As Reported by the Senate State and Local Government and Veterans Affairs Committee

124th General Assembly
Regular Session
2001-2002
Am. Sub. H. B. No. 426


REPRESENTATIVES Young, Brinkman, Britton, Carey, Carmichael, DeWine, Fessler, Flowers, Hagan, Lendrum, Schaffer, Schmidt, Seaver, Webster, Willamowski, Trakas, Patton, Damschroder, Williams, Buehrer, Coates, Hollister, Carano, Sulzer, Sferra, Setzer, Niehaus, Reidelbach, Salerno, Otterman, Kearns, Roman, Perry, Brown

SENATOR Robert Gardner



A BILL
To amend sections 163.52 and 163.59 of the Revised1
Code to require acquiring state agencies to make2
every reasonable effort to provide a copy of the3
appraisal to the owner of real property appraised4
at more than $10,000, to require those agencies to5
update or obtain new appraisals under certain6
circumstances, and to specify that their7
acquisition of property must be for a defined8
public purpose that is to be achieved in a defined9
and reasonable period of time.10


BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

       Section 1. That sections 163.52 and 163.59 of the Revised11
Code be amended to read as follows:12

       Sec. 163.52.  (A) SectionThe failure of an acquiring agency13
to satisfy a requirement of section 163.59 of the Revised Code14
creates no rights or liabilities and shalldoes not affect the15
validity of any property acquisitionsacquisition by purchase or16
condemnation.17

       (B) Nothing in sections 163.51 to 163.62, inclusive, of the18
Revised Code, shall be construed as creating, in any condemnation19
proceeding brought under the power of eminent domain, any element20
of value or damage not in existence immediately prior to the21
effective date of such sectionsJune 11, 1971.22

       Sec. 163.59.  In order to encourage and expedite the23
acquisition of real property by agreements with owners, to avoid24
litigation and relieve congestion in the courts, to assure25
consistent treatment for owners in the many state and federally26
assisted programs, and to promote public confidence in public land27
acquisition practices, heads of acquiring agencies shall, to the28
greatest extent practicable, be guided bydo or ensure the29
acquisition satisfies all of the following policies:30

       (A) The head of an acquiring agency shall make every31
reasonable effort to acquire expeditiously real property by32
negotiation.33

       (B) In order for an acquiring agency to acquire real34
property, the acquisition shall be for a defined public purpose35
that is to be achieved in a defined and reasonable period of time.36
An acquisition of real property that complies with section 5501.3137
of the Revised Code satisfies the defined public purpose38
requirement of this division.39

        (C) Real property to be acquired shall be appraised before40
the initiation of negotiations, and the owner or histhe owner's41
designated representative shall be given ana reasonable42
opportunity to accompany the appraiser during histhe appraiser's43
inspection of the property, except that the head of the lead44
agency may prescribe a procedure to waive the appraisal in cases45
involving the acquisition by sale or donation of property with a46
low fair market value. If the appraisal values the property to be47
acquired at more than ten thousand dollars, the head of the48
acquiring agency concerned shall make every reasonable effort to49
provide a copy of the appraisal to the owner. As used in this50
section, "appraisal" means a written statement independently and51
impartially prepared by a qualified appraiser, or a written52
statement prepared by an employee of the acquiring agency who is a53
qualified appraiser, setting forth an opinion of defined value of54
an adequately described property as of a specified date, supported55
by the presentation and analysis of relevant market information.56

       (C)(D) Before the initiation of negotiations for real57
property, the head of the acquiring agency concerned shall58
establish an amount which hethat the head of the acquiring agency59
believes to be just compensation thereforfor the property and60
shall make a prompt offer to acquire the property for no less than61
the full amount so established. In no event shall suchthat62
amount be less than the agency's approved appraisal of the fair63
market value of suchthe property. Any decrease or increase in64
the fair market value of real property prior to the date of65
valuation caused by the public improvement for which suchthe66
property is acquired, or by the likelihood that the property would67
be acquired for suchthat improvement, other than that due to68
physical deterioration within the reasonable control of the owner,69
will be disregarded in determining the compensation for the70
property. The71

       The head of the acquiring agency concerned shall provide the72
owner of real property to be acquired with a written statement of,73
and summary of the basis for, the amount hethat the head of the74
acquiring agency established as just compensation. Where75
appropriate, the just compensation for the real property acquired76
and for damages to remaining real property shall be separately77
stated.78

       (D)The owner shall be given a reasonable opportunity to79
consider the offer of the acquiring agency for the real property,80
to present material that the owner believes is relevant to81
determining the fair market value of the property, and to suggest82
modification in the proposed terms and conditions of the83
acquisition. The acquiring agency shall consider the owner's84
presentation and suggestions.85

       (E) If information presented by the owner or a material86
change in the character or condition of the real property87
indicates the need for new appraisal information, or if a period88
of more than two years has elapsed since the time of the appraisal89
of the property, the head of the acquiring agency concerned shall90
have the appraisal updated or obtain a new appraisal. If updated91
appraisal information or a new appraisal indicates that a change92
in the acquisition offer is warranted, the head of the acquiring93
agency shall promptly reestablish the amount of the just94
compensation for the property and offer that amount to the owner95
in writing.96

        (F) No owner shall be required to surrender possession of97
real property before the acquiring agency concerned pays the98
agreed purchase price, or deposits with the court for the benefit99
of the owner, an amount not less than the agency's approved100
appraisal of the fair market value of suchthe property, or the101
amount of the award of compensation in the condemnation proceeding102
for suchthe property.103

       (E)(G) The construction or development of a public104
improvement shall be so scheduled that no person lawfully105
occupying real property shall be required to move from a dwelling,106
or to move histhe person's business or farm operation, without at107
least ninety days' written notice from the head of the acquiring108
agency concerned, of the date by which suchthe move is required.109

       (F)(H) If the head of an acquiring agency permits an owner110
or tenant to occupy the real property acquired on a rental basis111
for a short term or for a period subject to termination on short112
notice, the amount of rent required shall not exceed the fair113
rental value of the property to a short-term occupier.114

       (G)(I) In no event shall the head of an acquiring agency115
either advance the time of condemnation, or defer negotiations or116
condemnation and the deposit of funds in court for the use of the117
owner, or take any other action coercive in nature, in order to118
compel an agreement on the price to be paid for the real property.119

       (H) If(J) When any interest in real property is to be120
acquired by exercise of the power of eminent domain, the head of121
the acquiring agency concerned shall institute the formal122
condemnation proceedings. No head of an acquiring agency head123
shall intentionally make it necessary for an owner to institute124
legal proceedings to prove the fact of the taking of histhe125
owner's real property.126

       (I)(K) If the acquisition of only part of a property would127
leave its owner with an uneconomic remnant, the head of the128
acquiring agency concerned shall offer to acquire that remnant.129
For the purposes of this division, an uneconomic remnant is a130
parcel of real property in which the owner is left with an131
interest after the partial acquisition of the owner's property and132
which the head of the agency concerned has determined has little133
or no value or utility to the owner.134

       An acquisition of real property may continue while an135
acquiring agency carries out the requirements of divisions (A) to136
(K) of this section.137

       This section applies only when the acquisition of real138
property may result in an exercise of the power of eminent domain.139

       Section 2. That existing sections 163.52 and 163.59 of the140
Revised Code are hereby repealed.141