UNOFFICIAL COPY 25 RS BR 1034 Page 1 of 18 XXXX 1/9/2025 5:00 PM Jacketed AN ACT relating to eminent domain. 1 Be it enacted by the General Assembly of the Commonwealth of Kentucky: 2 SECTION 1. A NEW SECTION OF KRS 99.700 TO 99.730 IS CREATED TO 3 READ AS FOLLOWS: 4 (1) For purposes of establishing the basis for the use of eminent domain for the 5 remediation of a blighted property or possession of an abandoned property, a 6 commission or alternative government entity is authorized to petition a court of 7 competent jurisdiction to obtain an administrative warrant to gain access to 8 inspect a specific structure. 9 (2) The court may issue an administrative warrant for inspection of a structure upon 10 a showing by the commission or alternative government entity of probable cause 11 that a violation of an enforceable housing, maintenance, or building code has 12 occurred, the violation has not been cured, and the owner of the property has 13 denied the commission or alternative government entity access to the specific 14 structure. 15 (3) Evidence that may support a showing of probable cause includes but is not 16 limited to recent fire or police inspections, exterior evidence of deterioration, or 17 other similarly reliable evidence of present violations of an enforceable housing, 18 maintenance, or building code in the specific structure. 19 SECTION 2. A NEW SECTION OF KRS 99.700 TO 99.730 IS CREATED TO 20 READ AS FOLLOWS: 21 (1) Notwithstanding any other provision of law, including any charter provision, 22 ordinance, statute, or special law, all commissions and alternative government 23 entities shall exercise the power of eminent domain in accordance with KRS 24 99.700 to 99.730, including all procedures, definitions, remedies, and limitations. 25 (2) Additional procedures, remedies, or limitations that do not deny or diminish the 26 substantive and procedural rights and protections of property owners under KRS 27 UNOFFICIAL COPY 25 RS BR 1034 Page 2 of 18 XXXX 1/9/2025 5:00 PM Jacketed 99.700 to 99.730 may be provided by other law, ordinance, or charter. 1 Section 3. KRS 65.355 is amended to read as follows: 2 (1) Any local government, the county or independent school district within the county, 3 and the Commonwealth of Kentucky may enter into an interlocal cooperation 4 agreement pursuant to KRS 65.210 to 65.300 for the purpose of establishing a land 5 bank authority pursuant to KRS 65.350 to 65.375. 6 (2) The authority shall be a public body corporate and politic with the power to sue and 7 be sued, issue deeds in its name, and any other powers necessary and convenient to 8 carry out these powers or that may be granted to the authority by the parties. 9 (3) The authority shall be established to acquire the tax delinquent properties of the 10 parties, properties that have become blighted or abandoned[deteriorated] as defined 11 in[by] KRS 99.705 and properties that have local government liens filed against 12 them, to facilitate the public purpose of returning property that is in a non-revenue 13 generating, non-tax producing status to effective utilization, including but not 14 limited to providing housing, new industry, and jobs for the citizens of the county. 15 The authority shall have the powers provided in KRS 65.370 and 65.375 and in the 16 interlocal cooperation agreement. 17 Section 4. KRS 91.285 is amended to read as follows: 18 (1) Any city of the first class which finds and declares that there exists abandoned 19 urban property as defined in KRS 132.012(1) within the city or which finds that 20 there exists blighted or abandoned[deteriorated] property pursuant to KRS 99.700 21 to 99.730 may levy a separate rate of taxation on abandoned urban property 22 pursuant to KRS 132.012(2). 23 (2) Prior to levying a tax upon abandoned urban property, the legislative body of a city 24 of the first class shall delegate to the vacant properties review commission, if 25 established pursuant to KRS 99.700 to 99.730 or another department or agency of 26 city government, the responsibility of determining which properties within the city 27 UNOFFICIAL COPY 25 RS BR 1034 Page 3 of 18 XXXX 1/9/2025 5:00 PM Jacketed are abandoned urban properties. A list of abandoned urban properties shall be 1 furnished to the county property valuation administrator prior to the date fixed for 2 the annual assessment of real property within the county. If a property classified as 3 abandoned urban property is repaired, rehabilitated or otherwise returned to 4 productive use, the owner shall notify the city which shall, if it finds the property is 5 no longer abandoned urban property, notify the property valuation administrator to 6 strike the property from the list of abandoned urban properties. 7 Section 5. KRS 92.305 is amended to read as follows: 8 (1) Any urban-county government or city of the home rule class which finds and 9 declares that there exists abandoned urban property as defined in KRS 132.012 10 within the urban-county government or city, or which finds that there exists 11 blighted or abandoned[deteriorated] property pursuant to KRS 99.700 to 99.730, 12 may levy a separate rate of taxation on abandoned urban property pursuant to KRS 13 132.012. 14 (2) Prior to levying a tax upon abandoned urban property, the legislative body of the 15 urban-county government or the city of the home rule class shall delegate to the 16 vacant properties review commission, if established pursuant to KRS 99.710, or 17 another department or agency of the urban-county or city government, the 18 responsibility of determining which properties within the urban-county government 19 or city are abandoned urban properties. A list of abandoned urban properties shall 20 be furnished to the county property valuation administrator prior to the date fixed 21 for the annual assessment of real property within the county. If a property classified 22 as abandoned urban property is repaired, rehabilitated, or otherwise returned to 23 productive use, the owner shall notify the urban-county government or city which 24 shall, if it finds the property is no longer abandoned urban property, notify the 25 property valuation administrator to strike the property from the list of abandoned 26 urban properties. 27 UNOFFICIAL COPY 25 RS BR 1034 Page 4 of 18 XXXX 1/9/2025 5:00 PM Jacketed Section 6. KRS 99.700 is amended to read as follows: 1 (1) It is hereby found: 2 (a) That there exist within the jurisdiction of many local governments in this 3 Commonwealth blighted and abandoned[deteriorated] properties in 4 neighborhoods which cause the deterioration of those and contiguous 5 neighborhoods and constitute a serious and growing menace which is 6 injurious to the public health, safety, morals, and general welfare of the 7 residents of the Commonwealth, and are beyond remedy and control solely by 8 regulatory process in the exercise of the police power; 9 (b) That the existence of blighted and abandoned[deteriorated] properties within 10 neighborhoods, and the growth and spread of blight and deterioration or the 11 threatened deterioration of other neighborhoods and properties: 12 1. Contribute substantially and increasingly to the spread of disease and 13 crime, and to losses by fire and accident; 14 2. Necessitate expensive and disproportionate expenditures of public funds 15 for the preservation of the public health and safety, for crime prevention, 16 correction, prosecution, and punishment, for the treatment of juvenile 17 delinquency, for the maintenance of adequate police, fire and accident 18 protection, and for other public services and facilities; 19 3. Constitute an economic and social liability; 20 4. Substantially impair or arrest the sound growth of the community; 21 5. Retard the provision of decent, safe, and sanitary housing 22 accommodations; 23 6. Depreciate assessable values; 24 7. Cause an abnormal exodus of families from these neighborhoods; and 25 8. Are detrimental to the health, the well-being, and the dignity of many 26 residents of these neighborhoods; 27 UNOFFICIAL COPY 25 RS BR 1034 Page 5 of 18 XXXX 1/9/2025 5:00 PM Jacketed (c) That this menace cannot be effectively dealt with by private enterprise 1 without the aids provided herein; and 2 (d) That the benefits which would result from eliminating the blighted or 3 abandoned properties that cause the blight and deterioration of neighborhoods 4 will accrue to the inhabitants of the neighborhoods in which these conditions 5 exist and to the inhabitants of this Commonwealth generally. 6 (2) It is hereby declared: 7 (a) That it is the policy of this Commonwealth to protect and promote the health, 8 safety, and welfare of the people of the Commonwealth by eliminating the 9 blight and deterioration of neighborhoods through the elimination of blighted 10 and abandoned[deteriorated] properties within these neighborhoods; 11 (b) That the elimination of such blight and deterioration and the preparation of the 12 properties for sale or lease, for development or redevelopment, constitute a 13 public use and purpose for which public money may be expended and private 14 property acquired and are governmental functions in the interest of the health, 15 safety, and welfare of the people of the Commonwealth; and 16 (c) That the necessity in the public interest for the provisions enacted herein is 17 hereby declared to be a legislative determination. 18 Section 7. KRS 99.705 is amended to read as follows: 19 As used in KRS 99.700 to 99.730: 20 (1) "Abandoned property" means property that: 21 (a) Has been substantially unoccupied or used for any commercial or 22 residential purpose for at least one (1) year by a person with a legal or 23 equitable right to occupy the property; 24 (b) Has been cited for a violation of an enforceable housing, maintenance, or 25 building code that has not been remedied within one hundred eighty (180) 26 days after the citation; and 27 UNOFFICIAL COPY 25 RS BR 1034 Page 6 of 18 XXXX 1/9/2025 5:00 PM Jacketed (c) For which property taxes have not been paid for at least two (2) years; 1 (2) "Alternative government entity" means an entity established by the legislative body 2 of a local government pursuant to KRS 65.350 to 65.375, 99.330 to 99.510, 99.520 3 to 99.590, or 99.610 to 99.680, with a purpose compatible with the purposes 4 expressed in KRS 99.700; 5 (3)[(2)] "Blighted[" or "deteriorated" ]property" means a[any vacant] structure[ or 6 vacant or unimproved lot or parcel of ground in a predominantly built-up 7 neighborhood]: 8 (a) That was inspected by the appropriate local government and cited for one 9 (1) or more enforceable housing, maintenance, or building code violations 10 that: 11 1. Affect the safety of the occupants or the public; and 12 2. Involve one (1) or more of the following: 13 a. A roof and roof-framing element; 14 b. Support walls, beams, and headers; 15 c. Foundation, footings, and subgrade conditions; 16 d. Light and ventilation; 17 e. Fire protection, including egress; 18 f. Internal utilities, including electricity, gas, and water; 19 g. Flooring and flooring elements; or 20 h. Walls, insulation, and exterior envelope; 21 (b) In which the cited housing, maintenance, or building code violations have 22 not been remedied within a reasonable time after two (2) notices to cure the 23 noncompliance; and 24 (c) For which the satisfaction of those enforceable, cited, and uncured housing, 25 maintenance, or building code violations costs more than fifty percent 26 (50%) of the taxable market value of the structure as determined by the 27 UNOFFICIAL COPY 25 RS BR 1034 Page 7 of 18 XXXX 1/9/2025 5:00 PM Jacketed property valuation administrator in the taxable year in which the 1 condemnation proceeding is commenced, exclusive of the value of the land 2 on which the structure is situated[Which because of physical condition or 3 use is regarded as a public nuisance at common law or has been declared a 4 public nuisance in accordance with the housing, building, plumbing, fire, 5 nuisance, or related codes]; 6 (b) Which because of physical condition, use, or occupancy is considered an 7 attractive nuisance to children, including but not limited to abandoned wells, 8 shafts, basements, excavations, and unsafe fences or structures; 9 (c) Which, because it is dilapidated, unsanitary, unsafe, vermin-infested, or 10 lacking in the facilities and equipment required by the housing or nuisance 11 code of the local government in which it is located, has been designated by 12 the department responsible for enforcement of the housing or nuisance code 13 as unfit for human habitation; 14 (d) Which is a fire hazard, or is otherwise dangerous to the safety of persons or 15 property; 16 (e) From which the utilities, plumbing, heating, sewerage, or other facilities have 17 been disconnected, destroyed, removed, or rendered ineffective so that the 18 property is unfit for its intended use; 19 (f) Which by reason of neglect or lack of maintenance has become a place for 20 accumulation of trash and debris, or a haven for rodents or other vermin; 21 (g) Which has been tax delinquent for a period of at least three (3) years; or 22 (h) Which has not been brought into compliance with the housing, building, 23 plumbing, electrical, fire, or nuisance code of the local government within 24 which it is located within the time constraints placed upon the owner by the 25 appropriate code enforcement agency]; 26 (4)[(3)] "Commission" means a vacant property review commission established under 27 UNOFFICIAL COPY 25 RS BR 1034 Page 8 of 18 XXXX 1/9/2025 5:00 PM Jacketed KRS 99.710; 1 (5)[(4)] "Local government" means any city, county, urban-county government, 2 consolidated local government, unified local government, or charter county; 3 (6)[(5)] "Nuisance code" means an ordinance or ordinances adopted by a local 4 government pursuant to KRS 82.700 to 82.725 or a similar ordinance or ordinances 5 adopted by a local government pursuant to any other authority; and 6 (7)[(6)] "Redevelopment" means the planning or replanning, design or redesign, 7 acquisition, clearance, development, and disposal or any combination of these, of a 8 property in the preparation of such property for residential, commercial, public, or 9 related uses, as may be appropriate or necessary. 10 Section 8. KRS 99.710 is amended to read as follows: 11 (1) If the legislative body of a local government finds and declares that there exist 12 within the jurisdiction of the local government blighted or abandoned[deteriorated] 13 properties and that there is need for the exercise of powers, functions, and duties 14 conferred by KRS 99.700 to 99.730 within the jurisdiction of the local government, 15 the legislative body may adopt the provisions of KRS 99.700 to 99.730 by 16 ordinance. 17 (2) The ordinance adopting the provisions of KRS 99.700 to 99.730 shall: 18 (a) Establish a vacant property review commission, which shall certify properties 19 as blighted or abandoned[deteriorated] to the legislative body. The ordinance 20 shall specify the duties of, the number of members that will serve on, the 21 requirements of membership, and the makeup of the commission. Members of 22 the commission shall be appointed by the mayor or the county 23 judge/executive, as the case may be, and approved by the legislative body; or 24 (b) Assign the duties that would otherwise be fulfilled by a vacant property 25 review commission under KRS 99.700 to 99.730 to an alternative government 26 entity. 27 UNOFFICIAL COPY 25 RS BR 1034 Page 9 of 18 XXXX 1/9/2025 5:00 PM Jacketed (3) The governing body of a local government adopting the provisions of KRS 99.700 1 to 99.730 may also, by ordinance, authorize the commission or alternative 2 government entity to identify and certify properties for inclusion in a tax 3 delinquency diversion program established by the local government as provided in 4 KRS 99.727. 5 (4) No officer or employee of the local government whose duties include enforcement 6 of housing, building, plumbing, fire, nuisance, or related codes shall be appointed to 7 the commission or serve on the governing body of an alternative government entity. 8 (5) Nothing in KRS 99.705 to 99.730 shall prevent the duties of a vacant property 9 review commission from being assigned to a local government code enforcement 10 board established pursuant to KRS 65.8801 to 65.8839. 11 Section 9. KRS 99.715 is amended to read as follows: 12 A local government may acquire, by eminent domain pursuant to KRS Chapter 416, any 13 property determined to be blighted or abandoned[deteriorated] pursuant to KRS 99.700 14 to 99.730, and shall have the power to hold, clear, manage, or dispose of property so 15 acquired pursuant to the provisions of KRS 99.700 to 99.730. 16 Section 10. KRS 99.720 is amended to read as follows: 17 (1) The legislative body shall not institute eminent domain proceedings pursuant to 18 KRS 99.700 to 99.730 unless the commission or alternative government entity has 19 certified that the property is blighted or abandoned[deteriorated]. A property which 20 has been referred to the commission or alternative government entity by a local 21 government as blighted or abandoned[deteriorated] may only be certified to the 22 legislative body as blighted or abandoned[deteriorated] after the commission or 23 alternative government entity has determined: 24 (a) That the owner of the property or designated agent has been sent two (2) 25 notices[an order] by the appropriate local government agency to eliminate the 26 conditions which are in violation of local codes or law; 27 UNOFFICIAL COPY 25 RS BR 1034 Page 10 of 18 XXXX 1/9/2025 5:00 PM Jacketed (b) That the property is vacant; 1 (c) That the property is blighted or abandoned[and deteriorated]; and 2 (d) That the commission or alternative government entity has notified the 3 property owner or designated agent that: 4 1. The property has been determined to be blighted or 5 abandoned;[deteriorated and ] 6 2. The time period for correction of that[such] condition has expired; and 7 3. The property owner or agent has failed to comply with the notice. 8 (2) The findings required by subsection (1) of this section shall be in writing and 9 included in the report to the legislative body. 10 (3) (a) The commission or alternative government entity shall notify the owner of the 11 property or a designated agent that a determination of blight or 12 abandonment[deterioration] has been made and that failure to eliminate the 13 conditions causing the blight or abandonment shall render the property 14 subject to condemnation by the local government under KRS 99.700 to 15 99.730. 16 (b) Notice shall be mailed to the owner or designated agent by certified mail, 17 return receipt requested. However, if the address of the owner or a designated 18 agent is unknown and cannot be ascertained by the commission or alternative 19 government entity in the exercise of reasonable diligence, copies of the notice 20 shall be posted in a conspicuous place on the property affected. 21 (c) The written notice sent to the owner or his or her agent or posted on the 22 property shall describe the conditions that render the property blighted or 23 abandoned[and deteriorated], and shall demand abatement of the conditions 24 within ninety (90) days of the receipt of the[such] notice. 25 (4) An extension of the ninety (90) day time period may be granted by the commission 26 or alternative government entity if the owner or designated agent demonstrates that 27 UNOFFICIAL COPY 25 RS BR 1034 Page 11 of 18 XXXX 1/9/2025 5:00 PM Jacketed such period is insufficient to correct the conditions cited in the notice. 1 Section 11. KRS 99.725 is amended to read as follows: 2 The legislative body of the local government may institute eminent domain proceedings 3 pursuant to KRS Chapter 416 against any property which has been certified as blighted or 4 abandoned[deteriorated] by the commission or alternative government entity if: 5 (1) It finds: 6 (a)[(1)] That the[such] property has deteriorated to such an extent as to 7 constitute a serious and growing menace to the public health, safety and 8 welfare; 9 (b)[(2)] That the[such] property is likely to continue to deteriorate unless 10 corrected; 11 (c)[(3)] That the continued deterioration of the[such] property may contribute to 12 the blighting or deterioration of the area immediately surrounding the 13 property; and 14 (d)[(4)] That the owner of the[such] property has failed to correct the 15 deterioration of the property; and 16 (2) The legislative body of the local government: 17 (a) Holds a public hearing regarding the proposed taking of the blighted or 18 abandoned property and, at least thirty (30) days but not more than sixty 19 (60) days prior to the hearing: 20 1. Notifies each owner of property subject to the proposed taking in 21 writing by certified mail of the date and time of the public hearing; 22 and 23 2. Posts information regarding the public hearing, including the date 24 and time of the hearing and the address of the property subject to the 25 proposed taking, pursuant to KRS Chapter 424; and 26 (b) At its next regular meeting that is at least thirty (30) days after the public 27 UNOFFICIAL COPY 25 RS BR 1034 Page 12 of 18 XXXX 1/9/2025 5:00 PM Jacketed hearing, votes according to the rules of its proceedings to authorize the use 1 of eminent domain under the Eminent Domain Act of Kentucky, KRS 2 416.540 to 416.670, to acquire the property. 3 (3) Any interested person shall be allowed reasonable time to present relevant 4 testimony at the public hearing held under subsection (2) of this section. The 5 proceedings of the hearing shall be recorded and available to the public for 6 review and comment and reasonable times and at a reasonable place. 7 Section 12. KRS 99.727 is amended to read as follows: 8 (1) As used in this section: 9 (a) "Census block" means an area within the jurisdiction of a local government 10 identified by the United States Census Bureau using a unique four (4) digit 11 number; 12 (b) "Certificate of delinquency" has the same meaning as in KRS 134.010; 13 (c) "Individual parcel" means a parcel of property not located in a priority project 14 area that has been designated by the commission or alternative government 15 entity as blighted or abandoned, and for which the area in which the property 16 is located: 17 1. Exhibits conditions that are favorable for development; 18 2. Has the resources needed for urban redevelopment; and 19 3. Has characteristics that can be promoted as part of a campaign to retain 20 existing residents and attract new residents to the area; and 21 (d) "Priority project area" means a specific group of properties identified by 22 census block, which are located in an area where: 23 1. There are a significant number of blighted or abandoned properties; 24 2. Existing conditions are favorable for development; 25 3. Existing resources needed for urban redevelopment are present; and 26 4. Existing characteristics of the area can be promoted as part of a 27 UNOFFICIAL COPY 25 RS BR 1034 Page 13 of 18 XXXX 1/9/2025 5:00 PM Jacketed campaign to retain existing residents and attract new residents to the 1 area. 2 (2) The legislative body of a consolidated local government may, by ordinance, 3 establish a tax delinquency diversion program for blighted or abandoned property. 4 (3) The ordinance establishing the program shall designate the commission or an 5 alternative government entity as the body responsible for identifying and certifying 6 priority project areas and individual parcels of property for inclusion in the tax 7 delinquency diversion program. 8 (4) The commission or alternative government entity shall submit recommended 9 priority project areas and qualifying individual parcels of property to the governing 10 body of the consolidated local government for consideration. 11 (5) Certificates of delinquency related to property approved by the governing body of 12 the consolidated local government for inclusion in the tax delinquency diversion 13 program shall not be available for purchase by any person for a period of up to five 14 (5) years following the year in which the property is placed in the tax delinquency 15 diversion program. 16 (6) The commission or alternative government entity shall provide to the county 17 attorney a list of all properties included in the tax delinquency diversion plan, and 18 the county attorney shall place the identified properties on the protected list 19 required by KRS 134.504(10). 20 Section 13. KRS 99.730 is amended to read as follows: 21 (1) No officer or employee of a local government, the vacant property review 22 commission, or an alternative government entity, who in the course of his or her 23 duties is required to participate in the determination of property blight or 24 abandonment[deterioration] or the issuance of notices on code violations which 25 may lead to a determination of blight or abandonment[deterioration], shall acquire 26 any interest in any property declared to be blighted or abandoned[deteriorated]. 27 UNOFFICIAL COPY 25 RS BR 1034 Page 14 of 18 XXXX 1/9/2025 5:00 PM Jacketed (2) If any [such] officer or employee described in subsection (1) of this section owns 1 or has a financial interest, direct or indirect, in any property certified to be blighted 2 or abandoned[deteriorated], he or she shall immediately disclose, in writing, 3 the[such] interest to the commission or alternative government entity and to the 4 legislative body, and the[such] disclosure shall be entered in the minutes of the 5 commission or alternative government entity and of the legislative body. Failure to 6 so disclose the[such] interest shall constitute misconduct in office. 7 (3) No payment shall be made to any officer or employee for any property or interest 8 acquired by the local government from the[such] officer or employee unless the 9 amount of the[such] payment is fixed by court order in eminent domain 10 proceedings, or unless payment is unanimously approved by the legislative body. 11 Section 14. KRS 416.580 is amended to read as follows: 12 (1) (a) The Circuit Court, or in the absence of the Circuit Judge from the county, the 13 Circuit Court Clerk, shall appoint as commissioners three (3) impartial 14 housekeepers of the county who are owners of land. They shall be sworn to 15 faithfully and impartially discharge their duties under this section. The 16 commissioners shall view the land or material sought to be condemned and 17 award to the owner or owners such a sum as will fairly represent the reduction 18 in the market value of the entire property, all of or a portion of which is 19 sought to be condemned, said sum being the difference between the market 20 value of the entire property immediately before the taking and the market 21 value of the remainder of the property immediately after the taking[ thereof], 22 together with the fair rental value of any temporary easements sought to be 23 condemned. Within fifteen (15) days from the date of their appointment, they 24 shall return a written report to the office of the Circuit Court[,] stating the 25 above values in their award and shall describe in their report the property 26 sought to be condemned. They shall be allowed a reasonable fee which shall 27 UNOFFICIAL COPY 25 RS BR 1034 Page 15 of 18 XXXX 1/9/2025 5:00 PM Jacketed be taxed as costs. 1 (b) If any person appointed to serve as commissioner fails, refuses, or becomes 2 incapable of acting, the court[,] or judge thereof shall immediately[forthwith] 3 appoint a qualified person to fill the vacancy. A majority of the 4 commissioners appointed and qualified have the power to act and to make and 5 sign the award and report. If a majority of the commissioners do not agree on 6 a decision, three (3) new commissioners shall be appointed by the court on 7 application by any of the parties to the action. 8 (2) In eminent domain proceedings instituted pursuant to KRS 99.700 to 99.730, in 9 determining the market of value blighted or abandoned[deteriorated] property, the 10 commissioners shall consider: 11 (a) The estimated cost of repairs necessary to bring the property up to the 12 minimum standards of the local housing or nuisance code as determined by an 13 independent appraiser, general building or residential contractor or inspector; 14 or 15 (b) The cost of demolition of the property, if the commissioners determine that 16 demolition would be the most cost-effective manner of addressing the 17 blighted or abandoned[deteriorated] structures on the property. 18 Section 15. KRS 416.610 is amended to read as follows: 19 (1) After the owner has been summoned twenty (20) days, the court shall examine the 20 report of the commissioners to determine whether it conforms to the provisions of 21 KRS 416.580. If the report of the commissioners is not in the proper form, the 22 court shall require the commissioners to make necessary[such] corrections[ as are 23 necessary]. 24 (2) If no answer or other pleading is filed by the owner or owners putting in issue the 25 right of the petitioner to condemn the property or the use and occupation of the 26 property[thereof] sought to be condemned, the court shall enter an interlocutory 27 UNOFFICIAL COPY 25 RS BR 1034 Page 16 of 18 XXXX 1/9/2025 5:00 PM Jacketed judgment which shall contain, in substance: 1 (a) A finding that the petitioner has the right, under the provisions of KRS 2 416.550 to 416.670 and other applicable law to condemn the property or the 3 use and occupation of the property[thereof]; 4 (b) A finding that the report of the commissioners conforms to the provisions of 5 KRS 416.580; 6 (c) An authorization to take possession of the property for the purposes and under 7 the conditions and limitations, if any, set forth in the petition upon payment to 8 the owner or to the clerk of the court the amount of the compensation awarded 9 by the commissioners; 10 (d) Proper provision for the conveyance of the title to the land and material, to the 11 extent condemned, as adjudged therein in the event no exception is taken as 12 provided in KRS 416.620(1). 13 (3) Any exception from the[such] interlocutory judgment by either party or both parties 14 shall be confined solely to exceptions to the amount of compensation awarded by 15 the commissioners. 16 (4) (a) If the owner has filed answer or pleading putting in issue the right of the 17 petitioner to condemn the property or use and occupation of the 18 property[thereof] sought to be condemned, the court shall, without 19 intervention of jury, proceed forthwith to hear and determine whether or not 20 the petitioner has that[such] right. 21 (b) In determining whether the petitioner has the right to condemn the property 22 or the use and occupation of the property sought to be condemned, the 23 petitioner bears the burden of proving by a preponderance of the evidence 24 that the: 25 1. Property the petitioner seeks to acquire is required for a public use; 26 2. Petitioner has a plan that reflects a reasonable schedule to complete 27 UNOFFICIAL COPY 25 RS BR 1034 Page 17 of 18 XXXX 1/9/2025 5:00 PM Jacketed the public use after the petitioner takes ownership of the property; 1 3. Petitioner has access to funding to complete the public use; and 2 4. Public use cannot be accomplished by using or acquiring other 3 property with the consent of the owner of the other property without 4 an unreasonable delay or increase in cost. 5 (c) If the court determines that the petitioner has the right to condemn the 6 property or the use and occupation of the property sought to be 7 condemned[such rights], an interlocutory judgment, as provided for in 8 subsection (2) of this section, shall be entered. 9 (d) If the court determines that petitioner does not have the[such] right to 10 condemn the property or the use and occupation of the property sought to 11 be condemned, it shall enter a final judgment which shall contain, in 12 substance: 13 1.[(a)] A finding that the report of the commissioners conforms to the 14 provisions of KRS 416.580; 15 2.[(b)] A finding that the petitioner is not authorized to condemn the 16 property or the use and occupation of the property[thereof] for the 17 purposes and under the conditions and limitations set forth in the 18 petition, stating the particular ground or grounds on which the petitioner 19 is not so authorized; 20 and 21 3.[(c)] An order dismissing the petition and directing the petitioner to pay 22 all costs. 23 Section 16. KRS 416.675 is amended to read as follows: 24 (1) Every grant of authority contained in the Kentucky Revised Statutes to exercise the 25 power of eminent domain shall be subject to the condition that the authority be 26 exercised only to effectuate a public use of the condemned property. 27 UNOFFICIAL COPY 25 RS BR 1034 Page 18 of 18 XXXX 1/9/2025 5:00 PM Jacketed (2) "Public use" means[shall mean the following]: 1 (a) [Ownership of the property by the Commonwealth, a political subdivision of 2 the Commonwealth, or other governmental entity; 3 (b)] The possession, occupation, or enjoyment of the property by the general 4 public or[as a matter of right] by the Commonwealth, a political subdivision 5 of the Commonwealth, or other governmental entity; 6 (b)[(c)] The acquisition and transfer of blighted or abandoned property [for the 7 purpose of eliminating blighted areas, slum areas, or substandard and 8 insanitary areas ]in accordance with KRS Chapter 99; or 9 (c)[(d)] The use of the property for the [creation or ]operation of public utilities 10 that serve the general public[or common carriers; or 11 (e) Other use of the property expressly authorized by statute]. 12 (3) No provision in the law of the Commonwealth shall be construed to authorize the 13 condemnation of private property for transfer to a private owner for the purpose of 14 economic development that benefits the general public only indirectly, such as by 15 increasing the tax base, tax revenues, or employment, or by promoting the general 16 economic health of the community.[ However, this provision shall not prohibit the 17 sale or lease of property to private entities that occupy an incidental area within a 18 public project or building, provided that no property may be condemned primarily 19 for the purpose of facilitating an incidental private use.] 20 (4) Nothing in this section shall be construed to prohibit a taking of private property 21 for a public use because the public use provides ancillary economic benefits[The 22 exercise of the power of eminent domain for the acquisition of property financed by 23 state road funds or federal highway funds shall be exempt from the provisions of 24 this section]. 25