TLMA ALERT:  (July 2005)

BAD NEWS FOR LANDOWNERS – YOUR LAND CAN BE TAKEN!

The Supreme Court in a 5 to 4 decision has given authorization to local governments to seize homes and businesses for economic development purposes.  In his majority opinion, Justice John Paul Stevens said New London could pursue private development under the Fifth Amendment, which allows governments to take private property if the land is for public use. He said the project the City of New London, Connecticut has in mind promises to bring more jobs and revenue.  He was joined in his opinion by other members of the court's liberal wing - David H. Souter, Ruth Bader Ginsburg and Stephen G. Breyer, as well as Reagan appointee Justice Anthony Kennedy, in noting that states are free to pass additional protections if they see fit.  The four-member bloc typically has favored greater deference to cities, which historically have used the power of eminent domain for urban renewal projects.

At least eight states - Arkansas, Florida, Illinois, Kentucky, Maine, Montana, South Carolina and Washington - forbid the use of eminent domain for economic development unless it is to eliminate blight. Other states, including Texas, either expressly allow private property to be taken for private economic purposes or have not spoken clearly to the question.

Under the ruling, residents of New London will still be entitled to "just compensation" for their homes as provided under the Fifth Amendment. However, homeowners had refused to move at any price, calling it an unjustified taking of their property.

Landowners in the lawsuit, however, pledged to continue their fight.  The case is Kelo et al v. City of New London , 04-108.

LEGISLATION FILED IN SPECIAL SESSION

The Texas Legislature appears eager to address this issue as several different measures have been filed this special session, which lasts until July 20.  The Senate State Affairs Committee held a hearing on different constitutional amendments filed by Senator Bob Deuell and Senator Kyle Janek and passed out a committee substitute for Senate Bill 62, which statutorily limits the ability of political subdivisions to use eminent domain.  The House Land and Resources Management Committee also passed out a constitutional amendment filed by Representative Frank Corte, House Joint Resolution 19. 

As you are aware, the purpose of this Special Session is to address school finance reform.  The Governor can always add important issues, like protecting landowners against a City of New London scenario, however time is short.  While it is highly unlikely there is enough time remaining to add this important issue to the call, Legislators and the Governor need to know the importance of this issue as they move forward.  Landowners need reassurance from our elected officials, whether in this Special Session or in the next regular session.  Please contact the Governor and your local House member and Senator so they may know it is critical that Texas voters and landowners be given the opportunity to prevent this situation from happening in our state. 

U.S. Senator John Cornyn of Texas has also filed legislation in Washington that would prohibit transfers of private property if federal funds were used and if the transfer was for economic development.

PROTECT YOUR RIGHTS

The Governor can be reached at:  Governor Rick Perry, Office of the Governor, PO Box 12428, Austin, Texas 78711. 

Senators can be reached at: The Honorable [________], PO Box 12068, Austin, Texas 78711-2068. 

House members can be reached at: The Honorable [______], PO Box 2910, Austin, Texas 78768-2910.