2004 Legislation
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SENATE BILL NO. 1388 – Inverse Condemnation Act

SENATE BILL NO. 1388

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S1388................................................by JUDICIARY AND RULES
INVERSE CONDEMNATION ACT - Adds to existing law relating to inverse
condemnation; to restrict certain claims; to provide a time in which
actions shall be commenced or be barred; to provide for the content,
filing, allowance and denial, and compromise and settlement of claims; to
provide for the tolling of the statute of limitations; to provide for suits
on denied claims and on approved but unsettled claims; to provide for
damages; to provide for the relationship to other law; and to provide for
tax levies to pay claims or judgments.
                                                                        
02/24    Senate intro - 1st rdg - to printing
02/25    Rpt prt - to Loc Gov
03/04    Rpt out - rec d/p - to 2nd rdg
03/05    2nd rdg - to 3rd rdg
03/09    3rd rdg - PASSED - 34-1-0
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burtenshaw, Calabretta,
      Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Ingram, Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Noh, Pearce, Richardson, Schroeder, Sorensen,
      Stegner, Stennett, Sweet, Werk, Williams
      NAYS -- Burkett
      Absent and excused -- None
    Floor Sponsor - Compton
    Title apvd - to House
03/10    House intro - 1st rdg - to Jud

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                       IN THE SENATE
                                                                        
                                    SENATE BILL NO. 1388
                                                                        
                              BY JUDICIARY AND RULES COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INVERSE CONDEMNATION; AMENDING CHAPTER 7, TITLE 7, IDAHO CODE,  BY
  3        THE ADDITION OF A NEW SECTION 7-730, IDAHO CODE, TO PROVIDE A SHORT TITLE;
  4        AMENDING  CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
  5        7-731, IDAHO CODE, TO DEFINE TERMS; AMENDING CHAPTER  7,  TITLE  7,  IDAHO
  6        CODE, BY THE ADDITION OF A NEW SECTION 7-732, IDAHO CODE, TO RESTRICT CER-
  7        TAIN  CLAIMS  AND TO PROVIDE A TIME IN WHICH CERTAIN ACTIONS SHALL BE COM-
  8        MENCED OR BE BARRED; AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDI-
  9        TION OF A NEW SECTION 7-733, IDAHO CODE, TO  PROVIDE  FOR  THE  FILING  OF
 10        CLAIMS;  AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW
 11        SECTION 7-734, IDAHO CODE, TO PROVIDE FOR THE TOLLING OF  THE  STATUTE  OF
 12        LIMITATIONS; AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A
 13        NEW  SECTION  7-735, IDAHO CODE, TO PROVIDE FOR THE CONTENTS OF CLAIMS, TO
 14        PROVIDE FOR THE FILING OF CLAIMS BY CERTAIN RELATIVES, ATTORNEYS OR AGENTS
 15        AND TO PROVIDE FOR THE EFFECT OF INACCURACIES IN CLAIMS; AMENDING  CHAPTER
 16        7,  TITLE  7,  IDAHO  CODE,  BY THE ADDITION OF A NEW SECTION 7-736, IDAHO
 17        CODE, TO PROVIDE FOR THE APPROVAL, PARTIAL APPROVAL OR DENIAL  OF  CLAIMS;
 18        AMENDING  CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW SECTION
 19        7-737, IDAHO CODE, TO PROVIDE FOR SUIT ON DENIED CLAIMS; AMENDING  CHAPTER
 20        7,  TITLE  7,  IDAHO  CODE,  BY THE ADDITION OF A NEW SECTION 7-738, IDAHO
 21        CODE, TO PROVIDE FOR THE COMPROMISE AND  SETTLEMENT  OF  CLAIMS;  AMENDING
 22        CHAPTER  7,  TITLE  7, IDAHO CODE, BY THE ADDITION OF A NEW SECTION 7-739,
 23        IDAHO CODE, TO PROVIDE FOR CERTAIN SUITS IN THE EVENT CLAIMS ARE  APPROVED
 24        OR  PARTIALLY APPROVED BUT NOT SETTLED; AMENDING CHAPTER 7, TITLE 7, IDAHO
 25        CODE, BY THE ADDITION OF A NEW SECTION 7-740, IDAHO CODE, TO  PROVIDE  FOR
 26        DAMAGES; AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW
 27        SECTION  7-741,  IDAHO CODE, TO PROVIDE FOR THE RELATIONSHIP TO OTHER LAW;
 28        AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW  SECTION
 29        7-742,  IDAHO  CODE, TO PROVIDE FOR TAX LEVIES TO PAY CLAIMS OR JUDGMENTS;
 30        AMENDING CHAPTER 7, TITLE 7, IDAHO CODE, BY THE ADDITION OF A NEW  SECTION
 31        7-743,  IDAHO  CODE,  TO PROVIDE FOR SEVERABILITY; TO PROVIDE AN EFFECTIVE
 32        DATE AND TO PROVIDE FOR APPLICATION.
                                                                        
 33    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 34        SECTION 1.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 35    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 36    ignated as Section 7-730, Idaho Code, and to read as follows:
                                                                        
 37        7-730.  SHORT TITLE. This act shall be known  and  may  be  cited  as  the
 38    "Inverse Condemnation Act."
                                                                        
 39        SECTION  2.  That  Chapter  7,  Title  7,  Idaho Code, be, and the same is
 40    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 41    ignated as Section 7-731, Idaho Code, and to read as follows:
                                                                        
                                           2
                                                                        
  1        7-731.  DEFINITIONS. As used in this act:
  2        (1)  "Act" shall mean and refer to the inverse condemnation act.
  3        (2)  "Claim"  means any written demand to recover money damages by a prop-
  4    erty owner who asserts that his property, or some interest therein,  has  been
  5    invaded  or appropriated by a governmental entity, without due process of law,
  6    and without payment of just compensation.
  7        (3)  "Governmental entity" means and includes the state and political sub-
  8    divisions as herein defined.
  9        (4)  "Political subdivision" means any county,  city,  municipal  corpora-
 10    tion,  health  district,  school district, highway district, single countywide
 11    highway district, irrigation district, an operating agent of  irrigation  dis-
 12    tricts  whose  board  consists  of  directors of its member districts, special
 13    improvement district or taxing district, or any other political subdivision or
 14    public corporation which has the right to exercise eminent domain.
 15        (5)  "State" means the state of Idaho or any office,  department,  agency,
 16    authority,  commission,  board,  institution, hospital, college, university or
 17    other instrumentality thereof.
                                                                        
 18        SECTION 3.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 19    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 20    ignated as Section 7-732, Idaho Code, and to read as follows:
                                                                        
 21        7-732.  RESTRICTION ON ALLOWANCE OF CLAIM -- COMMENCEMENT OF  ACTION.  (1)
 22    No  claim  or  action  pursuant to the provisions of this act shall be allowed
 23    against a governmental entity unless a claim  has  first  been  presented  and
 24    filed with the governmental entity within the time limits and according to the
 25    procedures prescribed in this act.
 26        (2)  Any claim against a governmental entity pursuant to the provisions of
 27    this act shall be forever barred unless an action is commenced within four (4)
 28    years  after  the  claim accrued. An action is commenced within the meaning of
 29    this act when the complaint is filed. A claim shall be deemed to have  accrued
 30    at the time it becomes apparent that the invasion or appropriation by the gov-
 31    ernmental  entity  is of such a degree and kind as to constitute a substantial
 32    interference with the claimant's property interest.
                                                                        
 33        SECTION 4.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 34    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 35    ignated as Section 7-733, Idaho Code, and to read as follows:
                                                                        
 36        7-733.  FILING CLAIM -- TIME. Any claim against a governmental entity pur-
 37    suant to the provisions of this act shall be presented to and filed  with  the
 38    governmental  entity, as herein provided, within three (3) years from the date
 39    the claim accrues.
 40        (1)  A claim against the state shall be presented to and  filed  with  the
 41    secretary of state.
 42        (2)  A  claim  against  a  political subdivision shall be presented to and
 43    filed with the clerk or secretary of the political subdivision.
                                                                        
 44        SECTION 5.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 45    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 46    ignated as Section 7-734, Idaho Code, and to read as follows:
                                                                        
 47        7-734.  TOLLING OF LIMITATION PERIOD DURING PENDENCY OF CLAIM BEFORE  GOV-
 48    ERNMENTAL  ENTITY.  The  statute of limitations, pursuant to the provisions of
 49    this act, shall be tolled and not be deemed to run  during  the  time  that  a
                                                                        
                                           3
                                                                        
  1    claim is pending before a governmental entity.
                                                                        
  2        SECTION  6.  That  Chapter  7,  Title  7,  Idaho Code, be, and the same is
  3    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
  4    ignated as Section 7-735, Idaho Code, and to read as follows:
                                                                        
  5        7-735.  CONTENT OF CLAIM -- FILING BY AGENT OR ATTORNEY -- EFFECT OF INAC-
  6    CURACIES.  A  claim  presented  to  and filed with a governmental entity shall
  7    accurately describe the property owner's property, or some  interest  therein,
  8    which  is  claimed  to  have  been invaded or appropriated, state the time and
  9    place and a description of the invasion or appropriation of  the  property  or
 10    property interest that occurred,  state the names of all property owners known
 11    to  be  involved, and set forth the amount of damages claimed. If the claimant
 12    is incapacitated from presenting and filing his claim  within  the  time  pre-
 13    scribed, or if the claimant is a minor, or if the claimant is a nonresident of
 14    the  state and is absent during the time within which his claim is required to
 15    be filed, the claim may be presented and filed on behalf of  the  claimant  by
 16    any relative, attorney or agent representing the claimant. A claim filed under
 17    the  provisions  of  this section shall not be held invalid or insufficient by
 18    reason of an inaccuracy unless it is shown that the governmental entity was in
 19    fact misled to its injury thereby.
                                                                        
 20        SECTION 7.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 21    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 22    ignated as Section 7-736, Idaho Code, and to read as follows:
                                                                        
 23        7-736.  TIME FOR APPROVAL, PARTIAL APPROVAL OR DENIAL OF CLAIM  --  EFFECT
 24    OF  FAILURE TO ACT. Within ninety (90) days after a claim pursuant to the pro-
 25    visions of this act has been filed, the  governmental  entity  shall  approve,
 26    partially  approve,  or  deny  that part of the claim asserting the claimant's
 27    property, or some interest therein, was invaded or appropriated by the govern-
 28    mental entity, and shall send written notification of  its  approval,  partial
 29    approval,  or  denial  to  the  claimant. A claim shall be deemed to have been
 30    denied if at the end of the ninety (90) day  period  the  governmental  entity
 31    takes no action.
                                                                        
 32        SECTION  8.  That  Chapter  7,  Title  7,  Idaho Code, be, and the same is
 33    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 34    ignated as Section 7-737, Idaho Code, and to read as follows:
                                                                        
 35        7-737.  SUIT  ON  DENIED  CLAIM. If the claim is denied, or deemed denied,
 36    the provisions of this act do not then prohibit  a  claimant  from  filing  an
 37    action  in the district court against the governmental entity for inverse con-
 38    demnation.
                                                                        
 39        SECTION 9.  That Chapter 7, Title 7, Idaho  Code,  be,  and  the  same  is
 40    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 41    ignated as Section 7-738, Idaho Code, and to read as follows:
                                                                        
 42        7-738.  COMPROMISE AND SETTLEMENT BY GOVERNMENTAL ENTITY. If  a  claim  is
 43    approved,  or  partially  approved,  by the governmental entity as provided by
 44    section 7-736, Idaho Code, the governmental entity shall  have  an  additional
 45    ninety (90) day period immediately following the approval to pursue compromise
 46    and settlement of the claim with the claimant. A claim shall be deemed to have
 47    not  been settled if at the end of the ninety (90) day period a settlement has
                                                                        
                                           4
                                                                        
  1    not been reached.
                                                                        
  2        SECTION 10.  That Chapter 7, Title 7, Idaho Code,  be,  and  the  same  is
  3    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
  4    ignated as Section 7-739, Idaho Code, and to read as follows:
                                                                        
  5        7-739.  SUIT ON APPROVED BUT UNSETTLED CLAIM. If a claim is  approved,  or
  6    partially  approved, by the governmental entity but not settled as provided by
  7    section 7-738, Idaho Code, the provisions of this act do not then  prohibit  a
  8    claimant  from  filing  an  action  in district court against the governmental
  9    entity for inverse condemnation and do  not  then  prohibit  the  governmental
 10    entity from filing an action in district court for eminent domain.
                                                                        
 11        SECTION  11.  That  Chapter  7,  Title  7, Idaho Code, be, and the same is
 12    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 13    ignated as Section 7-740, Idaho Code, and to read as follows:
                                                                        
 14        7-740.  DAMAGES -- DATE OF ACCRUAL. For purposes of assessing compensation
 15    damages for a claim, damages shall be deemed to have been incurred on the date
 16    the  claim  accrued  and shall draw lawful interest from said date at the rate
 17    for money due on a judgment for each year and/or partial year included.
                                                                        
 18        SECTION 12.  That Chapter 7, Title 7, Idaho Code,  be,  and  the  same  is
 19    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 20    ignated as Section 7-741, Idaho Code, and to read as follows:
                                                                        
 21        7-741.  RELATIONSHIP TO OTHER LAW. (1) No  provision  of  this  act  shall
 22    affect  the  application  of  the  provisions of sections 7-701 through 7-721,
 23    Idaho Code, to an action by a governmental entity for eminent domain.
 24        (2)  The provisions and requirements of the Idaho tort claims act, as  set
 25    forth  in  chapter 9, title 6, Idaho Code, shall not be affected by the provi-
 26    sions of this act.
                                                                        
 27        SECTION 13.  That Chapter 7, Title 7, Idaho Code,  be,  and  the  same  is
 28    hereby  amended by the addition thereto of a NEW SECTION, to be known and des-
 29    ignated as Section 7-742, Idaho Code, and to read as follows:
                                                                        
 30        7-742.  TAX LEVY TO PAY CLAIM OR JUDGMENT. Notwithstanding any other  pro-
 31    vision  of law to the contrary, and in the event there are no funds available,
 32    a political subdivision, that is authorized to levy and collect property  tax,
 33    shall  levy  and  collect a property tax, at the earliest time possible, in an
 34    amount necessary to pay a claim or a judgment from a claim made under the pro-
 35    visions of this act where the political subdivision has failed  to  provide  a
 36    comprehensive liability plan to cover risk of claims made under the provisions
 37    of this act.
                                                                        
 38        SECTION  14.  That  Chapter  7,  Title  7, Idaho Code, be, and the same is
 39    hereby amended by the addition thereto of a NEW SECTION, to be known and  des-
 40    ignated as Section 7-743, Idaho Code, and to read as follows:
                                                                        
 41        7-743.  SEVERABILITY. The provisions of this act are hereby declared to be
 42    severable,  and if any provision of this act or the application of such provi-
 43    sion to any person or circumstance is declared invalid for  any  reason,  such
 44    declaration  shall  not  affect the validity of the remaining portions of this
 45    act.
                                                                        
                                           5
                                                                        
  1        SECTION 15.  This act shall be in full force and effect on and after  July
  2    1, 2004, and shall apply to any claim which accrues on or after July 1, 2004.

Statement of Purpose / Fiscal Impact



                       STATEMENT OF PURPOSE
                            RS 13863C1

This legislation is intended to reduce the need for litigation
and speed the process of resolution of claims by property owners
against governmental entities for the taking of a property
interest.  It provides that such claims are first filed with the
government entity [in a process similar to how tort claims
against government entities are now filed] who must then, in a 90
day period, determine whether it agrees that an interest in
property was taken has occurred.  If the government entity
determines it has not taken a property interest the claimant may
then file an action in a court of law for inverse condemnation. 
If the government entity determines it has taken a property
interest it shall then have an additional 90 days to try and
settle the taking claim.  If the claim is not then resolved the
claimant may bring and inverse condemnation action for damages or
the Government entity may bring an eminent domain action in a
court of law.  


                        FISCAL IMPACT 
 
This Bill will have no fiscal impact to the general fund. 


Contact
Name: Stuart O. Davis, Executive Director, 
Idaho Association of Highway Districts 
Phone: 345-5176


STATEMENT OF PURPOSE/FISCAL NOTE                       S 1388