AL HB38

Amends Sections 18-1A-170 and 18-1A-172 of the Code of Alabama 1975 to change compensation standards for properties taken by Class 2 municipalities through eminent domain.

Property owners whose property is taken by a Class 2 municipality shall receive compensation based on replacement cost instead of fair market value.

Defines "replacement cost" as the estimated cost to wholly reconstruct the existing property as it exists at the time of valuation.

For partial takings within a Class 2 municipality, compensation is calculated as the difference between the replacement cost of the entire property before taking and replacement cost of the remainder after taking.

Becomes effective on the first day of the third month following passage and approval by the Governor, or upon otherwise becoming law.