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HCS CSSB 278(JUD): "An Act requiring a good faith effort to purchase property before that property is taken through eminent domain; and providing for an effective date."

00 HOUSE CS FOR CS FOR SENATE BILL NO. 278(JUD) 01 "An Act requiring a good faith effort to purchase property before that property is taken 02 through eminent domain; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 09.55.270 is amended to read: 05 Sec. 09.55.270. Prerequisites. Before property can be taken, it shall appear 06 that 07 (1) the use to which it is to be applied is a use authorized by law; 08 (2) the taking is necessary to the use; 09 (3) if already appropriated to a public use, the public use to which it is 10 to be applied is a more necessary public use; and 11 (4) except where the consent of a property owner cannot be 12 obtained due to incapacity, inability to convey legal title, or absence, the 13 condemnor has made a reasonable and diligent effort to acquire the property by 14 negotiation as provided in (b) and (c) of this section.

01 * Sec. 2. AS 09.55.270 is amended by adding new subsections to read: 02 (b) Before taking property estimated by the condemnor to be worth $15,000 or 03 more, a condemnor shall invite the property owner, within a reasonable period of time 04 set by the condemnor, to obtain an appraisal from a real estate appraiser certified 05 under AS 08.87 and offer to 06 (1) sell the property to the condemnor for the appraised value plus the 07 cost of appraisal; or 08 (2) exchange the property for a parcel of comparable value. 09 (c) If a property owner makes an offer under (b) of this section within the 10 reasonable period of time set by the condemnor, the condemnor must either accept the 11 offer, or reject the offer and provide a reasonable explanation of the reasons for the 12 rejection along with a reasonable counter offer. If a condemnor invites the property 13 owner to make an offer to sell the property as described in (b) of this section and the 14 property owner fails to respond within a reasonable period of time, or if the property 15 owner rejects a reasonable counter offer made under this subsection, the condemnor 16 may commence eminent domain proceedings under AS 09.55.290. 17 * Sec. 3. AS 09.55.430 is amended to read: 18 Sec. 09.55.430. Contents of declaration of taking. The declaration of taking 19 must contain 20 (1) a statement of the authority under which the property or an interest 21 in it is taken; 22 (2) a statement of the public use for which the property or an interest in 23 it is taken; 24 (3) a description of the property sufficient for the identification of it; 25 (4) a statement of the estate or interest in the property; 26 (5) a map or plat showing the location of the property; 27 (6) a statement of the amount of money estimated by the plaintiff to be 28 just compensation for the property or the interest in it; 29 (7) a statement that the property is taken by necessity for a project 30 located in a manner that is most compatible with the greatest public good and the least 31 private injury; and

01 (8) except where the consent of a property owner cannot be 02 obtained due to incapacity, inability to convey legal title, or absence, a statement 03 that the plaintiff has complied with AS 09.55.270(b) and (c), if applicable. 04 * Sec. 4. AS 09.55.440(a) is amended to read: 05 (a) Upon the filing of the declaration of taking and the deposit with the court 06 of the amount of the estimated compensation stated in the declaration, title to the 07 estate as specified in the declaration vests in the plaintiff, and that property is 08 condemned and taken for the use of the plaintiff, and the right to just compensation for 09 it vests in the persons entitled to it. The compensation shall be ascertained and 10 awarded in the proceeding and established by judgment. If, following the award of 11 just compensation in the proceedings, the court finds as a matter of law that the 12 plaintiff has not complied with AS 09.55.270(b) and (c), the court may award an 13 additional sum of up to 10 percent of the award of just compensation as 14 additional compensation. The judgment must include interest at the rate of 10.5 15 percent a year on the amount finally awarded that exceeds the amount paid into court 16 under the declaration of taking. The interest runs from the date title vests to the date 17 of payment of the judgment. 18 * Sec. 5. This Act takes effect immediately under AS 01.10.070(c).