Property rights bill that could cost billions dies, lives, dies, and may live again

May 15, 2006 -- A bill that could cost local and state governments billions of dollars and severely limit their zoning powers likely will return next year after it the full Senate rejected its leadership's efforts to push it through this year.

The bill would have made property owners eligible for compensation if local or state laws or zoning ordinances restricted property use.

"The bill radically changes takings law in this state," the Wisconsin League of Municipalities and Wisconsin Alliance of Cities said in a memo. "If enacted it would either dramatically increase local government costs, which are ultimately borne by property taxpayers, or significantly reduce local zoning and planning activities."

The bill is "highly inconsistent with this Legislature's focus on curtailing property taxes through levy limits and TABOR like constitutional amendments," the memo said.

Lisa MacKinnon, policy director of 1000 Friends of Wisconsin, said the bill would "ultimately will be unfair to many more residents, private property owners and taxpayers than to those it proposes to help."

Jay Verhulst, executive director of Taxpayers for Fair Zoning, which supported the measure, said the bill "returns private property protections to their rightful place at the table of constitutional rights formulated by the founders of the United States”.

The bill was patterned after Oregon’s “Measure 37,” which was approved by voters in November 2004. Property owners in that state have requested a totall of $3.2 billion in compensation, according to state of Oregon figures.

The Wisconsin version of the measure was adopted by the Assembly, but then was apparently killed, 4-3, by the Republican-led Senate Housing and Financial Institutions Committee.

The Committee on Senate Organization, however, which is chaired by Majority Leader Dale Schultz (R-Richland Center), scheduled the bill for a vote by the full Senate. Schultz couldn't keep the Republicans in line, however, and the bill was defeated earlier this month, 21-10.

Pulling the bill from committee “is disrespectful of the legislative process,” and sent “a big 'screw you' to the committee,” MacKinnon said.

State Sen. Tom Reynolds, who represents Story Hill in the Senate, voted for the bill.

Some version of the measure likely will be introduced again next year, MacKinnon said.