates (including long-range effect):

Please explain increases and decreases in personal services, current expenses, repairs and alterations, assets, other costs and revenues, including assumptions and data sources and delineation between start-up and ongoing costs. Please also include a long-range schedule of costs and revenues if fiscal impact is expected to vary in future years. Existing law imposes a 10 percent annual interest obligation on certain condemnation awards. The bill proposes to reduce the current interest obligation to 4.5% for Calendar Year 2021 and thus the bill will reduce the DOH’s interest obligation by 5.5 percent until the interest rate is otherwise amended by the West Virginia Supreme Court. While it is a challenge to predict the precise amount of the reduction in the Division of Highway’s future interest obligations due to the uncertain nature of property management negotiations and the necessity for condemnation litigation, historical data reflects that almost 100 condemnation cases were closed between 2018 and 2020. Although case size varies, it is estimated that the DOH’s interest obligation would have been reduced in excess of $1 million each year. Looking forward, because we cannot predict the number of condemnation cases that will be closed largely because of uncertainty about the number of cases that will require condemnation litigation, it is anticipated the influx of condemnation cases as a result of the Governor’s Road to Prosperity Program will increase significantly. As such, it is anticipated that the bill will reduce the Division’s interest obligation to historic levels that should promote further additional revenue enhancement for future roadway projects.


Please identify any areas of vagueness, technical defects, reasons a bill would not have a fiscal impact, and/or any special issues not captured elsewhere on this form.

    Person submitting Fiscal Note: Lorrie Hodges
    Email Address: