STATEMENT OF LARRY HELMINIAK
MARYLAND TAXPAYERS ASSOCIATION, INC.
TO THE HOUSE OF DELEGATES
ENVIRONMENTAL MATTERS COMMITTEE
IN SUPPORT OF HB1410 - - - PROPERTY PROTECTION ACT OF 2006
FEBRUARY 21, 2006


Good Afternoon. I am Larry Helminiak, a long-time independent businessman in Carroll County, and am here speaking for the Maryland Taxpayers Association, Inc. to urge your committee to approve HB1410, the Property Protection Act of 2006
So that there is no misunderstanding, the intent of my testimony is to speak against the non-traditional uses of the power of eminent domain. And to speak in favor of the right to own property without fear of its being taken for non-public uses, such as supposed economic development, or "revenue enhancement," or simply flipping the property into other private hands.

We know that people try to come to America from all over the world, often risking their lives to get here. They do so because we have a set of guaranteed property rights and closely connected personal liberties that are and have been the envy of the world for more than two centuries.

One of the most important of these rights is part of the Fifth Amendment to the U. S. Constitution, which says, very simply, nor shall private property be taken for public use, without just compensation.

Notice that it took only 12 words for the founders to get their point across.

The amendment mentions nothing of exceptions to take your private property if neighbors don't like it, or if politicians, who are temporarily in charge, want to kick you out so that someone else will take if over and possibly pay more taxes.

It says that it can only be taken for PUBLIC USE and the owner must get just compensation.

Until recently, we understood PUBLIC USE as the government needing the property for a road, a bridge, a government building, or a school. But now some states, notably California and Maryland, have "grown" the definition to include condemning the property so that some other private individual can use it for a purpose that pays more taxes or that otherwise meshes with the schemes of local planners.

We saw this in Middle River a couple of years ago when people were almost kicked out of their homes for a private shopping center.

Last Friday night, on Dateline, we saw 89-year-old couples who had lived in their homes in Long Branch, New Jersey for over 40 years, but now were going to lose them on some invented pretext. The real reason is that the ocean is a hundred yards away, and the city and developers want to build condominiums there so that the city could collect more taxes.

Many lament the Supreme Court ruling in Kelo, and rightly criticize its failure strictly to interpret the Constitution. Others, however, see an upside to the otherwise regrettable Kelo ruling: if, two years ago, you complained to someone about the county wanting to kick you out of your own house so that some local special interest close to local officials could have it, you would have gotten little attention. But, because of Kelo, the entire country, including (at least nationally) strong voices from both parties, is looking at the abuse of eminent domain and moving to restore traditional property rights.

Let me draw the Committee's attention to H. R. 4128, the Private Property Rights Protection Act of 2005 which passed the U. S. House of Representatives by a vote of 376-78 last November 3, and now awaits Senate action. H.R. 4128 would curtail eminent-domain abuse by the states (and stop it by the Federal government). The House bill reads:

"No State or political subdivision of a State shall exercise its power of eminent domain, or allow the exercise of such power by any person or entity to which such power has been delegated, over property to be used for economic development or over property that is subsequently used for economic development, if that State or political subdivision receives Federal economic development funds during any fiscal year in which it does so."

"The term `economic development' means taking private property, without the consent of the owner, and conveying or leasing such property from one private person or entity to another private person or entity for commercial enterprise carried on for profit, or to increase tax revenue, tax base, employment, or general economic health . . . ."

All members of the Maryland House delegation except one voted for this measure. Representatives John Conyers and Maxine Waters were co-sponsors of chairman James Sensenbrenner's bill.

I have seen abuse close up in Carroll County. For years there were buildings at an intersection that were, by anyone's opinion, ugly. When Congressman Roscoe Bartlett was asked about what could be done, he said that he agrees: "They are ugly. But is ugly against the law?"

Suppose people think that YOUR house is ugly. Do you want them to have the right to tear it down because of their opinion? The free market generally provides non-coercive incentives for this kind of civic improvement.

A year later I was at a meeting of the South Carroll Business Association, and a speaker told us that the local interests had convinced the city fathers of Westminster to create a new county code that was specifically designed to put this property out of compliance. 50 people heard him say it. Now the buildings are down. But what kind of dangerous precedent have these officials set in motion?

For this reason, I would ask the members of this committee to consider whether HB1410 should define "blight," and as carefully as possible. Experts tell me that there has been much abuse of the definition of "blight" for the convenience and profitability of special interests.
Private industry is not waiting for government to act on eminent domain reform. On January 25th, the BB&T Bank sharply changed course on lending where eminent domain is invoked for non-traditional purposes.

"BB&T Corporation today said it will not lend to commercial developers that plan to build condominiums, shopping malls and other private projects on land taken from private citizens by government entities using eminent domain."

Should the General Assembly of Maryland be less careful of the ordinary citizen's traditional property rights than BB&T?
I would ask this committee to allow the people of Maryland to vote on this proposed constitutional amendment.

Only by doing so will Maryland have a clear road map on the appropriate use of eminent domain. Maryland should not improperly employ this powerful tool of government to take the property of the ordinary homeowner, or the independent business owner, or the local house of worship.

Thank You.

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