The Courant is reporting that the bill passed by the legilslature is being objected to by the DOT, which claims it will lose Federal highway Funds, because of a provision about bill boards. From The Courant:

The Federal Highway Administration warned Tuesday that the legislature’s recent reform of eminent domain laws violates the Highway Beautification Act and could cost the state about $40 million annually.

Legislators voted by overwhelming margins last week to reform how municipalities can take property by eminent domain, saying the measure was a protection for homeowners against big government.

But the legislation also requires better compensation for a more frequent target of eminent domain proceedings - billboards taken down by the state to make way for transportation projects.

State transportation officials fought unsuccessfully to delete the provision, saying it could drive up the cost of transportation projects, including the Hartford-New Britain Busway, which will require the removal of 10 billboards.

On Tuesday, the department played a new card - a letter from a federal highway official warning that Connecticut could lose 10 percent of its annual federal highway funds. The money ranges from $355 to $440 million.

This is a ridiculous objection. There’s nothing preventing entrepreneurial bill board companies form locating space atop buildings and other structures near the highways.

source: The Courant Eminent Domain Fix At Risk: Billboard Clause Could Lead To Cuts In State’s Share Of Federal Highway FundsBy MARK PAZNIOKAS, June 6, 2007