AN ACT relating to economic development.

2026 Regular Session Introduced by Josh Branscum

The bill limits eminent domain by requiring public notice, proven development within five years, and allows owners to repurchase at the original price plus recoveries if developmen

to Economic Development & Workforce Investment (H)

#economicdevelopment #property #technicalcorrections

Overview

HB 795 (2026 Regular Session, Kentucky) amends existing condemnation authority for governmental units under Kentucky law. The primary aim is to impose additional public notice requirements and create a financial risk-shield for property owners by mandating a development timeline and providing a repurchase mechanism if development does not occur.

Main purpose and intent

Restrict and condition the use of eminent domain authority under KRS 154.50-301 to 154.50-346.

Ensure condemned property is publicly disclosed with a stated purpose and is developed within five years.

Create a right for property owners to repurchase condemned property if development does not occur, at the purchase price originally paid by the government.

Reimburse property owners’ costs and reasonable attorney’s fees incurred in reacquiring the land.

Key provisions and changes

Public notice requirement: Before condemnation, a governmental unit must provide proper public notice identifying the specific purpose for which the property will be used.

Pleading and proof: The stated purpose for condemnation must be pleaded and proven in the condemnation action.

Development deadline: The condemned property must be developed within five years according to the stated purpose.

Reacquisition right: If development does not occur within five years, the original landowner may repurchase the land at the price the government paid to acquire it.

Costs and fees: The property owner is entitled to recover costs and reasonable attorney’s fees necessary to reacquire the land.

Supersession: The section clarifies that these requirements apply notwithstanding other provisions of KRS 154.50-301 to 154.50-346.

Who/what is affected

Governmental units empowered to condemn property under KRS 154.50-301 to 154.50-346.

Property owners whose land is subject to condemnation under the referenced statute.

Legal and financial processes associated with condemnation actions, including notice, proof of purpose, and potential repurchase transactions.

Procedural and timeline aspects

Public notice must be provided prior to condemnation.

The condemnation action must include explicit pleading and proof of the intended use.

A five-year development timeline is imposed for the condemned property.

If development is not completed within five years, the property owner has a right to repurchase the land at the original purchase price.

Reacquisition must follow applicable court procedures, with the property owner eligible for recoveries of costs and reasonable attorney’s fees.

Practical implications

Increased protections for property owners against stalled or speculative condemnation use.

Governments face tighter timelines and potential financial exposure if development goals are not met.

Potentially higher administrative burden to ensure compliance with notice,Proof, and development requirements.

The added repurchase provision may influence negotiations and appraisal processes in condemnation actions.