HB607: relative to the determination of just compensation in eminent domain proceedings.

HB 607-FN - AS INTRODUCED

2003 SESSION

03-0013

09/01

HOUSE BILL 607-FN

AN ACT relative to the determination of just compensation in eminent domain proceedings.

SPONSORS: Rep. Wendelboe, Belk 29; Rep. Boyce, Belk 31; Rep. J. Pratt, Ches 24; Sen. Boyce, Dist 4; Sen. Gallus, Dist 1

COMMITTEE: Public Works and Highways

ANALYSIS

This bill establishes that just compensation in eminent domain proceedings shall be determined based upon either the fair market value or, in the case of property which is actually to be replaced, the replacement cost of the property taken, at the election of the person or persons entitled to compensation. The bill defines "replacement costs" for purposes of determining just compensation.

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

03-0013

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Three

AN ACT relative to the determination of just compensation in eminent domain proceedings.

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

1 Eminent Domain Procedure Act; Method of Determination of Compensation. Amend RSA 498-A:25 to read as follows:

498-A:25 Method of Determination.

I. The board shall proceed to a determination of just compensation and shall hear evidence in that regard offered by the parties. Just compensation shall be determined based upon either the fair market value of the property taken or, if the property is actually to be replaced, the replacement cost of the property taken, at the election of the person or persons entitled to compensation. The board shall first determine total compensation to be awarded on account of the taking and, if there is more than one person entitled to compensation, the award shall be apportioned among such persons, to each his proportionate share of the total compensation so found.

II. "Replacement cost" shall mean the present value cost, as documented by competent evidence, to replace the property for the displaced person, taking into account all reasonable matters of significance to the property for the uses to which the property was able to lawfully be used at the time of the displacement, including such matters as lot size, location, highway access, zoning laws, public or private utilities, and building and facility reproduction. "Replacement cost" shall include but not be limited to the lesser of the following:

(a) The costs associated with the design and construction of any new building which is reasonably suitable for a residence or for the continuation of a business in a fashion as close as possible to the operation of the business prior to the displacement; or

(b) The costs associated with the purchase and renovation of any building which is reasonably comparable to the displaced property, is in a reasonably similar location, and is reasonably suitable for a residence or for the continuation of the business in a fashion as close as possible to the operation of the business prior to the displacement.

2 Effective Date. This act shall take effect January 1, 2004.

LBAO

03-0013

Revised 2/14/03

HB 607 FISCAL NOTE

AN ACT relative to the determination of just compensation in eminent domain proceedings.

FISCAL IMPACT:

The Department of Transportation indicates this bill will increase state highway fund expenditures by $1.9 million in FY 2004, $2.0 million in FY 2005, $2.1 million in FY 2006, and $2.2 million in FY 2007 and increase local expenditures by $.5 million in FY 2004, $.53 million in FY 2005, $.57 million in FY 2006, and $.60 million in FY 2007. There is no fiscal impact on state, county and local revenue or county expenditures.

METHODOLOGY:

The Department projected the increases in expenditures stated above by assuming that 10 business facilities per year would require replacement at an estimated $1 million per business, or $10 million total per year, with a 5% inflation factor for future years. The Department also assumed that 25% of the eminent domain projects would be subject to a 20% local match, and the remaining total project split, between federal (80%) and state highway funds (20%).

($ in Mil.)

FY Total Federal State Local

2004 $10.00 $7.60 $1.90 $0.50

2005 $10.51 $7.98 $2.00 $0.53

2006 $11.05 $8.38 $2.10 $0.57

2007 $11.60 $8.80 $2.20 $0.60