An Act To Amend the Laws Concerning Eminent Domain
Maine Legislature, Session 122, LD 1203
Committee Amendment CA_B_S609 (Senate)
Amends: 23 MRSA §244, 30-A MRSA §5204

COMMITTEE AMENDMENT "e)" to S.P. 417, L.D. 1203, Bill, "An 
Act To Amend the Laws Concerning Eminent Domain" 
Amend the bill by inserting after the title and before the 
enacting clause the following: 
. Mandate preamble. 
This measure requires one or more local 
units of government to expand or modify activities so as to 
necessitate additional expenditures from local revenues but does 
not provide funding for at least 
90~ of those expenditures. 
Pursuant to the Constitution of Maine, Article IX, Section 21, 
2/3 of all of the members elected to each House have determined 
it necessary to enact this measure.' 
Further amend the bill by striking out everything after the 
enacting clause and before the summary and inserting in its place 
the following: 
. Sec. 1. 23 MRS A §244, sub-§l, ,C, as amended by PL 1989, c. 
208, §§12 and 21, is further amended to read: 
C. 
Actual reasonable expenses, but not to exceed $1 7 999 
$2,500, in searching for a replacement business or farm; and 
Sec. 2. 23 MRSA §244, sub-§l, ,D, as enacted by PL 1989, c. 
208, §§12 and 21, is amended to read: 
D. 
Actual reasonable expenses necessary to reestablish a 
displaced farm, nonprofit organization or small business at 
its new site, in accordance with criteria to be established 
by the department, but not to exceed $19 r 999 $20,000. 
Page l-LR1401(3) 
COMMITTEE AMENDMENT 
t.'" 
COMMITTEE AMENDMENT "P)" to S.P. 417, L.D. 1203 
Sec. 3. 23 MRSA §244, sub-§3, as amended by PL 1989, c. 208, 
§§12 and 21, is further amended to read: 
3. 
Fixed payments for business or farm displacements. 
Any 
displaced person eligible for payments under subsection 1 who is 
displaced from that person's place of business or farm operation 
and who is eligible under criteria established by the department 
may elect to accept the payment authorized by this subsection in 
lieu of the payment authorized by subsection 1. 
The payment 
sha**---eG-&&is1; consists of a fixed payment in an amount to be 
determined according to criteria established by the department, 
except that any such payment shall-se ~ 
not be less than $1,000 
nor more than $6G T GGG $100,000. 
A person whose sole business at 
the displacement dwelling is the rental of property to others 
sha;l.l ~ 
not qualify for a payment under this subsection. 
In 
the 
case of 
a 
business 
no 
payment may 
be 
made 
under this 
subsection unless the department is satisfied that the business: 
A. 
Cannot be relocated without a substantial loss of its 
existing patronage; and 
B. 
Is not part of a commercial enterprise having more than 
other establishments not being acquired by the departmentT 
whieh that are engaged in the same or similar business. 
Sec. 4. 30-A MRS A §3101, sub-§§3 and 4 are enacted to read: 
3. 
Business relocation benefits. 
Whenever the acquisition 
of 
real 
property pursuant 
to 
this 
section 
results 
in 
the 
displacement of 
a 
business 
or 
farm, 
the municipality shall 
provide payment for moving and related expenses as applicable 
under Title 23, section 244. 
4. 
Residence relocation benefits. 
Whenever the acquisition 
of 
real 
property 
pursuant 
to 
this 
section 
results 
in 
the 
displacement of a person from a dwelling, the municipality shall 
provide payment for moving and related expenses, 
as well as 
replacement housing as applicable under Title 23, sections 244 to 
244-C. 
Sec. 5. 30-A MRSA §5204, sub-§§IO and II are enacted to read: 
10. 
Business relocation benefits. 
Whenever the acquisition 
of 
real 
property 
pursuant 
to 
this 
section results 
in the 
displacement of 
a 
business 
or 
farm. 
the municipality shall 
provide payment for moving and related expenses as applicable 
under Title 23. section'244. 
COMM/rrEE AMENDMENT 
...... fO. 
·36 
COMMITTEE AMENDMENT "S" to S.P. 417, L.D. 1203 
11. 
Residence 
relocation 
benefits. 
Whenever 
the 
acquisition of real property pursuant to this section results in 
the displacement of a person from a dwelling, the municipality 
shall provide payment for moving and related expenses, as well as 
replacement housing as applicable under Title 23, sections 244 to 
244-C. 
Sec. 6. In lieu of payments criteria review; report. 
The Department 
of Transportation shall review the criteria that are currently 
used to determine the payments made to businesses and farms in 
lieu of actual relocation costs under the Maine Revised Statutes, 
Title 
23, 
section 244, 
subsection 3. 
The 
department 
shall 
compile information concerning claims and payments made 
under 
Title 23, section 244, subsection 3 since January 1, 2004. 
The 
department shall examine the consequences of using net operating 
income as a basis for in lieu payments, including any necessary 
consequences under federal law, regulations and programs. 
For 
the purposes 
of this 
section, 
"net operating 
income" 
means 
ordinary income less operating expenses from trade or business 
activities that are directly related to the subject property, 
excluding depreciation, amortization and interest, although the 
department may, in addition, use a different formulation of "net 
operating income." 
The department shall report by January 15, 
2007 to the joint standing committee of the Legislature having 
jurisdiction over judiciary matters the information collected, 
the 
analysis 
completed, 
the 
conclusions 
reached 
and 
any 
recommended 
changes 
in 
law, 
rules 
or 
practice. 
The 
joint 
standing committee of the Legislature having jurisdiction over 
judiciary matters 
may 
report 
out 
legislation 
to 
the 
123rd 
Legislature based on the review and report. 
Sec. 
7. 
Appropriations 
and 
allocations. 
appropriations and allocations are made. 
TRARSPORTATIOlf, DEPARTM'ERT OF 
Highway and Bridge Improvement 
0406 
The 
following 
Initiative: 
Allocates 
funds 
for 
the 
additional 
cost 
of 
purchasing certain properties through the eminent domain process. 
HIGHWAY nnm 
All Other 
HIGHWAY FUND TOTAL 
SUMMARY 
This amendment replaces the bill. 
2005-06 
$0 
$0 
2006-07 
$46,667 
$46,667' 
COMMITTEE AMENDMENT 
\\.,. 
COMMITTEE AMENDMENT "~,, to S.P. 417, L.D. 1203 
This amendment increases the amount of reimbursement from 
the 
Department 
of Transportation 
to 
a 
business 
for 
actual 
reasonable expenses for searching for a replacement. 
Current law 
provides for a maximum of $1, 000. 
The federal regulations, on 
which this state law is based, 
now provide for a maximum of 
$2,500. 
This amendment increases the maximum amount under state 
law 
to 
$2,500 
also. 
This 
amendment 
applies 
the 
same 
reimbursement responsibilities to municipalities when exercising 
eminent domain authority under the general authorization and for 
economic development purposes. 
This 
amendment 
increases 
the 
maximum 
reimbursement 
for 
expenses necessary to reestablish a farm, nonprofit organization 
or small business from a maximum of $10,000 to a 
maximum of 
$20,000, consistent with federal changes. 
This bill applies the 
same 
reimbursement 
responsibilities 
to 
municipalities 
when 
exercising 
eminent 
domain 
authority 
under 
the 
general 
authorization and for economic development purposes. 
This 
amendment 
increases 
the 
maximum 
fixed 
payment 
for 
business and farm displacements from $20,000 to $100,000. 
This 
bill applies the same displacement payment responsibilities to 
municipalities when exercising eminent domain authority under the 
general authorization and for economic development purposes. 
This amendment applies to municipalities the same relocation 
and reimbursement provisions concerning residential takings that 
currently 
apply 
to 
the 
Department 
of 
Transportation 
when 
municipalities 
exercise 
eminent 
domain 
authority 
under 
the 
general authorization and for economic development purposes. 
This amendment requires the Department of Transportation to 
examine the criteria currently used to determine in lieu payments 
rather 
than 
actual 
relocation 
costs. 
The 
department 
shall 
compile information from January 1, 
2004 to the present, and 
determine 
consequences 
that 
would 
result 
from 
changing 
the 
criteria to a net operating income basis or other formulation. 
The department shall report to the joint standing committee of 
the Legislature having jurisdiction over judiciary matters by 
January 15, 2007. 
The committee may report out legislation to 
the 123rd Legislature. 
This 
amendment 
includes 
a 
mandate 
appropriations and allocations section. 
FISCAL ~ 0 TI:. j, .. < ' 
(See attached) 
preamble 
and 
an 
COMMITTEE AMENDMENT 
Approved: 04/03/06 ,;;fIJvac.. 
LD 1203 
LR 1401(03) 
An Act To Amend the Laws Concerning Eminent Domain 
Fiscal Note for Bill as Amended by Committee Amendment "B" 
Committee: Judiciary 
Net Cost (Savings) 
Highway Fund 
Appropriations/Allocations 
Highway Fund 
State Mandate 
Fiscal Note Required: Yes 
Fiscal Note 
Exempted State Mandate 
2005-06 
$0 
$0 
2006-07 
$46,667 
$46,667 
Projections 
2007-08 
$46,667 
$46,667 
New or Expanded Activity 
Unit Affected 
Requiring municipalities to fund certain costs resulting from exercise of their 
Municipality 
eminent domain authorities will result in an unfunded state mandate. The cost to a 
municipality will depend on the frequency with which it chooses to exercise its 
. power of eminent domain but could be significant. Pursuant to the Mandate 
Preamble, a two-thirds vote of each body will exempt the State from the requirement 
to fund 90% of the cost of this mandate. 
Fiscal Detail and Notes 
Projections 
2008-09 
$46,667 
$46,667 
Costs 
Significant 
Beginning in fiscal year 2006-07, the Department of Transportation will require an additional annual Highway Fund 
allocation of $46,667 for the estimated cost of complying with certain eminent domain property acquisition 
requirements. 
Additional costs to the Department of Economic and Community Development associated with participation in the 
working group can be absorbed utilizing existing budgeted resources. 
LR1401(3) - Fiscal Note - Page 1 of 1