2005 House Bill 5078 / 2006 Public Act 656

Ban taking private property to enhance tax revenues

Introduced in the House

Aug. 3, 2005

Introduced by Rep. Aldo Vagnozzi (D-37)

To prohibit the use of eminent domain by state or local governments to take private property for the primary benefit of a private entity, rather than for “the use or benefit” of the public. This would place in statute (but not in the Constitution) a standard similar to the state Supreme Court’s 2005 ruling in Wayne County v. Hathcock, which reversed its 1981 “Poletown” ruling, and held that a government taking is not justified just because a different use of the property might increase government tax revenues. Note: The 2005 U.S. Supreme Court decision in Kelo v. New London held that the U.S. Constitution does not prohibit such takings, but that states are free to prohibit them anyway.

Referred to the Committee on Government Operations

Dec. 7, 2006

Substitute offered by Rep. Leon Drolet (R-33)

To replace the previous version of the bill with one that instead establishes a new definition of "blight" which complies with the requirements of Proposal 4 of 2006.

The substitute passed by voice vote

Passed in the House 105 to 0 (details)

To establish a definition of “blight” in one of the state statutes that authorizes local blight reduction projects. Under this definition “blighted property" would mean property that has been declared a public nuisance in accordance with a local housing, building, plumbing, fire, or other code; is an attractive nuisance because of physical condition or use; is a fire hazard or is otherwise dangerous; has had the utilities, plumbing, heating, or sewerage disconnected, destroyed, removed, or rendered ineffective for one year or more; is tax reverted property; has code violations posing a severe and immediate health or safety threat and has not been substantially rehabilitated within one year after being ordered to do so by the appropriate code enforcement agency. Note: Proposal 4 of 2006 has limited the authority of governments to condemn entire neighborhoods because some properties are considered “blighted".

Received in the Senate

Dec. 12, 2006

Referred to the Committee on Transportation

Dec. 14, 2006

Reported without amendment

With the recommendation that the bill pass.

Passed in the Senate 37 to 0 (details)

To establish a definition of “blight” in one of the state statutes that authorizes local blight reduction projects. Under this definition “blighted property" would mean property that has been declared a public nuisance in accordance with a local housing, building, plumbing, fire, or other code; is an attractive nuisance because of physical condition or use; is a fire hazard or is otherwise dangerous; has had the utilities, plumbing, heating, or sewerage disconnected, destroyed, removed, or rendered ineffective for one year or more; is tax reverted property; has code violations posing a severe and immediate health or safety threat and has not been substantially rehabilitated within one year after being ordered to do so by the appropriate code enforcement agency. Note: Proposal 4 of 2006 has limited the authority of governments to condemn entire neighborhoods because some properties are considered “blighted".

Signed by Gov. Jennifer Granholm

Dec. 31, 2006