Assigned to GES FOR COMMITTEE

ARIZONA STATE SENATE

Phoenix, Arizona

FACT SHEET FOR H.B. 2640
stadium districts; eminent domain

Purpose

Sets forth standards for the use of eminent domain by a multipurpose facilities district to acquire real and personal property of an existing retail business.

Background

Pursuant to §48-4203, Arizona Revised Statutes, the board of directors of a multipurpose facilities district, may on behalf of the district, acquire real and personal property, and interests in property, by eminent domain. H.B. 2640 requires a district to establish clear and convincing evidence, prior to acquiring retail property through the use of eminent domain and that the acquisition is compatible with the greatest public good and the least private injury.

H.B. 2640 also clarifies that a multipurpose facilities district is a "displacing agency." This designation requires districts to follow relocation assistance procedures, including project planning that identifies actions that may cause displacements and provides problem resolution to minimize adverse impacts. Relocation assistance also requires a displacing agency to make a payment to a displaced person for actual reasonable moving expenses, actual direct losses of tangible personal property as a result of moving or discontinuing a business, actual reasonable expenses for searching for a replacement business and actual reasonable expenses to reestablish a small business at its new site.

There is no general fund impact.

Provisions

1. Requires a multipurpose facilities district, prior to utilizing its power of eminent domain, to establish by clear and convincing evidence that the acquisition is compatible with the greatest public good and the least private injury. Applies this requirement to the acquisition of real or personal property of existing retail commercial businesses in the district.

2. Specifies the question of compatibility is a judicial one, to be determined without regard to any legislative assertion of compatibility.

3. Designates that a district is considered a displacing agency for the purpose of providing relocation assistance.

FACT SHEET H.B. 2640 Page

4. Makes conforming changes.

5. Applies this act retroactively to June 30, 1998.

House Action

GOV REF 2/10/99 DP 5-0-1-1

3rd Read 3/1/99 31-22-7-0

Prepared by Senate Staff

March 10, 1999

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