Prohibits the exercise of the powers of eminent domain by the State and counties for urban renewal or economic development projects that result in the development of nongovernmental retail, office, commercial, residential, or industrial development.

A BILL FOR AN ACT

SECTION 1. In the wake of the recent United States Supreme Court decision in Kelo v. New London (04-108), June 23, 2005, there has been a growing concern that the need for urban renewal or economic development may be cited as justification for allowing government, directly or vicariously through other entities, to condemn private property and transfer the property to the benefit of another private person or entity.

The purpose of this Act is to prohibit the exercise of the power of eminent domain to take private property and transfer the property to another private entity for urban renewal or economic development purposes that would result in the development of any nongovernmental retail, office, commercial, residential or industrial development or use.

SECTION 2. Chapter 46, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"§46- No eminent domain for economic development purposes. Anything to the contrary notwithstanding, no county or any of its departments, agencies, commissions, authorities, or any private entity may take any interest in or damage any private property through the use of eminent domain if the taking is for the purpose of urban or economic development that would result in the development of any nongovernmental retail, office, commercial, residential, or industrial development or use."

SECTION 3. Section 101-2, Hawaii Revised Statutes, is amended to read as follows:

"§101-2 Taking private property for public use; disposal of excess property[.]; public use. (a) Private property may be taken for public use. Private property may also be taken by the State or any county in excess of that needed for such public use in cases where small remnants would otherwise be left or where other justifiable cause necessitates such taking to protect and preserve the contemplated improvement, or public policy demands such taking in connection with the improvement, in which case the condemning authority may sell or lease such excess property, with such restrictions as may be dictated by considerations of public policy in order to protect and preserve such improvements; provided that in the disposal of any such excess property, if such property is less than the minimum lot size requirements of the applicable zoning regulations, is of a configuration or topography which in the judgment of the appropriate county zoning authority cannot be put to a reasonable use in accordance with the applicable zoning regulations, or lacks proper access to a street, it shall be offered to the owner or owners of the abutting land for a reasonable price based on an appraisal; provided further that if such excess property conforms to said minimum lot size requirements, is of a configuration and topography which in the judgment of the appropriate county zoning authority can be put to a reasonable use in accordance with the applicable zoning regulations and has proper access to a street, then the State or the county, as the case may be, may sell such property at public auction. If there is more than one abutting owner who is interested in purchasing any such excess property which is less than the minimum lot size requirements of the applicable zoning regulations, is of a configuration or topography which in the judgment of the appropriate county zoning authority cannot be put to a reasonable use in accordance with applicable zoning regulations, or lacks proper access to a street, it shall be sold by the condemning authority by sealed bid to the abutting owner submitting the highest offer above the appraised value; provided further that if any such excess property abuts more than one parcel, the condemning authority may make application for subdividing such property so that a portion thereof may be sold to each abutting owner at the appraised value if the public interest is best served by such subdivision and disposal. All moneys received from the sale or lease of such excess property shall be paid into the fund or appropriation from which money was taken for the original condemnation and shall be available for the purposes of such fund or appropriation.

(b) Anything to the contrary notwithstanding, for purposes of this chapter, "public use" does not include any use of property that is for urban or economic development that would result in the development of any nongovernmental retail, office, commercial, residential, or industrial development or use."

SECTION 4. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 5. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 6. This Act shall take effect upon its approval.