BILL NUMBER: S2869
SPONSOR: COMRIE
 
TITLE OF BILL:
An act to amend the eminent domain procedure law, in relation to requir-
ing financial reports for real property acquired by the state, including
any agencies and authorities, through eminent domain
 
PURPOSE:
To provide that local development corporations provide an estimated cost
benefit analysis of proposed projects, the additional tax revenue antic-
ipated from the project and assistance to be provided.
 
SUMMARY OF PROVISIONS:
Section 1 amends eminent domain procedure law by adding a new section
305 to require that local development corporations include a financial
impact report when invoking power of eminent domain. This section
requires that the report include: (i) an analysis of estimated costs and
benefits; (ii) estimated retained or additional tax revenue for the next
three years; iii) amount of assistance being provided from the local
development corporation; and iv) present value of the assistance being
provided.
Section 2 sets the effective date.
 
JUSTIFICATION:
The constitution guarantees that "private property" shall not be taken
for public use without just compensation." In Kelo v. City of New
London, the U.S. Supreme Court allowed for the forcible transfer of
property from one private owner to another in support of economic devel-
opment.
The eminent domain procedure law has not been updated in response and as
a result although it can be said to be a "public use" to support econom-
ic development the state procedures do not provide for gathering of
information relating to economic development in the process. We must
update the laws to ensure that the public has full understanding of the
anticipated economic costs and benefits associated with eminent domain
for the subject project.
It is imperative that if eminent domains is being used for purposes of
economic development we have a full assessment of the costs and benefits
of the project that will benefit from the use of economic domain,
including tax revenue.
 
LEGISLATIVE HISTORY:
S5829 2022
S5185 COMRIE No Same as
 
FISCAL IMPLICATIONS:
This bill will add a minimal cost to the process of eminent domain
however because it is providing needed information about financial costs
and benefits it will allow decision makers to make decision that bring
in additional revenues that will offset the added cost to the process.
 
EFFECTIVE DATE:
This act shall take effect immediately.