H.B. 25

             1     

EMINENT DOMAIN AMENDMENTS

             2     
2014 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Chief Sponsor: Lee B. Perry

             5     
Senate Sponsor: Curtis S. Bramble

             6     
             7      LONG TITLE
             8      Committee Note:
             9          The Political Subdivisions Interim Committee recommended this bill.
             10      General Description:
             11          This bill amends provisions of the eminent domain code.
             12      Highlighted Provisions:
             13          This bill:
             14          .    amends condemnation notice requirements for a municipality and project entity;
             15          .    amends provisions relating to an arbitration or mediation facilitated by the Office of
             16      the Property Rights Ombudsman;
             17          .    authorizes a private property owner to request a written advisory opinion to
             18      determine if a condemning entity has occupied the owner's property;
             19          .    amends the public uses for which the right of eminent domain may be exercised;
             20          .    requires a political subdivision or other person exercising the right of eminent
             21      domain to provide a written statement of certain disclosures to a private property
             22      owner; and
             23          .    makes technical corrections.
             24      Money Appropriated in this Bill:
             25          None
             26      Other Special Clauses:
             27          None


             28      Utah Code Sections Affected:
             29      AMENDS:
             30           10-8-2 , as last amended by Laws of Utah 2013, Chapter 445
             31           11-13-314 , as last amended by Laws of Utah 2008, Chapter 3
             32           13-43-204 , as last amended by Laws of Utah 2011, Chapter 385
             33           13-43-205 , as last amended by Laws of Utah 2013, Chapter 200
             34           13-43-206 , as last amended by Laws of Utah 2011, Chapter 47
             35           78B-6-501 , as last amended by Laws of Utah 2013, Chapter 327
             36           78B-6-505 , as last amended by Laws of Utah 2013, Chapter 327
             37           78B-6-522 , as last amended by Laws of Utah 2011, Chapter 385
             38     
             39      Be it enacted by the Legislature of the state of Utah:
             40          Section 1. Section 10-8-2 is amended to read:
             41           10-8-2. Appropriations -- Acquisition and disposal of property -- Municipal
             42      authority -- Corporate purpose -- Procedure -- Notice of intent to acquire real property.
             43          (1) (a) A municipal legislative body may:
             44          (i) appropriate money for corporate purposes only;
             45          (ii) provide for payment of debts and expenses of the corporation;
             46          (iii) subject to Subsections (4) and (5), purchase, receive, hold, sell, lease, convey, and
             47      dispose of real and personal property for the benefit of the municipality, whether the property is
             48      within or without the municipality's corporate boundaries, if the action is in the public interest
             49      and complies with other law;
             50          (iv) improve, protect, and do any other thing in relation to this property that an
             51      individual could do; and
             52          (v) subject to Subsection (2) and after first holding a public hearing, authorize
             53      municipal services or other nonmonetary assistance to be provided to or waive fees required to
             54      be paid by a nonprofit entity, whether or not the municipality receives consideration in return.
             55          (b) A municipality may:
             56          (i) furnish all necessary local public services within the municipality;
             57          (ii) purchase, hire, construct, own, maintain and operate, or lease public utilities
             58      located and operating within and operated by the municipality; and


             59          (iii) subject to Subsection (1)(c), acquire by eminent domain, or otherwise, property
             60      located inside or outside the corporate limits of the municipality and necessary for any of the
             61      purposes stated in Subsections (1)(b)(i) and (ii), subject to restrictions imposed by Title 78B,
             62      Chapter 6, Part 5, Eminent Domain, and general law for the protection of other communities.
             63          (c) Each municipality that intends to acquire property by eminent domain under
             64      Subsection (1)(b) shall[, upon the first contact with the owner of the property sought to be
             65      acquired, deliver to the owner a copy of a booklet or other materials provided by the Office of
             66      the Property Rights Ombudsman, created under Section 13-43-201 , dealing with the property
             67      owner's rights in an eminent domain proceeding] comply with the requirements of Section
             68      78B-6-505 .
             69          (d) Subsection (1)(b) may not be construed to diminish any other authority a
             70      municipality may claim to have under the law to acquire by eminent domain property located
             71      inside or outside the municipality.
             72          (2) (a) Services or assistance provided pursuant to Subsection (1)(a)(v) is not subject to
             73      the provisions of Subsection (3).
             74          (b) The total amount of services or other nonmonetary assistance provided or fees
             75      waived under Subsection (1)(a)(v) in any given fiscal year may not exceed 1% of the
             76      municipality's budget for that fiscal year.
             77          (3) It is considered a corporate purpose to appropriate money for any purpose that, in
             78      the judgment of the municipal legislative body, provides for the safety, health, prosperity,
             79      moral well-being, peace, order, comfort, or convenience of the inhabitants of the municipality
             80      subject to the following:
             81          (a) The net value received for any money appropriated shall be measured on a
             82      project-by-project basis over the life of the project.
             83          (b) The criteria for a determination under this Subsection (3) shall be established by the
             84      municipality's legislative body. A determination of value received, made by the municipality's
             85      legislative body, shall be presumed valid unless it can be shown that the determination was
             86      arbitrary, capricious, or illegal.
             87          (c) The municipality may consider intangible benefits received by the municipality in
             88      determining net value received.
             89          (d) (i) Prior to the municipal legislative body making any decision to appropriate any


             90      funds for a corporate purpose under this section, a public hearing shall be held.
             91          (ii) Notice of the hearing described in Subsection (3)(d)(i) shall be published:
             92          (A) (I) in a newspaper of general circulation at least 14 days before the date of the
             93      hearing; or
             94          (II) if there is no newspaper of general circulation, by posting notice in at least three
             95      conspicuous places within the municipality for the same time period; and
             96          (B) on the Utah Public Notice Website created in Section 63F-1-701 , at least 14 days
             97      before the date of the hearing.
             98          (e) A study shall be performed before notice of the public hearing is given and shall be
             99      made available at the municipality for review by interested parties at least 14 days immediately
             100      prior to the public hearing, setting forth an analysis and demonstrating the purpose for the
             101      appropriation. In making the study, the following factors shall be considered:
             102          (i) what identified benefit the municipality will receive in return for any money or
             103      resources appropriated;
             104          (ii) the municipality's purpose for the appropriation, including an analysis of the way
             105      the appropriation will be used to enhance the safety, health, prosperity, moral well-being,
             106      peace, order, comfort, or convenience of the inhabitants of the municipality; and
             107          (iii) whether the appropriation is necessary and appropriate to accomplish the
             108      reasonable goals and objectives of the municipality in the area of economic development, job
             109      creation, affordable housing, blight elimination, job preservation, the preservation of historic
             110      structures and property, and any other public purpose.
             111          (f) (i) An appeal may be taken from a final decision of the municipal legislative body,
             112      to make an appropriation.
             113          (ii) The appeal shall be filed within 30 days after the date of that decision, to the
             114      district court.
             115          (iii) Any appeal shall be based on the record of the proceedings before the legislative
             116      body.
             117          (iv) A decision of the municipal legislative body shall be presumed to be valid unless
             118      the appealing party shows that the decision was arbitrary, capricious, or illegal.
             119          (g) The provisions of this Subsection (3) apply only to those appropriations made after
             120      May 6, 2002.


             121          (h) This section applies only to appropriations not otherwise approved pursuant to Title
             122      10, Chapter 5, Uniform Fiscal Procedures Act for Utah Towns, or Title 10, Chapter 6, Uniform
             123      Fiscal Procedures Act for Utah Cities.
             124          (4) (a) Before a municipality may dispose of a significant parcel of real property, the
             125      municipality shall:
             126          (i) provide reasonable notice of the proposed disposition at least 14 days before the
             127      opportunity for public comment under Subsection (4)(a)(ii); and
             128          (ii) allow an opportunity for public comment on the proposed disposition.
             129          (b) Each municipality shall, by ordinance, define what constitutes:
             130          (i) a significant parcel of real property for purposes of Subsection (4)(a); and
             131          (ii) reasonable notice for purposes of Subsection (4)(a)(i).
             132          (5) (a) Except as provided in Subsection (5)(d), each municipality intending to acquire
             133      real property for the purpose of expanding the municipality's infrastructure or other facilities
             134      used for providing services that the municipality offers or intends to offer shall provide written
             135      notice, as provided in this Subsection (5), of its intent to acquire the property if:
             136          (i) the property is located:
             137          (A) outside the boundaries of the municipality; and
             138          (B) in a county of the first or second class; and
             139          (ii) the intended use of the property is contrary to:
             140          (A) the anticipated use of the property under the general plan of the county in whose
             141      unincorporated area or the municipality in whose boundaries the property is located; or
             142          (B) the property's current zoning designation.
             143          (b) Each notice under Subsection (5)(a) shall:
             144          (i) indicate that the municipality intends to acquire real property;
             145          (ii) identify the real property; and
             146          (iii) be sent to:
             147          (A) each county in whose unincorporated area and each municipality in whose
             148      boundaries the property is located; and
             149          (B) each affected entity.
             150          (c) A notice under this Subsection (5) is a protected record as provided in Subsection
             151      63G-2-305 (8).


             152          (d) (i) The notice requirement of Subsection (5)(a) does not apply if the municipality
             153      previously provided notice under Section 10-9a-203 identifying the general location within the
             154      municipality or unincorporated part of the county where the property to be acquired is located.
             155          (ii) If a municipality is not required to comply with the notice requirement of
             156      Subsection (5)(a) because of application of Subsection (5)(d)(i), the municipality shall provide
             157      the notice specified in Subsection (5)(a) as soon as practicable after its acquisition of the real
             158      property.
             159          Section 2. Section 11-13-314 is amended to read:
             160           11-13-314. Eminent domain authority of certain commercial project entities.
             161          (1) (a) Subject to Subsection (2), a commercial project entity that existed as a project
             162      entity before January 1, 1980 may, with respect to a project or facilities providing additional
             163      project capacity in which the commercial project entity has an interest, acquire property within
             164      the state through eminent domain, subject to restrictions imposed by Title 78B, Chapter 6, Part
             165      5, Eminent Domain, and general law for the protection of other communities.
             166          (b) Subsection (1)(a) may not be construed to:
             167          (i) give a project entity the authority to acquire water rights by eminent domain; or
             168          (ii) diminish any other authority a project entity may claim to have under the law to
             169      acquire property by eminent domain.
             170          (2) Each project entity that intends to acquire property by eminent domain under
             171      Subsection (1)(a) shall[, upon the first contact with the owner of the property sought to be
             172      acquired, deliver to the owner a copy of a booklet or other materials provided by the property
             173      rights ombudsman, created under Section 13-43-201 , dealing with the property owner's rights
             174      in an eminent domain proceeding] comply with the requirements of Section 78B-6-505 .
             175          Section 3. Section 13-43-204 is amended to read:
             176           13-43-204. Office of the Property Rights Ombudsman -- Arbitration or mediation
             177      of disputes.
             178          (1) If requested by the private property owner and if otherwise appropriate, the Office
             179      of the Property Rights Ombudsman shall mediate, or conduct or arrange arbitration for, a
             180      dispute between the owner and a government entity or other type of condemning entity:
             181          (a) involving taking or eminent domain issues;
             182          (b) involved in an action for eminent domain under Title 78B, Chapter 6, Part 5,


             183      Eminent Domain; or
             184          (c) involving relocation assistance under Title 57, Chapter 12, Utah Relocation
             185      Assistance Act.
             186          (2) If arbitration or mediation is requested by a private property owner under this
             187      section, Section 57-12-14 or 78B-6-522 , and arranged by the Office of the Property Rights
             188      Ombudsman, the government entity or condemning entity shall participate in the mediation or
             189      arbitration as if the matter were ordered to mediation or arbitration by a court.
             190          (3) (a) (i) In conducting or arranging for arbitration under Subsection (1), the Office of
             191      the Property Rights Ombudsman shall follow the procedures and requirements of Title 78B,
             192      Chapter 11, Utah Uniform Arbitration Act.
             193          (ii) In applying Title 78B, Chapter 11, Utah Uniform Arbitration Act, the arbitrator and
             194      parties shall treat the matter as if:
             195          (A) it were ordered to arbitration by a court; and
             196          (B) the Office of the Property Rights Ombudsman or other arbitrator chosen as
             197      provided for in this section was appointed as arbitrator by the court.
             198          (iii) For the purpose of an arbitration conducted under this section, if the dispute to be
             199      arbitrated is not already the subject of legal action, the district court having jurisdiction over
             200      the county where the private property involved in the dispute is located is the court referred to
             201      in Title 78B, Chapter 11, Utah Uniform Arbitration Act.
             202          (iv) An arbitration award under this chapter may not be vacated under the provisions of
             203      Subsection 78B-11-124 (1)(e) because of the lack of an arbitration agreement between the
             204      parties.
             205          (b) The Office of the Property Rights Ombudsman shall issue a written statement
             206      declining to mediate, arbitrate, or to appoint an arbitrator when, in the opinion of the Office of
             207      the Property Rights Ombudsman:
             208          (i) the issues are not ripe for review;
             209          (ii) assuming the alleged facts are true, no cause of action exists under United States or
             210      Utah law;
             211          (iii) all issues raised are beyond the scope of the Office of the Property Rights
             212      Ombudsman's statutory duty to review; or
             213          (iv) the mediation or arbitration is otherwise not appropriate.


             214          (c) (i) The Office of the Property Rights Ombudsman shall appoint another person to
             215      arbitrate a dispute when:
             216          (A) either party objects to the Office of the Property Rights Ombudsman serving as the
             217      arbitrator and agrees to pay for the services of another arbitrator;
             218          (B) the Office of the Property Rights Ombudsman declines to arbitrate the dispute for a
             219      reason other than those stated in Subsection (3)(b) and one or both parties are willing to pay for
             220      the services of another arbitrator; or
             221          (C) the Office of the Property Rights Ombudsman determines that it is appropriate to
             222      appoint another person to arbitrate the dispute with no charge to the parties for the services of
             223      the appointed arbitrator.
             224          (ii) In appointing another person to arbitrate a dispute, the Office of the Property Rights
             225      Ombudsman shall appoint an arbitrator who is agreeable to:
             226          (A) both parties; or
             227          (B) the Office of the Property Rights Ombudsman and the party paying for the
             228      arbitrator.
             229          (iii) The Office of the Property Rights Ombudsman may, on its own initiative or upon
             230      agreement of both parties, appoint a panel of arbitrators to conduct the arbitration.
             231          (iv) The Department of Commerce may pay an arbitrator per diem and reimburse
             232      expenses incurred in the performance of the arbitrator's duties at the rates established by the
             233      Division of Finance under Sections 63A-3-106 and 63A-3-107 .
             234          (d) In arbitrating a dispute, the arbitrator shall apply the relevant statutes, case law,
             235      regulations, and rules of Utah and the United States in conducting the arbitration and in
             236      determining the award.
             237          (e) The property owner and government entity, or other condemning entity, may agree
             238      in advance of arbitration that the arbitration is binding and that no de novo review may occur.
             239          (f) Arbitration by or through the Office of the Property Rights Ombudsman is not
             240      necessary before bringing legal action to adjudicate any claim.
             241          (g) The lack of arbitration by or through the Office of the Property Rights Ombudsman
             242      does not constitute, and may not be interpreted as constituting, a failure to exhaust available
             243      administrative remedies or as a bar to bringing legal action.
             244          (h) Arbitration under this section is not subject to Title 63G, Chapter 4, Administrative


             245      Procedures Act, or Title 78B, Chapter 6, Part 2, Alternative Dispute Resolution Act.
             246          (i) Within 30 days after an arbitrator issues a final award, and except as provided in
             247      Subsection (3)(e), any party to the arbitration may submit the dispute, the award, or any issue
             248      upon which the award is based, to the district court for review by trial de novo.
             249          (4) The filing with the Office of the Property Rights Ombudsman of a request for
             250      mediation or arbitration of a constitutional taking issue does not stay [any]:
             251          (a) a county or municipal land use decision[, including the decision of a board of
             252      adjustment.];
             253          (b) a land use appeal authority decision; or
             254          (c) the occupancy of the property.
             255          (5) [Members] A member of the Office of the Property Rights Ombudsman, or an
             256      arbitrator appointed by the office, may not be compelled to testify in a civil action filed
             257      concerning the subject matter of any review, mediation, or arbitration by the Office of the
             258      Property Rights Ombudsman.
             259          Section 4. Section 13-43-205 is amended to read:
             260           13-43-205. Advisory opinion.
             261          (1) A local government, private entity, or a potentially aggrieved person may, in
             262      accordance with Section 13-43-206 , request a written advisory opinion:
             263          [(1)] (a) from a neutral third party to determine compliance with:
             264          [(a)] (i) Section 10-9a-505.5 and Sections 10-9a-507 through 10-9a-511 ;
             265          [(b)] (ii) Section 17-27a-505.5 and Sections 17-27a-506 through 17-27a-510 ; and
             266          [(c)] (iii) Title 11, Chapter 36a, Impact Fees Act; and
             267          [(2) (a)] (b) at any time before:
             268           (i) a final decision on a land use application by a local appeal authority under Title 11,
             269      Chapter 36a, Impact Fees Act, or Section 10-9a-708 or 17-27a-708 ;
             270          [(b) at any time before] (ii) the deadline for filing an appeal with the district court
             271      under Title 11, Chapter 36a, Impact Fees Act, or Section 10-9a-801 or 17-27a-801 , if no local
             272      appeal authority is designated to hear the issue that is the subject of the request for an advisory
             273      opinion; or
             274          [(c) at any time prior to] (iii) the enactment of an impact fee, if the request for an
             275      advisory opinion is a request to review and comment on a proposed impact fee facilities plan or


             276      a proposed impact fee analysis as defined in Section 11-36a-102 .
             277          (2) A private property owner may, in accordance with Section 13-43-206 , request a
             278      written advisory opinion from a neutral third party to determine if a condemning entity:
             279          (a) is in occupancy of the owner's property;
             280          (b) is occupying the property:
             281          (i) for a public use authorized by law; and
             282          (ii) without colorable legal or equitable authority; and
             283          (c) continues to occupy the property without the owner's consent, the occupancy would
             284      constitute a taking of private property for a public use without just compensation.
             285          (3) An advisory opinion issued under Subsection (2) may justify an award of attorney
             286      fees against a condemning entity in accordance with Section 13-43-206 only if the court finds
             287      that the condemning entity:
             288          (a) does not have a colorable claim or defense for the entity's actions; and
             289          (b) continued occupancy without payment of just compensation and in disregard of the
             290      advisory opinion.
             291          Section 5. Section 13-43-206 is amended to read:
             292           13-43-206. Advisory opinion -- Process.
             293          (1) A request for an advisory opinion under Section 13-43-205 shall be:
             294          (a) filed with the Office of the Property Rights Ombudsman; and
             295          (b) accompanied by a filing fee of $150.
             296          (2) The Office of the Property Rights Ombudsman may establish policies providing for
             297      partial fee waivers for a person who is financially unable to pay the entire fee.
             298          (3) A person requesting an advisory opinion need not exhaust administrative remedies,
             299      including remedies described under Section 10-9a-801 or 17-27a-801 , before requesting an
             300      advisory opinion.
             301          (4) The Office of the Property Rights Ombudsman shall:
             302          (a) deliver notice of the request to opposing parties indicated in the request;
             303          (b) inquire of all parties if there are other necessary parties to the dispute; and
             304          (c) deliver notice to all necessary parties.
             305          (5) If a governmental entity is an opposing party, the Office of the Property Rights
             306      Ombudsman shall deliver the request in the manner provided for in Section 63G-7-401 .


             307          (6) (a) The Office of the Property Rights Ombudsman shall promptly determine if the
             308      parties can agree to a neutral third party to issue an advisory opinion.
             309          (b) If no agreement can be reached within four business days after notice is delivered
             310      pursuant to Subsections (4) and (5), the Office of the Property Rights Ombudsman shall
             311      appoint a neutral third party to issue an advisory opinion.
             312          (7) All parties that are the subject of the request for advisory opinion shall:
             313          (a) share equally in the cost of the advisory opinion; and
             314          (b) provide financial assurance for payment that the neutral third party requires.
             315          (8) The neutral third party shall comply with the provisions of Section 78B-11-109 ,
             316      and shall promptly:
             317          (a) seek a response from all necessary parties to the issues raised in the request for
             318      advisory opinion;
             319          (b) investigate and consider all responses; and
             320          (c) issue a written advisory opinion within 15 business days after the appointment of
             321      the neutral third party under Subsection (6)(b), unless:
             322          (i) the parties agree to extend the deadline; or
             323          (ii) the neutral third party determines that the matter is complex and requires additional
             324      time to render an opinion, which may not exceed 30 calendar days.
             325          (9) An advisory opinion shall include a statement of the facts and law supporting the
             326      opinion's conclusions.
             327          (10) (a) Copies of any advisory opinion issued by the Office of the Property Rights
             328      Ombudsman shall be delivered as soon as practicable to all necessary parties.
             329          (b) A copy of the advisory opinion shall be delivered to the government entity in the
             330      manner provided for in Section 63G-7-401 .
             331          (11) An advisory opinion issued by the Office of the Property Rights Ombudsman is
             332      not binding on any party to, nor admissible as evidence in, a dispute involving land use law
             333      except as provided in Subsection (12).
             334          (12) (a) Subject to Subsection (12)(d), if the same issue that is the subject of an
             335      advisory opinion is listed as a cause of action in litigation, and that cause of action is litigated
             336      on the same facts and circumstances and is resolved consistent with the advisory opinion:
             337          (i) the substantially prevailing party on that cause of action:


             338          (A) may collect reasonable attorney fees and court costs pertaining to the development
             339      of that cause of action from the date of the delivery of the advisory opinion to the date of the
             340      court's resolution; and
             341          (B) shall be refunded an impact fee held to be in violation of Title 11, Chapter 36a,
             342      Impact Fees Act, based on the difference between the impact fee paid and what the impact fee
             343      should have been if the government entity had correctly calculated the impact fee; and
             344          (ii) in accordance with Subsection (12)(b), a government entity shall refund an impact
             345      fee held to be in violation of Title 11, Chapter 36a, Impact Fees Act, to the person who was in
             346      record title of the property on the day on which the impact fee for the property was paid if:
             347          (A) the impact fee was paid on or after the day on which the advisory opinion on the
             348      impact fee was issued but before the day on which the final court ruling on the impact fee is
             349      issued; and
             350          (B) the person described in Subsection (12)(a)(ii) requests the impact fee refund from
             351      the government entity within 30 days after the day on which the court issued the final ruling on
             352      the impact fee.
             353          (b) A government entity subject to Subsection (12)(a)(ii) shall refund the impact fee
             354      based on the difference between the impact fee paid and what the impact fee should have been
             355      if the government entity had correctly calculated the impact fee.
             356          (c) Nothing in this Subsection (12) is intended to create any new cause of action under
             357      land use law.
             358          (d) Subsection (12)(a) does not apply unless the resolution described in Subsection
             359      (12)(a) is final.
             360          (13) Unless filed by the local government, a request for an advisory opinion under
             361      Section 13-43-205 does not stay the progress of a land use application, [or] the effect of a land
             362      use decision[.], or the condemning entity's occupancy of a property.
             363          Section 6. Section 78B-6-501 is amended to read:
             364           78B-6-501. Eminent domain -- Uses for which right may be exercised.
             365          Subject to the provisions of this part, the right of eminent domain may be exercised on
             366      behalf of the following public uses:
             367          (1) all public uses authorized by the federal government;
             368          (2) public buildings and grounds for the use of the state, and all other public uses


             369      authorized by the Legislature;
             370          (3) (a) public buildings and grounds for the use of any county, city, town, or board of
             371      education;
             372          (b) reservoirs, canals, aqueducts, flumes, ditches, or pipes for conducting water or
             373      sewage, including to or from a development, for the use of the inhabitants of any county, city,
             374      or town, or for the draining of any county, city, or town;
             375          (c) the raising of the banks of streams, removing obstructions from streams, and
             376      widening, deepening, or straightening their channels;
             377          (d) bicycle paths and sidewalks adjacent to paved roads;
             378          (e) roads, byroads, streets, and alleys for public vehicular use, including for access to a
             379      development, excluding trails, paths, or other ways for walking, hiking, bicycling, equestrian
             380      use, or other recreational uses, or whose primary purpose is as a foot path, equestrian trail,
             381      bicycle path, or walkway; and
             382          (f) all other public uses for the benefit of any county, city, or town, or its inhabitants;
             383          (4) wharves, docks, piers, chutes, booms, ferries, bridges, toll roads, byroads, plank
             384      and turnpike roads, roads for transportation by traction engines or road locomotives, roads for
             385      logging or lumbering purposes, and railroads and street railways for public transportation;
             386          (5) reservoirs, dams, watergates, canals, ditches, flumes, tunnels, aqueducts and pipes
             387      for the supplying of persons, mines, mills, smelters or other works for the reduction of ores,
             388      with water for domestic or other uses, or for irrigation purposes, or for the draining and
             389      reclaiming of lands, [or for the floating of logs and lumber on streams not navigable,] or for
             390      solar evaporation ponds and other facilities for the recovery of minerals in solution;
             391          (6) (a) roads, railroads, tramways, tunnels, ditches, flumes, pipes, and dumping places
             392      to access or facilitate the milling, smelting, or other reduction of ores, or the working of mines,
             393      quarries, coal mines, or mineral deposits including oil, gas, and minerals in solution;
             394          (b) outlets, natural or otherwise, for the deposit or conduct of tailings, refuse or water
             395      from mills, smelters or other works for the reduction of ores, or from mines, quarries, coal
             396      mines or mineral deposits including minerals in solution;
             397          (c) mill dams;
             398          (d) gas, oil or coal pipelines, tanks or reservoirs, including any subsurface stratum or
             399      formation in any land for the underground storage of natural gas, and in connection with that,


             400      any other interests in property which may be required to adequately examine, prepare,
             401      maintain, and operate underground natural gas storage facilities;
             402          (e) solar evaporation ponds and other facilities for the recovery of minerals in solution;
             403      and
             404          (f) any occupancy in common by the owners or possessors of different mines, quarries,
             405      coal mines, mineral deposits, mills, smelters, or other places for the reduction of ores, or any
             406      place for the flow, deposit or conduct of tailings or refuse matter;
             407          (7) byroads leading from a highway to:
             408          (a) a residence; or
             409          (b) a farm;
             410          (8) [telegraph,] telephone, electric light and electric power lines, [and] sites for electric
             411      light and power plants, or sites for the transmission of broadcast signals from a station licensed
             412      by the Federal Communications Commission in accordance with 47 C.F.R. Part 73 and that
             413      provides emergency broadcast services;
             414          (9) sewage service for:
             415          (a) a city, a town, or any settlement of not fewer than 10 families;
             416          (b) a public building belonging to the state; or
             417          (c) a college or university;
             418          (10) canals, reservoirs, dams, ditches, flumes, aqueducts, and pipes for supplying and
             419      storing water for the operation of machinery for the purpose of generating and transmitting
             420      electricity for power, light or heat;
             421          (11) cemeteries and public parks, except for a park whose primary use is:
             422          (a) as a trail, path, or other way for walking, hiking, bicycling, or equestrian use; or
             423          (b) to connect other trails, paths, or other ways for walking, hiking, bicycling, or
             424      equestrian use;
             425          (12) pipelines for the purpose of conducting any and all liquids connected with the
             426      manufacture of beet sugar; and
             427          (13) sites for mills, smelters or other works for the reduction of ores and necessary to
             428      their successful operation, including the right to take lands for the discharge and natural
             429      distribution of smoke, fumes, and dust, produced by the operation of works, provided that the
             430      powers granted by this section may not be exercised in any county where the population


             431      exceeds 20,000, or within one mile of the limits of any city or incorporated town nor unless the
             432      proposed condemner has the right to operate by purchase, option to purchase or easement, at
             433      least 75% in value of land acreage owned by persons or corporations situated within a radius of
             434      four miles from the mill, smelter or other works for the reduction of ores; nor beyond the limits
             435      of the four-mile radius; nor as to lands covered by contracts, easements, or agreements existing
             436      between the condemner and the owner of land within the limit and providing for the operation
             437      of such mill, smelter, or other works for the reduction of ores; nor until an action shall have
             438      been commenced to restrain the operation of such mill, smelter, or other works for the
             439      reduction of ores.
             440          Section 7. Section 78B-6-505 is amended to read:
             441           78B-6-505. Negotiation and disclosure required before filing an eminent domain
             442      action.
             443          (1) A political subdivision of the state that seeks to acquire property by eminent
             444      domain or that intends to use eminent domain to acquire property if the property cannot be
             445      acquired in a voluntary transaction shall:
             446          (a) before the governing body, as defined in Subsection 78B-6-504 (2)(a), of the
             447      political subdivision takes a final vote to approve the filing of an eminent domain action, make
             448      a reasonable effort to negotiate with the property owner for the purchase of the property; and
             449          (b) except as provided in Subsection [(3)] (4), as early in the negotiation process
             450      described in Subsection (1)(a) as practicable, but no later than 14 days before the day on which
             451      a final vote is taken to approve the filing of an eminent domain action:
             452          [(i) advise the property owner of the owner's rights to mediation and arbitration under
             453      Section 78B-6-522 , including the name and current telephone number of the property rights
             454      ombudsman, established in Title 13, Chapter 43, Property Rights Ombudsman Act;]
             455          [(ii)] (i) provide the property owner a complete printed copy of the materials provided
             456      on the Office of the Property Rights Ombudsman website in accordance with Section
             457      13-43-203 regarding the acquisition of property for a public purpose and a property owner's
             458      right to just compensation; and
             459          [(iii)] (ii) provide the property owner a written statement [explaining that oral
             460      representations or promises made during the negotiation process are not binding upon the
             461      person seeking to acquire the property by eminent domain.] in substantially the following form:


             462          "Although this letter is provided as part of an attempt to negotiate with you for the sale
             463      of your property or an interest in your property without using the power of eminent domain,
             464      [name of political subdivision] may use that power if it is not able to acquire the property by
             465      negotiation. Because of that potential, the person negotiating on behalf of the entity is required
             466      to provide the following disclosures to you.
             467          1. You are entitled to receive just compensation for your property.
             468          2. You are entitled to an opportunity to negotiate with [name of political subdivision]
             469      over the amount of just compensation before any legal action will be filed.
             470          a. You are entitled to an explanation of how the compensation offered for your
             471      property was calculated.
             472          b. If an appraiser is asked to value your property, you are entitled to accompany the
             473      appraiser during an inspection of the property.
             474          3. You are entitled to discuss this case with the attorneys at the Office of the Property
             475      Rights Ombudsman. The office may be reached at [provide the current contact information for
             476      the Office of the Property Rights Ombudsman].
             477          4. The Office of the Property Rights Ombudsman is a neutral state office staffed by
             478      attorneys experienced in eminent domain. Their purpose is to assist citizens in understanding
             479      and protecting their property rights. You are entitled to ask questions and request an
             480      explanation of your legal options.
             481          5. If you have a dispute with [name of political subdivision] over the amount of just
             482      compensation due to you, you are entitled to request free mediation or arbitration of the dispute
             483      from the Office of the Property Rights Ombudsman. As part of mediation or arbitration, you
             484      are entitled to request a free independent valuation of the property.
             485          6. Oral representations or promises made during the negotiation process are not
             486      binding upon the entity seeking to acquire the property by eminent domain."
             487          (2) Except as provided in Subsection (4), the entity involved in the acquisition of
             488      property may not bring a legal action to acquire the property under this chapter until 30 days
             489      after the day on which the disclosure and materials required in Subsection (1)(b)(ii) are
             490      provided to the property owner.
             491          [(2)] (3) A person, other than a political subdivision of the state, that seeks to acquire
             492      property by eminent domain or that intends to use eminent domain to acquire property if the


             493      property cannot be acquired in a voluntary transaction shall:
             494          (a) before filing an eminent domain action, make a reasonable effort to negotiate with
             495      the property owner for the purchase of the property; and
             496          (b) except as provided in Subsection [(3)] (4), as early in the negotiation process
             497      described in Subsection [(2)] (3)(a) as practicable, but no later than [14] 30 days before the day
             498      on which the person files an eminent domain action:
             499          [(i) advise the property owner of the owner's rights to mediation and arbitration under
             500      Section 78B-6-522 , including the name and current telephone number of the property rights
             501      ombudsman, established in Title 13, Chapter 43, Property Rights Ombudsman Act;]
             502          [(ii)] (i) provide the property owner a complete printed copy of the materials provided
             503      on the Office of the Property Rights Ombudsman website in accordance with Section
             504      13-43-203 regarding the acquisition of property for a public purpose and a property owner's
             505      right to just compensation; and
             506          [(iii)] (ii) provide the property owner a written statement [explaining that oral
             507      representations or promises made during the negotiation process are not binding upon the
             508      person seeking to acquire the property by eminent domain.] in substantially the following form:
             509          "Although this letter is provided as part of an attempt to negotiate with you for the sale
             510      of your property or an interest in your property without using the power of eminent domain,
             511      [name of entity] may use that power if it is not able to acquire the property by negotiation.
             512      Because of that potential, the person negotiating on behalf of the entity is required to provide
             513      the following disclosures to you.
             514          1. You are entitled to receive just compensation for your property.
             515          2. You are entitled to an opportunity to negotiate with [name of entity] over the amount
             516      of just compensation before any legal action will be filed.
             517          a. You are entitled to an explanation of how the compensation offered for your
             518      property was calculated.
             519          b. If an appraiser is asked to value your property, you are entitled to accompany the
             520      appraiser during an inspection of the property.
             521          3. You are entitled to discuss this case with the attorneys at the Office of the Property
             522      Rights Ombudsman. The office may be reached at [provide the current contact information for
             523      the Office of the Property Rights Ombudsman].


             524          4. The Office of the Property Rights Ombudsman is a neutral state office staffed by
             525      attorneys experienced in eminent domain. Their purpose is to assist citizens in understanding
             526      and protecting their property rights. You are entitled to ask questions and request an
             527      explanation of your legal options.
             528          5. If you have a dispute with [name of entity] over the amount of just compensation
             529      due to you, you are entitled to request free mediation or arbitration of the dispute from the
             530      Office of the Property Rights Ombudsman. As part of mediation or arbitration, you are entitled
             531      to request a free independent valuation of the property.
             532          6. Oral representations or promises made during the negotiation process are not
             533      binding upon the entity seeking to acquire the property by eminent domain."
             534          [(3)] (4) The court may, upon a showing of exigent circumstances and for good cause,
             535      shorten the 14-day period described in Subsection (1)(b) [or (2)(b)] or the 30-day period
             536      described in Subsection (2) or (3)(b).
             537          Section 8. Section 78B-6-522 is amended to read:
             538           78B-6-522. Dispute resolution.
             539          (1) In any dispute between a condemner and a private property owner arising out of this
             540      chapter, or a dispute over the taking of private property for a public use without the prior use of
             541      eminent domain, the private property owner may submit the dispute for mediation or
             542      arbitration to the Office of the Property Rights Ombudsman under Section 13-43-204 .
             543          (2) An action submitted to the Office of the Property Rights Ombudsman under
             544      authority of this section does not bar or stay any action for occupancy of premises authorized
             545      by Section 78B-6-510 .
             546          (3) (a) (i) A mediator or arbitrator, acting at the request of the property owner under
             547      Section 13-43-204 , has standing in an action brought in district court under this chapter to file
             548      with the court a motion to stay the action during the pendency of the mediation or arbitration.
             549          (ii) A mediator or arbitrator may not file a motion to stay under Subsection (3)(a)(i)
             550      unless the mediator or arbitrator certifies at the time of filing the motion that a stay is
             551      reasonably necessary to reach a resolution of the case through mediation or arbitration.
             552          (b) If a stay is granted pursuant to a motion under Subsection (3)(a) and the order
             553      granting the stay does not specify when the stay terminates, the mediator or arbitrator shall file
             554      with the district court a motion to terminate the stay within 30 days after:


             555          (i) the resolution of the dispute through mediation;
             556          (ii) the issuance of a final arbitration award; or
             557          (iii) a determination by the mediator or arbitrator that mediation or arbitration is not
             558      appropriate.
             559          (4) (a) The private property owner or displaced person may request that the mediator or
             560      arbitrator authorize an additional appraisal.
             561          (b) If the mediator or arbitrator determines that an additional appraisal is reasonably
             562      necessary to reach a resolution of the case, the mediator or arbitrator may:
             563          (i) have an additional appraisal of the property prepared by an independent appraiser;
             564      and
             565          (ii) require the condemnor to pay the costs of the first additional appraisal.




Legislative Review Note
    as of 11-5-13 1:43 PM


Office of Legislative Research and General Counsel


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