HB38 Alabama 2019 Session

Summary

Primary Sponsor

Barbara DrummondRepresentative

Democrat

Session

Regular Session 2019

Title

Class 2 municipalities, compensation standards for property taken by eminent domain, Secs. 18-1A-170, 18-1A-172 am'd.

Summary

HB 38 would require Class 2 municipalities to compensate landowners taking property by eminent domain at replacement cost rather than fair market value.

What This Bill Does

The bill changes the compensation standard for property taken by eminent domain when the taker is a Class 2 municipality, to replacement cost. Replacement cost is defined as the estimated cost to wholly reconstruct the existing property at the time of valuation. For partial takings within a Class 2 municipality, the compensation would be the difference between the replacement cost of the entire property before the taking and the replacement cost of the remainder after the taking. The current fair market value standard remains in place for takings by entities other than Class 2 municipalities.

Who It Affects

• Property owners whose land is taken by eminent domain by a Class 2 municipality, who would be compensated based on replacement cost.
• Class 2 municipalities, which would be responsible for paying replacement costs when taking property through eminent domain.

Key Provisions

• Amends §18-1A-170 to provide that the compensation for property taken by a Class 2 municipality is the replacement cost of the taking.
• Amends §18-1A-170 to specify replacement cost for full takings within Class 2 municipalities and §18-1A-170(b)(2) to apply a replacement-cost difference rule for partial takings in Class 2 municipalities.
• Adds §18-1A-172 definitions: replacement cost is the estimated cost to wholly reconstruct the existing property as it exists at valuation time; fair market value remains defined separately.
• Effective date: the act becomes law on the first day of the third month after passage and governor approval.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Eminent Domain