Report Title:

Eminent Domain

Description:

Prohibits exercise of eminent domain (1) to confer private benefit on a particular person; (2) for public use that is merely pretext to confer private benefit on a particular person; or (3) for economic development, unless economic development is secondary purpose resulting from urban renewal activities.

HOUSE OF REPRESENTATIVES

H.B. NO.

2864

TWENTY-THIRD LEGISLATURE, 2006

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to eminent domain.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. 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 private purpose or economic development. (a) Anything to the contrary notwithstanding, no county or any of its departments, agencies, commission, authorities, or any private entity may take any interest or damage any private property through the use of eminent domain if the taking:

(1) Confers a private benefit on a particular private party through the use of the property;

(2) Is for a public use that is merely a pretext to confer a private benefit on a particular private party; or

(3) Is for economic development purposes, unless the economic development is a secondary purpose resulting from urban renewal activities to eliminate existing blighted areas pursuant to chapter 53.

(b) The determination by the governmental or private entity proposing to take property that the taking does not involve an act or circumstance prohibited by subsection (a) does not create a presumption with respect to whether the taking involves that act or circumstance."

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

"§101-2 Taking private property for public use; disposal of excess property[.]; private use prohibited. (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:

(1) Confers a private benefit on a particular private party through the use of the property;

(2) Is for a public use that is merely a pretext to confer a private benefit on a particular private party; or

(3) Is for economic development purposes, unless the economic development is a secondary purpose resulting from urban renewal activities to eliminate existing blighted areas pursuant to chapter 53.

(c) The determination by the State or any county proposing to take property that the taking does not involve an act or circumstance prohibited by subsection (b) does not create a presumption with respect to whether the taking involves that act or circumstance."

SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.

INTRODUCED BY:

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