First Substitute S.B. 70

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EMINENT DOMAIN VALUATION
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Pete Suazo
5 AN ACT RELATING TO EMINENT DOMAIN; REQUIRING AGENCIES THAT DISPLACE
6 LANDOWNERS REIMBURSE EXPENSES IN AN AMOUNT THE AGENCY 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 ARBITRATION AND PERMITTING WITHDRAWAL
12 FROM ARBITRATION; 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 acquiring real property for its use shall, as 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 [deems] and the 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;
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, or the effective date of possession of such real
4 property by the agency, whichever is the earlier[.];
5 (d) relocation costs; and
6 (e) an additional appraisal cost if the property owner and the agency 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 and shall be performed by an independent appraiser agreed upon by both the property
10 owner and the agency.
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 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, unless the [agency
26 head] owner is satisfied that replacement [housing] property is available to [this person], and
27 provided to the owner.
28 (4) (a) In the event the agency and the property owner disagree on an offer of comparable
29 replacement property, the dispute shall be submitted for arbitration to an independent arbitrator
30 agreed upon by both the agency and the property owner.
31 (b) If arbitration 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 arbitration, a decision by
3 the agency or the property owner to participate no further may not result in a penalty or delay in
4 processing the civil trial.
5 (d) If arbitration is successful, a finding of arbitration shall be made by the arbitrator
6 within 45 days.
7 (e) After a finding has been made by the arbitrator, an order of occupancy may be issued.
8 (f) The cost of the independent arbitrator shall be shared equally by the agency and the
9 property owner.
10 (g) The record of the arbitration and the finding of fact of the independent arbitrator shall
11 be made a matter of record in any litigation in a civil court in this state.

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