October 20, 2006
 by Ryan Grim
Ryan Grim

While the country is clearly looking to take a general turn to the left on Election Day, in one critical respect a few states may be lurching rightward. In Arizona, Montana, Idaho, Washington, and California, libertarians, in concert with the business community, have managed to put initiatives on state ballots that appear to be common sense solutions but are in fact extreme giveaways to the private sector from public coffers…

There’s a rundown of the initiatives here, but the gist is simple. Libertarians are using the infamous Kelo Supreme Court decision, which allowed a city to invoke eminent domain in order to take private property and sell it to developers, as the justification for the initiatives. The proposed solution, though, is kinda like the Patriot Act: an ideological proposal just waiting for the right moment to be enacted.

The plan introduces a “pay or waive” scheme: If any government regulation causes a person to lose property or profit — even potential, imagined profit — the government must either pay that person the value of that which was lost or waive the regulation. Washington’s measure is even retroactive back to 1996. Theoretically, a Washington resident could argue that he wants to build a nuclear power plant in his back yard, and state law is getting in his way. Therefore, the state must pay him the lost potential profit.

States can’t afford to fend off all these challenges and so will end up waiving important regulations with regularity or paying out large sums of money – or both.

The initiatives are dangerous because their language seems so innocuous and so easily pass if the public is ill informed. The scheme is already in place in at least one state, having passed in Oregon in 2004 as Measure 37.

Measure 37 has been a disaster – see this report on it -- but once these laws take effect, they’re hard to get rid of.

Ryan Grim 2:02 PM Permalink | Trackbacks | Comments (11)
 
Comments

These measures sound great. Let's hope they pass.

Posted by: Brian on October 21, 2006 at 6:48 PM | PERMALINK

This is what happens when legislators don't think ahead and craft legislation that protects the public's interests. We need some kind of control on eminent domain, but these ballot initives sound like a REALLY bad idea...

Posted by: doug r on October 21, 2006 at 7:03 PM | PERMALINK

We need some kind of control on eminent domain

How about a law mandating that if the state wants to take away property to build something, it has to build it itself, rather than handing it over to a private developer? That way you retain public accountability for whatever gets built.

I am highly unconvinced that governments in the US have too much power of eminent domain. There are too few major public works projects going on in the US, not too many.

Posted by: brooksfoe on October 22, 2006 at 2:38 AM | PERMALINK


I am highly unconvinced that governments in the US have too much power of eminent domain. There are too few major public works projects going on in the US, not too many.

The problem isn't that there are too many public works projects, it's that the government's taking private property for private works projects. That's the basis for anger at Kelo, not that government's taking private property to build schools or roads.
These proposed laws are bad, though. See also Jails For Judges in South Dakota.

Posted by: sal on October 22, 2006 at 11:03 AM | PERMALINK

These initiatives have little to nothing to do with eminent domain beyond the fact that it is used in some of the stupider campaign rhetoric.

What they do it make land use regulations impossible, usually retroactively in an arbitrary way.

Posted by: jefff on October 22, 2006 at 7:37 PM | PERMALINK

If governments think that private property must be used for "public" projects, let them pay for it. Seizure of private property is tyranny.

Posted by: Brian on October 22, 2006 at 8:06 PM | PERMALINK

Uh, Brian ... They already do pay for it - it's called eminent domain and it's in the U.S. Constitution. The Government can force you to sell your land for public purposes, like building roads and schools, but they have to pay you for it. It's usually the only way roads and schools can get built.

The issue is whether local Governments can decide that a private company building a shopping mall or a housing development is a "public purpose" under the constitution. Shopping malls and housing developments can benefit communities, and one person could stop an entire project by refusing to sell. On the other hand, the eminent domain process can be abused to help out private contractors and their friends. Therefore, it's a close call.

The Supreme Court decided that these projects are allowed under eminent domain. These initiatives pretend to be about reversing that, but are really about a reactionary conservative agenda of allowing totally unrestricted private development.

Because so many misinformed people fall for irrelevant statements like "Seizure of private property is tyranny", I'm afraid most of these initiatives will pass.

Posted by: David Conway on October 23, 2006 at 3:08 PM | PERMALINK

David, my point was that the goverment should have buy the property from the seller w/o the ability to coerce the sale. If that means that means that malls or housing projects can't go where the government would like, so be it. My apologies for not making that clearer.

Posted by: Brian on October 23, 2006 at 5:27 PM | PERMALINK

Brian, How about roads? If no coerced sales means that roads can't go where the government would like, do you also say "so be it"? If so, you'll need to amend the constitution - and drive around the farmhouse in the fast lane of the interstate.

As for private developments, local and state governments and voters (and maybe Congress) can restrict the use of eminent domain in those cases if they want. I'd even listen to the arguments on both sides and consider supporting some restrictions.

However, the initiatives under discusion aren't about that. These initiatives are nothing more than a way to gut environmental and other regulations and make large developers rich, under the guise of overturning Kelo.

BTW - after inadvertantly forgetting to post last time under my handle, I hope I won't be dodging black helicopters for the rest of my life.

Posted by: Common Knowledge on October 23, 2006 at 7:07 PM | PERMALINK

CK,

I'm perfectly willing to drive around farmhouses. I harbor no illusions about being able to change the Constitution, but one can dream....

I suspect that Ryan's example of the nuclear plant is just wee bit hyperbolic. That said, developers are welcome to make money as long they don't use the government to take the property of others. I think that "take" (or seize) is a fair characterization. When the spectre of condemnation hangs over a sale, the transaction is hardly fair.

I'll further open myself up to criticism by saying that I believe that property rights are are as fundamental as any other rights in free society.

Posted by: Brian on October 23, 2006 at 7:26 PM | PERMALINK

Brian, I'll agree property rights are fundamental, but no right is or should be unrestricted. Your right to swing your fist ends at my nose.

As far as the "spectrum of condemnation hanging over a sale" making it "hardly fair", the constitution gives the property owner the right to fair market value, actionable in a court of law.

What's at issue in Prop 90 in CA (can't speak to the other state issues) is not eminent domain at all but any rule that might potentially impact value of land. Say a pesticide is found to be fouling the waterways in a jurisdiction, and the area bans it. Under Prop 90, anyone who felt that it interfered with their property could sue for damages.

Posted by: jsegall on October 23, 2006 at 8:37 PM | PERMALINK
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