Eminent Domain Bill Approved by House Judiciary Committee

The Private Property Rights Protection Act (HR 1433), which will prohibit states and local governments that use eminent domain for economic development purposes from receiving federal economic development funds for two (2) years as well as prohibit the federal government from using eminent domain for economic development purposes altogether, was approved by the House Judiciary Committee (23-5) yesterday.  The bill will now move to the full House floor.  Currently there is no corresponding legislation in the Senate.

If signed into law, the bill could have great consequences for the development community and local economies. The bill allows private property owners to legally challenge property takings by state and local governments as many as seven (7) years after the property’s condemnation.  As a result, developments would be at risk for legal challenges several years after completion which may: make it more difficult for developers to secure financing for projects; halt potential developments; and, exacerbate local economic problems.

The bill is almost identical to legislation introduced in reaction to the Supreme Court decision in Kelo v. City of New London (2005).  That bill was approved by the House, but was not approved by the Senate.  Consequently, most every state has addressed eminent domain reform through state legislation, including Florida.  See the Bert J. Harris, Jr. Private Property Rights Protection Act, Fla. Stat. § 70.001.

The bill’s status can be tracked here.