The Cleveland Plain Dealer reported today that Senate Bill 167, a bill that would place a moratorium on the exercise of eminent domain for economic development purposes, was passed by the Ohio General Assembly yesterday.
The bill now goes to Governor Taft. Once sent to the Governor, he has ten days after receiving it to sign or veto it. If it is signed, SB 167 becomes law in 90 days unless otherwise specified. If it is vetoed, it is returned to Senate with the governor's written objections. A three-fifths majority is required in both houses to override a veto. If the governor fails to either sign or veto the SB 167, at the end of ten days, it becomes law without his signature.
However, even if passed, SB 167 does not place a moratorium on all eminent domain actions by the government. Municipalities, among other governmental entities, may still take property within blighted areas or for other traditional, public purposes such as road-building or utility projects. Moreover, the moratorium only applies to takings actions on or after the effective date of the bill. Consequently, eminent domain actions occurring (or commencing) before the effective date of the bill will be “grandfathered” or exempted from the moratorium.
For more information on Senate Bill 167, read previous posts by the Real Estate & Construction Practice Group at Buckingham, Doolittle & Burroughs, LLP here.