STAND. COM. REP. NO. 1186

 

Honolulu, Hawaii

                  

 

RE:    H.B. No. 1590

       H.D. 3

       S.D. 1

 

 

 

Honorable Colleen Hanabusa

President of the Senate

Twenty-Fourth State Legislature

Regular Session of 2007

State of Hawaii

 

Madam:

 

     Your Committee on Water, Land, Agriculture, and Hawaiian Affairs, to which was referred H.B. No. 1590, H.D. 3, entitled:

 

"A BILL FOR AN ACT RELATING TO EMINENT DOMAIN,"

 

begs leave to report as follows:

 

     The purpose of this measure is to protect the property rights of real property owners by requiring that government entities possessing the power of eminent domain offer to resell any real property taken by eminent domain to the original property owner if the property taken is not used for the purpose for which it was condemned.

 

     Testimony in support of this measure was submitted by Kamehameha Schools and the Hawaii Association of Realtors.

 

     There are two constitutional requirements for the exercise of eminent domain.  The property taken must be for a public purpose and the property owner is entitled to receive just compensation.  There are many instances where condemned property sits idle for years until plans are realized.  If the purported public purpose of the condemned property is never realized, the government may sell the property to the highest bidder, which is usually not the original owner of the condemned property.

 

     Your Committee finds that condemnation actions should occur only when necessary and when a viable plan is in place for the condemned property.  Despite being entitled to just compensation, owners of condemned property still incur financial and emotional stress from losing their property rights and being forced to relocate their homes or businesses.  This stress is heightened when the condemned property sits idle for years because a viable plan for the property is not available, or when the condemned property is sold to someone else who placed the highest bid.  Requiring a government entity after five years to offer the right of first refusal to the owner of the condemned for resale at the current appraised value, or condemnation price plus remediation or improvement costs if the property taken is not used for the purpose for which it was condemned will prevent condemned property from sitting idle.

 

     Your Committee has amended this measure by deleting the contents of this measure and inserting the language of S.B. No. 1279, S.D. 1, which:

 

     (1)  Amends chapter 46, Hawaii Revised Statutes, to include a new section that requires county agencies possessing the power of eminent domain to offer to resell any real property taken by eminent domain to the original property owner if the property taken is not used for the purpose for which it was condemned;

 

     (2)  Amends chapter 101, Hawaii Revised Statutes, to include two new sections that:

 

          (A)  Allow a property owner or an individual with an interest in the property to be condemned to request a declaratory ruling to determine if the condemnation action by a government entity is for public use; and

 

          (B)  Require state government agencies possessing the power of eminent domain to offer to resell any real property taken by eminent domain to the original property owner if the property taken is not used for the purpose for which it was condemned;

 

     (3)  Changes the effective date of this measure from July 1, 2112, to effective upon approval; and

 

     (4)  Makes technical, nonsubstantive amendments for the purposes of clarity and style.

 

     Your Committee believes that the amended measure will assist in leveling the playing field for real property owners and protect their real property interests, which fulfills the intent of this measure.

 

     As affirmed by the record of votes of the members of your Committee on Water, Land, Agriculture, and Hawaiian Affairs that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 1590, H.D. 3, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 1590, H.D. 3, S.D. 1, and be referred to the Committee on Judiciary and Labor.

 

Respectfully submitted on behalf of the members of the Committee on Water, Land, Agriculture, and Hawaiian Affairs,

 

 

 

____________________________

RUSSELL S. KOKUBUN, Chair