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Committee recommends do‑not‑pass on bill seeking to alter eminent‑domain cost recovery after new federal ruling

2796750 · March 27, 2025
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Summary

The committee voted a do‑not‑pass recommendation on Senate Bill 23‑21 after staff and members reviewed an Eighth Circuit opinion saying federal eminent‑domain law (as applied in that circuit) limits awards such as attorney fees, removing the need for the state statute proposed by bill sponsors.

The Energy and Natural Resources Committee voted to recommend a do‑not‑pass on Senate Bill 23‑21 after committee counsel and members discussed a recent Eighth Circuit Court of Appeals decision that undercuts the bill’s premise.

Committee staff circulated the appellate opinion and told members the decision, filed March 24, indicates federal courts in the circuit do not allow state law to add attorney‑fee awards when federal eminent‑domain statutes apply. Committee members said the decision made the bill unnecessary because proponents sought to supply state guidance to federal courts on costs associated with condemnation; the court of appeals has already rejected similar arguments and vacated an attorney‑fee award in a recent case.

Representative Hynard moved a do‑not‑pass recommendation and Representative Olson seconded the motion. Representative Hynard argued the Eighth Circuit’s ruling means federal courts that handle condemnation cases will not rely on state provisions to award attorney fees. Representative Johnson asked whether the bill sponsor, Senator Hogue, had been aware of the decision; members confirmed the opinion was issued after the senator’s testimony.

On the roll call the committee recorded 10 yes votes in favor of do‑not‑pass, one no and one abstention/other tally depending on roll formatting; the clerk reported the final tally as 10‑1‑2 (the transcript lists the numeric roll outcome as "10 1 2"). The committee chair said the bill would not move forward from the committee.

The transcript does not include the full appellate opinion text or subsequent legal analysis; sponsors or outside stakeholders did not present additional testimony during the excerpt recorded.