NY State Senate Bill 2021-S2931

Senate Bill S2931

2021-2022 Legislative Session

Requires the preparation of a comprehensive economic development plan for the use of eminent domain when the primary purpose is economic development

download bill text pdf

Archive: Last Bill Status - In Senate Committee Commerce, Economic Development And Small Business Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to commerce, economic development and small business
Jan 26, 2021	referred to commerce, economic development and small business

2021-S2931 (ACTIVE) - Details

Current Committee:: Senate Commerce, Economic Development And Small Business
Law Section:: Public Authorities Law
Laws Affected:: Amd §§103, 204 & 207, add §204-a, EDP L; amd §1411, N-PC L; add §858-c, Gen Muni L; add §1831-b, Pub Auth L
Versions Introduced in Other Legislative Sessions:: 2015-2016: S5910
2017-2018: S3271
2019-2020: S1553
2023-2024: S7337

2021-S2931 (ACTIVE) - Summary

Requires the preparation of a comprehensive economic development plan for the use of eminent domain when the primary purpose is economic development and certain residential premises are to be acquired; requires municipal approval of the exercise of eminent domain power in such cases; enacts the "eminent domain reform act".

2021-S2931 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S2931

SPONSOR: PARKER
 
TITLE OF BILL:

An act to amend the public authorities law, the not-for-profit corpo-
ration law, the general municipal law and the eminent domain procedure
law, in relation to eminent domain reform

 
PURPOSE OR GENERAL IDEA:

To reform the eminent domain process in relation to economic development
projects by expanding judicial reform, providing more local control over
eminent domain decisions, requiring a comprehensive economic development
plan, and requiring a home owner impact statement

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1. Short Title. The act shall be referred to as the "Eminent
Domain Reform Act"

Section 2. Add a new § 1831-b to the public authorities law to give
local governments the power to approve or disapprove any public authori-
ty's use of eminent domain.

Section 3. Amends § 1411 of the not-for-profit corporation law to give
local governments the power to approve or disapprove local development
corporation's use of eminent domain.

Section 4. Adds anew § 858-c to the general municipal law to give local
governments the power to approve or disapprove industrial development
agency's use of eminent domain.

Section 5. Amends § 103 of the EDPL to include new Definitions.

Section 6. Amends the § 204 of the EDPL to include a new section (4) to
the determinations and findings requirements by including a new section
on economic development.

Section 7. Adds a new § 204-a to the EDPL.

A. Requires a comprehensive economic development plan in cases where
eminent domain is used for economic development. Economic development
plans must be approved by the local government.

B. Requires that a homeowner impact assessment statement be completed to
assess the actual harm to affected condemnees, how the project would
benefit the community and justification for the condemnation.

C. Increases compensation to condemnees whose home or dwelling is
acquired for an economic development project. The compensation, in addi-
tion to the compensation already required by law, would be 150% of total
fair market value.

Section 8. Amends § 207 of the EDPL to expand judicial review in cases
where a condemnor substantially alters the scope of the project, or the
determinations and findings, to allow citizens a fair process.

 
JUSTIFICATION:
The use of eminent domain is important power for government to move
forward on important public projects. However, investigations by the
Assembly Corporations, Authorities and Commissions Committee, as well as
the recent United States Supreme Court decision, KELO et al, v.  CITY OF
NEW LONDON et al, underscore the need for further eminent domain reform.

Several issues emerge from the Committee's investigations and the
Supreme Court decision. First, is the meaning of public use under the
5th Amendment of the United States Constitution (New York has a similar
constitutional provision. See: Article I, section 7 of the State Consti-
tution). The New London decision centers on condemnation where one
private interest is favored over another for the public purpose of
economic development. The Court held that the economic development plan
of the city did constitute a public use.  Specifically, however, the
decision focused on the appropriate legal standard of review. The
Supreme Court gives wide latitude to governments to determine public
use.

The second issue that emerges is who is using the power of eminent
domain. In New York, like the New London case, these decisions are often
done through quasi-public development agencies or authorities.  In New
York quasi-public entities such as industrial development agencies,
local development corporations and public authorities have the power of
eminent domain to fulfill their public mission. Often these quasi-public
entities can condemn homes for economic development projects. Authori-
ties and other development agencies are shielded from traditional public
scrutiny.

This legislation specifically focuses on condemnation in which private
property is taken for economic development purposes and transferred to
other private entities. In these cases, government must be extremely
cautious in using its power of eminent domain and must do everything in
its power to protect citizens. The Eminent Domain Reform Act will
include three major provisions: increasing the timeframe citizens can
appeal decisions to condemn, enacting significant protections for home-
owners and other displaced residents where their property was condemned
for economic development, and empowering local governments to have deci-
sion making power of the use of eminent domain by public authorities and
IDAs.

This bill would strike the right balance between the needs of society
and individual liberties.

 
PRIOR LEGISLATIVE HISTORY:

2019-2020: S1553 Referred to COMMERCE, ECONOMIC DEVELOPMENT AND SMALL
BUSINESS
2017-2018 A2738 Referred to Judiciary
2015-2016 A2453 REFERRED TO COMMERCE, ECONOMIC DEVELOPMENT AND SMALL
BUSINESS
A1568 2009/2010 referred to Judiciary
A9043-a (2005-06); relates to Chapter204 (Brodsky/Leibell).
A1264 (2007-2008).

 
FISCAL IMPLICATION FOR STATE AND LOCAL GOVERNMENTS:

Not known.

 
EFFECTIVE DATE:
This act shall take effect on the one hundred twentieth day after it

2021-S2931 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   2931
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             January 26, 2021
                                ___________
 
 Introduced  by  Sen.  PARKER -- read twice and ordered printed, and when
   printed to be committed to the Committee on Commerce, Economic  Devel-
   opment and Small Business
 
 AN  ACT  to  amend the public authorities law, the not-for-profit corpo-
   ration law, the general municipal law and the eminent domain procedure
   law, in relation to eminent domain reform
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Short  title. This act shall be known and may be cited as
 the "eminent domain reform act".
   § 2. The public authorities law is amended by  adding  a  new  section
 1831-b to read as follows:
   § 1831-B. EXERCISE OF POWER OF EMINENT DOMAIN; LIMITATIONS.  THE LOCAL
 LEGISLATIVE  BODY  OF EACH CITY, TOWN, OR VILLAGE IN WHICH THE AUTHORITY
 SEEKS TO EXERCISE THE POWER OF EMINENT DOMAIN SHALL HAVE  THE  AUTHORITY
 TO  APPROVE  OR  DISAPPROVE ANY EXERCISE OF SUCH POWER BY THE AUTHORITY.
 EVERY SUCH LOCAL LEGISLATIVE BODY SHALL APPROVE OR DISAPPROVE ANY  EXER-
 CISE  OF  SUCH POWER BY MAJORITY VOTE. WHERE APPLICABLE IN THE ENACTMENT
 OF LOCAL LAWS, THE CHIEF EXECUTIVE  OFFICER  OF  SUCH  LOCALITY  IF  THE
 OFFICE  OF  SUCH  CHIEF  EXECUTIVE  OFFICER IS ELECTIVE SHALL APPROVE OR
 DISAPPROVE SUCH LOCAL LEGISLATIVE BODY'S DECISION, SUBJECT TO ANY APPLI-
 CABLE RIGHT TO OVERRIDE.
   § 3. Paragraph (i) of section 1411 of the  not-for-profit  corporation
 law is relettered paragraph (j) and a new paragraph (i) is added to read
 as follows:
   (I) MUNICIPAL INPUT.
   THE LOCAL LEGISLATIVE BODY OF EACH CITY, TOWN, OR VILLAGE IN WHICH ANY
 PART  OF  THE  REAL  PROPERTY  TO  BE ACQUIRED IS LOCATED SHALL HAVE THE
 AUTHORITY TO APPROVE OR DISAPPROVE  ANY  CORPORATION'S  USE  OF  EMINENT
 DOMAIN. EACH SUCH LOCAL LEGISLATIVE BODY SHALL APPROVE OR DISAPPROVE ANY
 PROPOSED  CORPORATE USE OF THE POWER OF EMINENT DOMAIN BY MAJORITY VOTE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD00048-01-1

 S. 2931                             2
 
 WHERE APPLICABLE IN THE ENACTMENT OF LOCAL  LAWS,  THE  CHIEF  EXECUTIVE
 OFFICER  OF  SUCH LOCALITY IF THE OFFICE OF SUCH CHIEF EXECUTIVE OFFICER
 IS ELECTIVE SHALL APPROVE OR DISAPPROVE SUCH GOVERNING BODY'S  DECISION,
 SUBJECT TO ANY APPLICABLE RIGHT TO OVERRIDE.
   §  4.  The  general  municipal  law is amended by adding a new section
 858-c to read as follows:
   § 858-C. MUNICIPAL INPUT. THE GOVERNING BODY OF EACH  CITY,  TOWN,  OR
 VILLAGE FOR WHOSE BENEFIT, IN WHOLE OR IN PART, AN AGENCY IS ESTABLISHED
 SHALL  HAVE  THE  AUTHORITY  TO  APPROVE OR DISAPPROVE ANY AGENCY USE OF
 EMINENT DOMAIN. EACH SUCH GOVERNING BODY SHALL APPROVE OR DISAPPROVE THE
 USE OF EMINENT DOMAIN BY MAJORITY VOTE. WHERE APPLICABLE IN  THE  ENACT-
 MENT  OF LOCAL LAWS, THE CHIEF EXECUTIVE OFFICER OF SUCH LOCALITY IF THE
 OFFICE OF SUCH CHIEF EXECUTIVE OFFICER  IS  ELECTIVE  SHALL  APPROVE  OR
 DISAPPROVE  SUCH  GOVERNING  BODY'S  DECISION, SUBJECT TO ANY APPLICABLE
 RIGHT TO OVERRIDE.
   § 5. Section 103 of the eminent domain procedure  law  is  amended  by
 adding two new subdivisions (H) and (I) to read as follows:
   (H)  "ECONOMIC DEVELOPMENT PROJECT" MEANS ANY PROJECT FOR WHICH ACQUI-
 SITION OF REAL PROPERTY MAY BE REQUIRED FOR A PUBLIC  USE,  BENEFIT,  OR
 PURPOSE  WHERE  SUCH  PUBLIC  USE,  BENEFIT, OR PURPOSE IS PRIMARILY FOR
 ECONOMIC DEVELOPMENT AND WHERE THE CONDEMNEE'S REAL PROPERTY IS  A  HOME
 OR DWELLING.
   (I) FOR THE PURPOSES OF ARTICLE TWO OF THIS CHAPTER:
   (1) "HOME" MEANS OWNER-OCCUPIED RESIDENTIAL PREMISES CONSISTING OF NOT
 MORE THAN SIX DWELLING UNITS.
   (2)  "DWELLING" MEANS RESIDENTIAL PREMISES CONSISTING OF NOT MORE THAN
 THIRTY DWELLING UNITS, NONE OF WHICH IS OCCUPIED BY  AN  OWNER  OF  SUCH
 PREMISES.
   (3)  IN  THE CASE OF COOPERATIVE APARTMENT CORPORATIONS, TITLE TO THAT
 PORTION OF REAL PROPERTY OWNED BY A COOPERATIVE APARTMENT CORPORATION IN
 WHICH A TENANT-STOCKHOLDER OF SUCH CORPORATION  RESIDES,  AND  WHICH  IS
 REPRESENTED  BY  HIS OR HER SHARE OR SHARES OF STOCK IN SUCH CORPORATION
 AS DETERMINED BY ITS OR THEIR PROPORTIONAL  RELATIONSHIP  TO  THE  TOTAL
 OUTSTANDING STOCK OF THE CORPORATION, INCLUDING THAT OWNED BY THE CORPO-
 RATION, SHALL BE DEEMED TO BE VESTED IN SUCH TENANT-STOCKHOLDER NOTWITH-
 STANDING THE NUMBER OF DWELLING UNITS IN SUCH RESIDENTIAL PREMISES, THUS
 QUALIFYING A COOPERATIVE APARTMENT AS A HOME.
   §  6.  Subdivision  (B) of section 204 of the eminent domain procedure
 law is amended to read as follows:
   (B) The condemnor, in its determination and findings,  shall  specify,
 but shall not be limited to the following:
   (1)  the  public  use, benefit or purpose to be served by the proposed
 public project;
   (2) the approximate location for the proposed public project  and  the
 reasons for the selection of that location;
   (3)  the general effect of the proposed project on the environment and
 residents of the locality;
   (4) A DECLARATION TO SUCH EFFECT IF  THE  PRIMARY  PUBLIC  PURPOSE  IS
 DETERMINED  TO BE FOR ECONOMIC DEVELOPMENT WHERE ONE OR MORE CONDEMNEES'
 HOMES OR DWELLINGS ARE TO BE AFFECTED; AND
   (5) such other factors as it considers relevant.
   § 7. The eminent domain procedure law  is  amended  by  adding  a  new
 section 204-a to read as follows:
   §  204-A.  ECONOMIC  DEVELOPMENT  CONDEMNATION  FINDINGS AND HOMEOWNER
 PROTECTION. (A) IF THE CONDEMNOR DETERMINES PURSUANT TO  PARAGRAPH  FOUR
 OF  SUBDIVISION (B) OF SECTION TWO HUNDRED FOUR OF THIS ARTICLE THAT THE

 S. 2931                             3
 
 PRIMARY PUBLIC PURPOSE OR  BENEFIT  IS  FOR  ECONOMIC  DEVELOPMENT,  THE
 CONDEMNOR,  IN  COOPERATION WITH THE GOVERNMENT OF THE LOCALITY IN WHICH
 THE REAL PROPERTY TO BE ACQUIRED IS LOCATED SHALL PREPARE  A  COMPREHEN-
 SIVE ECONOMIC DEVELOPMENT PLAN FOR THE AFFECTED AREA.  THE COMPREHENSIVE
 ECONOMIC  DEVELOPMENT  PLAN  SHALL  INCLUDE,  BUT NOT BE LIMITED TO, THE
 ACTUAL OR EXPECTED BENEFITS  OF  THE  PROJECT,  INCLUDING  THE  EXPECTED
 INCREASED  TAX  REVENUE OR EXPECTED CREATION OF JOBS, THE TYPES OF BUSI-
 NESSES OR INDUSTRY THAT WILL USE THE CONDEMNED  PROPERTY,  AND  ALTERNA-
 TIVES  TO THE PLAN. WHEN A DRAFT COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN
 IS CREATED, THE CONDEMNOR, IN COOPERATION WITH  THE  GOVERNMENT  OF  THE
 LOCALITY IN WHICH THE REAL PROPERTY TO BE ACQUIRED IS LOCATED SHALL HOLD
 AT  LEAST  ONE  PUBLIC  HEARING TO COMPILE AND ANALYZE PUBLIC INPUT. THE
 PUBLIC HEARING SHALL BE HELD IN ACCORDANCE WITH THE PROVISIONS  OF  THIS
 ARTICLE  AT  A  LOCATION REASONABLY PROXIMATE TO THE REAL PROPERTY WHICH
 MAY BE ACQUIRED  FOR  SUCH  PROJECT.  THEREAFTER,  THE  CONDEMNOR  SHALL
 COMPLETE A FINAL COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN TO BE SUBMITTED
 TO  THE LOCAL LEGISLATIVE BODY, SUBJECT TO ANY APPLICABLE RIGHT TO OVER-
 RIDE FOR ITS APPROVAL.   TO MOVE FORWARD WITH  THE  PROJECT,  THE  LOCAL
 LEGISLATIVE  BODY  MUST APPROVE THE PLAN BY A MAJORITY VOTE, AND IT MUST
 ALSO BE APPROVED BY THE CHIEF EXECUTIVE OFFICER OF SUCH LOCALITY IF  THE
 OFFICE OF SUCH CHIEF EXECUTIVE OFFICER IS ELECTIVE.
   (B)  THE  CONDEMNOR  SHALL  ALSO  CREATE A HOMEOWNER IMPACT ASSESSMENT
 STATEMENT. THE CONDEMNOR, IN THE HOMEOWNER IMPACT ASSESSMENT  STATEMENT,
 SHALL  ASSESS  THE  ACTUAL  HARM TO AFFECTED CONDEMNEES' THAT WOULD LOSE
 THEIR HOMES OR DWELLINGS AND  COMPARE  SUCH  HARM  WITH  THE  REASONABLY
 EXPECTED  COMMUNITY  BENEFITS,  INCLUDING  BUT  NOT  LIMITED  TO HOW THE
 CONDEMNOR JUSTIFIES THE TAKING OF THE CONDEMNEES'  HOMES  OR  DWELLINGS.
 THE  HOMEOWNER IMPACT ASSESSMENT STATEMENT SHALL BE COMPLETED SIMULTANE-
 OUSLY WITH THE COMPREHENSIVE ECONOMIC DEVELOPMENT PLAN UNDER SUBDIVISION
 (A) OF THIS SECTION. THE HOMEOWNER IMPACT ASSESSMENT STATEMENT SHALL  BE
 MADE WIDELY AVAILABLE.
   (C)  IN  CASES WHERE A CONDEMNEE'S HOME OR DWELLING IS ACQUIRED FOR AN
 ECONOMIC DEVELOPMENT PROJECT, THE CONDEMNOR SHALL, IN  ADDITION  TO  ANY
 OTHER  COMPENSATION  REQUIREMENTS  UNDER  THIS  ARTICLE,  COMPENSATE THE
 CONDEMNEE A MINIMUM OF ONE HUNDRED FIFTY  PERCENT  OF  THE  FAIR  MARKET
 VALUE  OF THE REAL PROPERTY. RESIDENTS WHO ARE DISPLACED BY THE ECONOMIC
 DEVELOPMENT PROJECT SHALL ALSO BE COMPENSATED AT LEAST ONE HUNDRED FIFTY
 PERCENT OF THE ANNUAL RENT OF SUCH DWELLING.
   § 8. Subdivision (A) of section 207 of the  eminent  domain  procedure
 law,  as  amended by chapter 356 of the laws of 1982, is amended to read
 as follows:
   (A) Any person or persons  jointly  or  severally,  aggrieved  by  the
 condemnor's  determination  and  findings  made  pursuant to section two
 hundred four of this article, may seek judicial review  thereof  by  the
 appellate  division  of  the  supreme  court, in the judicial department
 embracing the county wherein the proposed facility  is  located  by  the
 filing of a petition in such court within [thirty] NINETY days after the
 condemnor's completion of its publication of its determination and find-
 ings pursuant to section two hundred four [herein] OF THIS ARTICLE. Such
 petition  shall  be  accompanied  by proof of service of a demand on the
 condemnor to file with said court a copy of a written transcript of  the
 record  of the proceeding before it, and a copy of its determination and
 findings. Upon receipt of such petition and demand, the condemnor  shall
 forthwith  deliver  to  the court a copy of the record and a copy of its
 determination and findings. The proceeding shall be heard on the  record
 without requirement of reproduction. If such proposed public improvement

 S. 2931                             4
 
 is  located in more than one judicial department, such proceeding may be
 brought in any one, but only one, of  such  departments,  and  all  such
 proceedings  with relation to any single public project shall be consol-
 idated with that first filed.  IF THE CONDEMNOR SUBSTANTIALLY ALTERS THE
 SCOPE OF THE PROJECT OR THE DETERMINATION AND FINDINGS, THEN THE CONDEM-
 NEE  SHALL  HAVE AN ADDITIONAL NINETY DAYS FROM THE CONDEMNOR'S PUBLICA-
 TION OF SUCH ALTERATION, WHICH PUBLICATION IS HEREBY REQUIRED,  TO  SEEK
 JUDICIAL REVIEW UNDER THIS SECTION.
   § 9. This act shall take effect on the one hundred twentieth day after
 it shall have become a law.

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