CCS SS SCS HCS HB 1944 -- EMINENT DOMAIN

This bill 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 bill:

(1)  Specifies that private property may only be taken through
the use of eminent domain after determining blight of the
property or the taking is for a public use and not without just
compensation;

(2)  Defines "fair market value," "heritage value," "farmland,"
and "homestead taking";

(3)  Specifies that farmland will not be determined to be
blighted;

(4)  Requires that for all condemnations filed after December 31,
2006, just compensation for condemned property will be determined
by fair market value, homestead taking which is fair market value
multiplied by 125%, or heritage taking which is fair market value
multiplied by 150%;

(5)  Specifies that all displaced residential individuals
eligible for assistance will receive a $1,000 fixed moving
expense payment or the actual reasonable costs of relocation not
including the cost of replacement property.  All displaced
businesses eligible for relocation assistance can choose to
receive a $3,000 fixed moving expense or the actual costs of
moving and up to $10,000 for reestablishment expenses;

(6)  Requires the circuit judge presiding over the condemnation
to determine after the filing of the commissioners' report
whether a homestead taking has occurred and whether heritage
value is to be paid to the property owner;

(7)  Specifies that at least 60 days prior to initiating
negotiations to acquire a property interest, the condemning
authority must give a written notice to the owner of record
identifying the interest in real property to be acquired; the
purpose for which the property is being condemned; and a
statement of the property owner's rights including the right to
seek legal counsel, 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 obtains his or her own appraisal, it must be
delivered to the condemning authority within 60 days from the
date of the notice;

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

(9)  Requires that before a condemning authority may proceed with
a 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;

(10)  Requires the court to 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;

(11)  Specifies that 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,
employment, and general economic health for any political
subdivision;

(12)  Requires the condemning authority to individually consider
each parcel of property in an area with regard to whether the
property is blighted.  If the condemning authority finds a
preponderance of the area is blighted, it may proceed with the
condemnation of any parcel in the area;

(13)  Specifies that 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;

(14)  Establishes an Office of Ombudsman in the Office of Public
Counsel within the Department of Economic Development to assist
citizens seeking information regarding the condemnation process
and procedures;

(15)  Specifies that blanket easements will be void as against
public policy and will be unenforceable;

(16)  Allows any financial gain to the property owner arising
from a condemnation action to be deducted from the taxpayer's
federal adjusted gross income when calculating his or her
Missouri adjusted gross income;

(17)  Specifies that any easements acquired after December 31,
2006, and abandoned in whole for a period in excess of 10 years
may be vacated by a court of competent jurisdiction and upon the
property owner paying monetary consideration equal to the
original consideration paid by the easement holder.  The holder
of the easement must be a party to the action and may be allowed
to maintain the easement upon a showing, in good faith, that the
holder plans to make future use of the easement; and

(18)  Specifies that within 30 days of the initial notice by the
condemning authority, a landowner may propose an alternative
location on his or her property which must be considered by the
condemning authority.

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