Brief⁽¹⁾

H.B. 2140 amends the Kansas Eminent Domain Procedure Act to require the judge to entertain suggestions from the parties in interest regarding appointment of the three persons to act as appraisers. The judge is required to instruct the appraisers, except for incidental contact to verify factual information or discuss scheduling matters, that ex parte contact with the parties is prohibited without first advising the adverse party and providing the opportunity for that party to be present. Further, all written materials provided to the appraisers by a party shall be provided forthwith to the adverse party.

The bill also defines the term "fair market value" as the amount in terms of money that a well-informed buyer is justified in paying and a well-informed seller is justified in accepting for property in an open and competitive market, assuming that the parties are acting without undue compulsion. The fair market value shall be determined by use of the comparable sales, cost, or capitalization of income appraisal methods or any combination of such methods.

The bill is effective upon publication in the Kansas Register.

The House Committee amendment provided only two instead of all three appraisers had to have experience in valuation of real estate, added the incidental contact language, and made other clarifying amendments.

The Senate Committee deleted the amendment requiring two of three persons appointed to appraise the property have experience in the valuation of real estate and deleted a provision regarding valuation methods which stated "as may be appropriate for the particular property which is the subject of the action."

Background

The bill was supported by the Eminent Domain Subcommittee of the Kansas Judicial Council.

The bill was opposed by the League of Kansas Municipalities. A representative opposed the ex parte communication prohibition in the bill as introduced and expressed concern about the proposed definition of fair market value. The ex parte communication prohibition was also opposed by the City of Overland Park. The definition of fair market value was opposed by the City of Olathe. The Kansas Bar Association objected to the requirement in the original bill that all three appraisers have experience in property valuation.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html.