SENATE BILL No. 391
DIGEST OF INTRODUCED BILL
Citations Affected: IC 32-24-1.
Synopsis: Eminent domain. Prohibits the state or a political
subdivision from transferring any interest in property acquired by
eminent domain to another person for commercial use unless: (1) there
is a substantial likelihood that the acquisition of the property will
promote the opportunity for employment or create business
opportunities; and (2) the property is in a blighted area. Defines
"blighted area" as an area in which normal development and occupancy
are undesirable or impossible due to: (1) deterioration; (2)
obsolescence; (3) substandard structures; or (4) the vacancy or
abandonment of a significant percentage of the property in the area.
Effective: July 1, 2006.
January 11, 2006, read first time and referred to Committee on Corrections, Criminal, and
Second Regular Session 114th General Assembly (2006)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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between statutes enacted by the 2005 Regular Session of the General Assembly.
SENATE BILL No. 391
A BILL FOR AN ACT to amend the Indiana Code concerning
Be it enacted by the General Assembly of the State of Indiana:
SOURCE: IC 32-24-1-3.5; (06)IN0391.1.1. -->
SECTION 1. IC 32-24-1-3.5 IS ADDED TO THE INDIANA CODE
AS A NEW
SECTION TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2006]: Sec. 3.5. (a) This section does not apply to:
(1) a public utility (as defined in IC 8-1-2-1);
(2) a municipally owned utility (as defined in IC 8-1-2-1);
(3) a joint agency (as defined in IC 8-1-2.2-2);
(4) a rural electric membership corporation formed under
(5) a rural telephone cooperative corporation formed under
(6) a not-for-profit utility (as defined in IC 8-1-2-125);
(7) a board of aviation commissioners established under
(8) an airport authority established under IC 8-22-3;
(9) a railroad; or
(10) an entity that owns or operates a pipeline that carries
natural gas, crude oil or any of its constituents, refined
products, or hazardous liquids.
(b) As used in this section, "any interest" includes the right to
own, lease, sublease, transfer, or exchange a part of a property to
(c) As used in this section, "blighted area" means an area in
which normal development and occupancy are undesirable or
impossible for one (1) or more of the following reasons:
(1) Deterioration of improvements.
(3) Substandard buildings.
(4) A significant percentage of the property in the area is
vacant or abandoned.
(d) As used in this section, "commercial use" means a use that
does not relate directly to providing a governmental service or
fulfilling a governmental responsibility. The term includes the
(1) Private residential development or use of the property.
(2) Private development of the property under a lease.
(3) Use of the property for retail or industrial purposes.
(e) The state or a political subdivision may not transfer any
interest in property acquired by eminent domain to another person
for commercial use unless:
(1) there is a substantial likelihood that the acquisition and
transfer of the property will:
(A) promote or retain the opportunity for gainful
(B) create business opportunities; and
(2) the property is or is located within a blighted area.
SOURCE: IC 32-24-1-4; (06)IN0391.1.2. -->
SECTION 2. IC 32-24-1-4 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2006]: Sec. 4. (a) If the person
seeking to acquire the property does not agree with the owner of an
interest in the property or with the guardian of an owner concerning the
damages sustained by the owner, the person seeking to acquire the
property may file a complaint for that purpose with the clerk of the
circuit court of the county where the property is located.
(b) The complaint must state the following:
(1) The name of the person seeking to acquire the property. This
person shall be named as the plaintiff.
(2) The names of all owners, claimants to, and holders of liens on
the property, if known, or a statement that they are unknown.
These owners, claimants, and holders of liens shall be named as
(3) The use the plaintiff intends to make of the property or right
sought to be acquired. If the plaintiff intends to transfer the
property to another person for a commercial use, the
complaint must specifically state:
(A) that the plaintiff intends to transfer the property to
another person for commercial use; and
(B) that the intended commercial use is permissible under
section 3.5 of this chapter.
(4) If a right-of-way is sought, the location, general route, width,
and the beginning and end points of the right-of-way.
(5) A specific description of each piece of property sought to be
acquired and whether the property includes the whole or only part
of the entire parcel or tract. If property is sought to be acquired by
the state or by a county for a public highway or by a municipal
corporation for a public use and the acquisition confers benefits
on any other property of the owner, a specific description of each
piece of property to which the plaintiff alleges the benefits will
accrue. Plats of property alleged to be affected may accompany
(6) That the plaintiff has been unable to agree for the purchase of
the property with the owner, owners, or guardians, as the case
may be, or that the owner is mentally incompetent or less than
eighteen (18) years of age and has no legally appointed guardian,
or is a nonresident of Indiana.
(c) All parcels lying in the county and required for the same public
use, whether owned by the same parties or not, may be included in the
same or separate proceedings at the option of the plaintiff. However,
the court may consolidate or separate the proceedings to suit the
convenience of parties and the ends of justice. The filing of the
complaint and a lis pendens notice in any eminent domain action under
this article constitutes notice of proceedings to all subsequent
purchasers and persons taking encumbrances of the property, who are
bound by the notice.