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S.B. 268 Enrolled

             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      REPEALS:
             38          63-34-13, as last amended by Chapters 90 and 223, Laws of Utah 2004
             39     
             40      Be it enacted by the Legislature of the state of Utah:
             41          Section 1. Section 13-42-101 is enacted to read:
             42     
CHAPTER 42. PROPERTY RIGHTS OMBUDSMAN ACT

             43     
Part 1. General Provisions

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


             58      constitutional taking; or
             59          (c) provide for relocation assistance to those persons who are displaced by the use of
             60      eminent domain.
             61          Section 3. Section 13-42-201 is enacted to read:
             62     
Part 2. Office of the Property Rights Ombudsman

             63          13-42-201. Office of the Property Rights Ombudsman.
             64          (1) There is created an Office of the Property Rights Ombudsman in the Department of
             65      Commerce.
             66          (2) The executive director of the Department of Commerce, with the concurrence of
             67      the Land Use and Eminent Domain Advisory Board created in Section 13-42-202 , shall appoint
             68      attorneys with background or expertise in takings, eminent domain, and land use law to fill
             69      legal positions within the Office of the Property Rights Ombudsman.
             70          (3) A person appointed under this section is an exempt employee.
             71          (4) An attorney appointed under this section is an at-will employee who may be
             72      terminated without cause by:
             73          (a) the executive director of the Department of Commerce; or
             74          (b) an action of the land Use and Eminent Domain Advisory Board.
             75          Section 4. Section 13-42-202 is enacted to read:
             76          13-42-202. Land Use and Eminent Domain Advisory Board -- Appointment --
             77      Compensation -- Duties.
             78          (1) There is created the Land Use and Eminent Domain Advisory Board, within the
             79      Office of the Property Rights Ombudsman, consisting of the following seven members:
             80          (a) one individual representing special service districts, nominated by the Utah
             81      Association of Special Districts;
             82          (b) one individual representing municipal government, nominated by the Utah League
             83      of Cities and Towns;
             84          (c) one individual representing county government, nominated by the Utah Association
             85      of Counties;


             86          (d) one individual representing the residential construction industry, nominated by the
             87      Utah Home Builders Association;
             88          (e) one individual representing the real estate industry, nominated by the Utah
             89      Association of Realtors;
             90          (f) one individual representing the land development community, jointly nominated by
             91      the Utah Association of Realtors and the Home Builders Association of Utah; and
             92          (g) one individual who:
             93          (i) is a citizen with experience in land use issues;
             94          (ii) does not hold public office; and
             95          (iii) is not currently employed, nor has been employed in the previous twelve months,
             96      by any of the entities or industries listed in Subsections (1)(a) through (f).
             97          (2) After receiving nominations, the governor shall appoint members to the board.
             98          (3) The term of office of each member is four years, except that the governor shall
             99      appoint three of the members of the board to an initial two-year term.
             100          (4) Each mid-term vacancy shall be filled for the unexpired term in the same manner as
             101      an appointment under Subsections (1) and (2).
             102          (5) (a) Board members shall elect a chair from their number and establish rules for the
             103      organization and operation of the board.
             104          (b) Five members of the board constitute a quorum for the conduct of the board's
             105      business.
             106          (c) The affirmative vote of five members is required to constitute the decision of the
             107      board on any matter.
             108          (6) (a) No member may receive compensation or benefits for the member's service on
             109      the board.
             110          (b) (i) A member who is not a government officer or employee may be reimbursed for
             111      reasonable expenses incurred in the performance of the member's official duties at the rates
             112      established by the Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             113          (ii) A member who is a government officer or employee and who does not receive


             114      expenses from the member's agency may be reimbursed for reasonable expenses incurred in the
             115      performance of the member's official duties at the rates established by the Division of Finance
             116      under Sections 63A-3-106 and 63A-3-107 .
             117          (c) A member may decline to be reimbursed for reasonable expenses incurred in the
             118      performance of the member's official duties.
             119          (d) A member need not give a bond for the performance of official duties.
             120          (7) The Office of the Property Rights Ombudsman shall provide staff to the board.
             121          (8) The board shall:
             122          (a) receive reports from the Office of the Property Rights Ombudsman that are
             123      requested by the board;
             124          (b) establish rules of conduct and performance for the Office of the Property Rights
             125      Ombudsman;
             126          (c) receive donations or contributions from any source for the Office of the Property
             127      Rights Ombudsman's benefit;
             128          (d) subject to any restriction placed on a donation or contribution received under
             129      Subsection (8)(c), authorize the expenditure of donations or contributions for the Office of the
             130      Property Rights Ombudsman's benefit;
             131          (e) receive budget recommendations from the Office of the Property Rights
             132      Ombudsman; and
             133          (f) revise budget recommendations received under Subsection (8)(e).
             134          (9) The board shall maintain a resource list of qualified arbitrators and mediators who
             135      may be appointed under Section 13-42-204 and qualified persons who may be appointed to
             136      render advisory opinions under Section 13-42-205 .
             137          Section 5. Section 13-42-203 is enacted to read:
             138          13-42-203. Office of the Property Rights Ombudsman -- Duties.
             139          (1) The Office of the Property Rights Ombudsman shall:
             140          (a) develop and maintain expertise in and understanding of takings, eminent domain,
             141      and land use law;


             142          (b) assist state agencies and local governments in developing the guidelines required by
             143      Title 63, Chapter 90a, Constitutional Taking Issues;
             144          (c) at the request of a state agency or local government, assist the state agency or local
             145      government, in analyzing actions with potential takings implications or other land use issues;
             146          (d) advise real property owners who have a legitimate potential or actual takings claim
             147      against a state or local government entity or have questions about takings, eminent domain, and
             148      land use law;
             149          (e) identify state or local government actions that have potential takings implications
             150      and, if appropriate, advise those state or local government entities about those implications;
             151      and
             152          (f) provide information to private citizens, civic groups, government entities, and other
             153      interested parties about takings, eminent domain, and land use law and their rights and
             154      responsibilities under the takings, eminent domain, or land use laws through seminars and
             155      publications, and by other appropriate means.
             156          (2) The Office of the Property Rights Ombudsman may not represent private property
             157      owners, state agencies, or local governments in court or in adjudicative proceedings under Title
             158      63, Chapter 46b, Administrative Procedures Act.
             159          (3) No member of the Office of the Property Rights Ombudsman nor a neutral third
             160      party rendering an advisory opinion under Section 13-42-205 or 13-42-206 , may be compelled
             161      to testify in a civil action filed concerning the subject matter of any review, mediation, or
             162      arbitration by, or arranged through, the office.
             163          (4) (a) Except as provided in Subsection (4)(b), evidence of a review by the Office of
             164      the Property Rights Ombudsman and the opinions, writings, findings, and determinations of the
             165      Office of the Property Rights Ombudsman are not admissible as evidence in a judicial action.
             166          (b) Subsection (4)(a) does not apply to:
             167          (i) actions brought under authority of Title 78, Chapter 6, Small Claims Courts;
             168          (ii) a judicial confirmation or review of the arbitration itself as authorized in Title 78,
             169      Chapter 31a, Utah Uniform Arbitration Act;


             170          (iii) actions for de novo review of an arbitration award or issue brought under the
             171      authority of Subsection 13-42-204 (3)(a)(i); or
             172          (iv) advisory opinions provided for in Sections 13-42-205 and 13-42-206 .
             173          Section 6. Section 13-42-204 is enacted to read:
             174          13-42-204. Office of Property Rights Ombudsman -- Arbitration or mediation of
             175      takings or eminent domain disputes.
             176          (1) If requested by the private property owner and otherwise appropriate, the Office of
             177      the Property Rights Ombudsman shall mediate, or conduct or arrange arbitration for, disputes
             178      between private property owners and government entities that involve:
             179          (a) takings or eminent domain issues;
             180          (b) actions for eminent domain under Title 78, Chapter 34, Eminent Domain; or
             181          (c) disputes about relocation assistance under Title 57, Chapter 12, Utah Relocation
             182      Assistance Act.
             183          (2) If arbitration or mediation is requested by a private property owner under this
             184      section, Section 57-12-14 or 78-34-21 , and arranged by the Office of the Property Rights
             185      Ombudsman, the government entity or condemning entity shall participate in the mediation or
             186      arbitration as if the matter were ordered to mediation or arbitration by a court.
             187          (3) (a) (i) In conducting or arranging for arbitration under Subsection (1), the Office of
             188      the Property Rights Ombudsman shall follow the procedures and requirements of Title 78,
             189      Chapter 31a, Utah Uniform Arbitration Act.
             190          (ii) In applying Title 78, Chapter 31a, Utah Uniform Arbitration Act, the arbitrator and
             191      parties shall treat the matter as if:
             192          (A) it were ordered to arbitration by a court; and
             193          (B) the Office of the Property Rights Ombudsman or other arbitrator chosen as
             194      provided for in this section was appointed as arbitrator by the court.
             195          (iii) For the purpose of an arbitration conducted under this section, if the dispute to be
             196      arbitrated is not already the subject of legal action, the district court having jurisdiction over
             197      the county where the private property involved in the dispute is located is the court referred to


             198      in Title 78, Chapter 31a, Utah Uniform Arbitration Act.
             199          (iv) An arbitration award under this chapter may not be vacated under the provisions of
             200      Subsection 78-31a-124 (1)(e) because of the lack of an arbitration agreement between the
             201      parties.
             202          (b) The Office of the Property Rights Ombudsman shall issue a written statement
             203      declining to arbitrate or to appoint an arbitrator when, in the opinion of the Office of the
             204      Property Rights Ombudsman:
             205          (i) the issues are not ripe for review;
             206          (ii) assuming the alleged facts are true, no cause of action exists under United States or
             207      Utah law;
             208          (iii) all issues raised are beyond the scope of the Office of the Property Rights
             209      Ombudsman's statutory duty to review; or
             210          (iv) the arbitration is otherwise not appropriate.
             211          (c) (i) The Office of the Property Rights Ombudsman shall appoint another person to
             212      arbitrate a dispute when:
             213          (A) either party objects to the Office of the Property Rights Ombudsman serving as the
             214      arbitrator and agrees to pay for the services of another arbitrator;
             215          (B) the Office of the Property Rights Ombudsman declines to arbitrate the dispute for a
             216      reason other than those stated in Subsection (3)(b) and one or both parties are willing to pay for
             217      the services of another arbitrator; or
             218          (C) the Office of the Property Rights Ombudsman determines that it is appropriate to
             219      appoint another person to arbitrate the dispute with no charge to the parties for the services of
             220      the appointed arbitrator.
             221          (ii) In appointing another person to arbitrate a dispute, the Office of the Property Rights
             222      Ombudsman shall appoint an arbitrator who is agreeable to:
             223          (A) both parties; or
             224          (B) the Office of the Property Rights Ombudsman and the party paying for the
             225      arbitrator.


             226          (iii) The Office of the Property Rights Ombudsman may, on its own initiative or upon
             227      agreement of both parties, appoint a panel of arbitrators to conduct the arbitration.
             228          (iv) The Department of Commerce may pay an arbitrator per diem and reimburse
             229      expenses incurred in the performance of the arbitrator's duties at the rates established by the
             230      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             231          (d) In arbitrating a dispute, the arbitrator shall apply the relevant statutes, case law,
             232      regulations, and rules of Utah and the United States in conducting the arbitration and in
             233      determining the award.
             234          (e) The property owner and government entity may agree in advance of arbitration that
             235      the arbitration is binding and that no de novo review may occur.
             236          (f) Arbitration by or through the Office of the Property Rights Ombudsman is not
             237      necessary before bringing legal action to adjudicate any claim.
             238          (g) The lack of arbitration by or through the Office of the Property Rights Ombudsman
             239      does not constitute, and may not be interpreted as constituting, a failure to exhaust available
             240      administrative remedies or as a bar to bringing legal action.
             241          (h) Arbitration under this section is not subject to Title 63, Chapter 46b,
             242      Administrative Procedures Act, or Title 78, Chapter 31b, Alternative Dispute Resolution Act.
             243          (i) Within 30 days after an arbitrator issues a final award, and except as provided in
             244      Subsection (3)(e), any party may submit the award, or any issue upon which the award is based,
             245      to the district court for de novo review.
             246          (4) The filing with the Office of the Property Rights Ombudsman of a request for
             247      mediation or arbitration of a constitutional taking issue does not stay any county or municipal
             248      land use decision, including the decision of a board of adjustment.
             249          (5) Members of the Office of the Property Rights Ombudsman may not be compelled
             250      to testify in a civil action filed concerning the subject matter of any review, mediation, or
             251      arbitration by the Office of the Property Rights Ombudsman.
             252          Section 7. Section 13-42-205 is enacted to read:
             253          13-42-205. Advisory opinion.


             254          At any time before a final decision on a land use application by a local appeal authority
             255      under Section 10-9a-708 or 17-27a-708 , a local government or a potentially aggrieved person
             256      may, in accordance with Section 13-42-206 , request a written advisory opinion from a neutral
             257      third party to determine compliance with:
             258          (1) Sections 10-9a-507 through 10-9a-511 ;
             259          (2) Sections 17-27a-506 through 17-27a-510 ; and
             260          (3) Title 11, Chapter 36, Impact Fees Act.
             261          Section 8. Section 13-42-206 is enacted to read:
             262          13-42-206. Advisory Opinion -- Process.
             263          (1) A request for an advisory opinion under Section 13-42-205 shall be:
             264          (a) filed with the Office of the Property Rights Ombudsman; and
             265          (b) accompanied by a filing fee of $150.
             266          (2) The Office of the Property Rights Ombudsman may establish policies providing for
             267      partial fee waivers for a person who is financially unable to pay the entire fee.
             268          (3) A person requesting an advisory opinion need not exhaust administrative remedies,
             269      including remedies described under Section 10-9a-801 or 17-27a-801 , before requesting an
             270      advisory opinion.
             271          (4) The Office of the Property Rights Ombudsman shall:
             272          (a) deliver notice of the request to opposing parties indicated in the request;
             273          (b) inquire of all parties if there are other necessary parties to the dispute; and
             274          (c) deliver notice to all necessary parties.
             275          (5) If a governmental entity is an opposing party, the Office of the Property Rights
             276      Ombudsman shall deliver the request in the manner provided for in Section 63-30d-301 .
             277          (6) (a) The Office of the Property Rights Ombudsman shall promptly determine if the
             278      parties can agree to a neutral third party to issue an advisory opinion.
             279          (b) If no agreement can be reached within four business days after notice is delivered
             280      pursuant to Subsections (4) and (5), the Office of the Property Rights Ombudsman shall
             281      appoint a neutral third party to issue an advisory opinion.


             282          (7) All parties that are the subject of the request for advisory opinion shall:
             283          (a) share equally in the cost of the advisory opinion; and
             284          (b) provide financial assurance for payment that the neutral third party requires.
             285          (8) The neutral third party shall comply with the provisions of Section 78-31a-109 , and
             286      shall promptly:
             287          (a) seek a response from all necessary parties to the issues raised in the request for
             288      advisory opinion;
             289          (b) investigate and consider all responses; and
             290          (c) issue a written advisory opinion within 15 business days after the appointment of
             291      the neutral third party under Subsection (6)(b), unless:
             292          (i) the parties agree to extend the deadline; or
             293          (ii) the neutral third party determines that the matter is complex and requires additional
             294      time to render an opinion, which may not exceed 30 calendar days.
             295          (9) An advisory opinion shall include a statement of the facts and law supporting the
             296      opinion's conclusions.
             297          (10) (a) Copies of any advisory opinion issued by the Office of the Property Rights
             298      Ombudsman shall be delivered as soon as practicable to all necessary parties.
             299          (b) A copy of the advisory opinion shall be delivered to the government entity in the
             300      manner provided for in Section 63-30d-401 .
             301          (11) An advisory opinion issued by the Office of the Property Rights Ombudsman is
             302      not binding on any party to, nor admissible as evidence in, a dispute involving land use law
             303      except as provided in Subsection (12).
             304          (12) (a) If the same issue that is the subject of an advisory opinion is listed as a cause
             305      of action in litigation, and that cause of action is litigated on the same facts and circumstances
             306      and is resolved consistent with the advisory opinion, the substantially prevailing party on that
             307      cause of action may collect reasonable attorney fees and court costs pertaining to the
             308      development of that cause of action from the date of the delivery of the advisory opinion to the
             309      date of the court's resolution.


             310          (b) Nothing in this Subsection (12) is intended to create any new cause of action under
             311      land use law.
             312          (13) Unless filed by the local government, a request for an advisory opinion under
             313      Section 13-42-205 does not stay the progress of a land use application, or the effect of a land
             314      use decision.
             315          Section 9. Repealer.
             316          This bill repeals:
             317          Section 63-34-13, Property rights ombudsman -- Powers -- Arbitration procedures.


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