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First Substitute S.B. 268

Senator L. Alma Mansell proposes the following substitute bill:


             1     
PROPERTY RIGHTS OMBUDSMAN

             2     
2006 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: L. Alma Mansell

             5     
House Sponsor: Gordon E. Snow

             6     
             7      LONG TITLE
             8      General Description:
             9          This bill makes changes to the Office of the Property Rights Ombudsman.
             10      Highlighted Provisions:
             11          This bill:
             12          .    defines terms;
             13          .    moves the Office of the Property Rights Ombudsman to the Department of
             14      Commerce;
             15          .    creates the Land Use and Eminent Domain Advisory Board;
             16          .    outlines the board's appointment, expenses, and duties;
             17          .    outlines the Office of the Property Rights Ombudsman's duties;
             18          .    provides for arbitration of matters brought to the Office of the Property Rights
             19      Ombudsman;
             20          .    describes the effect of an arbitration;
             21          .    allows for the issuance of advisory opinions; and
             22          .    describes the effect of an advisory opinion.
             23      Monies Appropriated in this Bill:
             24          None
             25      Other Special Clauses:


             26          None
             27      Utah Code Sections Affected:
             28      ENACTS:
             29          13-42-101, Utah Code Annotated 1953
             30          13-42-102, Utah Code Annotated 1953
             31          13-42-201, Utah Code Annotated 1953
             32          13-42-202, Utah Code Annotated 1953
             33          13-42-203, Utah Code Annotated 1953
             34          13-42-204, Utah Code Annotated 1953
             35          13-42-205, Utah Code Annotated 1953
             36          13-42-206, Utah Code Annotated 1953
             37     
             38      Be it enacted by the Legislature of the state of Utah:
             39          Section 1. Section 13-42-101 is enacted to read:
             40     
CHAPTER 42. PROPERTY RIGHTS OMBUDSMAN ACT

             41     
Part 1. General Provisions

             42          13-42-101. Title.
             43          This chapter is known as the "Property Rights Ombudsman Act."
             44          Section 2. Section 13-42-102 is enacted to read:
             45          13-42-102. Definitions.
             46          As used in this chapter:
             47          (1) "Constitutional taking" or "taking" means a governmental action resulting in a
             48      taking of real property that requires compensation to the owner of the property under:
             49          (a) the Fifth or Fourteenth Amendment of the Constitution of the United States; or
             50          (b) Utah Constitution Article I, Section 22.
             51          (2) "Takings and eminent domain law" means the provisions of the federal and state
             52      constitutions, the case law interpreting those provisions, and any relevant statutory provisions
             53      that involve constitutional issues arising from the use or ownership of real property or require a
             54      governmental unit to compensate a real property owner for a constitutional taking or provide
             55      for relocation assistance to those persons who are displaced by the use of eminent domain.
             56          Section 3. Section 13-42-201 is enacted to read:


             57     
Part 2. Office of the Property Rights Ombudsman

             58          13-42-201. Office of the Property Rights Ombudsman.
             59          (1) There is created an Office of the Property Rights Ombudsman in the Department of
             60      Commerce.
             61          (2) The executive director of the Department of Commerce, with the concurrence of
             62      the Land Use and Eminent Domain Advisory Board created in Section 13-42-202 , shall appoint
             63      an attorney with background or expertise in takings, eminent domain, and land use law to fill
             64      the position.
             65          (3) The person appointed under this section is an exempt employee.
             66          (4) Subject to Subsection 13-42-202 (8), the executive director of the Department of
             67      Commerce may hire attorneys, clerks, interns, or other personnel to assist the appointee.
             68          Section 4. Section 13-42-202 is enacted to read:
             69          13-42-202. Land Use and Eminent Domain Advisory Board -- Appointment --
             70      Compensation -- Duties.
             71          (1) There is created the Land Use and Eminent Domain Advisory Board, within the
             72      Office of the Property Rights Ombudsman, consisting of:
             73          (a) one individual representing professional planners, nominated by the Utah Chapter
             74      of the American Planning Association;
             75          (b) one individual representing municipal government, nominated by the Utah League
             76      of Cities and Towns;
             77          (c) one individual representing county government, nominated by the Utah Association
             78      of Counties;
             79          (d) one individual representing the residential construction industry, nominated by the
             80      Utah Home Builders Association;
             81          (e) one individual representing the real estate industry, nominated by the Utah
             82      Association of Realtors;
             83          (f) one individual representing the land development community, nominated by Utah
             84      farm organizations; and
             85          (g) one individual who:
             86          (i) is a citizen with experience in land use issues;
             87          (ii) does not hold public office; and


             88          (iii) is not currently employed, nor has been employed in the previous twelve months,
             89      by any of the entities or industries listed in Subsections (1)(a) through (f).
             90          (2) After receiving nominations, the governor shall appoint members to the board.
             91          (3) The term of office of each member is four years, except that the governor shall
             92      appoint three of the members of the board to an initial two-year term.
             93          (4) Each mid-term vacancy shall be filled for the unexpired term in the same manner as
             94      an appointment under Subsections (1) and (2).
             95          (5) (a) Board members shall elect a chair from their number and establish rules for the
             96      organization and operation of the board.
             97          (b) Five members of the board constitute a quorum for the conduct of the board's
             98      business.
             99          (c) The affirmative vote of five members is required to constitute the decision of the
             100      board on any matter.
             101          (6) (a) No member may receive compensation or benefits for the member's service on
             102      the board.
             103          (b) (i) A member who is not a government officer or employee may be reimbursed for
             104      reasonable expenses incurred in the performance of the member's official duties at the rates
             105      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             106          (ii) A member who is a government officer or employee and who does not receive
             107      expenses from the member's agency may be reimbursed for reasonable expenses incurred in the
             108      performance of the member's official duties at the rates established by the Division of Finance
             109      under Sections 63A-3-106 and 63A-3-107 .
             110          (c) A member may decline to be reimbursed for reasonable expenses incurred in the
             111      performance of the member's official duties.
             112          (d) A member need not give a bond for the performance of official duties.
             113          (7) The Office of the Property Rights Ombudsman shall provide staff to the board.
             114          (8) (a) The board shall advise the Office of the Property Rights Ombudsman on the
             115      conduct of his office and the performance of its duties.
             116          (b) The Office of the Property Rights Ombudsman and attorneys working in the Office
             117      of the Property Rights Ombudsman serve at the pleasure of the board.
             118          (c) The Office of the Property Rights Ombudsman and attorneys working in the Office


             119      of the Property Rights Ombudsman may not be removed without the concurrence of the board.
             120          (9) The board shall maintain a resource list of qualified arbitrators and mediators who
             121      may be appointed under Section 13-42-204 and qualified persons who may be appointed to
             122      render advisory opinions under Section 12-42-205 .
             123          Section 5. Section 13-42-203 is enacted to read:
             124          13-42-203. Office of the Property Rights Ombudsman -- Duties.
             125          (1) The Office of the Property Rights Ombudsman shall:
             126          (a) develop and maintain expertise in and understanding of takings, eminent domain,
             127      and land use law;
             128          (b) assist state agencies and local governments in developing the guidelines required by
             129      Title 63, Chapter 90a, Constitutional Taking Issues;
             130          (c) at the request of a state agency or local government, assist the state agency or local
             131      government, in analyzing actions with potential takings implications or other land use issues;
             132          (d) advise real property owners who have a legitimate potential or actual takings claim
             133      against a state or local government entity or have questions about takings, eminent domain, and
             134      land use law;
             135          (e) identify state or local government actions that have potential takings implications
             136      and, if appropriate, advise those state or local government entities about those implications;
             137      and
             138          (f) provide information to private citizens, civic groups, government entities, and other
             139      interested parties about takings, eminent domain, and land use law and their rights and
             140      responsibilities under the takings, eminent domain, or land use laws through seminars and
             141      publications, and by other appropriate means.
             142          (2) The Office of the Property Rights Ombudsman may not represent private property
             143      owners, state agencies, or local governments in court or in adjudicative proceedings under Title
             144      63, Chapter 46b, Administrative Procedures Act.
             145          (3) No member of the Office of the Property Rights Ombudsman nor a neutral
             146      third-party rendering an advisory opinion under Section 13-42-205 or 13-42-206 , may be
             147      compelled to testify in a civil action filed concerning the subject matter of any review,
             148      mediation, or arbitration by, or arranged through, the office.
             149          (4) (a) Except as provided in Subsection (4)(b), evidence of a review by the Office of


             150      the Property Rights Ombudsman and the opinions, writings, findings, and determinations of the
             151      Office of the Property Rights Ombudsman are not admissible as evidence in a judicial action.
             152          (b) Subsection (4)(a) does not apply to:
             153          (i) actions brought under authority of Title 78, Chapter 6, Small Claims Courts;
             154          (ii) a judicial confirmation or review of the arbitration itself as authorized in Title 78,
             155      Chapter 31a, Utah Uniform Arbitration Act;
             156          (iii) actions for de novo review of an arbitration award or issue brought under the
             157      authority of Subsection 13-42-204 (3)(i); or
             158          (iv) advisory opinions provided for in Sections 13-42-205 and 13-42-206 .
             159          (5) The Office of the Property Rights Ombudsman may not represent private property
             160      owners, state agencies, or local governments in court or in adjudicative proceedings under Title
             161      63, Chapter 46b, Administrative Procedures Act.
             162          Section 6. Section 13-42-204 is enacted to read:
             163          13-42-204. Office of Property Rights Ombudsman -- Arbitration or mediation of
             164      takings or eminent domain disputes.
             165          (1) If requested by the private property owner and otherwise appropriate, the Office of
             166      the Property Rights Ombudsman shall mediate, or conduct or arrange arbitration for, disputes
             167      between private property owners and government entities that involve:
             168          (i) takings or eminent domain issues;
             169          (ii) actions for eminent domain under Title 78, Chapter 34, Eminent Domain; or
             170          (iii) disputes about relocation assistance under Title 57, Chapter 12, Utah Relocation
             171      Assistance Act.
             172          (2) If arbitration or mediation is requested by a private property owner under this
             173      section, Section 57-12-14 or 78-34-21 , and arranged by the Office of the Property Rights
             174      Ombudsman, the government entity or condemning entity shall participate in the mediation or
             175      arbitration as if the matter were ordered to mediation or arbitration by a court.
             176          (3) (a) (i) In conducting or arranging for arbitration under Subsection (1), the Office of
             177      the Property Rights Ombudsman shall follow the procedures and requirements of Title 78,
             178      Chapter 31a, Utah Uniform Arbitration Act.
             179          (ii) In applying Title 78, Chapter 31a, Utah Uniform Arbitration Act, the arbitrator and
             180      parties shall treat the matter as if:


             181          (A) it were ordered to arbitration by a court; and
             182          (B) the Office of the Property Rights Ombudsman or other arbitrator chosen as
             183      provided for in this section was appointed as arbitrator by the court.
             184          (iii) For the purpose of an arbitration conducted under this section, if the dispute to be
             185      arbitrated is not already the subject of legal action, the district court having jurisdiction over
             186      the county where the private property involved in the dispute is located is the court referred to
             187      in Title 78, Chapter 31a, Utah Uniform Arbitration Act.
             188          (iv) An arbitration award under this chapter may not be vacated under the provisions of
             189      Subsection 78-31a-124 (1)(e) because of the lack of an arbitration agreement between the
             190      parties.
             191          (b) The Office of the Property Rights Ombudsman shall issue a written statement
             192      declining to arbitrate or to appoint an arbitrator when, in the opinion of the Office of the
             193      Property Rights Ombudsman:
             194          (i) the issues are not ripe for review;
             195          (ii) assuming the alleged facts are true, no cause of action exists under United States or
             196      Utah law;
             197          (iii) all issues raised are beyond the scope of the Office of the Property Rights
             198      Ombudsman's statutory duty to review; or
             199          (iv) the arbitration is otherwise not appropriate.
             200          (c) (i) The Office of the Property Rights Ombudsman shall appoint another person to
             201      arbitrate a dispute when:
             202          (A) either party objects to the Office of the Property Rights Ombudsman serving as the
             203      arbitrator and agrees to pay for the services of another arbitrator;
             204          (B) the Office of the Property Rights Ombudsman declines to arbitrate the dispute for a
             205      reason other than those stated in Subsection (4)(b) and one or both parties are willing to pay for
             206      the services of another arbitrator; or
             207          (C) the Office of the Property Rights Ombudsman determines that it is appropriate to
             208      appoint another person to arbitrate the dispute with no charge to the parties for the services of
             209      the appointed arbitrator.
             210          (ii) In appointing another person to arbitrate a dispute, the Office of the Property Rights
             211      Ombudsman shall appoint an arbitrator who is agreeable to:


             212          (A) both parties; or
             213          (B) the Office of the Property Rights Ombudsman and the party paying for the
             214      arbitrator.
             215          (iii) The Office of the Property Rights Ombudsman may, on its own initiative or upon
             216      agreement of both parties, appoint a panel of arbitrators to conduct the arbitration.
             217          (iv) The Department of Commerce may pay an arbitrator per diem and reimburse
             218      expenses incurred in the performance of the arbitrator's duties at the rates established by the
             219      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             220          (d) In arbitrating a dispute, the arbitrator shall apply the relevant statutes, case law,
             221      regulations, and rules of Utah and the United States in conducting the arbitration and in
             222      determining the award.
             223          (e) The property owner and government entity may agree in advance of arbitration that
             224      the arbitration is binding and that no de novo review may occur.
             225          (f) Arbitration by or through the Office of the Property Rights Ombudsman is not
             226      necessary before bringing legal action to adjudicate any claim.
             227          (g) The lack of arbitration by or through the Office of the Property Rights Ombudsman
             228      does not constitute, and may not be interpreted as constituting, a failure to exhaust available
             229      administrative remedies or as a bar to bringing legal action.
             230          (h) Arbitration under this section is not subject to Title 63, Chapter 46b,
             231      Administrative Procedures Act, or Title 78, Chapter 31b, Alternative Dispute Resolution Act.
             232          (i) Within 30 days after an arbitrator issues a final award, and except as provided in
             233      Subsection (3)(e), any party may submit the award, or any issue upon which the award is based,
             234      to the district court for de novo review.
             235          (4) The filing with the Office of the Property Rights Ombudsman of a request for
             236      mediation or arbitration of a constitutional taking issue does not stay any county or municipal
             237      land use decision, including the decision of a board of adjustment.
             238          (5) Members of the Office of the Property Rights Ombudsman may not be compelled
             239      to testify in a civil action filed concerning the subject matter of any review, mediation, or
             240      arbitration by the Office of the Property Rights Ombudsman.
             241          Section 7. Section 13-42-205 is enacted to read:
             242          13-42-205. Advisory opinion.


             243          At any time before a final decision on a land use application by a local appeal authority
             244      under Section 10-9a-708 or 17-27a-708 , a local government or a potentially aggrieved person
             245      may, in accordance with Section 13-42-206 , request a written advisory opinion from a neutral
             246      third party to determine compliance with:
             247          (1) Sections 10-9a-507 through 10-9a-511 ;
             248          (2) Sections 17-27a-506 through 17-27a-510 ; and
             249          (3) Title 11, Chapter 36, Impact Fees Act.
             250          Section 8. Section 13-42-206 is enacted to read:
             251          13-42-206. Advisory Opinion -- Process.
             252          (1) A request for an advisory opinion under 13-42-205 shall be:
             253          (a) filed with the Office of the Property Rights Ombudsman; and
             254          (b) accompanied by a filing fee of $150.00.
             255          (2) The Office of the Property Rights Ombudsman may establish policies providing for
             256      partial fee waivers for a person who is financially unable to pay the entire fee.
             257          (3) A person requesting an advisory opinion need not exhaust administrative remedies,
             258      including remedies described under Section 10-9a-801 or 17-27a-801 , before requesting an
             259      advisory opinion.
             260          (4) The Office of the Property Rights Ombudsman shall:
             261          (a) deliver notice of the request to opposing parties indicated in the request;
             262          (b) inquire of all parties if there are other necessary parties to the dispute; and
             263          (c) deliver notice to all necessary parties.
             264          (5) If a governmental entity is an opposing party, the Office of the Property Rights
             265      Ombudsman shall deliver the request in the manner provided for in Section 63-30d-301 .
             266          (6) (a) The Office of the Property Rights Ombudsman shall promptly determine if the
             267      parties can agree to a neutral third party to issue an advisory opinion.
             268          (b) If no agreement can be reached within three business days after notice is delivered
             269      pursuant to subsections (4) and (5), the Office of the Property Rights Ombudsman shall appoint
             270      a neutral third party to issue an advisory opinion.
             271          (7) All parties that are the subject of the request for advisory opinion shall:
             272          (a) share equally in the cost of the advisory opinion; and
             273          (b) provide financial assurance for payment that the neutral third party requires.


             274          (8) The neutral third party shall comply with the provisions of Section 78-31c-109 , and
             275      shall promptly:
             276          (a) seek a response from all necessary parties to the issues raised in the request for
             277      advisory opinion;
             278          (b) investigate and consider all responses; and
             279          (c) issue a written advisory opinion within 15 business days after the appointment,
             280      unless:
             281          (i) the parties agree to extend the deadline; or
             282          (ii) the neutral third party determines that the matter is complex and requires additional
             283      time to render an opinion, which may not exceed 30 calendar days.
             284          (9) An advisory opinion shall include a statement of the facts and law supporting the
             285      opinion's conclusions.
             286          (10) (a) Copies of any advisory opinion issued by the Office of the Property Rights
             287      Ombudsman shall be delivered as soon as practicable to all necessary parties.
             288          (b) A copy of the advisory opinion shall be delivered to the government entity in the
             289      manner provided for in Section 63-30d-401 .
             290          (11) An advisory opinion issued by the Office of the Property Rights Ombudsman is
             291      not binding on any party to, nor admissible as evidence in, a dispute involving land use law
             292      except as provided in Subsection (12).
             293          (12) (a) If the same issue that is the subject of an advisory opinion is listed as a cause
             294      of action in litigation, and that cause of action is litigated on the same facts and circumstances
             295      and is resolved consistent with the advisory opinion, the substantially prevailing party on that
             296      cause of action may collect reasonable attorney fees and court costs pertaining to the
             297      development of that cause of action from the date of the delivery of the advisory opinion to the
             298      date of the court's resolution.
             299          (b) Nothing in this Subsection (12) is intended to create any new cause of action under
             300      land use law.
             301          (13) Unless filed by the local government, a request for an advisory opinion under
             302      Section 13-42-205 does not stay the progress of a land use application, or the effect of a land
             303      use decision.


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