Fiscal Summary
Decrease Local Revenue - Exceeds $10,000
Increase Local Expenditures - Exceeds $323,600/Permissive
Bill Summary
This bill revises the procedure for the determination of valuation for property condemned by municipalities or counties (referred to collectively as "local government").
Present law authorizes counties to condemn and take the property, buildings, privileges, rights, and easements of individuals and private corporations for any county purpose. Present law authorizes municipal corporations to take and condemn lands, property, property rights, privileges and easements of others for the purpose of constructing, laying, repairing, or extending sewers, water pipes, natural gas mains and pipes, or drainage ditches, both within and beyond the corporate limits of such cities, and of acquiring ingress and egress in the construction, repairing or maintenance thereof, and in making connection thereto. Compensation for damages for such a taking by a municipality is determined by a condemnation commission and approved by the legislative body of the municipality, pursuant to present law regarding streets and other public improvements.
This bill requires, in conjunction with any required notice under present law, the local government condemning property to send notice to the property owner that includes:
(1) A statement of value that lists the amount that the local government offers to the property owner as damages. As required by law, such amount is based on an appraisal of the property and has been deposited in court;
(2) A form describing the following options:
(A) The property owner may accept the amount listed in the statement of value and demand immediate payment;
(B) The property owner may reject the amount listed in the statement of value and proceed to the negotiation process described below;
(C) The property owner may reject the amount listed in the statement of value and proceed to the arbitration process by sending a signed and dated arbitration initiation form to the local government; provided, that any settlement resulting from the arbitration process will be final and binding on the parties; or
(D) The property owner may reject the amount listed in the statement of value and proceed in court by filing an answer; provided, that by filing an answer, the property owner will waive the options described above in (2)(B) and (C);
(3) An arbitration initiation form; and
(4) Information regarding the consequences for not returning the form described in (2), signed and dated, to the local government within the time periods specified in this bill.
If the property owner is unknown, is a nonresident of this state or cannot be found, notice must be given by publication, as provided by law for similar situations in chancery court. The local government must send new notice if:
(1) The local government abandons the petition prior to the court rendering a decision on possession of the property; and
(2) The local government later decides to initiate condemnation proceedings against the property pursuant to present law.
If the property owner fails to send the form with the options described above, signed and dated, to the local government within 30 days of the date on the form, then the property owner waives the options. If a local government receives a form from the property owner, then the local government must send a copy of such form to the court.
A property owner selecting to reject the amount listed in the statement of value and proceeding to the negotiation process must submit a counter offer, along with the form to the local government. The local government must send notice to the property owner within 30 days of receiving the property owner's counter offer of the local government's decision to: accept the property owner's counter offer; reject the property owner's counter offer; or reject the property owner's counter offer and make its own counter offer.
If the local government fails to send notice to the property owner within the 30-day period, then the local government will be deemed to have accepted the counter offer. The local government must provide notice to the court to disburse the funds to the property owner at no cost to the property owner. If the local government rejects the property owner's counter offer or rejects the property owner's counter offer and makes its own counter offer, then the notice must include an arbitration initiation form.
If the local government accepts the property owner's counter offer, affirmatively or by default, and the local government has deposited the amount listed in the statement of value with the court, then the local government must send notice to the court that includes: a copy of the property owner's counter offer; a signed and dated form signifying acceptance of the property owner's counter offer; and a check, money order or similar document from the local government to the court for any balance owing in excess of the amount already deposited, plus interest or other funds that the property owner is entitled to by law.
Upon request of the property owner, the court must disburse the funds to the property owner at no cost to the property owner.
If the local government accepts the property owner's counter offer and the local government has not deposited the amount listed in the statement of value with the court or paid the property owner such amount in bond, then the local government must send a check, money order or similar document from the local government to the property owner in the full amount listed in the property owner's counter offer, plus interest or other funds that the property owner is entitled to by law. If the local government has paid in bond to the property owner any amount, then such amount will be deducted from the total amount owing to the property owner.
The property owner will have 30 days from the date of the notice from the local government to respond in a signed and dated written notice. If the local government accepts the property owner's counter offer, then the property owner may demand immediate payment. If the local government rejects the property owner's counter offer, but makes no counter offer of its own, then the property owner may revive the highest offer made by the local government and demand immediate payment of such offer. If the local government rejects the property owner's counter offer, but makes a counter offer of its own, then the property owner may reject such counter offer and elect:
(1) To revive the highest offer made by the local government and demand immediate payment of such offer;
(2) To initiate arbitration proceedings by sending a completed arbitration initiation form to the local government with the notice of rejection; or
(3) To proceed in court if permitted.
This bill provides that, except as otherwise provided, the Uniform Arbitration Act, would apply to arbitrations conducted pursuant to this bill. The local government must, within 15 days of receipt of a signed and dated arbitration initiation form, notify the AAA, and an arbitrator will be appointed by the AAA within 15 business days of such notice. Prior to commencement of arbitration, the property owner must submit to the arbitrator an appraisal of the property, conducted by a certified appraiser, at the property owner's sole expense.
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The arbitration costs will be split equally between the property owner and the local government. If multiple property owners are parties to the arbitration, each property owner will be responsible for an equal share of 50 percent of the arbitration costs. Each party shall be responsible for the party's own discretionary costs, including, but not limited to, attorney fees.
Under this bill, if a local government acquires property by eminent domain, prior to transferring the property to any person, the local government must first offer the property for purchase to the original landowner at a purchase price equal to the amount the local government paid to the original landowner. A local government must provide notice to the original landowner of this right of first refusal and may not transfer the property until:
(1) Receiving written confirmation of the original landowner's decision to not purchase the property; or
(2) The expiration of 90 days.
NOTE: It appears that the language "if" at the end of 29-17-1102(a)(1) needs to be deleted.
