NFIB supports legislation to limit the use of eminent domain to exclude economic development.
- Recently the Supreme Court ruled to uphold the power of local governments to seize private property in the name of economic development. The decision has been widely condemned—sparking outrage from small-business owners nationwide.
- In response Sen. Jon Cornyn (Texas) introduced S. 1313, “The Protection of Homes, Small Businesses, and Private Property Act of 2005.” Sen. Cornyn’s bill responds to the court’s terrible ruling and would help protect small-business owners from having their property seized by the government in the name of economic development. Additionally, Chairman Sensenbrenner of the House Judiciary Committee introduced similar legislation, H.R. 3135, the Private Property Rights Protection Act of 2005, which would also limit the use of eminent domain to exclude economic development. NFIB supports these bills and hopes to see their passage.
- These bills would prevent the use of federal funds when eminent domain is used for economic development, set out sharp restrictions on when private-to-private eminent domain occurs, and lay out a strict definition for “public use.”
- Under the Fifth Amendment to the Constitution, the United States may invoke its power of eminent domain to take private property only for “public use,” (provided that due process is accorded to the property owner and just compensation is paid). Over the last century, however, the definition of “public use” has been expanded to allow government to take that property for economic development.
- The government can then sell, lease or otherwise turn the property over to another private party that desires to redevelop the land. The local community can see economic benefit in terms of increased jobs and tax revenues, but the primary beneficiaries are the large businesses that have been able to use the power of government to take land that they otherwise would have had to negotiate for in good faith.
- Seventy-seven percent of NFIB members have said that the government's power of eminent domain should be restricted to public uses.
- In addition to supporting federal legislation, NFIB will continue to pursue restrictions on eminent domain. NFIB will work with groups at the state and national level to constrain the abuse of eminent domain.
