Eminent Domain 2007 State Legislation
Enacted Laws
Updated April 2008
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SB 167
Requires a two-thirds vote of the legislative body of a municipality to approve the acquisition of real property through eminent domain by a development agency. If the municipality decides not to use the property for the purpose for which it was acquired, it must offer to sell it back to the original owners or heirs at the original purchase price or fair market value, whichever is less. Increases the level of compensation for property acquired through eminent domain by a development agency to 125 percent of its average appraised value. Prohibits the acquisition of real property through eminent domain if the primary purpose is to increase tax revenue.
SB 363
Limits the use of eminent domain for urban renewal purposes to property in blighted areas where the property is a detriment to the public health, safety or welfare, and prohibits its use if the primary purpose is to increase tax revenue.
AB 102
Stipulates that public uses for which property may be acquired through eminent domain do not include transfer of the property to another private entity. Exceptions include where the private entity uses the property primarily to benefit a public purpose; the entity leases the property to a person that occupies an incidental part of a public facility; or the property taken was abandoned by the owner or the purpose was to abate a threat to the public health and safety.
AJR 3
Stipulates that public uses for which property may be acquired through eminent domain do not include transfer of the property to another private entity. Exceptions include where the private entity uses the property primarily to benefit a public purpose; the entity leases the property to a person that occupies an incidental part of a public facility; or the property taken was abandoned by the owner or the purpose was to abate a threat to the public health and safety. (Note: AJR 3 must be adopted by the legislature again in 2009 and be passed by the electorate on the 2010 ballot before becoming effective.)
HB 393
Prohibits the use of eminent domain by municipalities for redevelopment projects under the Metropolitan Redevelopment Code.
SB 2214
Prohibits the taking private property for use or ownership by another private entity, except for common carriers or public utilities. Stipulates that public use or public purpose does not include the public benefits of economic development, including an increase in tax base, tax revenue, employment or general economic health.
SB 7
Stipulates that public use for which eminent domain may be exercised does not include conveyance of property to a private commercial enterprise, for economic development purposes or solely to increase tax revenue. Increases from a majority to 70 percent the percentage of parcels that must be blighted before an area can be designated as a blighted area, and adds a detailed definition of what constitutes a blighted parcel. Prohibits a determination that a property could generate more tax revenue as the basis for designating a parcel as blighted. Requires an agency to adopt a comprehensive plan describing the need to take property in a blighted area before exercising eminent domain and requires local legislative approval.
SB 155
Ratifies the provisions contained in Constitutional Amendment 5, passed on the 2006 ballot, that prohibits the use of eminent domain for any use, including economic development, that is not a public use, and that authorizes the legislature to enact laws allowing eminent domain to be used to remedy blight with the property put to public or private use provided just compensation is paid.
HB 365
Prohibits the use of eminent domain to acquire single-family residential owner occupied property unless requested by the owners of at least 80 percent of the owner occupied property within the area representing at least 70 percent of the value of owner occupied property in the area, and two-thirds of all agency board members approve of the acquisition. For the acquisition of commercial property, the figures are 75 percent and 60 percent, respectively. Authorizes the use of eminent domain in an urban renewal project area if an agency determines the property is blighted, the urban renewal project area plan provides for the use of eminent domain and acquisition of the property begins no later than five years after the date of the plan. Requires advance written notice and good faith negotiations with property owners before exercising eminent domain.
SB 781, SB 1296, HB 2954
Defines public use for which eminent domain may be exercised to be, among other uses, the possession, ownership, occupation and enjoyment of property by the public or a public corporation, or for the removal of blight where the property condemned is actually blighted. Stipulates that property may only be taken where the public interest dominates any private gain and the primary purpose is not for an increase in tax base, tax revenue or employment.
HB 124
Defines public purpose for which eminent domain may be exercised to be the possession, occupation and enjoyment of property by a public entity. Prohibits the transfer of private property to another private entity except to protect the public health and safety. Prohibits a municipality from delegating eminent domain authority to an urban renewal agency. Requires advance written notice and good faith negotiations with property owners before exercising eminent domain.
 Eminent Domain
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