2000 Legislation
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HOUSE BILL NO. 681 – Eminent domain, damages, assessment

HOUSE BILL NO. 681

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Daily Data Tracking History



H0681......................................................by STATE AFFAIRS
EMINENT DOMAIN - Amends existing law relating to eminent domain proceedings
to revise the formula and procedure for assessment of damages when the
damages are to any established business of more than five years' standing;
and to provide that in eminent domain proceedings, the plaintiff's good
faith in failing to offer compensation for business damages shall not be
contested at hearing if the defendant has not given notice of its intent to
claim business damages prior to the date of filing the motion that
initiates the proceeding under this section.
                                                                        
02/24    House intro - 1st rdg - to printing
02/25    Rpt prt - to Transp
03/03    Rpt out - rec d/p - to 2nd rdg
03/06    2nd rdg - to 3rd rdg
03/10    3rd rdg - PASSED - 51-17-2
      AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Black,
      Bruneel, Callister, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13),
      Field(20), Geddes, Gould, Hadley, Hammond, Hansen(23), Hornbeck,
      Jones, Judd, Kempton, Kendell, Kunz, Lake, Linford, Loertscher,
      Mader, McKague, Meyer, Montgomery, Mortensen, Moss, Pearce, Pischner,
      Pomeroy, Reynolds, Ridinger, Sali, Schaefer, Sellman, Shepherd,
      Stevenson, Stone, Taylor, Tilman, Wheeler, Wood, Zimmermann, Mr
      Speaker
      NAYS -- Bieter, Boe, Chase, Cheirrett, Clark, Gagner, Henbest,
      Jaquet, Kellogg, Marley, Moyle, Ringo, Robison, Smith, Smylie,
      Stoicheff, Trail
      Absent and excused -- Campbell, Hansen(29)
    Floor Sponsor - Kempton
    Title apvd - to Senate
03/13    Senate intro - 1st rdg - to Loc Gov
03/20    Rpt out - rec d/p - to 2nd rdg
03/21    2nd rdg - to 3rd rdg
03/31    3rd rdg as amen - PASSED - 29-5-1
      AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
      Darrington, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen,
      Keough, King-Barrutia, Lee, McLaughlin, Noh, Parry, Richardson,
      Riggs, Risch, Sandy, Schroeder, Stennett, Thorne, Wheeler, Williams
      NAYS--Crow, Danielson, Davis, Stegner, Whitworth
      Absent and excused--Sorensen
    Floor Sponsor - Schroeder
    Title apvd - to House
04/03    To enrol
04/04    Rpt enrol - Sp signed - Pres signed
04/05    To Governor
04/14    Governor signed
         Session Law Chapter 346
         Effective: 07/01/00

Bill Text


 H0681
                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-fifth Legislature                  Second Regular Session - 2000
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 681
                                                                        
                                 BY STATE AFFAIRS COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO ASSESSMENT OF DAMAGES IN EMINENT DOMAIN PROCEEDINGS; AMENDING SEC-
  3        TION 7-711, IDAHO CODE, TO REVISE THE FORMULA AND PROCEDURE FOR ASSESSMENT
  4        OF DAMAGES WHEN THE DAMAGES ARE TO ANY ESTABLISHED BUSINESS OF  MORE  THAN
  5        FIVE  YEARS'  STANDING, TO MAKE A TECHNICAL CORRECTION AND TO PROVIDE THAT
  6        PLAINTIFF'S GOOD FAITH IN FAILING TO OFFER COMPENSATION FOR BUSINESS  DAM-
  7        AGES  SHALL  NOT  BE  CONTESTED  AT HEARING IF THE DEFENDANT HAS NOT GIVEN
  8        NOTICE OF ITS INTENT TO CLAIM BUSINESS DAMAGES PRIOR TO THE DATE OF FILING
  9        THE MOTION THAT INITIATES THE PROCEEDING.
                                                                        
 10    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 11        SECTION 1.  That Section 7-711, Idaho Code, be, and  the  same  is  hereby
 12    amended to read as follows:
                                                                        
 13        7-711.  ASSESSMENT  OF DAMAGES. The court, jury or referee  must hear such
 14    legal testimony as may be offered by any of the parties  to  the  proceedings,
 15    and thereupon must ascertain and assess:
 16        1.  The value of the property sought to be condemned, and all improvements
 17    thereon  pertaining  to  the  realty, and of each and every separate estate or
 18    interest therein; if it consists of different parcels, the value of each  par-
 19    cel and each estate or interest therein shall be separately assessed. For pur-
 20    poses  of ascertaining the value of the property, the assessed value for prop-
 21    erty tax purposes shall be used as the minimum amount for damages  unless  the
 22    court, jury or referee finds the property has been altered substantially.
 23        2.  If  the  property  sought to be condemned constitutes only a part of a
 24    larger parcel,: (a) the damages which will accrue to the portion not sought to
 25    be condemned, by reason of its severance from the portion sought  to  be  con-
 26    demned,  and the construction of the improvement in the manner proposed by the
 27    plaintiff; and (b) the damages to any business qualifying under  this  subsec-
 28    tion  having  more than five (5) years' standing which the taking of a portion
 29    of the property and the construction of the improvement in the manner proposed
 30    by the plaintiff may reasonably cause. The business must be owned by the party
 31    whose lands are being condemned or be located upon adjoining  lands  owned  or
 32    held  by  such  party.  Business  damages  under  this subsection shall not be
 33    awarded if the loss can reasonably be prevented by a relocation of  the  busi-
 34    ness  or  by  taking steps that a reasonably prudent person would take, or for
 35    damages caused by temporary business interruption  due  to  construction;  and
 36    provided  further  that  compensation for business damages shall not be dupli-
 37    cated in the compensation otherwise awarded to the property owner for  damages
 38    pursuant to subsections (1) and (2) (a) of section 7-711, Idaho Code.
 39        (i)   If  the  business owner intends to claim business damages under this
 40        subsection, the owner, as defendant, must submit a written business damage
 41        claim to the plaintiff within ninety (90) days after service of  the  sum-
 42        mons  and complaint for condemnation. The plaintiff's initial offer letter
 43        or accompanying information must expressly inform  the  defendant  of  its
                                                                        
                                           2
                                                                        
  1        rights under this subsection, and must further inform the defendant of its
  2        right to consult with an attorney.
  3        (ii)  The  defendant's written claim must be sent to the plaintiff by cer-
  4        tified mail, return receipt requested. Absent a showing of  a  good  faith
  5        justification  for  the  failure  to submit a business damage claim within
  6        ninety (90) days, or an agreed extension by the parties, the  court  shall
  7        strike the defendant's claim for business damages in any condemnation pro-
  8        ceeding.
  9        (iii) The business damage claim must include an explanation of the nature,
 10        extent,  and  monetary amount of such claimed damages and must be prepared
 11        by the owner, a certified public accountant, or a business  damage  expert
 12        familiar  with  the  nature of the operations of the defendant's business.
 13        The defendant  shall  also  provide  the  plaintiff  with  copies  of  the
 14        defendant's  business  records  that  substantiate the good faith offer to
 15        settle the business damage  claim.  The  business  damage  claim  must  be
 16        clearly segregated from the claim for property damages pursuant to subsec-
 17        tions (1) and (2)(a) of section 7-711, Idaho Code.
 18        (iv)  As  used  in  this subsection, the term "business records" includes,
 19        but is not limited to, copies of federal and  state  income  tax  returns,
 20        state  sales  tax  returns, balance sheets, and profit and loss statements
 21        for the five (5) years preceding which are attributable  to  the  business
 22        operation on the property to be acquired, and other records relied upon by
 23        the business owner that substantiate the business damage claim.
 24        (v)   The  plaintiff's  good  faith  in  failing to offer compensation for
 25        business damages shall not be contested at a possession hearing held  pur-
 26        suant  to section 7-721, Idaho Code, if the defendant has not given notice
 27        of its intent to claim business damages prior to the date of filing of the
 28        motion that initiates the proceeding under that section.
 29        3.  Separately, how much the portion not sought to be condemned, and  each
 30    estate  or  interest  therein, will be specially and directly benefited, if at
 31    all, by the construction of the improvement proposed by the plaintiff; and  if
 32    the benefit shall be equal to the damages assessed, under paragraph subsection
 33    2.  of  this section, the owner of the parcel shall be allowed no compensation
 34    except the value of the portion taken; but if the benefit shall be  less  than
 35    the damages so assessed, the former shall be deducted from the latter, and the
 36    remainder shall be the only damages allowed in addition to the value.
 37        4.  If  the property sought to be condemned be for a railroad, the cost of
 38    good and sufficient fences along the line of such railroad, and  the  cost  of
 39    cattle guards where fences may cross the line of such railroad.
 40        5.  As  far  as practicable, compensation must be assessed for each source
 41    of damages separately.
 42        6.  If the property sought to be condemned is private real property activ-
 43    ely devoted to agriculture, the damages  which  will  accrue  because  of  the
 44    costs, if any, of farming around electrical transmission line structure(s) for
 45    a  transmission  line with a capacity in excess of two hundred thirty (230) KV
 46    (kilovolts). If the property sought to be condemned has been the subject of  a
 47    previous  condemnation  proceeding  or proceedings for electrical transmission
 48    line structure(s) and at the time of condemnation the field holds other  elec-
 49    trical  transmission  line  structure(s),  such  evidence of costs referred to
 50    above may also include the cumulative effects, if any, of  conducting  farming
 51    operations  around other electrical transmission line structure(s) in the same
 52    field, whether such structure(s) are of the condemner or not.

Statement of Purpose / Fiscal Impact


REPRINT     REPRINT    REPRINT        REPRINT        REPRINT
                           
                STATEMENT OF PURPOSE 
                     RS 10153C1 
     
     "Just compensation" is a constitutional requirement in the event of a taking under
     eminent domain condemnation law. The question of how "just" the compensation may be
     is established, in part, through statute. 
          This proposed legislation would expand consideration of "just compensation" in
     eminent domain condemnations to damages to businesses of more than five years'
     standing which are located upon, or adjoined to, a property being taken. 
     
                           
                    FISCAL IMPACT 
     
          An expansion of eminent domain condemnation damage consideration to both
     property and a business attached to that property, or adjoining property, will result in
     additional costs to state and local governmental entities that exercise eminent domain
     powers. The amount of this impact cannot be quantified but may be in the order of ten
     million dollars. 
          Eight other states allow business damages in conjunction with eminent domain
     condemnation actions. Ultimately, the question is not one of dollars but of rights. In the
     case of highway construction/development where eminent domain condemnations are
     most prevalent, is it the intent of the Idaho legislature that the costs of highway
     construction/development continue to be borne by select property owners above, and
     separate from, the costs all other transportation users share under the existing
     transportation tax structure? 
          
     
     
     
     Contact 
     
     Name: Rep. Jim Kempton
     Phone: 208/332-1000 
     
     
                                                                 STATEMENT OF PURPOSE/FISCAL NOTE                               Bill No. 681