Sec. 1. 1 MRSA §816 is enacted to read:

§816.__Limitations on eminent domain authority

1.__Purposes.__Except as provided in subsections 2 and 3 and notwithstanding any other provision of law, the State, a political subdivision of the State and any other entity with eminent domain authority may not condemn property:

A.__For the purposes of private retail, office, commercial, industrial or residential development;

B.__Primarily for the enhancement of tax revenue; or

C.__For transfer to a person, nongovernmental entity, public-private partnership, corporation or other business entity.

2.__Blight exception.__Subsection 1 does not apply to the use of eminent domain by any municipality, housing authority or other public entity based upon a finding of blight in an area covered by any redevelopment plan or urban renewal plan pursuant to Title 30-A, chapter 203 or 205, but just compensation, in all cases, must continue to be first made to the owner.

3.__Utilities exception.__Subsection 1 does not limit the exercise of eminent domain by or for the benefit of public utilities or other entities engaged in the generation, transmission or distribution of telephone, gas, electric, water, sewer or other utility products or services.

4.__Governmental purposes not affected.__Nothing in this section may be interpreted to prohibit a municipal or county governing body from exercising the power of eminent domain for the purpose of constructing, maintaining or operating streets and roadways, government buildings, schools or park and recreation facilities.

SUMMARY

This bill is in response to the United States Supreme Court decision in Kelo v. City of New London, 73 USLW 4552 (2005). The bill prohibits the use of eminent domain authority for purposes of private retail, office, commercial, industrial or residential