Eminent domain reform

"Missouri property owners won a major victory with the General Assembly’s approval of comprehensive eminent domain reform. Not only does the legislation place restrictions on the use of eminent domain for economic development, HB 1944 goes much further by including other requirements of condemning authorities that will help protect the property rights of individuals. This legislation puts Missouri at the forefront of real eminent domain reform.

"As our society grows, there will continue to be the need for development and improvement of our state’s infrastructure, but the very basic constitutional rights of property owners must be recognized and honored. We in Missouri Farm Bureau have made eminent domain reform a major priority for the last three years. Public outrage at the Kelo decision last year by the U.S. Supreme Court served as a springboard for legislative action this session to approve major eminent domain reform.

"Property owners can be reassured that their state legislators in the House and Senate have taken a stand to protect property rights and turn away from those who prefer the status quo. We appreciate the commitment of Representative Steve Hobbs, Senator Chris Koster and Senate and House leadership as well as the support of Governor Matt Blunt. We look forward to this landmark legislation being signed into law."

Major Provisions of HB 1944

In addition to addressing the Kelo decision by placing restrictions on the use of eminent domain for economic development, HB 1944 includes the following provisions:

1. Fair market value of condemned property shall include not only comparable sales and replacement costs but also the property’s highest and best use;

2. Condemned property owned by the same family for fifty or more years will receive a heritage value at 150% of the fair market value;

3. Condemned homesteads will be compensated at 125% of fair market value;

4. Farmland shall not be blighted for purposes of eminent domain;

5. At least 60 days before filing a condemnation, the condemning authority must identify the purpose of the acquisition and inform the property owners of their legal rights;

6. At least 30 days in advance of a condemnation petition, the condemning authority must give the owner a written offer;

7. The condemning authority must provide the owner with an appraisal or explanation for determining the value of the property;

8. Before making any offer to purchase property for a powerplant, the condemning authority must provide public notice in a local newspaper and make efforts to inform affected property owners;

9. If an easement is not used for 10 years, the owner of the property may petition the court to declare the easement vacated;

10. If condemning authorities do not act in "good faith negotiations" the condemnation petition will be dismissed and the court can require reimbursement of the property owner’s legal fees;

11. If any condemning authority abandons a condemnation before final judgment, the property owners shall be reimbursed for attorneys’ fees, damages and other expenses;

12. Condemning authorities must consider all alternative routes suggested by affected property owners;

13. Additional negotiations with landowners shall be required for the expanded use of existing easements;

14. Blanket easements that do not specify how the property will be burdened are in general prohibited;

15. Displaced residents shall receive increased relocation costs;

16. An office of ombudsman for property rights is created to provide assistance to citizens and report annually on condemnation casework.