HB1254 (2006) Detail

Relative to eminent domain.


HB 1254 – AS INTRODUCED

2006 SESSION

06-2045

01/09

HOUSE BILL 1254

AN ACT relative to eminent domain.

SPONSORS: Rep. Mooney, Hills 19; Rep. Rowe, Hills 6; Rep. Dokmo, Hills 6; Rep. Sorg, Graf 3; Rep. Hinkle, Hills 19

COMMITTEE: Judiciary

ANALYSIS

This bill inserts a definition of “public use” in the laws governing eminent domain, changes “public purpose” to “public use” in certain other laws, and establishes a committee to study issues of eminent domain.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2045

01/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT relative to eminent domain.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 New Paragraph; Eminent Domain; Definition Added. Amend RSA 498-A:2 by inserting after paragraph VI the following new paragraph:

VII. “Public use” shall only mean the possession, occupation, and enjoyment of the land by the general public, or by public agencies; or the use of land for the creation or functioning of public utilities; the acquisition of property to cure a concrete harmful effect of the current use of the land, including the removal of public nuisances, structures that are beyond repair or that are unfit for human habitation or use, and the acquisition of abandoned property. The public benefits of economic development, including an increase in tax base, tax revenues, employment, and general economic health, shall not constitute a public use.

2 Change of Term From “Public Purpose” to “Public Use.” Amend the following RSA provisions by replacing “public purpose” or “public purposes” with “public use” or “public uses” as the context may require: RSA 4:38; RSA 21-L:15, I; RSA 149-M:17, V; RSA 162-K:5; RSA 162-K:10, III(b); RSA 203:3, IX; RSA 204-C:1, XVI(a); RSA 204-C:67; RSA 228:56; RSA 228:57; RSA 228:59; RSA 228:67; RSA 230:13, I; RSA 230:14, I; RSA 236:18; RSA 371:5-a, I; RSA 424:10; RSA 482-A:1; RSA 482-A:10-a; RSA 498-A:1; RSA 498-A:2, I, III; RSA 498-A:9-a, I(c); RSA 498-A:9-b; and RSA 674:54, I.

3 Redevelopment Projects; Reference Deletion . Amend RSA 205:1 to read as follows:

205:1 Finding and Declaration of Necessity. It is hereby found and declared (a) that there exist in many communities within this state blighted areas (as defined herein) or areas in the process of becoming blighted; (b) that such areas impair economic values and tax revenues; that such areas cause an increase in and spread of disease and crime and constitute a menace to the health, safety, morals and welfare of the residents of the state, that these conditions necessitate excessive and disproportionate expenditures of public funds for crime prevention and punishment, public health and safety, fire and accident protection, and other public services and facilities; (c) that the clearance, replanning and preparation for rebuilding of these areas, and the prevention or the reduction of blight and its causes, are public uses and purposes for which public money may be spent and private property acquired and are governmental functions of state concern; (d) that there are also certain areas where the condition of the title, the diverse ownership of the land to be assembled, the street or lot layouts, or other conditions prevent a proper development of the land, and that it is in the public interest that such areas, as well as blighted areas, be acquired by eminent domain and made available for sound and wholesome development in accordance with a redevelopment plan, and that the exercise of the power of eminent domain and the financing of the acquisition and preparation of land by a public agency for such redevelopment is likewise a public use [and purpose]; (e) that redevelopment activities will stimulate residential construction which is closely correlated with general economic activity; and that such undertakings authorized by this chapter will aid the production of better housing and more desirable neighborhoods and community development at lower costs and will make possible a more stable and larger volume of residential construction, which will assist materially in achieving and maintaining full employment; and (f) that it is in the public interest that advance preparation for such projects and activities be made now, and that the necessity in the public interest for the provisions hereinafter enacted is hereby declared as a matter of legislative determination.

4 Committee Established. There is established a committee to study issues of eminent domain.

5 Membership and Compensation.

I. The members of the committee shall be as follows:

(a) Three members of the house of representatives, appointed by the speaker of the house of representatives.

(b) Three members of the senate, appointed by the president of the senate.

II. Members of the committee shall receive mileage at the legislative rate when attending to the duties of the committee.

6 Duties. The committee’s study shall include the following:

I. What guidelines must a taking authority follow before a taking is appropriate? Should a public hearing be required in all instances of a contemplated eminent domain taking? If so, where in the statutes should a hearing requirement be codified?

II. What should the criteria be to establish the proper balance between the probable benefit of an economic development project to a community through the eminent domain process, and the probable harm to the concept of the sanctity of private property?

III. Do state statutes relating to eminent domain need to be consolidated, specifically those contained in RSA 203 and RSA 205.

IV. Should New Hampshire consider the award of enhanced compensation; that is, payment in excess of fair market value, for property taken by eminent domain?

V. Should the terms “public good” and “incidental benefit to the public,” which have increasingly appeared in feasibility studies and court decisions in which the exercise of the power of eminent domain has been considered, be precisely defined by statute?

VI. Should the term “blighted,” and derivative and related terms, be explicitly defined by statute in the context of eminent domain when dealing with so-called “urban renewal” and “redevelopment” projects? Should the proposed RSA 498-A:2 language “the acquisition of land to cure a concrete harmful effect of its present use, including the removal of public nuisances or structures that are beyond repair or that are unfit for human habitation or use; or the acquisition of abandoned property” be included when defining “blight?” Should, and if so, how should appraisals and other similar measures be used to determine “blight?”

VII. Should land taken by eminent domain always be offered for resale first to the owner from whom it was taken, if the purpose for the taking is not fulfilled within a set timeframe? More specifically, should RSA 498-A:12 be revisited?

VIII. Should a permanent legislative commission be established whose sole purpose and function would be to review and make recommendations to the full senate and house of representatives concerning any proposed eminent domain taking whose objective is economic development or enhancement of the tax base, or where it is contemplated that the property taken, or any portion of it, would be transferred, whether or not for value, to a private person or entity? If so, what criteria should this commission apply in its consideration of such a proposed taking, and how should it interface with the board of tax and land appeals in order to avoid duplication of effort?

IX. Does the limited scope of the proposed definition of public use in any way unduly burden communities in greatest need of economic development?

7 Chairperson; Quorum. The members of the study committee shall elect a chairperson from among the members. The first meeting of the committee shall be called by the first-named house member. The first meeting of the committee shall be held within 45 days of the effective date of this section. Four members of the committee shall constitute a quorum.

8 Report. The committee shall report its findings and any recommendations for proposed legislation to the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library on or before November 1, 2006.

9 Effective Date.

I. Sections 1-3 of this act shall take effect January 1, 2007.

II. The remainder of this act shall take effect upon its passage.