FINAL BILL REPORT

SB 6291

                                   C 90 L 88

BYSenators von Reichbauer, Bender, Sellar, Johnson and Gaspard;by request of Department of Transportation

Expanding state relocation assistance and realty purchase policies.

Senate Committee on Transportation

House Committe on State Government

SYNOPSIS AS ENACTED

BACKGROUND:

In 1970 Congress adopted the Uniform Relocation Assistance and Real Property Acquisition Policies Act (Uniform Act) which set forth specific requirements relating to the acquisition of property for public works projects and programs and the relocation of persons or businesses which are displaced as a result of such acquisitions.

In order for state and local governments to receive federal financial assistance on public works projects they must be in compliance with the requirements of the Uniform Act.  In order to guarantee compliance and to ensure uniformity between state and local governments, the Legislature adopted the State Relocation Assistance and Real Property Acquisition Act.  This act, adopted in 1971, is modeled after and is very similar to the federal act.

In 1987, Congress adopted a number of substantive amendments to the Uniform Act.  These amendments will take effect on April 1, 1989.  To avoid delays in obtaining federal financial assistance for public works projects, it is necessary to amend state law to bring it into compliance with the amended Uniform Act.

State acquisition policy provides that prior to exercising its power of eminent domain, the state or a local government which is acquiring real property is required to make every reasonable effort to acquire the property by direct negotiation.  Among other things, the property is to be appraised and the agency is to offer to purchase the property for a just amount equal to or greater than the appraised value.  If the property is to be acquired through the exercise of the power of eminent domain, then formal condemnation proceedings are to be instituted.

As required by federal law, relocation assistance and acquisition laws apply to all state and local governments engaged in projects which are funded in whole or in part by federal monies.

In cases where no federal funds are involved, state agencies are still required, under state law, to comply with the relocation assistance and acquisition laws.  However, under these circumstances, local governments are not required to comply with either relocation assistance or acquisition laws.

As a means of ensuring uniformity between state and local government, state law requires the State Department of Transportation to adopt rules implementing the relocation assistance and acquisition statutes.  These rules, in turn, govern the relocation and acquisition activities of all state agencies and local governments.

In order to be eligible for relocation assistance, a person, business, or farm must be displaced as a result of the acquisition of the property which the person, business, or farm is occupying.

In regards to relocation assistance, both federal and state law set forth specific eligibility requirements for and limitations on payments.

There are four basic types of relocation assistance.  These are:  (1) moving expenses, (2) payments to replace a dwelling, (3) rental supplements for tenants, and (4) relocation advisory services (assistance in locating a new dwelling and adjusting to the relocation).

SUMMARY:

Numerous amendments are made in state relocation assistance and acquisition laws in order to bring them into compliance with federal law.  Generally, these amendments (1) expand eligibility for relocation assistance; (2) establish new limits on the payments that may be made for relocation to reflect current costs, and (3) give the Department of Transportation more flexibility in establishing payment schedules.

To a large extent, the proposed amendments to state law are identical to the 1987 amendments to the federal Uniform Act.

As required by federal law, the application of relocation assistance and acquisition laws is extended to cover nongovernmental entities which have the power of eminent domain under state law.

While not required by federal law, state law requires local governments to comply with acquisition laws in cases where no federal funds are involved.  Nongovernmental entities would have the option of electing not to comply with acquisition laws in cases where no federal funds are involved.

Local governments retain the option of not complying with relocation assistance laws in cases in which no federal funds are involved.  This same option is extended to nongovernmental entities with the power of eminent domain.

In addition to incorporating the federally required amendments, the relocation assistance and acquisition laws have been substantially rewritten and reorganized.  There are numerous technical amendments included for purposes of clarification or as a result of the reorganization of the chapter.  Provisions are added which provide that relocation assistance payments may be withheld if the recipient is receiving similar payments under other federal, state, or local programs.

VOTES ON FINAL PASSAGE:

      Senate    46     0

      House 91   0 (House amended)

      Senate    42     0 (Senate concurred)

EFFECTIVE:March 16, 1988