ARIZONA STATE SENATE
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LAURA BENITEZ |
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LEGISLATIVE RESEARCH ANALYST COMMERCE COMMITTEE Telephone: (602) 926-3171 |
RESEARCH STAFF
TO: MEMBERS OF THE SENATE
COMMERCE COMMITTEE
DATE: February 8, 2021
SUBJECT: Strike everything amendment to S.B. 1154, relating to eminent domain
Purpose
Requires a municipality acquiring a public utility business or enterprise by eminent domain to assume all existing assets and contractual obligations directly associated with providing utility service in the condemned certificate of convenience and necessity.
Background
The state or a county, city, town, village or political subdivision may exercise the right of eminent domain to take property by condemnation for statutorily outlined uses (A.R.S. Title 12, Chapter 8). An action for taking property by condemnation must be brought as a civil action in superior court. At least 20 days before filing an action, the plaintiff must deliver to the property owner a written offer to purchase the property and pay just compensation and at least one appraisal supporting the proposed compensation amount (A.R.S. § 12-1116).
A municipality may exercise the right
of eminent domain to construct, purchase, acquire and own: 1) a public utility
business or enterprise for which the municipality may issue a franchise; and
2) real property for public utility purposes. A municipality may
establish, lay and operate a plant, electric line or pipeline on any land or
right-of-way taken under eminent domain (A.R.S.
§ 9-511).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires a municipality that acquires a public utility business or enterprise by eminent domain to file with the superior court at least one appraisal that supports the proposed compensation if requested at any time during the proceeding by a party to the condemnation action.
2. Makes technical changes.
3. Becomes effective on the general effective date.
