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First Substitute H.B. 13

Representative Marda Dillree proposes the following substitute bill:


             1     
TRANSPORTATION CORRIDOR

             2     
PRESERVATION AMENDMENTS

             3     
2003 GENERAL SESSION

             4     
STATE OF UTAH

             5     
Sponsor: Marda Dillree

             6      This act modifies the Transportation Code to extend the period for which real property
             7      may be acquired for the preservation of a future transportation corridor from 20 years to
             8      30 years in advance. This act requires the Department of Transportation to give the
             9      original grantor first right of refusal of the highest offer for unused parcels of real
             10      property acquired for transportation corridors and provides for notification and 90 days
             11      to accept the offer. This act makes technical changes.
             12      This act affects sections of Utah Code Annotated 1953 as follows:
             13      AMENDS:
             14          72-5-111, as last amended by Chapters 34 and 216, Laws of Utah 2000
             15          72-5-402, as enacted by Chapter 34, Laws of Utah 2000
             16          72-5-403, as enacted by Chapter 34, Laws of Utah 2000
             17          72-5-404, as enacted by Chapter 34, Laws of Utah 2000
             18          78-34-20, as last amended by Chapter 269, Laws of Utah 1996
             19      Be it enacted by the Legislature of the state of Utah:
             20          Section 1. Section 72-5-111 is amended to read:
             21           72-5-111. Disposal of real property.
             22          (1) (a) If the department determines that any real property or interest in real property,
             23      acquired for a highway purpose, is no longer necessary for the purpose, the department may
             24      lease, sell, exchange, or otherwise dispose of the real property or interest in the real property.
             25          (b) (i) Real property may be sold at private or public sale.



             26          (ii) Except as provided in Subsection (1)(c) related to exchanges, proceeds of any sale
             27      shall be deposited with the state treasurer and credited to the Transportation Fund.
             28          (c) If approved by the commission, real property or an interest in real property may be
             29      exchanged by the department for other real property or interest in real property, including
             30      improvements, for highway purposes.
             31          (2) (a) In the disposition of [land] real property at any private sale, first consideration
             32      shall be given to the original grantor or [his] the original grantor's heirs.
             33          (b) h [ If ] NOTWITHSTANDING THE PROVISIONS OF SECTION 78-34-20, IF h no portion of a
             33a      parcel of real property acquired by the department is used for
             34      transportation purposes, then the original grantor or the grantor's heirs shall be given the
             35      opportunity to repurchase the parcel of real property at the department's original purchase price
             36      from the grantor.
             37          (c) In accordance with Section 72-5-404 , this Subsection (2)[(b)] does not apply [if the
             38      department purchase was initially requested by the grantor] to property rights acquired in
             39      proposed transportation corridors using funds from the Transportation Corridor Preservation
             40      Revolving Loan Fund created in Section 72-2-117 .
             41          (3) (a) Any sale, exchange, or disposal of real property or interest in real property made
             42      by the department under this section, is exempt from the mineral reservation provisions of Title
             43      65A, Chapter 6, Mineral Leases.
             44          (b) Any deed made and delivered by the department under this section without specific
             45      reservations in the deed is a conveyance of all the state's right, title, and interest in the real
             46      property or interest in the real property.
             47          Section 2. Section 72-5-402 is amended to read:
             48           72-5-402. Public purpose.
             49           h (1) h The Legislature finds and declares that the planning and preservation of transportation
             50      corridors is a public purpose, that the acquisition of public rights in private property for
             51      possible use as a transportation corridor [up to 20] years in advance is a public purpose, and
             52      that acquisition of public rights in private property for possible use as alternative transportation
             53      corridors is a public purpose, even if one or more of the transportation corridors is eventually
             54      not used for a public purpose, so long as reasonable evidence exists at the time of acquisition
             55      that the [corridor] transportation facility will be developed within [20 years] the time period
             56      established under this part.
             56a           h (2) THE LEGISLATURE FINDS AND DECLARES THAT THE ACQUISITION OF PRIVATE
             56b      PROPERTY RIGHTS FOR THE PRESERVATION OF TRANSPORTATION CORRIDORS SHOULD BE
             56c      DONE ON A VOLUNTARY BASIS AND NOT BY THE USE OF EMINENT DOMAIN POWERS. h



             57          Section 3. Section 72-5-403 is amended to read:
             58           72-5-403. Transportation corridor preservation powers.
             59          (1) The department, counties, and municipalities may:
             60          (a) act in cooperation with one another and other government entities to promote
             61      planning for and enhance the preservation of transportation corridors and to more effectively
             62      use the monies available in the Transportation Corridor Preservation Revolving Loan Fund
             63      created in Section 72-2-117 ;
             64          (b) undertake transportation corridor planning, review, and preservation processes; and
             65          (c) acquire fee simple rights and other rights of less than fee simple, including
             66      easement and development rights, or the rights to limit development, including rights in
             67      alternative transportation corridors, and to make these acquisitions up to [20] a projected 30
             68      years in advance of using those rights in actual transportation facility construction.
             69          (2) In addition to the powers described under Subsection (1), counties and
             70      municipalities may:
             71          (a) limit development for transportation corridor preservation by land use regulation
             72      and by official maps; and
             73          (b) by ordinance prescribe procedures for approving limited development in
             74      transportation corridors until the time transportation facility construction begins.
             75          Section 4. Section 72-5-404 is amended to read:
             76           72-5-404. Disposition of excess property rights.
             77          If the department has acquired property rights in land in proposed transportation
             78      corridors, and some or all of that land is eventually not used for the proposed transportation
             79      corridors, the department shall dispose of the property rights in accordance with the provisions
             80      of Section [ 72-5-111 ] 78-34-20 .
             81          Section 5. Section 78-34-20 is amended to read:
             82           78-34-20. Sale of property acquired by eminent domain.
             83          (1) As used in this section, "condemnation or threat of condemnation" means:
             84          (a) acquisition through an eminent domain proceeding; or
             85          (b) an official body of the state or a subdivision of the state, having the power of
             86      eminent domain, has specifically authorized the use of eminent domain to acquire the real
             87      property.


             88          (2) If the state or one of its subdivisions, at its sole discretion, declares real property
             89      that is acquired through condemnation or threat of condemnation to be surplus real property,
             90      [not developed for the intended use,] it may not sell the real property on the open market unless
             91      [the following conditions are met]:
             92          [(1) the real property is not property acquired by condemnation, or by threat of
             93      condemnation, which, as used in this section, condemnation or threat of condemnation means
             94      acquisition through an eminent domain proceeding or that an official body of the state or a
             95      subdivision of the state, having the power of eminent domain, has specifically authorized the
             96      use of eminent domain to acquire the real property; or]
             97          [(2)] (a) the real property has been offered for sale to the [person or entity from whom
             98      the state or one of its subdivisions acquired it] original grantor, at the highest offer made to the
             99      state or one of its subdivisions with first right of refusal being given to the original grantor;
             100          (b) the [person or entity] original grantor expressly waived in writing the first right of
             101      refusal on the offer or failed to accept the offer within 90 days after notification by registered
             102      mail to the last-known address; and
             103          (c) neither the state nor the subdivision of the state selling the property is involved in
             104      the rezoning of the property or the acquisition of additional property to enhance the value of the
             105      real property to be sold.
             106          (3) This section shall only apply to property acquired after July 1, 1983.


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