Private Property Rights Protection Act of 2019
This bill limits the ability of a state or political subdivision of a state from exercising its power of eminent domain over property to be used for economic development.
If a state or political subdivision of a state uses its eminent domain power to transfer private property to other private parties for the purpose of economic development within seven years of its exercise, the state shall be ineligible for federal economic development funds for two fiscal years following a judicial determination that the law has been violated.
The Department of Justice (DOJ) must investigate notices of alleged violations, provide the government authority with 90 days to cure any violations that exist, and bring actions to enforce this bill if the government is still in violation after the 90-day period. DOJ must also intervene in private actions if necessary to enforce this bill.
The bill prohibits the federal government, or a state or political subdivision receiving federal economic development funds during any fiscal year, from exercising the power of eminent domain over property of a religious or other nonprofit organization because of the organization's nonprofit or tax-exempt status or any related quality.
[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 738 Introduced in House (IH)]
<DOC>
116th CONGRESS
1st Session
H. R. 738
To protect private property rights.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2019
Mr. Sensenbrenner introduced the following bill; which was referred to
the Committee on the Judiciary
_______________________________________________________________________
A BILL
To protect private property rights.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Private Property Rights Protection
Act of 2019''.
SEC. 2. PROHIBITION ON EMINENT DOMAIN ABUSE BY STATES.
(a) In General.--No State or political subdivision of a State shall
exercise its power of eminent domain, or allow the exercise of such
power by any person or entity to which such power has been delegated,
over property to be used for economic development or over property that
is used for economic development within 7 years after that exercise, if
that State or political subdivision receives Federal economic
development funds during any fiscal year in which the property is so
used or intended to be used.
(b) Ineligibility for Federal Funds.--A violation of subsection (a)
by a State or political subdivision shall render such State or
political subdivision ineligible for any Federal economic development
funds for a period of 2 fiscal years following a final judgment on the
merits by a court of competent jurisdiction that such subsection has
been violated, and any Federal agency charged with distributing those
funds shall withhold them for such 2-year period, and any such funds
distributed to such State or political subdivision shall be returned or
reimbursed by such State or political subdivision to the appropriate
Federal agency or authority of the Federal Government, or component
thereof.
(c) Opportunity To Cure Violation.--A State or political
subdivision shall not be ineligible for any Federal economic
development funds under subsection (b) if such State or political
subdivision returns all real property the taking of which was found by
a court of competent jurisdiction to have constituted a violation of
subsection (a) and replaces any other property destroyed and repairs
any other property damaged as a result of such violation. In addition,
the State or political subdivision must pay any applicable penalties
and interest to reattain eligibility.
SEC. 3. PROHIBITION ON EMINENT DOMAIN ABUSE BY THE FEDERAL GOVERNMENT.
The Federal Government or any authority of the Federal Government
shall not exercise its power of eminent domain to be used for economic
development.
SEC. 4. PRIVATE RIGHT OF ACTION.
(a) Cause of Action.--Any--(1) owner of private property whose
property is subject to eminent domain who suffers injury as a result of
a violation of any provision of this Act with respect to that property;
or (2) any tenant of property that is subject to eminent domain who
suffers injury as a result of a violation of any provision of this Act
with respect to that property, may bring an action to enforce any
provision of this Act in the appropriate Federal or State court. A
State shall not be immune under the 11th Amendment to the Constitution
of the United States from any such action in a Federal or State court
of competent jurisdiction. In such action, the defendant has the burden
to show by clear and convincing evidence that the taking is not for
economic development. Any such property owner or tenant may also seek
an appropriate relief through a preliminary injunction or a temporary
restraining order.
(b) Limitation on Bringing Action.--An action brought by a property
owner or tenant under this Act may be brought if the property is used
for economic development following the conclusion of any condemnation
proceedings condemning the property of such property owner or tenant,
but shall not be brought later than 7 years following the conclusion of
any such proceedings.
(c) Attorney's Fee and Other Costs.--In any action or proceeding
under this Act, the court shall allow a prevailing plaintiff a
reasonable attorney's fee as part of the costs, and include expert fees
as part of the attorney's fee.
SEC. 5. REPORTING OF VIOLATIONS TO ATTORNEY GENERAL.
(a) Submission of Report to Attorney General.--Any--(1) owner of
private property whose property is subject to eminent domain who
suffers injury as a result of a violation of any provision of this Act
with respect to that property; or (2) any tenant of property that is
subject to eminent domain who suffers injury as a result of a violation
of any provision of this Act with respect to that property, may report
a violation by the Federal Government, any authority of the Federal
Government, State, or political subdivision of a State to the Attorney
General.
(b) Investigation by Attorney General.--Upon receiving a report of
an alleged violation, the Attorney General shall conduct an
investigation to determine whether a violation exists.
(c) Notification of Violation.--If the Attorney General concludes
that a violation does exist, then the Attorney General shall notify the
Federal Government, authority of the Federal Government, State, or
political subdivision of a State that the Attorney General has
determined that it is in violation of the Act. The notification shall
further provide that the Federal Government, State, or political
subdivision of a State has 90 days from the date of the notification to
demonstrate to the Attorney General either that: (1) it is not in
violation of the Act; or (2) that it has cured its violation by
returning all real property the taking of which the Attorney General
finds to have constituted a violation of the Act and replacing any
other property destroyed and repairing any other property damaged as a
result of such violation.
(d) Attorney General's Bringing of Action To Enforce Act.--If, at
the end of the 90-day period described in subsection (c), the Attorney
General determines that the Federal Government, authority of the
Federal Government, State, or political subdivision of a State is still
violating the Act or has not cured its violation as described in
subsection (c), then the Attorney General will bring an action to
enforce the Act unless the property owner or tenant who reported the
violation has already brought an action to enforce the Act. In such a
case, the Attorney General shall intervene if it determines that
intervention is necessary in order to enforce the Act. The Attorney
General may file its lawsuit to enforce the Act in the appropriate
Federal or State court. A State shall not be immune under the 11th
Amendment to the Constitution of the United States from any such action
in a Federal or State court of competent jurisdiction. In such action,
the defendant has the burden to show by clear and convincing evidence
that the taking is not for economic development. The Attorney General
may seek any appropriate relief through a preliminary injunction or a
temporary restraining order.
(e) Limitation on Bringing Action.--An action brought by the
Attorney General under this Act may be brought if the property is used
for economic development following the conclusion of any condemnation
proceedings condemning the property of an owner or tenant who reports a
violation of the Act to the Attorney General, but shall not be brought
later than 7 years following the conclusion of any such proceedings.
(f) Attorney's Fee and Other Costs.--In any action or proceeding
under this Act brought by the Attorney General, the court shall, if the
Attorney General is a prevailing plaintiff, award the Attorney General
a reasonable attorney's fee as part of the costs, and include expert
fees as part of the attorney's fee.
SEC. 6. NOTIFICATION BY ATTORNEY GENERAL.
(a) Notification to States and Political Subdivisions.--
(1) Not later than 30 days after the enactment of this Act,
the Attorney General shall provide to the chief executive
officer of each State the text of this Act and a description of
the rights of property owners and tenants under this Act.
(2) Not later than 120 days after the enactment of this
Act, the Attorney General shall compile a list of the Federal
laws under which Federal economic development funds are
distributed. The Attorney General shall compile annual
revisions of such list as necessary. Such list and any
successive revisions of such list shall be communicated by the
Attorney General to the chief executive officer of each State
and also made available on the internet website maintained by
the United States Department of Justice for use by the public
and by the authorities in each State and political subdivisions
of each State empowered to take private property and convert it
to public use subject to just compensation for the taking.
(b) Notification to Property Owners and Tenants.--Not later than 30
days after the enactment of this Act, the Attorney General shall
publish in the Federal Register and make available on the Internet
website maintained by the United States Department of Justice a notice
containing the text of this Act and a description of the rights of
property owners and tenants under this Act.
SEC. 7. REPORTS.
(a) By Attorney General.--Not later than 1 year after the date of
enactment of this Act, and every subsequent year thereafter, the
Attorney General shall transmit a report identifying States or
political subdivisions that have used eminent domain in violation of
this Act to the Chairman and Ranking Member of the Committee on the
Judiciary of the House of Representatives and to the Chairman and
Ranking Member of the Committee on the Judiciary of the Senate. The
report shall--
(1) identify all private rights of action brought as a
result of a State's or political subdivision's violation of
this Act;
(2) identify all violations reported by property owners and
tenants under section 5(c) of this Act;
(3) identify the percentage of minority residents compared
to the surrounding nonminority residents and the median incomes
of those impacted by a violation of this Act;
(4) identify all lawsuits brought by the Attorney General
under section 5(d) of this Act;
(5) identify all States or political subdivisions that have
lost Federal economic development funds as a result of a
violation of this Act, as well as describe the type and amount
of Federal economic development funds lost in each State or
political subdivision and the Agency that is responsible for
withholding such funds; and
(6) discuss all instances in which a State or political
subdivision has cured a violation as described in section 2(c)
of this Act.
(b) Duty of States.--Each State and local authority that is subject
to a private right of action under this Act shall have the duty to
report to the Attorney General such information with respect to such
State and local authorities as the Attorney General needs to make the
report required under subsection (a).
SEC. 8. SENSE OF CONGRESS REGARDING RURAL AMERICA.
(a) Findings.--The Congress finds the following:
(1) The founders realized the fundamental importance of
property rights when they codified the Takings Clause of the
Fifth Amendment to the Constitution, which requires that
private property shall not be taken ``for public use, without
just compensation''.
(2) Rural lands are unique in that they are not
traditionally considered high tax revenue-generating properties
for State and local governments. In addition, farmland and
forest land owners need to have long-term certainty regarding
their property rights in order to make the investment decisions
to commit land to these uses.
(3) Ownership rights in rural land are fundamental building
blocks for our Nation's agriculture industry, which continues
to be one of the most important economic sectors of our
economy.
(4) In the wake of the Supreme Court's decision in Kelo v.
City of New London, abuse of eminent domain is a threat to the
property rights of all private property owners, including rural
land owners.
(b) Sense of Congress.--It is the sense of Congress that the use of
eminent domain for the purpose of economic development is a threat to
agricultural and other property in rural America and that the Congress
should protect the property rights of Americans, including those who
reside in rural areas. Property rights are central to liberty in this
country and to our economy. The use of eminent domain to take farmland
and other rural property for economic development threatens liberty,
rural economies, and the economy of the United States. The taking of
farmland and rural property will have a direct impact on existing
irrigation and reclamation projects. Furthermore, the use of eminent
domain to take rural private property for private commercial uses will
force increasing numbers of activities from private property onto this
Nation's public lands, including its National forests, National parks
and wildlife refuges. This increase can overburden the infrastructure
of these lands, reducing the enjoyment of such lands for all citizens.
Americans should not have to fear the government's taking their homes,
farms, or businesses to give to other persons. Governments should not
abuse the power of eminent domain to force rural property owners from
their land in order to develop rural land into industrial and
commercial property. Congress has a duty to protect the property rights
of rural Americans in the face of eminent domain abuse.
SEC. 9. SENSE OF CONGRESS.
It is the policy of the United States to encourage, support, and
promote the private ownership of property and to ensure that the
constitutional and other legal rights of private property owners are
protected by the Federal Government.
SEC. 10. RELIGIOUS AND NONPROFIT ORGANIZATIONS.
(a) Prohibition on States.--No State or political subdivision of a
State shall exercise its power of eminent domain, or allow the exercise
of such power by any person or entity to which such power has been
delegated, over property of a religious or other nonprofit organization
by reason of the nonprofit or tax-exempt status of such organization,
or any quality related thereto if that State or political subdivision
receives Federal economic development funds during any fiscal year in
which it does so.
(b) Ineligibility for Federal Funds.--A violation of subsection (a)
by a State or political subdivision shall render such State or
political subdivision ineligible for any Federal economic development
funds for a period of 2 fiscal years following a final judgment on the
merits by a court of competent jurisdiction that such subsection has
been violated, and any Federal agency charged with distributing those
funds shall withhold them for such 2-year period, and any such funds
distributed to such State or political subdivision shall be returned or
reimbursed by such State or political subdivision to the appropriate
Federal agency or authority of the Federal Government, or component
thereof.
(c) Prohibition on Federal Government.--The Federal Government or
any authority of the Federal Government shall not exercise its power of
eminent domain over property of a religious or other nonprofit
organization by reason of the nonprofit or tax-exempt status of such
organization, or any quality related thereto.
SEC. 11. REPORT BY FEDERAL AGENCIES ON REGULATIONS AND PROCEDURES
RELATING TO EMINENT DOMAIN.
Not later than 180 days after the date of the enactment of this
Act, the head of each Executive department and agency shall review all
rules, regulations, and procedures and report to the Attorney General
on the activities of that department or agency to bring its rules,
regulations and procedures into compliance with this Act.
SEC. 12. SENSE OF CONGRESS.
It is the sense of Congress that any and all precautions shall be
taken by the government to avoid the unfair or unreasonable taking of
property away from survivors of Hurricane Katrina who own, were
bequeathed, or assigned such property, for economic development
purposes or for the private use of others.
SEC. 13. DISPROPORTIONATE IMPACT.
If the court determines that a violation of this Act has occurred,
and that the violation has a disproportionately high impact on the poor
or minorities, the Attorney General shall use reasonable efforts to
locate former owners and tenants and inform them of the violation and
any remedies they may have.
SEC. 14. DEFINITIONS.
In this Act the following definitions apply:
(1) Economic development.--The term ``economic
development'' means taking private property, without the
consent of the owner, and conveying or leasing such property
from one private person or entity to another private person or
entity for commercial enterprise carried on for profit, or to
increase tax revenue, tax base, employment, or general economic
health, except that such term shall not include--
(A) conveying private property--
(i) to public ownership, such as for a
road, hospital, airport, or military base;
(ii) to an entity, such as a common
carrier, that makes the property available to
the general public as of right, such as a
railroad or public facility;
(iii) for use as a road or other right of
way or means, open to the public for
transportation, whether free or by toll; and
(iv) for use as an aqueduct, flood control
facility, pipeline, or similar use;
(B) removing harmful uses of land provided such
uses constitute an immediate threat to public health
and safety;
(C) leasing property to a private person or entity
that occupies an incidental part of public property or
a public facility, such as a retail establishment on
the ground floor of a public building;
(D) acquiring abandoned property;
(E) clearing defective chains of title;
(F) taking private property for use by a utility
providing electric, natural gas, telecommunication,
water, wastewater, or other utility services either
directly to the public or indirectly through provision
of such services at the wholesale level for resale to
the public; and
(G) redeveloping of a brownfield site as defined in
the Small Business Liability Relief and Brownfields
Revitalization Act (42 U.S.C. 9601(39)).
(2) Federal economic development funds.--The term ``Federal
economic development funds'' means any Federal funds
distributed to or through States or political subdivisions of
States under Federal laws designed to improve or increase the
size of the economies of States or political subdivisions of
States.
(3) State.--The term ``State'' means each of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, or any other territory or possession of the United
States.
SEC. 15. LIMITATION ON STATUTORY CONSTRUCTION.
Nothing in this Act may be construed to supersede, limit, or
otherwise affect any provision of the Uniform Relocation Assistance and
Real Property Acquisition Policies Act of 1970 (42 U.S.C. 4601 et
seq.).
SEC. 16. BROAD CONSTRUCTION.
This Act shall be construed in favor of a broad protection of
private property rights, to the maximum extent permitted by the terms
of this Act and the Constitution.
SEC. 17. SEVERABILITY AND EFFECTIVE DATE.
(a) Severability.--The provisions of this Act are severable. If any
provision of this Act, or any application thereof, is found
unconstitutional, that finding shall not affect any provision or
application of the Act not so adjudicated.
(b) Effective Date.--This Act shall take effect upon the first day
of the first fiscal year that begins after the date of the enactment of
this Act, but shall not apply to any project for which condemnation
proceedings have been initiated prior to the date of enactment.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on the Judiciary.
Referred to the Subcommittee on the Constitution, Civil Rights, and Civil Liberties.
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