Senate Bill 0516c1

CODING: Words stricken are deletions; words underlined are additions.



    Florida Senate - 1998                            CS for SB 516

    By the Committee on Judiciary and Senator Hargrett





    308-2223-98

  1                      A bill to be entitled

  2         An act relating to Murphy Act lands; amending

  3         s. 253.82, F.S.; providing for conveyance of

  4         all Murphy Act transportation easements to the

  5         governmental entity currently having title to

  6         the adjacent roadway; requiring the

  7         establishment of a procedure for review of

  8         deeds containing Murphy Act transportation

  9         reservations; setting requirements for the

10         review process; providing for compensation of

11         certain property owners if the reservation

12         denies the property owner the current economic

13         use of the property; amending s. 712.04, F.S.;

14         providing for reservations of easements in

15         deeds by the Board of Trustees of the Internal

16         Improvement Trust Fund to be extinguished on a

17         specified date, subject to certain limitations;

18         amending s. 712.05, F.S.; providing procedures

19         by which a governmental entity may preserve a

20         road reservation; requiring notice; providing

21         an effective date.

22

23  Be It Enacted by the Legislature of the State of Florida:

24

25         Section 1.  Subsection (6) is added to section 253.82,

26  Florida Statutes, to read:

27         253.82  Title of state or private owners to Murphy Act

28  lands.--

29         (6)(a)  All reservations of easements on deeds by the

30  Board of Trustees of the Internal Improvement Trust Fund

31  conveying land acquired under chapter 18296, Laws of Florida,

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                            CS for SB 516
    308-2223-98




  1  1937, are hereby vested by operation of law and without the

  2  necessity of instruments of conveyance from the Board of

  3  Trustees of the Internal Improvement Trust Fund, in the

  4  governmental entity having right and title to the road to

  5  which the reservations are adjacent. All reservations adjacent

  6  to a road that was designated as a state road at the time of

  7  the reservation and which road is currently held by the state

  8  are conveyed to the Department of Transportation. All

  9  reservations adjacent to a road that was designated as a state

10  road at the time of the reservation and which is located in an

11  unincorporated area of a county or on a road owned by the

12  county within any incorporated area are conveyed to the

13  respective counties. All other reservations within

14  incorporated areas adjacent to a road that was designated as a

15  state road at the time of the reservation and which are not

16  otherwise conveyed to the state or the county are conveyed to

17  the incorporated area. The conveyance includes all right,

18  title, and interests in the reservation held by the Board of

19  Trustees of the Internal Improvement Trust Fund.

20         (b)  Every entity holding title to Murphy Act

21  reservations must establish a procedure for review of any deed

22  containing a reservation when a review is requested or a road

23  project is anticipated. The review process must provide for:

24         1.  A determination of whether the language of the deed

25  created a reservation at the time of the original conveyance.

26         2.  Review of any release of the reservation provided

27  by the property owner.

28         3.  The recording of a notice of the nonexistence of a

29  reservation if reservation language in the deed does not

30  impact the property.

31

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                            CS for SB 516
    308-2223-98




  1         4.  A determination of whether any or all of the

  2  reservation may be released, and a form for recording the

  3  release.

  4         5.  A process to allow for review through mediation if

  5  requested by the property owner or through binding arbitration

  6  pursuant to chapter 44.

  7         6.  Any fee charged not to exceed the actual cost to

  8  review the deed, perform an appeal, and pay for any recording

  9  expenses, with no fee to exceed $300.

10         (c)1.  Any owner of property encumbered by a Murphy Act

11  reservation who has been denied a release of all or part of

12  the reservation or who has received notice of a governmental

13  entity's intent to preserve the reservation under s. 712.05,

14  may appeal to the entity and show that the reservation

15  substantially denies the property owner the current economic

16  use of the property held by the owner. For purposes of this

17  determination, the term "current economic use" means the use

18  of the property on the date notice of the easement is filed

19  under s. 712.05.

20         2.  Upon a determination by the governmental entity

21  that the reservation substantially denies the property owner

22  the current economic use of the property held by the owner,

23  the entity must purchase the real property and improvements

24  not retained by the property owner in fee simple title or

25  release all or part of the reservation as necessary to allow

26  for beneficial use of the property.

27         3.  Where the governmental entity and the property

28  owner are unable to agree as to whether the reservation

29  substantially denies the current economic use of the property

30  or as to the purchase price, the property owner may request

31

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                            CS for SB 516
    308-2223-98




  1  mediation or binding arbitration pursuant to chapter 44 to

  2  resolve these issues.

  3         4.  Prior to the payment of any compensation, the

  4  property owner must provide the governmental entity copies of

  5  any title insurance policies and notice of any compensation

  6  received from a title company related to the easement.

  7         (3)  The process for release of any reservation covered

  8  by this section or payment for property impacted by the use of

  9  a reservation covered by this section shall be solely in

10  accordance with this section. Any action for the taking of

11  property related to road construction is separate and distinct

12  from an action pursuant to this section.

13         (4)  The governmental entity is not liable for

14  attorney's fees or costs incurred by the owner in establishing

15  the impact of the reservation on the property.

16         Section 2.  Section 712.04, Florida Statutes, is

17  amended to read:

18         712.04  Interests extinguished by marketable record

19  title.--Subject to the matters stated in s. 712.03, such

20  marketable record title shall be free and clear of all

21  estates, interests, claims, or charges whatsoever, the

22  existence of which depends upon any act, title transaction,

23  event or omission that occurred prior to the effective date of

24  the root of title.  All such estates, interests, claims, or

25  charges, however denominated, whether such estates, interests,

26  claims, or charges are or appear to be held or asserted by a

27  person sui juris or under a disability, whether such person is

28  within or without the state, whether such person is natural or

29  corporate, or is private or governmental, are hereby declared

30  to be null and void, except that this chapter shall not be

31  deemed to affect any right, title, or interest of the United

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                            CS for SB 516
    308-2223-98




  1  States, Florida, or any of its officers, boards, commissions,

  2  or other agencies reserved in the patent or deed by which the

  3  United States, Florida, or any of its agencies parted with

  4  title. Provided, however, that all reservations of easements

  5  in deeds by the Board of Trustees of the Internal Improvement

  6  Trust Fund conveying land acquired under chapter 18296, Laws

  7  of Florida, 1937, and not used or identified by the

  8  governmental entity in the final design plans of a road

  9  project scheduled for construction to begin prior to the end

10  of the 10 years, shall be extinguished by the Marketable

11  Record Title Act on July 1, 2001, subject to the matters under

12  s. 712.03, and further subject to the right of any

13  governmental entity holding title to the reservations to

14  preserve such reservations that are necessary for future

15  transportation projects in adopted transportation plans by

16  filing notice under s. 712.05, before July 1, 2001.

17         Section 3.  Subsection (3) is added to section 712.05,

18  Florida Statutes, to read:

19         712.05  Effect of filing notice.--

20         (3)  Any governmental entity claiming a road

21  reservation pursuant to a deed conveyed pursuant to the Murphy

22  Act may preserve the reservation or any portion thereof

23  necessary for future transportation projects in adopted

24  transportation plans and protect it from extinguishment by the

25  operation of this chapter by filing for the record, prior to

26  July 1, 2001, a notice, in writing, in accordance with the

27  provisions of this chapter. The notice will have the effect of

28  preserving the reservation or portion thereof for a period of

29  10 years if the reservation is used or identified by the

30  governmental entity in the final design plans of a road

31  project scheduled for construction to begin prior to the end

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                            CS for SB 516
    308-2223-98




  1  of the 10 years. Any reservation used or identified in the

  2  final design plans of a road project scheduled for

  3  construction to begin prior to the end of the 10 years is not

  4  extinguished.

  5         Section 4.  This act shall take effect upon becoming a

  6  law.

  7

  8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
  9                         Senate Bill 516

10

11  The Committee Substitute for Senate Bill 516:

12  -    Provides for voluntary mediation or arbitration of a
         dispute over the governmental entity's review of a Murphy
13       Act reservation.

14  -    Limits the charge for such a review to the actual cost to
         review the deed, perform an appeal, and pay for any
15       recording expenses, with a maximum fee not to exceed
         $300.
16
    -    Deletes provisions for compensation to a property owner
17       when the deeds transferring the property since the
         passage of the Marketable Record Title Act contain no
18       Murphy Act reservation language and provides for
         compensation to a property owner if the reservation has
19       substantially denied the property owner the current
         economic use of the property. Defines "current economic
20       use" to mean the use of the property on the date notice
         of the easement is filed under s. 712.05, F.S.
21
    -    Amends s. 712.04, F.S., to extinguish all Murphy Act
22       reservations of easements on July 1, 2001, pursuant to
         the Marketable Record Title Act unless the reservation is
23       used or identified by a governmental entity in the final
         design plans of a road project scheduled for construction
24       to begin prior to the end of a 10-year period.

25  -    Amends s. 712.05, F.S., to authorize any governmental
         entity claiming a Murphy Act reservation to preserve the
26       reservation for future transportation projects in adopted
         transportation plans, and protect it from extinguishment
27       by the operation of the Marketable Record Title Act, by
         filing for record, prior to July 1, 2001, a written
28       notice of reservation. The notice will have the effect of
         preserving the reservation or portion thereof for a
29       period of 10 years if the reservation is used or
         identified by the governmental entity in the final design
30       plans of a road project scheduled for construction to
         begin prior to the end of the 10 years.
31

                                  6