As the controversy over local water systems continues between the city governments and the Illinois American Water Company, contradicting bills involving eminent domain, seemingly favoring each side, have passed the Illinois State Senate and are pending approval from the House.

Senate Bill 3046 allows local governments to use eminent domain to claim rights to the local water systems without going through the Illinois Commerce Commission.

Under eminent domain, federal, state and local governments have the right to seize private property for public use, provided that the current owner is justly compensated.

Bruce Smith, associate professor of law specializing in property law at the University, said the exercise of eminent domain by governments has proven highly controversial in recent decades. He explained that critics of eminent domain contend that government exceeds their constitutional authority by broadening the definition of public use.

Urbana Mayor Laurel Prussing supports this bill because it will “level the playing field,” for local governments who wish to purchase their own water systems without proving they can do a better job.

“Our interest is in providing a well-run water system,” Prussing said.

Four states have already passed laws restricting use of eminent domain, and Illinois is among an estimated 40 considering changes.

Barry Suits, network operations manager for Illinois American Water said the changes to existing eminent domain law will “remove protection from the customers” by eliminating the Illinois Commerce Commission’s role as moderator.

“This bill concerns us because it devalues private property, which is contrary to what the 40 other states are trying to do with eminent domain laws,” Suits said.

Illinois American Water Company has been the owner of the water system in the Champaign-Urbana area for five years. They are the local branch of RWE, the German parent corporation of American Water and third largest private water company in the world.

Another senate bill that may conflict with Senate Bill 3046 is Senate Bill 3086. This bill seeks to establish guidelines on the eminent domain process in Illinois by outlining the various options for property owners. If passed, it will require local governments to prove the property in question is inadequately maintained before they can claim eminent domain rights.

Prussing said the RWE and Illinois American Water are using eminent domain laws as “scare-tactics” to sway customers. She said although the company supports the commerce commission’s authority in cases of eminent domain in order to protect the consumers, the changes to eminent domain are actually harm consumers by taking away jobs and forcing them to answer to a foreign water supplier.

“People do not want a foreign company controlling something as basic as water supply,” Prussing said. “This affects every business and every homeowner.”

The commerce committee has blocked eminent domain cases in the past because the local governments failed to prove they could better serve the community than the current owner of the water system.

In January 2004, the commerce commission ruled that the city of Pekin could not use eminent domain to purchase Illinois American’s Pekin District water system.

Suits said this will never be the case of a buyer and a willing seller of the water systems.

“Neither the (water company) nor the water system in Urbana is for sale,” Suits said.

Suits said he does not see an end to this controversy in sight, but he expects discussions to continue with the cities of Champaign and Urbana in order to “take the next step.”