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AB 597

UW System Property Acquisition by Condemnation

relating to: requiring the University of Wisconsin System to obtain the approval of the Joint Committee on Finance (JCF) in order to acquire property by condemnation.

This bill requires the Board of Regents to notify the JCF whenever it intends to acquire property by condemnation. The notice must describe the project, explain its public purpose, specify the status of and schedule for construction, and identify the funding for the project.

The bill requires JCF to schedule a public hearing on the intended condemnation, and requires the entire membership of the Board of Regents, Board staff and UW System Staff to attend the hearing.

After the hearing, the Board must provide a written response to all questions asked at the hearing by JCF members and members of the public.

The bill prohibits the Board of Regents from acquiring property by condemnation unless the committee approves the condemnation by at least a three−quarters vote, taken by roll call.

If the condemnation is approved, the Board must provide JCF with periodic reports as it proceeds with the project.

OPPOSE: The Board of Regents strongly opposes arbitrary limitations imposed on the UW System’s statutory condemnation authority. The legislation significantly impairs the University’s ability to fulfill its mission. Furthermore, it may expose taxpayers, students, and donors to unnecessary financial risk.

State agencies, counties, municipalities, school districts, and utilities use statutory condemnation authority to acquire property needed to serve a defined public purpose. State Statutes provide for rigorous judicial oversight of this process, allowing property owners the right to an impartial review, and ensuring that all agencies that use this authority are held accountable. This legislation ignores that time-tested process that avoids politicization of this process. It creates a redundant mechanism in which legislators would adjudicate disputes between property owners and certain educational institutions.

The Board of Regents last used this authority in the early 1960s to acquire land for a dormitory complex at UW-Madison. In 1990, the Board of Regents voted to authorize the use of this power, but later negotiated a mutually agreeable sale price with property owners. During the same period, dozens of other public and entities have exercised condemnation powers much more frequently. In June 2008, the Board voted to authorize use of eminent domain for two properties – land needed for a project that was included in the State’s 2007-09 Capital Budget. One of the two properties was later acquired at a fair-market price.

Ignoring the University’s record of restraint with this authority, this legislation singles out UW System, requiring additional hearings, specific attendance requirements, and additional reporting requirements. It effectively eliminates the Board’s power to condemn.

The Regents have regarded condemnation as a last resort, for use in rare instances when they are unable to negotiate the purchase of a critical piece of property at a fair market price.

Just as UW campuses are struggling to accommodate record numbers of students, this legislation would impair the University’s ability to acquire property at fair-market value to make room for new facilities.

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