Eminent Domain Moratorium Act Summary: The Eminent Domain Moratorium Act imposes a two-year moratorium on the seizure of homes for economic redevelopment, and commissions a study to recommend an appropriate remedy for eminent domain abuse. SECTION 1. SHORT TITLE This Act shall be called the “Eminent Domain Moratorium Act.” SECTION 2. FINDINGS AND PURPOSE (A) FINDINGS—The legislature finds that: 1. In Kelo v. City of New London, the U.S. Supreme Court ruled that municipalities have broad eminent domain authority to take homes from some and give the land to others for private use. 2. It is well-established that governments can and should use eminent domain when property becomes uninhabitable or there is a clear public need. But the power of eminent domain has been used much more broadly in recent years. 3. It is unacceptable for local governments to take private homes, not because they are blighted or the land is needed for public facilities, but because they stand in the way of a new private commercial development. 4. It is essential to clearly and fairly draw a line between permissible and impermissible use of eminent domain. This is a difficult question that is best answered by the imposition of a moratorium and creation of a study commission. (B) PURPOSE—This law is enacted to study the use and misuse of the power of eminent domain. SECTION 3. EMINENT DOMAIN MORATORIUM (A) DEFINITIONS—In this section: 1. “Owner-occupied residential real property” means a single-family residence or a unit within a common interest development that is occupied by the owner or owners of record during the effective dates of this section, or a duplex where at least one-half of the duplex is occupied by the owner or owners of record during the effective dates of this section. 2. “Private use” means any use other than as a public facility or a public works that is owned and operated by the public entity. (B) MORATORIUM 1. No community redevelopment agency, or any community development commission or joint powers agency that has the authority of a community redevelopment agency, shall exercise the power of eminent domain to acquire owner-occupied residential real property if ownership of the property will be transferred to a private party or private entity. 2. The requirements of this section shall apply to both new and pending eminent domain projects, except that it shall not apply to projects if a resolution of necessity was adopted pursuant to [cite state law] prior to the effective date of this section. For purposes of this
provision, eminent domain power is exercised when an attempt is made to acquire a property if it is stated or otherwise implied that the property may be taken by eminent domain. 3. This section shall remain in effect only until April 1, 2008, and as of that date is repealed. (C) STUDY OF EMINENT DOMAIN 1. There is established a commission to be known as the Commission on Eminent Domain. 2. Members of the Commission shall be appointed by the Governor in consultation with the President of the Senate and the Speaker of the House. 3. The Commission shall be composed of 15 members, of whom at least five shall be public officials or private organization, academic or business leaders who have special knowledge or expertise on the benefits of the broad use of eminent domain, and at least five shall be public officials or private organization, academic or business leaders who have special knowledge or expertise on the benefits of restricted use of eminent domain. 4. The appointments of the initial members of the Commission shall be made not later than 30 days after the date of enactment of this Act. 5. The Governor shall designate one member to serve as the Chair of the Commission. 6. Members shall be appointed for the life of the Commission. Any vacancy in the Commission shall not affect its powers, but shall be filled in the same manner as the original appointment. 7. Not later than 30 days after all initial members of the Commission have been appointed, the Commission shall hold its first meeting. 8. The Commission shall meet at the call of the Chair. 9. A majority of the members of the Commission shall constitute a quorum for conducting business, but a lesser number of members may hold hearings. 10. The Commission shall adopt rules and procedures to govern its proceedings. (D) DUTIES OF THE COMMISSION 1. The Commission shall conduct a thorough study of all matters relating to the power of eminent domain and whether its use comports with constitutional principles and general requirements of fairness, justice, equality and due process. 2. The Commission shall, at a minimum, study and report on: a. All exercises of the power of eminent domain by public entities to acquire residential property for private use completed between January 1, 2000 and January 1, 2005. This information shall set forth separate categories for owner-occupied and non-owner-occupied residential property. b. The declared purposes for each of those acquisitions. c. The initial offer of just compensation for each of those acquisitions. d. The final offer of just compensation for each of those acquisitions. e. The total compensation paid for each of those acquisitions, including the acquisition price and relocation payments. f. The current owners of those real properties. g. The current uses of those real properties.
(E) REPORT—Not later than January 1, 20XX, the Commission shall submit a report to the Governor, legislature and the public that consists of its statement of findings and conclusions, and its recommendations for legislative and administrative actions. SECTION 4. EFFECTIVE DATE This Act shall take effect on July 1, 20XX. CON4 – Center for Policy Alternatives