Chief Sponsor: D. Gregg Buxton

House Sponsor: Mike Schultz


8     General Description:
9          This bill modifies provisions related to a sale of state property that was acquired
10     through an eminent domain proceeding.
11     Highlighted Provisions:
12          This bill:
13          ▸     defines what constitutes a "highest offer" on the sale of certain property;
14          ▸     provides that an original grantor of property acquired by the state through an
15     eminent domain proceeding is permitted to transfer the grantor's first right of
16     refusal; and
17          ▸     makes technical changes.
18     Money Appropriated in this Bill:
19          None
20     Other Special Clauses:
21          None
22     Utah Code Sections Affected:
23     AMENDS:
24          72-5-111, as last amended by Laws of Utah 2015, Chapter 192
25          78B-6-521, as renumbered and amended by Laws of Utah 2008, Chapter 3

27     Be it enacted by the Legislature of the state of Utah:
28          Section 1. Section 72-5-111 is amended to read:
29          72-5-111. Disposal of real property.

30          (1) (a) If the department determines that any real property or interest in real property,
31     acquired for a highway purpose, is no longer necessary for the purpose, the department may
32     lease, sell, exchange, or otherwise dispose of the real property or interest in the real property.
33          (b) (i) Real property may be sold at private or public sale.
34          (ii) Except as provided in Subsection (1)(c) related to exchanges and Subsection (1)(d)
35     related to the proceeds of any sale of real property from a maintenance facility, proceeds of any
36     sale shall be deposited with the state treasurer and credited to the Transportation Fund.
37          (c) If approved by the commission, real property or an interest in real property may be
38     exchanged by the department for other real property or interest in real property, including
39     improvements, for highway purposes.
40          (d) Proceeds from the sale of real property or an interest in real property from a
41     maintenance facility may be used by the department for the purchase or improvement of
42     another maintenance facility, including real property.
43          (2) (a) In the disposition of real property at any private sale, first consideration shall be
44     given to the original grantor.
45          (b) Notwithstanding the provisions of Section 78B-6-521, if no portion of a parcel of
46     real property acquired by the department is used for transportation purposes, then the original
47     grantor shall be given the opportunity to repurchase the parcel of real property at the
48     department's original purchase price from the grantor.
49          (c) In accordance with Section 72-5-404, this Subsection (2) does not apply to property
50     rights acquired in proposed transportation corridors using funds from the Marda Dillree
51     Corridor Preservation Fund created in Section 72-2-117.
52          [(d) Nothing in this Subsection (2) or Section 78B-6-521 creates an assignable right.]
53          (d) (i) The right of first consideration described in Subsection (2)(a) is subject to the
54     same terms and may be assigned by the original grantor in the manner described in Subsection
55     78B-6-521(2).
56          (ii) The original grantor or the assignee shall notify the department of an assignment by
57     certified mail to the current office address of the executive director of the department.

58          (iii) An exchange of real property as provided in Subsection (1)(c) or Section 72-5-113
59     does not entitle the original grantor to exercise the right of first consideration described in
60     Subsection (2)(a).
61          (iv) The right of first consideration described in Subsection (2)(a) terminates upon an
62     exchange of the acquired real property as provided in Subsection (1)(c) or Section 72-5-113.
63          (3) (a) Any sale, exchange, or disposal of real property or interest in real property made
64     by the department under this section, is exempt from the mineral reservation provisions of Title
65     65A, Chapter 6, Mineral Leases.
66          (b) Any deed made and delivered by the department under this section without specific
67     reservations in the deed is a conveyance of all the state's right, title, and interest in the real
68     property or interest in the real property.
69          Section 2. Section 78B-6-521 is amended to read:
70          78B-6-521. Sale of property acquired by eminent domain.
71          (1) As used in this section[,]:
72          (a) ["condemnation] "Condemnation" or "threat of condemnation" means:
73          [(a)] (i) acquisition through an eminent domain proceeding; or
74          [(b)] (ii) an official body of the state or a subdivision of the state, having the power of
75     eminent domain, has specifically authorized the use of eminent domain to acquire the real
76     property.
77          (b) (i) "Highest offer" means all material terms of the best bona fide offer received by
78     the state or one of the state's subdivisions, including:
79          (A) purchase price;
80          (B) conditions; and
81          (C) terms of performance.
82          (ii) "Highest offer" does not mean the terms and conditions of an agreement to
83     exchange real property or an interest in real property for other real property or an interest in real
84     property.
85          (2) (a) If the state or one of [its] the state's subdivisions, at [its] the state's or the state's

86     subdivision's sole discretion, declares real property that is acquired through condemnation or
87     threat of condemnation to be surplus real property, it may not sell the real property on the open
88     market unless:
89          [(a)] (i) the real property has been offered for sale to the original grantor, at the highest
90     offer made to the state or one of its subdivisions with first right of refusal being given to the
91     original grantor;
92          [(b)] (ii) the original grantor expressly waived in writing the first right of refusal on the
93     offer or failed to accept the offer within 90 days after notification by registered mail to the
94     last-known address; and
95          [(c)] (iii) neither the state nor the subdivision of the state selling the property is
96     involved in the rezoning of the property or the acquisition of additional property to enhance the
97     value of the real property to be sold.
98          (b) An original grantor may assign the first right of refusal within 90 days after an offer
99     has been made under Subsection (2)(a)(i) if the right has not been waived pursuant to
100     Subsection (2)(a)(ii).
101          (c) The assignment of a right of first refusal pursuant to Subsection (2)(b) does not
102     extend the time for acceptance of an offer as described in Subsection (2)(a)(ii).
103          (3) (a) Real property acquired through condemnation or the threat of condemnation is
104     not considered surplus if the real property is approved for use in an exchange for other real
105     property.
106          (b) An exchange of real property for other real property is not a sale on the open
107     market.
108          (c) The first right of refusal described in Subsection (2)(a)(i) shall terminate upon an
109     exchange of the acquired real property.
110          [(3)] (4) This section shall only apply to property acquired after July 1, 1983.