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ISSUE: TAKINGS LEGISLATION

Existing State Law

Four states have statutes on the books that explicitly seek to go beyond established constitutional standards for determining when compensation is due for an alleged taking.

Florida

In 1995, the Florida legislature passed two pieces of takings legislation, the Bert J. Harris, Jr. Private Property Rights Protection Act and the Florida Land Use and Environmental Dispute Resolution Act. Both of these laws raise a number of questions about how they should be interpreted. Nonetheless, it is already apparent that these laws have seriously impeded the exercise of local land use regulatory authority and undermined the implementation of the Florida Growth Management Act. As the procedures and standards for implementing the laws become clearer, the adverse impacts are likely to become more significant.

The Bert J. Harris Act only applies prospectively, so the primary impact, in the short term, has been to chill the normal process of amending and updating land use rules. To date, no court has ordered payment under the act, although a few cases have reportedly been settled.

Louisiana

In 1995, Louisiana adopted a takings measure which defines a taking as a “reduction of twenty percent or more” in the value of agricultural or forest land, and authorizes the owner to sue to recover a sum equal to the diminution in value. Significantly, an owner is not required to convey title to the property to the public as a condition of receiving payment. If an owner prevails in a suit under the measure, the government has the option of rescinding the regulation, but the government must pay for the diminution in value while the law was in effect.

The twenty percent diminution in value threshold arguably represents the most expansive takings standard in any state takings law. On the other hand, the measure is limited to restrictions that affect forest and agricultural land and activity only, and contains several open-ended exemptions which could restrict the scope of the payment obligation. It is unclear whether any claim has been filed under the measure.

Mississippi

The Mississippi takings measure, enacted in 1994, is very similar to the Louisiana measure and undoubtedly provided a model for the takings measure adopted in Louisiana. The “Mississippi Agricultural and Forestry Activity Act” defines a taking to mean a prohibition or restriction on an owner’s use of property for forestry or agricultural activities that results in a reduction in the fair market value of the property “or any part or parcel thereof …by 40 percent or more.”

The act authorizes owners to sue for money damages and allows an owner who recovers payment to retain title to the property, unless the reduction in property rises to the “100%” level. If the government is unable to make a judicially mandated payment, the government action is automatically rescinded. And, if the government is found liable, officials have the option of rescinding the regulation, but the state must pay for the period the regulation was in place.

Like the Louisiana measure, the act is limited to restrictions on forest and agricultural lands. It applies only prospectively, and includes several exceptions, but does not contain the broad exemptions found in the Louisiana statute. It is unclear whether any claims have been filed under the measure.

Texas

In 1995, the Texas legislature passed and then-Governor (now President) George W. Bush signed the Texas Real Property Rights Preservation Act. The act defines a taking as a government action which causes “a reduction of at least 25 percent in the market value of the affected private real property.” It also requires government agencies to prepare takings impact assessments (TIA) if an agency action “may result” in a taking as defined in the act. If an agency fails to prepare a TIA when one is required, an owner can sue to invalidate the governmental action on that basis.

Unlike other takings laws, the Texas measure does not authorize an owner to sue for monetary relief, although state agencies have the option of paying monetary damages. Other notable features include the exemption of municipalities from the act, and the exemption of actions taken to “fulfill an obligation mandated” by federal or state law. To date, no court has found a regulatory action to effect a taking under the act.

Additional State Law

Colorado

In 1999, the Colorado legislature enacted SB 218, a bill that prohibits local governments from conditioning land use approval on exactions of either land or money unless there is an essential nexus between the exaction and a legitimate government purpose.

Oregon

In 1999, SB 461 was enacted and requires strict rules governing when the Land Use Board of Appeals reverses and remands local land use decisions.

Virginia

On April 22, 1998, the Virginia legislature enacted amended Virginia Code Section 15.2 -2307, which expands the vesting of property rights under state law to include a property owner who: (1) obtains or is the beneficiary of “a significant affirmative governmental act” allowing development of a specific project; (2) relies in good faith on that act; and, (3) “incurs extensive obligations or substantial expenses” in carrying out the project.

Introduced Legislation

2003-2004 Legislative Session

Kentucky

H 581 relates to regulatory takings and would create a new section to require the Attorney General to develop guidelines to enable state and local governments to evaluate whether proposed regulatory or administrative actions would result in a loss of private property value.

S 89 relates to property affected by actions of state agencies and would create new sections to establish guidelines for governmental taking of property or regulation of use of property that is privately owned.

Maine

H 663 would require state reimbursement when laws or rules devalue private property.

New York

S 1431 would require a private property rights protection analysis be completed when rules or regulations involve taking property or license/permit conditions use of property; the bill also directs the attorney general to adopt guidelines to assist agencies in determining whether a rule has constitutional taxing implications.

Ballot Initiatives

Oregon

Measure 37 adds a new statute to ORS chapter 197. As specified in the measure, the owner of private real property is entitled to receive just compensation when a land use regulation is enacted after the owner or a family member became the owner of the property if the regulation restricts the use of the property and reduces its fair market value.

SERC would like to give special thanks to John D. Echeverria of the Georgetown Environmental Law and Policy Institute for his assistance in assembling this information.

This page was last updated on February 23, 2005.

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