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Eminent Domain

2005 State Legislation

Updated May 2007

Eminent domain legislation in response to the United States Supreme Court decision in   Kelo v. New London was considered in 13 states that were either in regular session or special session during 2005 after the decision came down on June 23.  Four states enacted laws—Alabama, Delaware, Ohio and Texas.  A fifth state—Michigan—passed a constitutional amendment that was approved on the ballot in November 2006. 

The legislation generally falls into five categories:

• Prohibiting eminent domain for specified economic development purposes, to generate tax revenue, or to transfer private property to another private use.
• Limiting eminent domain to a "stated public purpose" or a "recognized public use."
• Restricting its use to blighted properties or to areas where most properties are blighted and the remaining parcels are necessary to complete a redevelopment plan.
• Placing a moratorium on the use of eminent domain for economic development purposes until a specified date, and establishing special legislative committees or task forces to study the issues.
• Increasing the amount of compensation for condemned property that is a person's principal residence.

Alabama | Delaware | Michigan | Ohio | Texas 

Enacted

Alabama

SB 68

Prohibits the use of eminent domain for retail, commercial, residential or apartment development; for purposes of generating tax revenue; or for the transfer of private property to another private party.  Contains a blight exception.

Delaware

SB 217 (with House Amendment 1)

Restricts the use of eminent domain by the state or a political subdivision to a recognized public use.

Ohio

SB 167

Places a moratorium on the use of eminent domain for economic development purposes that would ultimately result in the property being transferred to another private party in an area that is not blighted until December 31, 2006.  Creates a task force to study eminent domain issues.

Texas

SB 7

Prohibits the use of eminent domain to confer a private benefit on a private party or for economic development purposes, with certain exceptions.

Passed Legislature—Approved on November 2006 Ballot

Michigan

SJR E

Stipulates that if a person's principal residence is taken for public use, the amount of just compensation shall not be less than 125 percent of the property's fair market value; public use does not include transferring private property to another private entity for economic development or generating additional tax revenue.

 Eminent Domain