AB731: Bill Text

LRB-4161/1

PG:kjf/nwn/med:jm

2011 - 2012 LEGISLATURE

2011 Assembly BILL 731

March 15, 2012 - Introduced by Representative Honadel. Referred to Committee on Energy and Utilities.

AB731,1,3 An Act to amend 32.05 (2) (b), 32.05 (2a), 32.06 (2) (b) and 32.06 (2a); and to create 32.28 (1m) of the statutes; relating to: appraisals, appeals from compensation amounts, and attorney fees in condemnation proceedings.

Analysis by the Legislative Reference Bureau

This bill makes the following changes in the laws governing condemnation proceedings:

1. Current law requires a condemnor to provide a property owner with an appraisal of the property and to inform the owner of his or her right to obtain an appraisal of the property at the condemnor's expense. If the owner obtains an appraisal, he or she must submit it to the condemnor within 60 days of receiving the condemnor's appraisal.

This bill provides that in any subsequent appeal, the owner may use only the appraisal received from the condemnor or the appraisal submitted to the owner, as described above.

2. Current law authorizes a property owner to appeal to the condemnation commission or circuit court the amount of compensation agreed to by the owner in cases where acquisition of the property occurred as the result of a negotiated settlement. The appeal must be filed within six months after the conveyance is recorded.

This bill eliminates this provision. The property owner retains the right to refuse a negotiated settlement and appeal the amount of a subsequent condemnation award.

3. Under current law, court costs must be allowed in any condemnation proceeding except in certain circumstances. The court must award litigation expenses (a higher amount that includes reasonable attorney, appraisal, and engineering fees) to the condemnee if the award of the condemnation commission or a jury verdict exceeds the jurisdictional offer or the highest written offer prior to the jurisdictional offer by at least $700 and at least 15 percent.

This bill provides that if the award of the condemnation commission meets that condition, reasonable attorney fees are limited to an amount equal to one-third of the amount of that award. The bill also provides that if the condemnee appeals the award of the condemnation commission, and the jury verdict meets that standard or exceeds the award of the condemnation commission by at least $700 and at least 15 percent, reasonable attorney fees are limited to an amount equal to one-third of the difference between the award of the condemnation commission and the jury verdict.

For further information see the state and local fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

AB731, s. 1 Section 1. 32.05 (2) (b) of the statutes is amended to read:

AB731,2,14 32.05 (2) (b) The condemnor shall provide the owner with a full narrative appraisal upon which the jurisdictional offer is based and a copy of any other appraisal made under par. (a) and at the same time shall inform the owner of his or her right to obtain an appraisal under this paragraph. The owner may obtain an appraisal by a qualified appraiser of all property proposed to be acquired, and may submit the reasonable costs of the appraisal to the condemnor for payment. The owner shall submit a full narrative appraisal to the condemnor within 60 days after the owner receives the condemnor's appraisal. If the owner does not accept a negotiated offer under sub. (2a) or the jurisdictional offer under sub. (3), the owner may use only an appraisal prepared received from the condemnor under this paragraph, or an appraisal submitted by the owner to the condemnor prior to the date of service or mailing of the jurisdictional offer or the date of publication if publication of the jurisdictional offer is necessary, in any subsequent appeal.

AB731, s. 2 Section 2. 32.05 (2a) of the statutes is amended to read:

AB731,4,10 32.05 (2a) Negotiation. Before making the jurisdictional offer provided in sub. (3), the condemnor shall attempt to negotiate personally with the owner or one of the owners or his or her representative of the property sought to be taken for the purchase of the same. In such negotiation the condemnor shall consider the owner's appraisal under sub. (2) (b) and may contract to pay the items of compensation enumerated in ss. 32.09 and 32.19 as may be applicable to the property in one or more installments on such conditions as the condemnor and property owners may agree. Before attempting to negotiate under this paragraph subsection, the condemnor shall provide the owner or his or her representative with copies of applicable pamphlets prepared under s. 32.26 (6). When negotiating under this subsection, the condemnor shall provide the owner or his or her representative with the names of at least 10 neighboring landowners to whom offers are being made, or a list of all offerees if less than 10 owners are affected, together with a map showing all property affected by the project. Upon request by an owner or his or her representative, the condemnor shall provide the name of the owner of any other property which may be taken for the project. The owner or his or her representative shall also have the right, upon request, to examine any maps in the possession of the condemnor showing property affected by the project. The owner or his or her representative may obtain copies of such maps by tendering the reasonable and necessary costs of preparing copies. The condemnor shall record any conveyance by or on behalf of the owner of the property to the condemnor executed as a result of negotiations under this subsection with the register of deeds of the county in which the property is located. The conveyance shall state the identity of all persons having an interest of record in the property immediately prior to its conveyance, the legal description of the property, the nature of the interest acquired and the compensation for such acquisition. The condemnor shall serve upon or mail by certified mail to all persons named therein a copy of the conveyance and a notice of the right to appeal the amount of compensation under this subsection. Any person named in the conveyance may, within 6 months after the date of its recording, appeal from the amount of compensation therein stated in the manner set forth in subs. (9) to (12) and chs. 808 and 809 for appeals from an award under sub. (7). For purposes of any such appeal, the amount of compensation stated in the conveyance shall be treated as the award and the date the conveyance is recorded shall be treated as the date of taking and the date of evaluation.

AB731, s. 3 Section 3. 32.06 (2) (b) of the statutes is amended to read:

AB731,4,24 32.06 (2) (b) The condemnor shall provide the owner with a full narrative appraisal upon which the jurisdictional offer is based and a copy of any appraisal made under par. (a) and at the same time shall inform the owner of his or her right to obtain an appraisal under this paragraph. The owner may obtain an appraisal by a qualified appraiser of all property proposed to be acquired, and submit the reasonable costs of the appraisal to the condemnor for payment. The owner shall submit a full narrative appraisal to the condemnor within 60 days after the owner receives the condemnor's appraisal. If the owner does not accept a negotiated offer under sub. (2a) or the jurisdictional offer under sub. (3), the owner may use only an appraisal prepared received from the condemnor under this paragraph, or an appraisal submitted by the owner to the condemnor prior to the date of service or mailing of the jurisdictional offer or the date of publication if publication of the jurisdictional offer is necessary, in any subsequent appeal.

AB731, s. 4 Section 4. 32.06 (2a) of the statutes is amended to read:

AB731,6,11 32.06 (2a) Agreed price. Before making the jurisdictional offer under sub. (3) the condemnor shall attempt to negotiate personally with the owner or one of the owners or his or her representative of the property sought to be taken for the purchase of the same. In such negotiation the condemnor shall consider the owner's appraisal under sub. (2) (b) and may contract to pay the items of compensation enumerated in ss. 32.09 and 32.19 where shown to exist. Before attempting to negotiate under this paragraph subsection, the condemnor shall provide the owner or his or her representative with copies of applicable pamphlets prepared under s. 32.26 (6). When negotiating under this subsection, the condemnor shall provide the owner or his or her representative with the names of at least 10 neighboring landowners to whom offers are being made, or a list of all offerees if less than 10 owners are affected, together with a map showing all property affected by the project. Upon request by an owner or his or her representative, the condemnor shall provide the name of the owner of any other property which may be taken for the project. The owner or his or her representative shall also have the right, upon request, to examine any maps in the possession of the condemnor showing property affected by the project. The owner or his or her representative may obtain copies of such maps by tendering the reasonable and necessary costs of preparing copies. The condemnor shall record any conveyance by or on behalf of the owner of the property to the condemnor executed as a result of negotiations under this subsection with the register of deeds of the county in which the property is located. The condemnor shall also record a certificate of compensation stating the identity of all persons having an interest of record in the property immediately prior to its conveyance, the legal description of the property, the nature of the interest acquired and the compensation for such acquisition. The condemnor shall serve upon or mail by certified mail to all persons named therein a copy of the statement and a notice of the right to appeal the amount of compensation under this subsection. Any person named in the certificate may, within 6 months after the date of its recording, appeal from the amount of compensation therein stated by filing a petition with the judge of the circuit court of the county in which the property is located for proceedings to determine the amount of just compensation. Notice of such petition shall be given to all persons having an interest of record in such property. The judge shall forthwith assign the matter to the chairperson of the county condemnation commissioners for hearing under sub. (8). The procedures prescribed under subs. (9) (a) and (b), (10) and (12) and chs. 808 and 809 shall govern such appeals. The date the conveyance is recorded shall be treated as the date of taking and the date of evaluation.

AB731, s. 5 Section 5. 32.28 (1m) of the statutes is created to read:

AB731,6,14 32.28 (1m) In this section, reasonable attorney fees may not exceed the following amounts:

AB731,6,15 (a) In sub. (3) (d), one-third of the award of the condemnation commission.

AB731,6,17 (b) In sub. (3) (f) and (h), one-third of the difference between the award of the condemnation commission and the jury verdict.

AB731, s. 6 Section 6. Initial applicability.

AB731,6,20 (1) The treatment of sections 32.05 (2) (b) and 32.06 (2) (b) of the statutes first applies to an appraisal obtained by an owner on the effective date of this subsection.

AB731,6,23 (2) The treatment of sections 32.05 (2a) and 32.06 (2a) of the statutes first applies to conveyances recorded with the register of deeds on the effective date of this subsection.

AB731,7,3 (3) The treatment of section 32.28 (1m) of the statutes first applies to matters assigned to the county condemnation commissioners under section 32.08 of the statutes on the effective date of this subsection.

AB731,7,4 (End)