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S.B. 70 Enrolled

    

EMINENT DOMAIN VALUATION

    
1997 GENERAL SESSION

    
STATE OF UTAH

    
Sponsor: Pete Suazo

    AN ACT RELATING TO EMINENT DOMAIN; REQUIRING AGENCIES AND POLITICAL
    SUBDIVISIONS THAT DISPLACE LANDOWNERS REIMBURSE EXPENSES IN AN
    AMOUNT THE AGENCY OR POLITICAL SUBDIVISION AND OWNER CONSIDER
    REASONABLE; PROVIDING ADDITIONAL EXPENSES TO BE COVERED;
    BROADENING REPLACEMENT PROVISIONS FROM DWELLING TO PROPERTY;
    PROVIDING OWNER MUST BE SATISFIED AND PROVIDED WITH
    REPLACEMENT PROPERTY; ALLOWING INDEPENDENT APPRAISAL IN CASES
    OF DISAGREEMENT; REQUIRING MEDIATION AND PERMITTING
    WITHDRAWAL FROM MEDIATION; MAKING TECHNICAL CORRECTIONS; AND
    PROVIDING AN EFFECTIVE DATE.
    This act affects sections of Utah Code Annotated 1953 as follows:
    AMENDS:
         57-12-5, as enacted by Chapter 24, Laws of Utah 1972
         57-12-7, as enacted by Chapter 24, Laws of Utah 1972
    Be it enacted by the Legislature of the state of Utah:
        Section 1. Section 57-12-5 is amended to read:
         57-12-5. Reimbursement of owner for expenses.
        (1) Any agency or political subdivision acquiring real property for its use shall, as soon
    as practicable after the date of payment of the purchase price or the date of deposit into court of
    funds to satisfy the award of compensation in a condemnation proceeding to acquire real property,
    whichever is the earlier, reimburse the owner, to the extent the agency [deems] or political
    subdivision and the owner consider fair and reasonable, for expenses the owner necessarily
    incurred for:
        [(1)] (a) recording fees, transfer taxes, and similar expenses incidental to conveying the
    real property to the agency or political subdivision;

        [(2)] (b) penalty costs for prepayment for any preexisting recorded mortgage entered into
    in good faith encumbering the real property; [and]
        [(3)] (c) the pro rata portion of real property taxes paid which are allocable to a period
    subsequent to the date of vesting title in the agency or political subdivision, or the effective date of
    possession of such real property by the agency or political subdivision, whichever is the earlier[.];
        (d) relocation costs; and
        (e) an additional appraisal cost if the property owner and the agency or political subdivision
    disagree on the value of the real property.
        (2) The cost of any appraisal required under Subsection (1)(e) shall be borne solely by the
    agency or political subdivision and shall be performed by an independent appraiser agreed upon by
    both the property owner and the agency or political subdivision.
        Section 2. Section 57-12-7 is amended to read:
         57-12-7. Replacement property.
        (1) No person shall be required to move or be relocated from land used [as] for his residence,
    business, or agricultural purposes and acquired under any of the condemnation or eminent domain
    laws of this state until he has been offered a comparable replacement [dwelling] property which is
    a decent, safe, clean, and sanitary [dwelling] property adequate to accommodate [this person] the
    occupants, reasonably accessible to public services and places of employment, and available on the
    private market.
        (2) If a program or project cannot proceed to actual construction because comparable sale
    or rental [housing] property is not available, and the head of the agency or political subdivision and
    the owner determines that [this housing] the property cannot otherwise be made available, [he may
    take] such action shall be taken as is necessary or appropriate to provide [this housing] the property
    by use of funds authorized for the project.
        (3) No person shall be required to move from [his dwelling] the person's property after the
    effective date of this act[, on account] because of any project of the agency or political subdivision,
    unless the [agency head] owner is satisfied that replacement [housing] property is available to [this
    person], and provided to the owner.

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        (4) (a) In the event the agency or political subdivision and the property owner disagree on
    an offer of comparable replacement property, the dispute shall be submitted for mediation to an
    independent mediator agreed upon by both the agency or political subdivision and the property
    owner.
        (b) If mediation matters appear reasonably unlikely to be resolved, the matter may proceed
    to trial as provided by Rules of Civil Procedure.
        (c) After the parties have completed the initial interaction with mediation, a decision by the
    agency or political subdivision or the property owner to participate no further may not result in a
    penalty or delay in processing the civil trial.
        (d) If mediation is successful, a finding of mediation shall be made by the mediator within
    45 days.
        (e) After a finding has been made by the mediator, an order of occupancy may be issued.
        (f) The cost of the independent mediator shall be shared equally by the agency or political
    subdivision and the property owner.
        (g) The record of the mediation and the finding of fact of the independent mediator shall be
    made a matter of record in any litigation in a civil court in this state.
        Section 3. Effective date.
        This act takes effect on May 4, 1998.

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