SB343 By Senator Whatley RFD Fiscal Responsibility and Economic Development Rd 1 07-APR-15

SYNOPSIS: Under existing law, there are limitations on condemnations.

This bill would further limit the condemnation of property if the primary use for the property is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development.

This bill would require each entity prior to initialing a condemnation procedure to define what is included in just compensation for the taking or damaging of property and it shall take only a portion of private property necessary for public use.

A BILL TO BE ENTITLED AN ACT

To amend Section 18-1B-2, Code of Alabama 1975, relating to limitations on condemnation; to limit the condemnation of property if the primary use for the property is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development; and to require each entity prior to initialing a condemnation procedure to define what is included in just compensation for the taking or damaging of property and it shall take only a portion of private property necessary for public use.

BE IT ENACTED BY THE LEGISLATURE OF ALABAMA:Section 1. Section 18-1B-2, Code of Alabama 1975, is amended to read as follows:

§18-1B-2.

"(a)(1) Neither the State of Alabama, nor any of its departments, divisions, agencies, commissions, corporations, boards, authorities, or other entities, nor any agency, corporation, district, board, or other entity organized by or under the control of any municipality or county in the state and vested by law to any extent whatsoever with the power of eminent domain may condemn property for the purpose of nongovernmental retail, office, commercial, residential, or industrial development or use; provided, however, the foregoing provisions of this subsection shall not apply to the exercise of the powers of eminent domain by any county, municipality, housing authority, or other public entity based upon a finding of blight in an area covered by any redevelopment plan or urban renewal plan pursuant to Chapters 2 and 3 of Title 24, where the primary use is for private gain, private benefit, private enterprise, increasing jobs, increasing tax revenue, or economic development, or to the exercise of eminent domain by or for the benefit of public utilities or other entities engaged in the generation, transmission, or distribution of telephone, gas, electricity, water, sewer, or other utility products or services. Nothing in this section shall be interpreted to prohibit the state or a municipal or county governing body from exercising the power of eminent domain for the purpose of constructing, maintaining, or operating streets and roadways, government buildings, or park and recreation facilities.

"(2) An entity prior to initialing a condemnation procedure shall define what is included in just compensation for the taking or damaging of property and it shall take only a portion of private property necessary for public use.

"(b) Property condemned by an entity described in subsection (a), if not ever used for the purpose or purposes for which it was condemned or for some other public use, that is subsequently determined to be sold, shall be first offered for sale to the person or persons from whom the property was condemned, or his or her known or ascertainable heirs or assigns, at the price which was paid for the property, less such amount, if any, as the person shall show by good and sufficient documentation to be the amount of income and transaction taxes, if any, actually paid in connection therewith, and if the offer shall not be accepted within 90 days from the date it is made, the property may be sold to any other person or persons but only at public sale after legal notice is given."

Section 2. This act shall become effective immediately following its passage and approval by the Governor, or its otherwise becoming law.

Eminent Domain

Property, Real and Personal

Code Amended