HCS HB 1944 -- EMINENT DOMAIN (Hobbs)

COMMITTEE OF ORIGIN:  Judiciary

This substitute changes the laws regarding the use of eminent
domain.  The power of eminent domain will be vested in
governmental entities or agencies whose governing body is elected
or appointed by elected officials, private utility companies,
public utilities, rural electric cooperatives, municipally owned
utilities, pipelines, railroads, and common carriers.  In its
main provisions, the substitute specifies that:

(1)  Private property may only be taken through the use of
eminent domain after determining blight of the property or that
the taking is for a public use and not without just compensation.
Compensation will be determined by considering the comparable
sales in the area, current use of the property, fair market value
of the property based on its highest and best use, availability
of comparable property in the area, and heritage value of the
property;

(2)  The definition of "heritage value" means a value assigned to
any real property that has been owned by the same family for one
or more years.  If the line of ownership in the property meets
the standard of same family, a premium will be paid so that the
years of ownership correlates with a percentage that may be
awarded by the appointed disinterested commissioners to the
property owner up to 100% for 100 years;

(3)  Farmland will not be determined to be blighted;

(4)  At least 30 days prior to initiating negotiations to acquire
a property interest, the condemning authority must give actual
notification to the owner of record identifying the interest in
real property to be acquired; the purpose for which the property
is being condemned; an appraisal paid for by the condemning
authority if the damages due to the taking are greater than
$10,000; a statement of the property owners rights including the
right of the property owner to seek legal counsel; and the right
to make a counteroffer and engage in negotiations, to obtain the
landowner's own appraisal, to contest the condemnation
proceeding, and to have just compensation determined
preliminarily by court-appointed condemnation commissioners and,
ultimately, a jury.  The jury will consider the same factors as
those used for determining just compensation when blighted
property or property for a public use is taken.  If the property
owner employs an appraiser to appraise the property to be
acquired, the appraisal must be delivered to the condemning
authority within 60 days;

(5)  A written offer must be presented to the property owners of
record at least 30 days before filing a condemnation petition;

(6)  Before a condemning authority may proceed with condemnation,
there must be a court determination that proper and timely notice
was given to all property owners, an initial offer no lower than
the appraisal amount was given, and that the landowner was given
an opportunity to obtain his or her own appraisal from a
state-licensed or state-certified appraiser of his or her choice.
If the court finds good faith negotiations have not taken place,
the court must dismiss the condemnation petition and order the
condemning authority to reimburse the owner for his or her actual
reasonable attorney fees and costs;

(7)  The court must order payment of the landowner's legal fees
and expenses and award damages accruing as a direct and proximate
result of the pendency of the condemnation if the condemning
authority abandons condemnation prior to the final judgment of
the court;

(8)  Unless it is a total taking, a landowner may propose an
alternative location on his or her property which must be
considered by the condemning authority;

(9)  No condemning authority can acquire private property through
the use of the power of eminent domain for solely economic
development purposes and defines "economic development" to mean a
use of a specific piece of property which would provide an
increase in the tax base, tax revenues, or employment for any
political subdivision;

(10)  The condemning authority must individually consider each
parcel of property in the area with regard to whether the
property is blighted.  If the condemning authority finds that the
area is predominately blighted, it may proceed with the
condemnation of any parcel in the area;

(11)  Property interests acquired through eminent domain by
private utility companies, public utilities, rural electric
cooperatives, municipally owned utilities, or common carriers are
fixed and determined by the particular use for which the property
was acquired.  Any expanded use of the property will require
additional eminent domain proceedings to acquire the additional
rights;

(12)  An Office of Ombudsman will be established in the Office of
Public Counsel within the Department of Economic Development to
assist citizens seeking information regarding the condemnation
process and procedures;

(13)  Any financial gain to the property owner arising from a
condemnation action will be deducted from the taxpayer's federal
adjusted gross income;

(14)  Any easements that are acquired after the effective date of
the substitute that are not used in whole or in part for the
purpose for which they were acquired for a period of 15
consecutive years must be vacated by the holder of the easement
upon written request from the then-owner of record of the
burdened property.  If the holder of the easement does not vacate
the easement within 90 days after receiving the request, the
landowner has the right to petition the circuit court to obtain
vacation of the easement and the holder has the right to petition
the circuit court to grant an extension of 15 years;

(15)  Any legislative determination that an area is blighted,
substandard, or insanitary must not be arbitrary or capricious
and must be supported by substantial evidence.  Upon the filing
of any appeal of a legislative determination of blight, the
circuit court must give preference in the order of hearing to all
other cases, except elections cases, to the extent necessary to
conclude the case within 30 days of having been filed.  Any
subsequent appeal must be given preference and concluded in an
expedited manner similar to the manner specified for a hearing in
circuit court;

(16)  For any existing contract for land use or real property and
once funds or land titles have been exchanged, the contract for
sale is exempt from any exceptions after a period of 30 calendar
days;

(17)  Transportation development districts can condemn lands only
upon prior approval by the county commission or by the local
transportation authority in conjunction with ordinances of the
local governing body;

(18)  No condemning authority can use the power of eminent domain
to take any property where a place of religious worship has been
situated for a period of at least 10 consecutive years; and

(19)  Tax increment financing cannot be used for the development
of property taken by eminent domain in Shannon County.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2007,
FY 2008, and FY 2009.  Estimated Cost on Other State Funds of
Unknown in FY 2007, FY 2008, and FY 2009.

Missouri House of Representatives
93rd General Assembly, 2nd Regular Session
Last Updated November 29, 2006 at 9:45 am