First Substitute S.B. 70

1

EMINENT DOMAIN VALUATION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Pete Suazo
5 AN ACT RELATING TO EMINENT DOMAIN; REQUIRING AGENCIES S AND POLITICAL
5a SUBDIVISIONS s THAT DISPLACE
6 LANDOWNERS REIMBURSE EXPENSES IN AN AMOUNT THE AGENCY S OR POLITICAL
6a SUBDIVISION s AND
7 OWNER CONSIDER REASONABLE; PROVIDING ADDITIONAL EXPENSES TO BE
8 COVERED; BROADENING REPLACEMENT PROVISIONS FROM DWELLING TO
9 PROPERTY; PROVIDING OWNER MUST BE SATISFIED AND PROVIDED WITH
10 REPLACEMENT PROPERTY; ALLOWING INDEPENDENT APPRAISAL IN CASES OF
11 DISAGREEMENT; REQUIRING S [ARBITRATION] MEDIATION s AND PERMITTING
11a WITHDRAWAL
12 FROM S [ARBITRATION] MEDIATION s ; AND MAKING TECHNICAL CORRECTIONS.
13 This act affects sections of Utah Code Annotated 1953 as follows:
14 AMENDS:
15 57-12-5, as enacted by Chapter 24, Laws of Utah 1972
16 57-12-7, as enacted by Chapter 24, Laws of Utah 1972
17 Be it enacted by the Legislature of the state of Utah:
18 Section 1. Section 57-12-5 is amended to read:
19 57-12-5. Reimbursement of owner for expenses.
20 (1) Any agency S OR POLITICAL SUBDIVISION s acquiring real property for its use shall, as
20a soon as practicable after the
21 date of payment of the purchase price or the date of deposit into court of funds to satisfy the award
22 of compensation in a condemnation proceeding to acquire real property, whichever is the earlier,
23 reimburse the owner, to the extent the agency S OR POLITICAL SUBDIVISION s [deems] and the
23a owner considers fair and reasonable,
24 for expenses the owner necessarily incurred for:
25 [(1)] (a) recording fees, transfer taxes, and similar expenses incidental to conveying the
26 real property to the agency S OR POLITICAL SUBDIVISION s ;
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Amend on 2_goldenrod February 24, 1997 27 [(2)] (b) penalty costs for prepayment for any preexisting recorded mortgage entered into

1 in good faith encumbering the real property; [and]
2 [(3)] (c) the pro rata portion of real property taxes paid which are allocable to a period
3 subsequent to the date of vesting title in the agency S OR POLITICAL SUBDIVISION s , or the
3a effective date of possession of such real
4 property by the agency S OR POLITICAL SUBDIVISION s , whichever is the earlier[.];
5 (d) relocation costs; and
6 (e) an additional appraisal cost if the property owner and the agency S OR POLITICAL
6a SUBDIVISION s disagree on the value
7 of the real property.
8 (2) The cost of any appraisal required under Subsection (1)(e) shall be borne solely by the
9 agency S OR POLITICAL SUBDIVISION s and shall be performed by an independent appraiser
9a agreed upon by both the property
10 owner and the agency S OR POLITICAL SUBDIVISION.
10a (3) IN DETERMINING THE AMOUNT OF JUST COMPENSATION TO AWARD AN OWNER WHOSE
10b PROPERTY IS TAKEN BY AN AGENCY OR POLITICAL SUBDIVISION THROUGH EMINENT DOMAIN, THE
10c COURT OR JURY MAY CONSIDER THE LENGTH OF TIME THE OWNER HAS OWNED THE PROPERTY,
10d THE OWNER'S MOTIVATION FOR ACQUIRING THE PROPERTY, AND ANY BAD FAITH ON THE PART OF
10e THE AGENCY OR POLITICAL SUBDIVISION . s
11 Section 2. Section 57-12-7 is amended to read:
12 57-12-7. Replacement property.
13 (1) No person shall be required to move or be relocated from land used [as] for his
14 residence, business, or agricultural purposes and acquired under any of the condemnation or
15 eminent domain laws of this state until he has been offered a comparable replacement [dwelling]
16 property which is a decent, safe, clean, and sanitary [dwelling] property adequate to accommodate
17 [this person] the occupants, reasonably accessible to public services and places of employment,
18 and available on the private market.
19 (2) If a program or project cannot proceed to actual construction because comparable sale
20 or rental [housing] property is not available, and the head of the agency S OR POLITICAL
20a SUBDIVISION s and the owner determines
21 that [this housing] the property cannot otherwise be made available, [he may take] such action
22 shall be taken as is necessary or appropriate to provide [this housing] the property by use of funds
23 authorized for the project.
24 (3) No person shall be required to move from [his dwelling] the person's property after the
25 effective date of this act[, on account] because of any project of the agency S OR POLITICAL
25a SUBDIVISION s , unless the [agency
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Amend on 2_goldenrod February 24, 1997
Amend on 3_goldenrod February 25, 1997 26 head] owner is satisfied that replacement [housing] property is available to [this person], and
27 provided to the owner.


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28 (4) (a) In the event the agency S OR POLITICAL SUBDIVISION s and the property owner
28a disagree on an offer of comparable
29 replacement property, the dispute shall be submitted for S [arbitration] MEDIATION s to an
29a independent S [arbitrator] MEDIATOR s
30 agreed upon by both the agency S OR POLITICAL SUBDIVISION s and the property owner.
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Amend on 2_goldenrod February 24, 1997
Amend on 3_goldenrod February 25, 1997 31 (b) If S [arbitration] MEDIATION s matters appear reasonably unlikely to be resolved, the matter may proceed

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1 to trial as provided by Rules of Civil Procedure.
2 (c) After the parties have completed the initial interaction with S [arbitration] MEDIATION s
2a , a decision by
3 the agency S OR POLITICAL SUBDIVISION s or the property owner to participate no further may not
3a result in a penalty or delay in
4 processing the civil trial.
5 (d) If S [arbitration] MEDIATION s is successful, a finding of S [arbitration] MEDIATION s
5a shall be made by the S [arbitrator] MEDIATOR s
6 within 45 days.
7 (e) After a finding has been made by the S [arbitrator] MEDIATOR s , an order of occupancy
7a may be issued.
8 (f) The cost of the independent S [arbitrator] MEDIATOR s shall be shared equally by the
8a agency S OR POLITICAL SUBDIVISION s and the
9 property owner.
10 (g) The record of the S [arbitration] MEDIATION s and the finding of fact of the independent
10a S [arbitrator] MEDIATOR s shall
11 be made a matter of record in any litigation in a civil court in this state.

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Amend on 2_goldenrod February 24, 1997