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State Representative David Bly
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-0171
For more information contact: Michael Howard 651-296-8873
Column/LTE
Eminent Domain Issue Brings Democrat and Republican Together
Although we may disagree on a number of things, we don’t disagree when it comes to the freedoms and rights of Minnesotans. We are concerned that under current law, those rights are not being upheld in a fair manner when it comes to eminent domain.
In 2005, the United States Supreme Court broadened the ability of government to use eminent domain to acquire private property for purposes that benefit the public at large. The Minnesota Legislature correctly responded in 2006 with several changes to limit the power of government to use eminent domain to protect and increase fairness to property owners. As part of those changes, “public service corporations" (PSC) were exempted from the new regulations and restrictions.
These PSC’s, more commonly known as utility, communication or pipeline entities have the right to use eminent domain to construct power lines, pipelines or cable lines on private property. While utility companies are required to offer a price to a property owner, they are essentially exempt under law from having to negotiate in good faith. If a property owner is unsatisfied with an offer, he/she can bring litigation, but this is very expensive. And unlike the government, PSC’s are exempted from paying the property owners’ attorney fees if a court rules the property owners was negotiating unfairly.
So if a non-profit entity like the state government wants to use your land for a state park, you have far more protections than if a for-profit utility company wants to run a high-voltage power line through your property. Does that make any sense at all? We have authored legislation that would simply hold PSC’s to the same standard we hold state government so that Minnesotans who are put in this impossible position can at a minimum receive a fair price for their property.
Utility companies that oppose this legislation contend they need preferential treatment in order to benefit the public good. Without it, they say projects would be delayed and rates for all Minnesotans would go up. The facts do not bear out either contention. First, the law change would not be a mechanism for a property owner to delay a project, but simply a way for them to negotiate a price. Second, the amount of property owners who would be affected in these eminent domain situations is just too small to have an impact on rates. It will however have a large impact on the lives of people whose land can be taken.
We have taken steps this session to increase fairness to Minnesota property owners, but need to delve further to determine whether we can justify giving PSC’s preferential treatment in eminent domain situations or whether we should hold them to the same standard we hold our own government.
Later this session a joint legislative committee hearing of the House Energy Policy and Civil Justice Committee will examine this very question. We are hopeful the hearing will further illuminate the need for changes in eminent domain laws to make things fair for Minnesotans put in this unfair position.
Rep. David Bly, (DFL – Northfield)
Rep. Mark Buesgens, (R – Jordan)
News Items
- Rep.-elect Bly Selected as Vice Chair of Housing Finance and Policy Committee - (Posted: Dec 21 2012 12:06PM)
- House Passes Flood Relief for Southern Minnesota in Special Session - (Posted: 2010-10-18 00:00:00)
- Governor signs eminent domain law to protect landowners - (Posted: 2010-05-03 00:00:00)
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