ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

First Regular Session

House: COM DP 7-3-0-0-0

HB 2049: eminent domain; existing contracts

Sponsor: Representative Weninger, LD 17

Caucus & COW

Overview

Asserts a municipality assumes all existing assets and contractual obligations of a public utility business or enterprise if acquired by eminent domain.

History

Eminent domain refers to the power of a governmental entity to take private property and convert it to public use. The state Constitution requires that just compensation be given to the owner if private property is damaged or taken for public or private use (Az Constitution Article 2, Section 17).

Actions for taking property by condemnation must be brought as a civil action in superior court. The plaintiff must deliver the following to the property owner at least 20 days prior to filing an action:

1) A written offer to purchase the property and to pay just compensation for the property; and

2) An appraisal that supports the proposed compensation amount. (A.R.S. § 12-1116)

Current law allows a municipality to exercise the right of eminent domain either within or without its corporate limits for specified purposes. Additionally, the municipality may establish and operate any plants, electric lines and pipelines on any land or right-of-way taken under eminent domain (A.R.S. § 9-511).

Provisions

1. Requires a municipality, when exercising the right of eminent domain to acquire a public utility business or enterprise, to assume all existing assets and contractual obligations associated with providing current and future utility service in the certificate of convenience and necessity that is being condemned, unless all the parties to the contractual obligation agree otherwise. (Sec. 1)

2. Deems contracts that a public utility business or enterprise that is being condemned enters into in bad faith and to impede the condemnation within 60 days of receiving a municipality's purchase offer as against public policy and void. (Sec. 1)

3. Makes technical changes. (Sec. 1)

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7. HB 2049

8. Initials PRB Page 0 Caucus & COW

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