September 21, 2006

LANSING – Governor Jennifer M. Granholm has signed legislation that prohibits state and local governments from using eminent domain to take property, including residential homes, for use by a private company.  The bipartisan package of legislation approved by Granholm allows the use of eminent domain to take private property only when the government can prove a public use and ensures that affected homeowners are treated fairly and compensated appropriately.

“The rights of property owners in Michigan must be protected,” Granholm said.  “This legislative package will ensure that property owners are treated fairly, compensated appropriately, and will not be forced from their homes by the government just for the benefit of private companies.”

Eminent domain is the power to take private property for public use.  Current law allows state agencies to acquire property either by purchase or condemnation as long as the property is dedicated to a public use.  Since a 2004 Michigan Supreme Court decision, state and local governments in Michigan have been prohibited from taking property for private economic development purposes.  The five-bill package signed by the governor codifies many of the protections included in that decision.

The package:

•  prohibits the taking of private property for private economic development, use by a private company, or enhancement of local tax revenues;

•  places the burden of proof on the government to demonstrate that the property will have a public use;

•  restricts the government’s ability to designate property as blighted;

•  requires the government to pay displaced property owners at least 125 percent of the fair market value of property taken by eminent domain for public use;

•  increases the compensation for moving expenses, renters, and legal fees to ensure that low-income families are not harmed;

•  requires timely payment of all compensation.

The legislation signed today implements many of the provisions included in Senate Joint Resolution E, which was approved by two-thirds of both legislative chambers and will appear on this November’s ballot as Proposal 06-04.

Senate Bill 693 was sponsored by Senator Cameron Brown (R-Fawn River Township), while Representatives Glenn Steil, Jr. (R-Cascade), Steve Tobocman (D-Detroit), Leon Drolet (R-Macomb Township), and John Garfield (R-Rochester Hills) sponsored House Bills 5060 and 5817-5819, respectively.

The legislation will take effect on December 23, 2006, with Senate Bill 693 and House Bill 5060 contingent upon the passage of Proposal 06-04.

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