To simplify and expedite access to the Federal courts for injured parties whose rights and privileges under the United States Constitution have been deprived by final actions of Federal agencies or other government officials or entities acting under color of State law, and for other purposes.

Summary: Private Property Rights Implementation Act of 2006 - (Sec. 2) Amends the federal judicial code to provide that, whenever a district court exercises jurisdiction in civil rights cases in which the operative facts concern the uses of real property, it shall not abstain from exercising such jurisdiction, or relinquish it to a state court, if the party seeking redress does not allege a violation of a state law, right, or privilege, and no parallel proceeding is pending in state court, at the time the action is filed in the district court, that arises out of the same operative facts as the district court proceeding.

Declares that in an action in which operative facts concern the uses of real property, the district court shall exercise jurisdiction even if the party seeking redress does not pursue judicial remedies provided by a state or territory. Provides for referral of an unsettled question of state law to the state's highest appellate court. Prohibits the district court from certifying a question of state law unless it is necessary to resolve the merits of the injured party's federal claim, and such question is patently unclear.

Declares that any claim or action to redress the deprivation of a property right or privilege secured by the Constitution shall be ripe for adjudication by the district courts upon a final decision rendered by any person acting under color of any law, regulation, custom, or usage of any state or U.S. territory that causes actual and concrete injury to the party seeking redress.

(Sec. 3) Declares that any claim founded upon a property right or privilege secured by the Constitution, but allegedly infringed or taken by the United States, shall be ripe for adjudication upon a final decision rendered by the United States which causes actual and concrete injury to the party seeking redress.

(Sec. 5) Amends the Revised Statutes of the United States with respect to certain Constitutional property rights claims.

(Sec. 6) Provides for the liability of the United States for certain claims, brought under U.S. district court jurisdiction or Court of Federal Claims jurisdiction, where the claim is founded upon a property right or privilege secured by the Constitution.

Makes the United States liable for a claim where an executive agency has permitted or authorized uses of real property subject to conditions or exactions, if any such condition or exaction, whether legislative or adjudicatory in nature, including the payment of a monetary fee or a dedication of real property from the injured party, is unconstitutional.

Declares that whenever a claim against an executive agency concerns a subdivision of real property pursuant to any state or territorial law, regulation, custom, or usage, then it shall be decided with reference to each subdivided lot, regardless of ownership, if such a lot is taxed, or otherwise treated and recognized by the state or territory, as an individual property unit.

States that, if a claim alleges deprivation of substantive due process, the United States shall be judged as to whether its action is arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.

(Sec. 7) Requires a federal agency, whenever it takes action limiting the use of private property that may be affected by the amendments made by this Act, to give notice to the owners of that property explaining their rights and the procedures for obtaining any compensation that may be due to them under such amendments.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Property Rights 
Implementation Act of 2006''.

SEC. 2. JURISDICTION IN CIVIL RIGHTS CASES CONCERNING REAL PROPERTY.

    Section 1343 of title 28, United States Code, is amended by adding 
at the end the following:
    ``(c) Whenever a district court exercises jurisdiction under 
subsection (a) in an action in which the operative facts concern the 
uses of real property, it shall not abstain from exercising or 
relinquish its jurisdiction to a State court if the party seeking 
redress does not allege a violation of a State law, right, or 
privilege, and no parallel proceeding is pending in State court, at the 
time the action is filed in the district court, that arises out of the 
same operative facts as the district court proceeding.
    ``(d) In an action in which the operative facts concern the uses of 
real property, the district court shall exercise jurisdiction under 
subsection (a) even if the party seeking redress does not pursue 
judicial remedies provided by a State or territory of the United 
States.
    ``(e) If the district court has jurisdiction over an action under 
subsection (a) in which the operative facts concern the uses of real 
property and which cannot be decided without resolution of an unsettled 
question of State law, the district court may certify the question of 
State law to the highest appellate court of that State. After the State 
appellate court resolves the question so certified, the district court 
shall proceed with resolving the merits. The district court shall not 
certify a question of State law under this subsection unless the 
question of State law--
            ``(1) is necessary to resolve the merits of the Federal 
        claim of the injured party; and
            ``(2) is patently unclear.
    ``(f)(1) Any claim or action brought under section 1979 of the 
Revised Statutes of the United States (42 U.S.C. 1983) to redress the 
deprivation of a property right or privilege secured by the 
Constitution shall be ripe for adjudication by the district courts upon 
a final decision rendered by any person acting under color of any 
statute, ordinance, regulation, custom, or usage, of any State or 
territory of the United States, which causes actual and concrete injury 
to the party seeking redress.
    ``(2) For purposes of this subsection, a final decision exists if--
            ``(A) any person acting under color of any statute, 
        ordinance, regulation, custom, or usage, of any State or 
        territory of the United States, makes a definitive decision 
        regarding the extent of permissible uses on the property that 
        has been allegedly infringed or taken, without regard to any 
        uses that may be permitted elsewhere; and
            ``(B) one meaningful application to use the property has 
        been submitted but denied, and the party seeking redress has 
        applied for but is denied one waiver and one appeal, if the 
        applicable statute, ordinance, regulation, custom, or usage 
        provides a mechanism for waiver by or appeal to an 
        administrative agency.
The party seeking redress shall not be required to apply for a waiver 
or appeal described in subparagraph (B) if such waiver or appeal is 
unavailable or can not provide the relief requested, or if pursuit of 
such a mechanism would otherwise be futile.''.

SEC. 3. UNITED STATES AS DEFENDANT.

    Section 1346 of title 28, United States Code, is amended by adding 
at the end the following:
    ``(h)(1) Any claim brought under subsection (a) that is founded 
upon a property right or privilege secured by the Constitution, but was 
allegedly infringed or taken by the United States, shall be ripe for 
adjudication upon a final decision rendered by the United States, which 
causes actual and concrete injury to the party seeking redress.
    ``(2) For purposes of this subsection, a final decision exists if--
            ``(A) the United States makes a definitive decision 
        regarding the extent of permissible uses on the property that 
        has been allegedly infringed or taken, without regard to any 
        uses that may be permitted elsewhere; and
            ``(B) one meaningful application to use the property has 
        been submitted but denied, and the party seeking redress has 
        applied for but is denied one waiver and one appeal, if the 
        applicable law of the United States provides a mechanism for 
        waiver by or appeal to an administrative agency.
The party seeking redress shall not be required to apply for a waiver 
or appeal described in subparagraph (B) if such waiver or appeal is 
unavailable or can not provide the relief requested, or if pursuit of 
such a mechanism would otherwise be futile.''.

SEC. 4. JURISDICTION OF COURT OF FEDERAL CLAIMS.

    Section 1491(a) of title 28, United States Code, is amended by 
adding at the end the following:
    ``(3) Any claim brought under this subsection founded upon a 
property right or privilege secured by the Constitution, but allegedly 
infringed or taken by the United States, shall be ripe for adjudication 
upon a final decision rendered by the United States, that causes actual 
and concrete injury to the party seeking redress. For purposes of this 
paragraph, a final decision exists if--
                    ``(A) the United States makes a definitive decision 
                regarding the extent of permissible uses on the 
                property that has been allegedly infringed or taken, 
                without regard to any uses that may be permitted 
                elsewhere; and
                    ``(B) one meaningful application to use the 
                property has been submitted but denied, and the party 
                seeking redress has applied for but is denied one 
                waiver and one appeal, if the applicable statute, 
                ordinance, regulation, custom, or usage provides a 
                mechanism for waiver by or appeal to an administrative 
                agency.
        The party seeking redress shall not be required to apply for a 
        waiver or appeal described in subparagraph (B) if such waiver 
        or appeal is unavailable or can not provide the relief 
        requested, or if pursuit of such a mechanism would otherwise be 
        futile.''.

SEC. 5. CLARIFICATION FOR CERTAIN CONSTITUTIONAL PROPERTY RIGHTS 
              CLAIMS.

    Section 1979 of the Revised Statutes of the United States (42 
U.S.C. 1983) is amended by adding at the end the following: ``If the 
party injured seeks to redress the deprivation of a property right or 
privilege under this section that is secured by the Constitution by 
asserting a claim that concerns--
            ``(1) an approval to develop real property that is subject 
        to conditions or exactions, then the person acting under color 
        of State law is liable if any such condition or exaction, 
        whether legislative or adjudicatory in nature, including but 
        not limited to the payment of a monetary fee or a dedication of 
        real property from the injured party, is unconstitutional;
            ``(2) a subdivision of real property pursuant to any 
        statute, ordinance, regulation, custom, or usage of any State 
        or territory, or the District of Columbia, then such a claim 
        shall be decided with reference to each subdivided lot, 
        regardless of ownership, if such a lot is taxed, or is 
        otherwise treated and recognized, as an individual property 
        unit by the State, territory, or the District of Columbia; or
            ``(3) alleged deprivation of substantive due process, then 
        the action of the person acting under color of State law shall 
        be judged as to whether it is arbitrary, capricious, an abuse 
        of discretion, or otherwise not in accordance with law.
For purposes of the preceding sentence, `State law' includes any law of 
the District of Columbia or of any territory of the United States.''.

SEC. 6. CLARIFICATION FOR CERTAIN CONSTITUTIONAL PROPERTY RIGHTS CLAIMS 
              AGAINST THE UNITED STATES.

    (a) District Court Jurisdiction.--Section 1346 of title 28, United 
States Code, is amended by adding at the end the following:
    ``(i) If a claim brought under subsection (a) is founded upon a 
property right or privilege secured by the Constitution that concerns--
            ``(1) an approval from an executive agency to permit or 
        authorize uses of real property that is subject to conditions 
        or exactions, then the United States is liable if any such 
        condition or exaction, whether legislative or adjudicatory in 
        nature, including but not limited to the payment of a monetary 
        fee or a dedication of real property from the injured party, is 
        unconstitutional;
            ``(2) a subdivision of real property pursuant to any 
        statute, ordinance, regulation, custom, or usage of any State 
        or territory, or the District of Columbia, then such a claim 
        against an executive agency shall be decided with reference to 
        each subdivided lot, regardless of ownership, if such a lot is 
        taxed, or is otherwise treated and recognized, as an individual 
        property unit by the State or territory, or the District of 
        Columbia, as the case may be; or
            ``(3) an alleged deprivation of substantive due process, 
        then the United States shall be judged as to whether its action 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.
In this subsection, the term `executive agency' has the meaning given 
that term in section 105 of title 5.''.
    (b) Court of Federal Claims Jurisdiction.--Section 1491 of title 
28, United States Code, is amended by adding at the end the following:
    ``(4) If a claim brought under subsection (a) is founded upon a 
property right or privilege secured by the Constitution that concerns--
            ``(A) an approval from an executive agency to permit or 
        authorize uses of real property that is subject to conditions 
        or exactions, then the United States is liable if any such 
        condition or exaction, whether legislative or adjudicatory in 
        nature, including but not limited to the payment of a monetary 
        fee or a dedication of real property from the injured party, is 
        unconstitutional;
            ``(B) a subdivision of real property pursuant to any 
        statute, ordinance, regulation, custom, or usage of any State 
        or territory, or the District of Columbia, then such a claim 
        against an executive agency shall be decided with reference to 
        each subdivided lot, regardless of ownership, if such a lot is 
        taxed, or is otherwise treated and recognized, as an individual 
        property unit by the State, or territory, or the District of 
        Columbia, as the case may be; or
            ``(C) an alleged deprivation of substantive due process, 
        then the United States shall be judged as to whether its action 
        is arbitrary, capricious, an abuse of discretion, or otherwise 
        not in accordance with law.
In this paragraph, the term `executive agency' has the meaning given 
that term in section 105 of title 5.''.

SEC. 7. DUTY OF NOTICE TO OWNERS.

    (a) In General.--Whenever a Federal agency takes an agency action 
limiting the use of private property that may be affected by the 
amendments by this Act, the agency shall, not later than 30 days after 
the agency takes that action, give notice to the owners of that 
property explaining their rights under such amendments and the 
procedures for obtaining any compensation that may be due them under 
such amendments.
    (b) Definitions.--For purposes of subsection (a)--
            (1) the term ``Federal agency'' means ``agency'', as that 
        term is defined in section 552(f) of title 5, United States 
        Code; and
            (2) the term ``agency action'' has the meaning given that 
        term in section 551 of title 5, United States Code.

SEC. 8. SEVERABILITY AND EFFECTIVE DATE.

    (a) Severability.--If any provision of this Act or the amendments 
made by this Act or the application thereof to any person or 
circumstance is held invalid, the remainder of this Act, the amendments 
made by this Act, or the application thereof to other persons not 
similarly situated or to other circumstances shall not be affected by 
such invalidation.
    (b) Effective Date.--The amendments made by this Act shall apply to 
actions commenced on or after the date of the enactment of this Act.

            Passed the House of Representatives September 29, 2006.

            Attest:

                                                 KAREN L. HAAS,

                                                                 Clerk.