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Eminent domain in Texas: still work to be done.

RedState friends, I’d like to present to you here a guest post from one of the intellectual free-market leaders at the Texas Public Policy Foundation, Director of the Center for Economic Freedom Bill Peacock. I’m proud to call Bill a colleague, and he’s been in the trenches fighting for good policy for well over a decade.

The topic Bill writes about here, eminent-domain reform, is of profound national interest in the post-Kelo world. Given Texas’s outsized role driving our national economy in the past decade, it’s going to take on an increasing role driving national policy as well. If there’s any state that must get private-property protection right, it’s Texas.

Thanks for welcoming Bill Peacock — and TPPF — to RedState!


Texas seems to be at or near the top of about every major ranking of the states one can find: jobs created, Fortune 500 companies, attracting new business, and overall economic performance. We may even be the national leader in lawsuits against the federal government.

However, one area where Texas notoriously lags behind: the protection of private property rights.


It has been almost six years since the U.S. Supreme Court’s Kelo opinion awoke the nation to the sad state of the country’s eminent domain laws. According to a narrow majority of the Court, the mere possibility that private property might make more money for a developer and a city when put to another use is reason enough for the government to take it away.

Kelo set off a chain reaction of states enacting comprehensive reform to protect property owners who could no longer depend on the U.S. Constitution’s Taking Clause. Florida, South Dakota, New Mexico, and Arizona—among many others, dramatically improved their states’ property rights protections. However, here in Texas, we are still waiting.

Not that Texas hasn’t made some changes. We’ve at least (mostly) banned takings for economic development purposes and required that blight determinations be made on a parcel by parcel basis. The Institute for Justice generously grades us at a B-. However, this ranks us no better than 21st among the states. The fact that we rank ahead of California (D-) and New York (F) is in this case of little comfort to Texas property owners still awaiting comprehensive reform.

Yet there is hope. Texas Gov. Rick Perry has proclaimed eminent domain reform an emergency item for the Texas Legislature, allowing the issue to be considered before other bills can be heard. Because of this, eminent domain reform legislation (SB 18) has already passed the Texas Senate and will be taken up by a Texas House committee on Monday.

While it offers improvement over the status quo, the problem with SB 18 is that it has been highly negotiated  by special interests over the last three legislative sessions, resulting in an “agreed upon” bill that people are reluctant to change less someone jump off the bandwagon. However, when one of those on the bandwagon is the Texas Municipal League, how good SB 18 can be? After all, it was TML that proclaimed that Kelo “simply confirms what cities have known all along: under the Fifth Amendment to the U.S. Constitution, economic development can be as much a ‘public use’ as a road, bridge, or water tower.”

One example—the buyback provision—will suffice to show the need to improve SB 18.

Currently, while property can only be taken for a public use, there is no requirement that the property—once taken—must be used for that same use. So, for a real life example, property owners near San Antonio might find their property taken for a reservoir eventually being used for a Toyota plant. SB 18 has a provision to address this problem, but it is unfortunately worse than current law.

According to SB 18, a government entity has to meet two of seven criteria to demonstrate that it is using a property for the public use for which it was taken—and thereby avoid the requirement to offer the property for sale back to the original owner. However, one of those seven criteria is that the government entity pass a resolution saying they will only meet one of the other six! Then four of those six are requirements that the government entity 1) apply for a permit, 2) apply for funds, 3) take two properties for the same use, or 4) hire an architect. No property owner will ever get her property back under SB 18.

There are a lot of ways that SB 18 can be improved. It is important to do so because if there is one area that Texas should be leading the country, it is in the protection of private property rights. Texas’ efforts in promoting deregulation, standing up for Tenth Amendment rights, and keep taxes low have greatly benefited the entire country—both in setting a national example and in providing a place for out-of-work Americans to find a job. Comprehensive reform through an improved SB 18 will set the stage for greater property rights protections across the country, especially in the next area in need of reform, regulatory takings.

With SB 18 moving at a rapid pace—at least for legislative proceedings, we may know the fate of property rights reform in Texas by the end of next week.

COMMENTS

  • NeoKong

    In Texas if the police stop you and suspect you of a crime they can seize your car and all your money without even charging you with a crime.
    Unbelievable.

    Between 2006 and 2008, Tenaha, Texas, law enforcement officers stopped more than 140 mostly black, out-of-state vehicles, which included a grandmother from Akron, Ohio, and a family from Maryland. While the officers alleged that the roadway was a major drug corridor, none of the plaintiffs were arrested for, much less convicted of, violating drug laws.

    Upon arresting the motorists, officers took them to jail and threatened to file charges unless they signed a pre-notarized statement relinquishing any claim to their valuables. Officers seized cash, cars, cell phones and jewelry. In one case, when the officers discovered $8,500 in cash that a Tennessee motorist planned to use to buy a car, officers threatened to charge him with money laundering unless he turned over the cash. He surrendered the money, and only after hiring a lawyer was he able to get it back.

    An attorney representing some of the plaintiffs estimates that Tenaha officials improperly seized more than $3 million between 2006 and 2008

    I also read that in Texas when they run DWI check points that they have a judge on hand to compel you to give a roadside blood sample against your will if necessary if you refuse a breathalyzer.
    I’m not a fan of DWI but I think it’s outrageous that cops can hold you down and stick a needle in your arm against your will.

  • akaplan

    Background – On June 23, 2005 the US Supreme Court handed down the 5-4 Kelo decision favoring the defendant City of New London Connecticut over the plaintiffs, Suzette Kelo and a group of her neighbors.
    The city, citing the the long established right of government to seize property, under eminent domain, had attempted to take real estate the plaintiffs owned and give it to a developer who proposed to upgrade the property.

    Although it was not unusual for real estate to be taken for a “public use”, there was no clear public use since the property was being taken from one private party and given to another. The city prevailed when it claimed that the tax base would be increased by the action and as a consequence, the community in general would benefit. This was referred to as a “public purpose”.

    The Kelo decision opened the door to governing entities seizing property of one member of the public and giving it to another in what appears to be a clear violation of the Fifth Amendment to the US Constitution.

    Kelo was a widely unpopular decision. It is still the law of the land although many states have enacted legislation aimed at countering it. The fact was that in many localities it is not unusual for voting members of local boards and councils to accept bribes in return for votes. That’s unfortunate, but it’s a fact borne out by conviction of those corrupt officials. Prior to Kelo, corruption primarily focused on contracts and on zoning.

    Contract awards were the more difficult of the two to get away with. There was always a losing bidder who could blow a whistle if an irregularity was provable.

    Rezoning, was and is the corrupt vehicle of choice. In the West where it was not unusual for a developer to convert a piece of raw land into a shopping center or housing tract, it was not difficult to slip through a zoning for a corrupting landowner.

    It was a paper operation that overtly cost nobody a dime and as a consequence got little attention. That is, if a piece of raw land could be rezoned for high density residential use, its market value could be increased 600% to 800%. All that could be done without a shovel of dirt being turned. The owner of the rezoned land could then put it on the market and sell it for a huge profit. The crooked politician who voted for the rezoning would, of course, be paid for his dirty work. So when Kelo was decided, there was an in-place cadre of corrupt politicians to pick up the new ball and run with it.

    Although there were a few oblique references to the possibility that a corrupt local body might now use eminent domain and “public purpose” to force the transfer of real estate from one owner to another, that was never a serious consideration in Kelo.

    Some will read this and conclude that I am a cynic and there is no basis for my distrust of dedicated public officials.

    I would point out that with all the local city and county officials who have been convicted of corruption in misusing their office, they should be entitled to their own cellblock of a prison.

    My friend, former Las Vegas City Councilman, Steve Miller, tells how he was indoctrinated into the City Council. It was explained to him that if he voted for a certain zone change, he would be able to buy a piece of land “at cost”. On the surface that didn’t sound like a bribe until it was explained to him that “at cost” was defined as “the cost 30 years ago!” Some readers will say that Las Vegas is widely known as a city plagued by criminal elements that it is the exception rather than the rule.

    Unfortunately, it is easy to find evidence of similar local corruption throughout the country. In September 2007 former Ocean Township Mayor and Asbury Park New Jersey manager, Terrance Weldon was convicted of accepting $64,000 in bribes from developers. 11 city officials from Newark, Orange, Passaic, Patterson, and Pleasantville were indicted for bribery in a sting operation.

    Just do a Google search for “Corrupt city and county officials”, you’ll find hits in Atlanta and Fulton County Georgia, New Orleans, Lubbock County Texas, Tacoma Washington, Lake City South Carolina, and Chicago Illinois on the first page of your search. Google reported 111,000 hits! Suffice to say, that given the Kelo decision it will be hard for many dishonest officials to avoid seizing the real estate of honest hard-working Americans.

    The Problem – The people whose property is about to be seized under eminent domain retain counsel. Not surprisingly, the focus is almost immediately put upon getting fair value for the property being seized.
    That is normally an appropriate approach if the seizure is truly one where the political body takes the real estate for “public use”. However, even in those cases one has to look at the impact of the proposed “public use” If for example, an adjacent property owner would benefit from the proposed seizure, there may be chicanery afoot. Those situations should be investigated and not summarily accepted as being without corruption.

    However, the seizures that really stand out, are those where the property is being transferred from one private party to another. The problem is how to deal with those situations without spending a fortune.

    The Solution – If bribery or other corrupt activities by governing officials favoring the seizure can be proved, the entire transaction can be derailed.
    Our approach is to file suit and lawfully obtain access to computer storage devices such as hard drives held on computers or other digital devices. These days where an estimated 85% of all such business finds its way on to computers, there is a good chance of uncovering illegal an unethical relationships.

    It is a team project, normally requiring the services of an attorney, an investigator and a computer forensic examiner. Since we are both investigators and computer forensic examiners we can fill two those requirements if the venue is in Nevada. In all other jurisdictions, we would be hired by the Licensed PI from that state

  • akaplan

    Background – On June 23, 2005 the US Supreme Court handed down the 5-4 Kelo decision favoring the defendant City of New London Connecticut over the plaintiffs, Suzette Kelo and a group of her neighbors.
    The city, citing the the long established right of government to seize property, under eminent domain, had attempted to take real estate the plaintiffs owned and give it to a developer who proposed to upgrade the property.

    Although it was not unusual for real estate to be taken for a “public use”, there was no clear public use since the property was being taken from one private party and given to another. The city prevailed when it claimed that the tax base would be increased by the action and as a consequence, the community in general would benefit. This was referred to as a “public purpose”.

    The Kelo decision opened the door to governing entities seizing property of one member of the public and giving it to another in what appears to be a clear violation of the Fifth Amendment to the US Constitution.

    Kelo was a widely unpopular decision. It is still the law of the land although many states have enacted legislation aimed at countering it. The fact was that in many localities it is not unusual for voting members of local boards and councils to accept bribes in return for votes. That’s unfortunate, but it’s a fact borne out by conviction of those corrupt officials. Prior to Kelo, corruption primarily focused on contracts and on zoning.

    Contract awards were the more difficult of the two to get away with. There was always a losing bidder who could blow a whistle if an irregularity was provable.

    Rezoning, was and is the corrupt vehicle of choice. In the West where it was not unusual for a developer to convert a piece of raw land into a shopping center or housing tract, it was not difficult to slip through a zoning for a corrupting landowner.

    It was a paper operation that overtly cost nobody a dime and as a consequence got little attention. That is, if a piece of raw land could be rezoned for high density residential use, its market value could be increased 600% to 800%. All that could be done without a shovel of dirt being turned. The owner of the rezoned land could then put it on the market and sell it for a huge profit. The crooked politician who voted for the rezoning would, of course, be paid for his dirty work. So when Kelo was decided, there was an in-place cadre of corrupt politicians to pick up the new ball and run with it.

    Although there were a few oblique references to the possibility that a corrupt local body might now use eminent domain and “public purpose” to force the transfer of real estate from one owner to another, that was never a serious consideration in Kelo.

    Some will read this and conclude that I am a cynic and there is no basis for my distrust of dedicated public officials.

    I would point out that with all the local city and county officials who have been convicted of corruption in misusing their office, they should be entitled to their own cellblock of a prison.

    My friend, former Las Vegas City Councilman, Steve Miller, tells how he was indoctrinated into the City Council. It was explained to him that if he voted for a certain zone change, he would be able to buy a piece of land “at cost”. On the surface that didn’t sound like a bribe until it was explained to him that “at cost” was defined as “the cost 30 years ago!” Some readers will say that Las Vegas is widely known as a city plagued by criminal elements that it is the exception rather than the rule.

    Unfortunately, it is easy to find evidence of similar local corruption throughout the country. In September 2007 former Ocean Township Mayor and Asbury Park New Jersey manager, Terrance Weldon was convicted of accepting $64,000 in bribes from developers. 11 city officials from Newark, Orange, Passaic, Patterson, and Pleasantville were indicted for bribery in a sting operation.

    Just do a Google search for “Corrupt city and county officials”, you’ll find hits in Atlanta and Fulton County Georgia, New Orleans, Lubbock County Texas, Tacoma Washington, Lake City South Carolina, and Chicago Illinois on the first page of your search. Google reported 111,000 hits! Suffice to say, that given the Kelo decision it will be hard for many dishonest officials to avoid seizing the real estate of honest hard-working Americans.

    The Problem – The people whose property is about to be seized under eminent domain retain counsel. Not surprisingly, the focus is almost immediately put upon getting fair value for the property being seized.
    That is normally an appropriate approach if the seizure is truly one where the political body takes the real estate for “public use”. However, even in those cases one has to look at the impact of the proposed “public use” If for example, an adjacent property owner would benefit from the proposed seizure, there may be chicanery afoot. Those situations should be investigated and not summarily accepted as being without corruption.

    However, the seizures that really stand out, are those where the property is being transferred from one private party to another. The problem is how to deal with those situations without spending a fortune.

    The Solution – If bribery or other corrupt activities by governing officials favoring the seizure can be proved, the entire transaction can be derailed.
    Our approach is to file suit and lawfully obtain access to computer storage devices such as hard drives held on computers or other digital devices. These days where an estimated 85% of all such business finds its way on to computers, there is a good chance of uncovering illegal an unethical relationships.

    It is a team project, normally requiring the services of an attorney, an investigator and a computer forensic examiner. Since we are both investigators and computer forensic examiners we can fill two those requirements if the venue is in Nevada. In all other jurisdictions, we would be hired by the Licensed PI from that state

  • edintexas

    Regarding property seizure, unless you have been living under a rock for the past decade or so, you couldn’t have failed to notice that this is true nation-wide since the SCOTUS approved it. Wherever you live (within the US, of course) the same thing applies.

    I don’t know where you read about having a judge on hand at checkpoints to force a blood test, but that is BS. You have your license suspended for 6 months if you refuse, and you can file an application for an occupational license so you can work.

    http://austindwiattorney.net/texasdwibreathtestrefusal.html

    http://dwi.dfwattorneys.com/PracticeAreas/What-if-I-refused-the-breathalyzer.asp

  • ss396

    Currently, while property can only be taken for a public use, there is no requirement that the property

  • NeoKong

    Ahem….

    Earlier this week, the annual

  • NeoKong
  • NeoKong
  • myron_j_poltroonian

    Our local school district forced the condemnation of what was the remnants of the family farm of a Japanese-American family that was all that was left when the grandparents were held in a “Relocation Camp” during WW II. A “Taking” I railed against mightily in letters to the editor and at city council meetings. After the evil deed was done, the school district “Discovered” they didn’t need that piece of prime property and sold it off. Yes, no one made any attempt to return the property to it’s rightful owners, no one attempted to right the wrong done to that family. And, yes, no one was ever even charged, let alone sent to jail for those acts of contemptibility. {Epilogue: The cost over-runs were truly epic, besides.]

  • capeconservative

    should have been met with OUTRAGE from the citizens of the area. The ARROGANCE of public officials has been on display in Wisconsin and other states recently and it highlights the fact that We the People must step up to the plate and demand accountability from those we elected to serve US!

    As for the Kelo decision, it is disgusting to see the property as it is now. The GOVERNMENT totally destroyed a neighborhood and planned to give the property to a corporation. However, after the ‘evil deed’ was done, there never was any development! Of course it is IMPOSSIBLE to get the neighborhood back!

    Every department of our bloated government needs to be DOWNSIZED 10% a year for 8 years. Many agencies such as Education, DOE, HHS, and the EPA should be totally disbanded IMMEDIATELY. Once the government reaches 20% of its current composition, perhaps we will have a government worthy of governing this great country of ours! A flat rate tax for ALL would eliminate the need for 95% of the IRS!!! CLOSE our borders and deport all illegals – give them 30 days to leave before being rounded up. If Eisenhower could do it, then by golly so can another president. Eliminating the excessive healthcare and social services expenses for illegals would probably put the budget of most states in the black the first year.

    And most importantly, the federal government needs to STAY OUT of the personal LIVES of Americans!!!!!! Leave the states alone – the best government is at the local level where there is some accountability and recognition that there really is no ‘money tree’ in the back yard!