Creates a temporary commission on eminent domain; appropriation

2. Defines specifics that the commission shall examine at least the following: (a) the appropriate constitutional standard for condemnation proceedings for economic development purposes; (b) the procedural fairness of the eminent domain procedure laws, including statutory definitions thereunder; (c) the need for the creation of an eminent domain ombudsman to serve as an independent office to safeguard the rights of property owners and provide information regarding the eminent domain procedure law; and (d) just compensation provided to affected property owners.

3. The commission shall consist of thirteen members. Seven members will be appointed by the governor, three shall be representatives of local governments and three shall be property rights advocates to be appointed by and with the advice and consent of the senate; two members to be appointed by the temporary president of the senate; two members to be appointed by the speaker of the assembly; one member to be appointed by the minority leader of the senate; one member to be appointed by the minority leader of the assembly.

4. The members of the commission shall receive no compensation for their services, but shall be allowed their actual and necessary expenses incurred in the performance of their duties thereunder.

5. The commission shall begin to act ninety days after the effective date of this act. A quorum shall consist of a majority of the members of the commission entitled to vote on the matter under consideration. Approval of any matter shall require the affirmative vote of a majority of the members voting thereon.

6. The commission may employ and at pleasure remove such personnel as it may deem necessary for the performance of its functions and fix their compensation within the amounts made available therefor.

7. The commission may meet within and without the state, shall hold public hearings, and shall have all the powers of a legislative committee pursuant to the legislative law.

8. The commission shall submit its findings and recommendations in a report to the governor, the temporary president of the senate, and the speaker of the assembly not later than one year after it first convenes.

Section 2. Appropriates a minimum sum of one hundred thousand dollars to the commission to pay the costs incurred in carrying out its duties. Such moneys shall be payable out of the state treasury in the general fund to the credit of the state purposes account after audit by and on the warrant of the comptroller upon vouchers certified or approved by the chairperson or vice-chairperson of the commission as prescribed by law.

Section 3. Effective date.

Existing law

None.

Justification

The United States Supreme Court's decision in Kelo v. The City of New London, enabled the City of New London to condemn and take private property by the use of eminent domain and transfer ownership to a private developer to further an economic development plan for the city. This decision has raised questions on whether legislative action should be taken in New York State to address to the Supreme Court's ruling.

In response to these questions and concerns, the Senate Committee on Commerce, Economic Development and Small Business in conjunction with the Senate Committee on Local Governments held hearings throughout the State on the issue of eminent domain. The statewide hearings were designed to assess the benefits and shortcomings of our current system with an eye towards a comprehensive eminent domain package that would balance the need to preserve a limited power of eminent domain for local governments with the demand to secure the rights of property owners.

Although each geographic region highlighted different concerns, two themes were consistent throughout the State. First, New York's eminent domain law is not significantly affected by the Supreme Court decision. Second, the State and its citizens would benefit from a more intensive evaluation of the technical issues within the eminent domain law to determine whether modifications are necessary.

This legislation addresses these issues by creating a temporary commission on eminent domain reform. The temporary commission on eminent domain reform will consist of experts familiar to both sides of the eminent domain issue. The commission will examine, evaluate, and make recommendations concerning the scope and effectiveness of the eminent domain procedure law. Particularly, this commission will further study issues that may require adjustment such as the definitions of "blight" and "public use." These issues are severely technical in nature. Therefore, it is important that experts in this field carefully define key terms in order to prevent unintended consequences.

Economic development improves the lives of all New Yorkers by increasing the tax base, creating new jobs and improving the economy as a whole. Although eminent domain is a valuable economic development tool, protections are necessary to ensure that individuals are not stripped of their inalienable right to own property. Thus, this legislation makes some necessary changes to the compensation afforded to displaced property owners to assure a greater degree of fairness in the condemnation process. By creating a commission on eminent domain reform, this legislation carefully evaluates the eminent domain issue so that proper technical adjustments can be made in the future. We, as a State, have spent a great deal of time and resources making New York a better place to live and do business. We cannot act hastily with such an intricate and important issue. That is why, this legislation takes a pragmatic, but necessary, approach towards the overall goal of balancing the needs of our local governments with the rights of our citizens to own property.

Legislative history

2005-2006: S.8390 - Passed Senate.; 2007-2008 Passed Senate. FISCAL IMPLICATIONS : To be determined.

Effective date

This act shall take effect immediately; provided further that the temporary state Commission established pursuant to subsection one of this act shall expire and be terminated on the first day next succeeding the date of the submission of its report as provided in subsection eight of section one of this act; and provided further, however that the chairperson of the temporary commission on eminent domain reform shall notify the legislative bill drafting commission upon the submission of its report as provided for in subsection eight of section one of this act in order that the commission may maintain an accurate and timely effective data base of the official text of the laws of the state of New York in furtherance of effecting the provisions of section 44 of the legislative law and section 70-b of the public officers law.