Private Property Rights Protection Act Of 2017
Mr. Speaker, I reserve the balance of my time. Mr. Speaker, may I inquire how much time I have remaining. Mr. Speaker, I yield myself the balance of my time. First of all, the protection of private ownership of property is vital to…
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, may I inquire how much time I have remaining.
Mr. Speaker, I yield myself the balance of my time.
First of all, the protection of private ownership of property is vital to individual freedom and national prosperity. It is also one of the most fundamental constitutional principles, as the Founders enshrined property rights protections throughout the Constitution, including in the Fifth Amendment, which provides that private property shall not be taken for public use without just compensation.
This clause created two conditions to the government taking private property: first, the subsequent use of the property must be for the use of the public and, second, that the government must pay the owner just compensation for the property.
However, more than a decade ago the Supreme Court, in the 5-4 Kelo v. City of New London decision, expanded the ability of State and local governments to exercise eminent domain powers beyond what is allowed by the text of the Constitution, by allowing government to seize property under the vague guise of economic development, even when the public use turns out to be nothing more than the generation of tax revenues by another private party after the government takes property from private individuals and gives it to another private entity.
As the dissenting Justices observed, by defining public use so expansively, the result of the Kelo decision is, effectively, to delete the words ``for public use'' from the Takings Clause of the Fifth Amendment. The specter of condemnation hangs over all property. The government now has license to transfer property from those with few resources to those with more. The Founders cannot have intended this perverse result.
In the wake of this decision, State and local governments can use eminent domain powers to take the property of any individual for nearly any reason. Cities may now bulldoze citizens' homes, farms, churches, and small businesses to make way for shopping malls or other developments.
To help prevent such abuse, using Congress' constitutional legislative powers, it is important Congress finally passes the Private Property Rights Protection Act.
I want to thank Mr. Sensenbrenner for reintroducing this legislation. He and I have worked together on this issue for many years, and I am pleased that this legislation incorporates many provisions from legislation I helped to introduce in the 109th Congress, the STOPP Act.
Specifically, the Private Property Rights Protection Act would prohibit State and local governments from receiving Federal economic development funds for 2 years when they use economic development as a justification for taking property from one person and giving it to another private entity.
In addition, this legislation grants adversely affected landowners the right to use appropriate legal remedies to enforce the provisions of the bill and allows State and local governments to cure violations by giving the property back to the original owner.
The bill also includes a carefully crafted definition of economic development that protects traditional uses of eminent domain, such as taking land for public uses like roads and pipelines, while prohibiting abuses of the eminent domain power.
No one should have to live in fear of the government's taking their home, farm, or business simply to give it to a wealthier person or corporation. As the Institute for Justice's witness observed during a hearing on this bill, using eminent domain so that another richer, better-connected person may live or work on the land you used to own tells Americans that their hopes, dreams, and hard work do not matter as much as money and political influence. The use of eminent domain for private development has no place in a country built on traditions of independence, hard work, and protection of property rights.
This legislation has passed the House three times previously, either by voice vote or with the support of at least 80 percent of House Members in an overwhelmingly bipartisan vote, only to be stalled in the Senate. But the fight for people's homes continues, as will this committee's efforts to protect Federal taxpayers from any involvement in eminent domain abuse.
Just a few years ago, every single Republican Member voted for the very same legislation on the House floor, as did two-thirds of Democratic Members. I urge my colleagues to join me in supporting this overwhelmingly bipartisan effort.
I want to respond to some of the issues raised by the gentleman from New York and the gentleman from Maryland. Pursuant to Congress' powers under the Constitution's Spending Clause, the Private Property Rights Protection Act conditions the receipt of Federal economic development funds on State and local governments agreeing not to use eminent domain for private economic development takings.
Federal law currently permits expending Federal funds to support the use of eminent domain for these abusive takings. In our current economy, and with the Federal Government running deficits every year, Congress should not be spending American taxpayers' scarce economic development funds to support State and local governments that unconstitutionally deprive hardworking Americans of their homes, farms, and small businesses.
By conditioning the receipt of Federal economic development funds on State and local governments agreeing not to take property for commercial development, this provision in the bill ends the Federal Government's complicit support of eminent domain abuse.
The enforcement provisions in the base bill are comprehensive, and they include all manner of relief from preliminary injunctions and temporary restraining orders, to the awarding of attorney's fees, to the ability of the State or locality to return or replace the property to avoid the penalties under the bill. Even those comprehensive enforcement mechanisms, on their own, are not enough. We must end Federal monetary support for economic development takings.
If State governments retain control over eminent domain decisions, then, of course, those States should be held responsible for the State's own actions. But in Virginia, my State, local governments are not allowed to condemn property for economic development purposes. In Virginia, the so-called Dillon Rule provides that localities can act only in areas in which the State general assembly has granted clear authority.
So, in Virginia, local governments have only the authorities granted to them by the General Assembly, and the Virginia General Assembly has empowered local governments in Virginia to condemn property for roads, schools, and other public uses, but local governments do not have the right to condemn property for economic development.
In fact, back in 2000, Virginia Beach city government tried to condemn private property on the oceanfront to help a Hilton hotel build a parking garage, but Circuit Court Judge H. Thomas Padrick, Jr., ruled that Virginia Beach could not use eminent domain for that purpose, finding that the legislature did not intend to allow a city to condemn property solely for its economic benefit and development.
Indeed, after the Supreme Court handed down its notorious decision in the Kelo case, a spokeswoman for the Virginia attorney general said the following:
As per the constitution of Virginia, public use in eminent
domain is defined by the general assembly. There is no
proviso in our constitution to use eminent domain for
economic development.
As a result of the Kelo decision, this bill won't have an impact on Virginia.
Finally, regarding Representative Raskin's comments about how the bill relates to the Supreme Court's NFIB v. Sebelius case, the ObamaCare case, the bill, as currently drafted, would certainly not run afoul of anything in it for several reasons.
The court made clear in the case that Congress may attach appropriate conditions to Federal taxing and spending programs to preserve its control over the use of Federal funds. That is what the bill does: deny the use of Federal economic development funds to jurisdictions that have demonstrated their willingness to abuse eminent domain and thereby demonstrated their willingness to use Federal funds to further future abuses of eminent domain if allowed to do so.
The court went on to cite the South Dakota v. Dole case, in which a Federal law threatened to withhold 5 percent of a State's Federal Highway Fund if the State did not raise its drinking age to 21. The court found that the condition was directly related to one of the main purposes for which highway funds are expended: safe interstate travel.
In the same way, the bill's restrictions are directly related to one of the main purposes for which Congress should intend Federal economic development funds to be expended: economic development that does not infringe on the property rights of individual property owners.
The court pointed out that, in the South Dakota v. Dole case, the Federal funds at stake constituted less than one-half of 1 percent of South Dakota's budget at the time; whereas, the potential loss of funds at issue in NFIB v.
Sebelius were such that Medicaid spending accounts were over 20 percent of the average State's total budget.
No one is claiming that Federal economic development funds, however defined, would constitute anything near 20 percent of a State's total budget.
In NFIB v. Sebelius, the court also cited the Pennhurst v. Halderman case and characterized its holdings as, though Congress' power to legislate under the Spending Clause is broad, it does not include surprising participating States with post-acceptance or retroactive conditions.
That, of course, is not the case with the bill, which applies its prohibition upon the receipt of Federal economic development funds only after a State had been found by a court, in a final judgment on the merits, to have violated the act.
Finally, not only is it implausible that the bill would ever run afoul of Supreme Court precedent due to the relatively small size of Federal economic development funds in the context of a State or a locality's entire annual budget; the bill contains a further safety valve in that it gives the attorney general the discretion to promulgate precisely which Federal funding streams are Federal economic development funds under the bill. So, if a constitutional issue ever arose, the attorney general could simply scale back the size of its promulgated list accordingly.
It seems to me it can't be claimed this bill is unconstitutional under any reasonable reading of any existing Supreme Court precedent.
Regarding federalism values generally, the key point is that there actually is a very close nexus between Federal development funding and eminent domain, even if the funding is not used on eminent domain projects.
Money is fungible, of course. If the bill were amended to disallow only the use of Federal economic development funds on eminent domain projects, it would be very easy for an offending jurisdiction to game the system by artificially segmenting a project into parts that use eminent domain and parts that don't. That segmentation would happen both vertically, by dividing a project into stages, and horizontally, by dividing a single project into very small geographic segments.
The entirely appropriate federalism message the base bill sends to States and localities is that, if you are going to do economic development but abuse eminent domain, that is fine, but you will be on your own for a while and go without Federal taxpayer complicity in your abuse of eminent domain.
Mr. Speaker, this is good legislation. The concerns addressed by the minority are addressed clearly in this legislation. There is strong bipartisan support for this bill. Mr. Speaker, I urge my colleagues to pass this and, once again, send it to the United States Senate, where we can only hope that they will someday see the wisdom of protecting the constitutional rights of law-abiding citizens.
Mr. Speaker, I yield back the balance of my time.