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Senate approves private property ombudsman bill after debate over mediation and arbitration
Summary
The Utah Senate passed House Bill 3 88 on March 3, 1998, creating a private property ombudsman who may mediate disputes between property owners and government and — with limits — require arbitration; the bill passed as amended and will return to the House for concurrence (18–10–1).
The Utah Senate on March 3 approved House Bill 3 88 to create a private property ombudsman program that gives property owners an optional path to resolve disputes with government entities without immediate resort to litigation.
Supporters said the measure gives owners a low-cost alternative to costly court fights and provides a mechanism to bring reluctant agencies to the table. Craig Call, the state ombudsman who testified on the floor, described the program as voluntary and said it works in most cases: "Of the hundred cases I've had, I'd say 90 percent can be resolved without resorting to arbitration," he said. He added that arbitration would remain an option in the minority of cases where mediation fails or an agency refuses to participate.
Opponents raised concerns about removing mediation language and about possible state-employee bias if the ombudsman could serve as an arbitrator. Senator Suazo pressed whether arbitration requires board certification and whether the ombudsman — a state employee — could be impartial when a state agency is involved. Craig Call responded that mediation remains an option and that requirements for arbitrators could be set by rule or statute; he said the bill does not strip rights away and that parties would still be able to pursue de novo court review if they choose.
Senators offered and adopted amendments to clarify that mediation remains available and to limit the ombudsman's role as a default arbitrator; the sponsor said the changes make the bill acceptable to more members. The Senate recorded 18 aye votes, 10 nay votes, and 1 absent; as amended the measure will be returned to the House for further action.
The bill directs that mediation be the preferred first step and preserves existing judicial remedies. Supporters framed the measure as an owner-driven option: the private property owner must request ombudsman involvement and may opt for mediation or arbitration in negotiated forms. Critics warned of expanded ombudsman authority beyond current practice; supporters replied the program is optional and intended to reduce court costs and delays for hardship cases.
Next steps: the bill, as amended, will be sent back to the House for concurrence. If the House concurs, implementation details (including any rules related to arbitrator qualifications and the ombudsman's procedures) will be established in subsequent rulemaking or by statute.
