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Introduced Version House Bill 4048 History

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Key: Green = existing Code. Red = new code to be enacted
H. B. 4048

(By Delegates Craig, Amores, Mahan, Morgan, Pethtel, Stemple, Caputo, Armstead, Schadler, Hamilton and Azinger)


[Originating in the Committee on the Judiciary]



[January 18, 2006]


A BILL to amend and reenact §54-1-2 of the Code of West Virginia, 1931, as amended, and to amend said code by adding thereto a new section, designated §54-2-1a, all relating to eminent domain; defining "internal improvement"; limiting the use of eminent domain for certain purposes; prohibiting the use of eminent domain to convey property to certain owners; providing for conditional resale of condemned property to prior owners thereof, with exceptions thereto; and requiring good faith purchase period and offer prior to initiation of condemnation proceeding.

Be it enacted by the Legislature of West Virginia:
That §54-1-2 of the Code of West Virginia, 1931, as amended, be amended and reenacted, and that said code be amended by adding thereto a new section, designated §54-2-1a, all to read as follows:
§54-1-2. Public uses for which private property may be taken or damaged.

The public uses for which private property may be taken or damaged are as follows:
(a) For the construction, maintenance and operation of railroad and traction lines (including extension, lateral and branch lines, spurs, switches and sidetracks), canals, public landings, wharves, bridges, public roads, streets, alleys, parks and other works of internal improvement, for the public use;
(b) For the construction and maintenance of telegraph, telephone, electric light, heat and power plants, systems, lines, transmission lines, conduits, stations (including branch, spur and service lines), when for public use;
(c) For constructing, maintaining and operating pipelines, plants, systems and storage facilities for manufacturing gas and for transporting petroleum oil, natural gas, manufactured gas, and all mixtures and combinations thereof, by means of pipes, pressure stations or otherwise, (including the construction and operation of telephone and telegraph lines for the service of such systems and plants), and for underground storage areas and facilities, and the operation and maintenance thereof, for the injection, storage and removal of natural gas in subterranean oil and/or gas bearing stratum, which, as shown by previous exploration of the stratum sought to be condemned and within the limits of the reservoir proposed to be utilized for such purposes, has ceased to produce or has been proved to be nonproductive of oil and/or gas in substantial quantities, when for public use, the extent of the area to be acquired for such purpose to be determined by the court on the basis of reasonable need therefor. Nothing in this subsection shall be construed to interfere with the power of the state and its political subdivisions to enact and enforce ordinances and regulations deemed necessary to protect the lives and property of citizens from the effects of explosions of oil or gas;
(d) For constructing, maintaining and operating, water plants and systems, including lines for transporting water by any corporate body politic, or private corporation, for supplying water to the inhabitants of any city, town, village or community, for public use, including lands for pump stations, reservoirs, cisterns, storage dams, and other means of storing, purifying and transporting water, and the right to take and damage lands which may be flooded by the impounded waters, and to appropriate any spring, stream and the surrounding property necessary to protect, preserve and maintain the purity of any such spring, stream, reservoir, cistern and water impounded by means of any storage dam;
(e) For the purpose of constructing, maintaining and operating sewer systems, lines and sewage disposal plants, to collect, transport and dispose of sewage. When in the interest of the public welfare and the preservation of the public health, the construction of a sewer line to serve a single building or institution shall be deemed a public use, and, for such purpose, the right of eminent domain, if within a municipal corporation, may be exercised in the name of a municipal corporation, and if not within a municipal corporation, in the name of the county court of the county in which the property is located;
(f) For the reasonable use by an incorporated company engaged in a public enterprise of which the state or any county or municipality is the sole or a part owner;
(g) For courthouses and municipal buildings, parks, public playgrounds, the location of public monuments, and all other public buildings;
(h) For cemeteries, and the extension and enlargement of existing cemeteries: Provided, That no lands shall be taken for cemetery purposes which lie within four hundred feet of a dwelling house, unless to extend the boundaries of an existing cemetery, and then only in such manner that the limits of the existing cemetery shall not be extended nearer than four hundred feet of any dwelling house distant four hundred feet or more from such cemetery, or nearer than it was to any dwelling house which is within four hundred feet thereof;
(I) For public schools, public libraries and public hospitals;
(j) For the construction and operation of booms (including approaches, landings and ways necessary for such objects), when for a public use;
(k) By the state of West Virginia for any and every other public use, object and purpose not herein specifically mentioned. By the United States of America for each and every legitimate public use, need and purpose of the government of the United States, within the purview, and subject to the provisions of chapter one of this code;
(l) For constructing, maintaining and operating pipelines, plants, systems and storage facilities, for the transportation by common carrier as a public utility of coal and its derivatives and all mixtures and combinations thereof with any substance by means of pipes, pressure stations or otherwise (including the construction and operation of telephone and telegraph lines for the service of such systems and plants), for public use: Provided, That the common carrier engages in some intrastate activity in this state, if there is any reasonable demand therefor: Provided, however, That in addition to all other requisites by federal or state constitutions, statute or common law required for the taking of private property for public use, a further prerequisite and condition precedent to the exercise of such taking of or damage to private property for public use as in this subsection hereinabove provided, is that the public service commission of this state, in an appropriate hearing and proceeding on due notice to all interested persons, firms or corporations, in accordance with the procedure now or hereafter established by statute and the regulations thereunder, shall have found that such pipeline transportation of coal and its derivatives and all mixtures and combinations thereof is required for the public convenience and necessity, and that the public service commission of this state shall not extend a certificate of convenience and necessity or make such finding of public convenience and necessity unless, in addition to the other facts required to support such findings, it shall have been established by the applicant therefor that the patents and other similar rights under which the applicant proposes to construct, maintain or operate such pipeline, plants, systems and storage facilities shall be and shall remain equally available, insofar as said subsequent applicant may determine such availability, upon fair and reasonable terms, to other bona fide applicants seeking a certificate of convenience and necessity and finding of fact for any other pipeline in West Virginia; for the purpose of making the findings hereinbefore set forth the public service commission shall have and exercise jurisdiction, and that the aforesaid findings in this proviso above set forth shall be subject to judicial review as in other public service commission proceedings.
It is the intention of the Legislature in amending this section by the addition of subdivision (1) as set forth above to extend the right of eminent domain to coal pipelines for public use; to provide for regulation of such coal pipelines by the public service commission of this state or the interstate commerce commission of the United States of America, or both; to assure that such rights shall be extended only to public utilities or common carriers as distinguished from private carriers or contract carriers; to make patents covering the same equally available to others on fair and reasonable terms; and to prevent monopolistic use of coal pipelines by any users thereof which would result in any appreciable economic detriment to others similarly situated by reasons of any such monopoly.
(m) For the purposes of the use of eminent domain, the term "internal improvement" means only public uses authorized by subsections (a), (b), (c), (d), (e), (h) and (l) of this section.
(n) Notwithstanding any other provision of law, eminent domain may not be used to condemn property for:
(1) Private retail, office, commercial, industrial or residential development, or for enhancement of tax revenue; or
(2) To purchase property for a purpose that results in a transfer in fee of the property to a person, nongovernmental entity, corporation or other business entity to fulfill the purpose of the use of eminent domain.
(o) Property condemned by use of eminent domain if not used for the purpose or purposes for which it was condemned or for some other public use by the condemning party or its successor or assign within ten years, shall be offered by the condemning party or its successor or assign for resale to the person or persons from whom the property was condemned, who shall have the right to purchase the property at the price originally paid for the property. This right of purchase expires ninety days following receipt of notice of right to purchase:
Provided, That the provisions of this subsection do not apply to the use of eminent domain to acquire contiguous properties for the purpose of construction of a road, utility service, or other similar use that requires acquiring contiguous properties or rights of ways to those properties to connect the infrastructure being provided, but does include the acquisition by eminent domain of any property that is not essential to providing that road or service.
§54-2-1a. Notice; good faith purchase.
Prior to initiation of any condemnation proceeding, the applicant must notify all parties subject to a petition for condemnation provided in section two of this article, and attempt to enter into negotiations for purchase of the property with the owner or owners, or if less than a fee estate is being condemned, the owners of any estate subject to condemnation. The applicant shall make a fair market value offer in good faith for the purchase of the property or estate subject to the condemnation prior to initiation of the condemnation proceeding.

NOTE: The purpose of this bill is to place limits on the use of eminent domain; prohibiting the use of eminent domain for certain purposes; providing that persons from which property is taken have the right of first refusal if subsequently sold; excepting property in blight or slum areas from these limitations; and requiring a good faith attempt to purchase prior to imitation of a condemnation proceeding.
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