State Sen. Coughlin on Eminent Domain

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(Columbus, OH) – The Ohio Senate today passed two-part legislation designed to provide more protections for private property owners in Ohio, no matter where they live. Together, Senate Joint Resolution 1 sponsored by Senator Kevin Coughlin (R-Cuyahoga Falls) and Senate Bill 7, sponsored by Senator Tim Grendell (R-Chesterland) would set uniform statewide standards to govern the use of eminent domain in Ohio.

SJR 1 would place the issue of eminent domain before voters statewide, who, as recent independent public opinion surveys have demonstrated, support putting more restrictions on government land-grabs. Coughlin’s amendment, if passed by Ohio voters, would ensure the state has the authority it needs to govern the use of eminent domain and states clearly that “no public authority shall take private property for a public use primarily for the purpose of increasing the revenues available to any public authority.”

SB 7 would set the statewide standards and limit the ability of government entities to take private property, a power greatly expanded by a recent U.S. Supreme Court ruling. Grendell’s bill would also provide more protections and rights for property owners during eminent domain disputes.

Because of the home-rule provision in the Ohio constitution, municipalities currently have the ability to set their own standards for eminent domain proceedings, which provides no consistency for property owners between one community and the next, according to the legislators.

“We introduced this as a package because without both bills, we cannot ensure equal protections for all residents of Ohio,” Grendell said. “Private property rights should be universal whether you live or own property in a city, village or township.”

“Today we are saying very clearly that in the state of Ohio, we respect the rights of private property owners,” Coughlin said. “Eminent domain should be used only in rare circumstances and not as a tool for overzealous government officials looking to raise more tax money.”

Eminent domain has historically been used by government for grand public purposes, such as roads or government buildings. Later, the practice was expanded as a way to help eliminate blight in urban areas. However, in its 2005 Kelo v. New London decision, the U.S. Supreme Court upheld a ruling that cleared the way for a local government entity to take land in a non-blighted area, only to hand it over to another private entity for redevelopment. While a subsequent Ohio Supreme Court ruling in Norwood v. Horney said that in Ohio, the standard government must meet to take land from a private property owner is higher, SJR 1 and SB 7 work together to clarify in statute exactly when state and local government entities can use eminent domain.

To that end, SB 7 will define what constitutes “blight,” and establishes specific criteria that must be met to ensure the standard cannot be abused as an excuse to take private property. When it comes to agricultural land, the bill ensures the blight standard would only apply if the property poses a specific environmental or public health hazard. SB 7 also requires government entities to have a process to allow for public input on eminent domain proceedings and places the burden of proof on that government entity when their authority to take a property is in dispute. To protect the assets of property owners, the bill provides for the awarding of reasonable attorney’s fees and costs if the government loses its case, or if the jury awards the landowner an excess of the government’s good-faith offer to purchase the property. In the event of an eminent domain taking, the bill also provides for compensation to the property owner for costs associated with relocation and loss-of-business. SB 7 incorporates recommendations of a 25-member task force established through legislation passed by Senator Grendell during the 126th General Assembly. The Task Force studied the effects of the Kelo and Norwood cases and Ohio’s existing statutes related to eminent domain.

The Senate’s eminent domain package has earned the support of numerous advocacy groups, including the NAACP, National Federation of Independent Business (NFIB) and the Farm Bureau. Having passed the Senate, SJR 1 and SB 7 will now be sent to the Ohio House for further consideration.

“Today the Ohio Senate took a strong stand for homeowners, farmers and small business people across Ohio,” Senate President Bill Harris (R-Ashland) said. “I am hopeful that the House will look favorably on our hard work and send this issue to the voters of Ohio without delay.”