BILL NUMBER:S1925

TITLE OF BILL:
An act
to
provide for the creation of a
temporary state commission to examine eminent domain laws and make
recommendations for further reforms;
and making an appropriation
therefor

PURPOSE:
The intent of this legislation is to establish a temporary commission
on eminent domain reform to examine, evaluate, and make
recommendations concerning the scope and effectiveness of the eminent
domain procedure law.

SUMMARY OF LEGISLATION:
Section 1.
1. A temporary commission on eminent domain reform is hereby created
to examine, evaluate, and make recommendations concerning the scope
and effectiveness of the eminent domain procedure law.

2. Defines specifics that the commission shall examine at least the
following: (a) the appropriate constitutional standard for
condemnation proceedings for economic development purposes; (b) the
              

procedural fairness of the eminent domain procedure laws, including
statutory definitions thereunder; (c) the need for the creation of an
eminent domain ombudsman to serve as an independent office to
safeguard the rights of property owners and provide information
regarding the eminent domain procedure law; and (d) just compensation
provided to affected property owners.

3. The commission shall consist of thirteen members. Seven members
will be appointed by the governor, three shall be representatives of
local governments and three shall be property rights advocates to be
appointed by and with the advice and consent of the senate; two
members to be appointed by the temporary president of the senate; two
members to be appointed by the speaker of the assembly; one member to
be appointed by the minority leader of the senate; one member to be
appointed by the minority leader of the assembly.

4. The members of the commission shall receive no compensation for
their services, but shall be allowed their actual and necessary
expenses incurred in the performance of their duties there under.

5. The commission shall begin to act ninety days after the effective
date of this act. A quorum shall consist of a majority of the members
of the commission entitled to vote on the matter under consideration.

Approval of any matter shall require the affirmative vote of a
majority of the members voting thereon.

6. The commission may employ and at pleasure remove such personnel as
it may deem necessary for the performance of its functions and fix
their compensation within the amounts made available therefore.


7. The commission may meet within and without the state, shall hold
public hearings, and shall have all the powers of a legislative
committee pursuant to the legislative law.

8. The commission shall submit its findings and recommendations in a
report to the governor, the temporary president of the senate, and
the speaker of the assembly not later than one year after it first
convenes.

Section 2. Appropriates a minimum sum of one hundred thousand dollars
to the commission to pay the costs incurred in carrying out its duties.
Such moneys shall be payable out of the state treasury in the general
fund to the credit of the state purposes account after audit by and
on the warrant of the comptroller upon vouchers certified or approved
by the chairperson or vice-chairperson of the commission as
prescribed by law.

Section 3. Effective date.

EXISTING LAW:
None.

JUSTIFICATION:
The United States Supreme Court's decision in Kelo v. The City of New
London, enabled the City of New London to condemn and take private
property by the use of eminent domain and transfer ownership to a
private developer to further an economic development plan for the
city. This decision has raised questions on whether legislative
action should be taken in New York State to address to the Supreme
Court's ruling.

In response to these questions and concerns, the Senate Committee on
Commerce, Economic Development and Small Business in conjunction
with the Senate Committee on Local Governments held hearings
throughout the State on the issue of eminent domain. The statewide
hearings were designed to assess the benefits and shortcomings of our
current system with an eye towards a comprehensive eminent domain
package that would balance the need to preserve a limited power of
eminent domain for local governments with the demand to secure the
rights of property owners.

Although each geographic region highlighted different concerns, two
themes were consistent throughout the State. First, New York's
eminent domain law is not significantly affected by the Supreme Court
decision. Second, the State and its citizens would benefit from a
more intensive evaluation of the technical issues within the eminent
domain law to determine whether modifications are necessary.

This legislation addresses these issues by creating a temporary
commission on eminent domain reform. The temporary commission on
eminent
domain reform will consist of experts familiar to both sides of the
eminent domain issue, The commission will examine, evaluate, and make
recommendations concerning the Scope and effectiveness of the eminent
domain procedure law. Particularly, this commission will further
study issues that may require adjustment such as the definitions of
"blight" and "public use," These issues are severely technical in


nature. Therefore, it is important that experts in this field
carefully define key terms in order to prevent unintended consequences.

Economic development improves the lives of all New Yorkers by
increasing the tax base, creating new jobs and improving the economy
as a whole.
Although eminent domain is a valuable economic development tool,
protections are necessary to ensure that individuals are not stripped
of their inalienable right to own property. Thus, this legislation
makes some necessary changes to the compensation afforded to
displaced property owners to assure a greater degree of fairness in
the condemnation process. By creating a commission on eminent domain
reform, this legislation carefully evaluates the eminent domain issue
so that proper technical adjustments can be made in the future. We,
as a State, have spent a great deal of time and resources making New
York a better place to live and do business. We cannot act hastily
with such an intricate and important issue. That is why, this
legislation takes a pragmatic, but necessary, approach towards the
overall goal of balancing the needs of our local governments with the
rights of our citizens to own property.

LEGISLATIVE HISTORY:
2005-06: S.8390 - Passed Senate.
2007-08: Passed Senate.
2009:    Referred to Finance
2010:    Discharged from Finance; Committed to
Corporations, Authorities and Commissions

FISCAL IMPLICATIONS:
To be determined.

EFFECTIVE DATE:
This act shall take effect immediately; provided further that the
temporary state Commission established pursuant to subsection one of
this act shall expire and be terminated on the first day next
succeeding the date of the submission of its report as provided in
subsection eight of section one of this act; and provided further,
however that the chairperson of the temporary commission on eminent
domain reform shall notify the legislative bill drafting commission
upon the submission of its report as provided for in subsection eight
of section one of this act in order that the commission may maintain
an accurate and timely effective data base of the official text of
the laws of the state of New York in furtherance of effecting the
provisions of section 44 of the legislative law and section 70-b of
the public officers law.