I 

109TH CONGRESS 

1ST SESSION H. R. 3405 

To prohibit the provision of Federal economic development assistance for 

any State or locality that uses the power of eminent domain power 

to obtain property for private commercial development or that fails to 

pay relocation costs to persons displaced by use of the power of eminent 

domain for economic development purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2005 

Mr. BONILLA (for himself, Ms. HERSETH, Mr. GOODLATTE, Ms. WATERS, Mr. 

POMBO, Mr. SMITH of Texas, Mr. DEFAZIO, Mr. OTTER, Mrs. DRAKE, 

Mr. BOYD, Mr. CALVERT, Mr. PEARCE, Mr. KUCINICH, Mr. DUNCAN, 

Mr. THORNBERRY, Mr. NEUGEBAUER, and Mr. MCKEON) introduced the 

following bill; which was referred to the Committee on Agriculture, and 

in addition to the Committees on Transportation and Infrastructure, Financial Services, Resources, and Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL 

To prohibit the provision of Federal economic development 

assistance for any State or locality that uses the power 

of eminent domain power to obtain property for private 

commercial development or that fails to pay relocation 

costs to persons displaced by use of the power of eminent 

domain for economic development purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Strengthening the 

3 Ownership of Private Property Act of 2005’’ or the 

4 ‘‘STOPP Act of 2005’’. 

5 SEC. 2. CONDITIONS OF FINANCIAL ASSISTANCE UNDER 

6 FEDERAL ECONOMIC DEVELOPMENT PRO7 GRAMS. 

8 (a) PROHIBITION OF ASSISTANCE.—If, after the date 

9 of the enactment of this Act, any State (or any agency 

10 thereof) or any unit of general local government (or any 

11 agency thereof) engages in any act described in subsection 

12 (b), Federal financial assistance under any Federal eco13 nomic development program may not be provided to such 

14 State (including any agency thereof) or unit of general 

15 local government (including any agency thereof), respec16 tively, at any time after such act. 

17 (b) LIMITATIONS ON USE OF EMINENT DOMAIN.— 

18 The acts described in this subsection are as follows: 

19 (1) USE OF EMINENT DOMAIN FOR PRIVATE

20 COMMERCIAL DEVELOPMENT.—Any use of the power 

21 of eminent domain to take property from one private 

22 individual or entity for any economic development 

23 purpose and transfer ownership of such property (or 

24 a portion thereof) to another private individual or 

25 entity. 
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1 (2) FAILURE TO PROVIDE RELOCATION ASSIST2 ANCE FOR PERSONS DISPLACED BY USE OF EMI3 NENT DOMAIN FOR ECONOMIC DEVELOPMENT.— 

4 Failing to provide, to any person displaced by the 

5 use of the power of eminent domain for any eco6 nomic development purpose, relocation assistance 

7 under the Uniform Relocation Assistance and Real 

8 Property Acquisitions Policies Act of 1970 (42 

9 U.S.C. 4601 et seq.) in the same manner and to the 

10 same extent as relocation assistance is required 

11 under such Act to be provided by a Federal agency 

12 that undertakes a program or project that results in 

13 displacement of such person. 

14 (c) CERTIFICATION OF COMPLIANCE.—If the head of 

15 a Federal agency does not have actual knowledge that a 

16 particular State or unit of general government has en17 gaged in an act described subsection (b) after the date 

18 of the enactment of this Act, a certification made to such 

19 Federal agency head by the chief executive officer of the 

20 State or unit of general government that such State or 

21 unit has not engaged in any such act shall be sufficient 

22 for such Federal agency head to determine that the State 

23 or unit is not ineligible, by reason of subsection (a), for 

24 Federal financial assistance under a Federal economic de-
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1 velopment program administered by such Federal agency 

2 head. 

3 SEC. 3. DEFINITIONS. 

4 For purposes of this Act, the following definitions 

5 shall apply: 

6 (1) FEDERAL ECONOMIC DEVELOPMENT PRO7 GRAM.—The term ‘‘Federal economic development 

8 program’’ means any of the following programs: 

9 (A) DEPARTMENT OF AGRICULTURE.— 

10 (i) FOREST SERVICE.— 

11 (I) The National Forest-depend12 ent rural communities program for as13 sistance for economic recovery under 

14 the National Forest-Dependent Rural 

15 Communities Economic Diversification 

16 Act of 1990 (7 U.S.C. 6611 et seq.). 

17 (II) The rural development 

18 through forestry program pursuant to 

19 the Department of the Interior and 

20 Related Agencies Appropriations Act, 

21 2001 (Public Law 106–291; 114 Stat. 

22 972) and the Department of the Inte23 rior and Related Agencies Appropria24 tions Act, 2005 (Public Law 108–447, 

25 Division E; 118 Stat. 3080). 
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1 (ii) RURAL BUSINESS—COOPERATIVE

2 SERVICE.— 

3 (I) The intermediary relending 

4 program under section 1323 of the 

5 Food Security Act of 1985 (7 U.S.C. 

6 1932 note). 

7 (II) The rural business opportu8 nities grant program under section 

9 306(a)(11) of the Consolidated Farm 

10 and Rural Development Act (7 U.S.C. 

11 1926(a)(11)). 

12 (III) The program for assistance 

13 to cooperatives for economic develop14 ment under the Act of July 2, 1926 

15 (7 U.S.C. 451 et seq.) and subtitle A 

16 of the Agricultural Marketing Act of 

17 1946 (7 U.S.C. 1621 et seq.). 

18 (IV) The rural business enter19 prise grants program under section 

20 310B(c) of the Consolidated Farm 

21 and Rural Development Act (7 U.S.C. 

22 1932(c)). 

23 (V) The rural economic develop24 ment loans and grants program under 
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1 title III of the Rural Electrification 

2 Act of 1936 (7 U.S.C. 930 et seq.). 

3 (iii) RURAL UTILITIES SERVICE.— 

4 (I) The program for grants, di5 rect loans, and guaranteed loans for 

6 water and waste disposal systems for 

7 rural communities under paragraphs 

8 (1) and (2) of section 306(a) of the 

9 Consolidated Farm and Rural Devel10 opment Act (7 U.S.C. 1926(a)). 

11 (II) The Rural Utilities Service 

12 program for grants and loans to the 

13 Denali Commission under section 

14 19(a)(2) of the Rural Electrification 

15 Act of 1936 (7 U.S.C. 918a(a)(2)). 

16 (iv) RURAL HOUSING SERVICE.— 

17 (I) The rural community develop18 ment initiative pursuant to the Agri19 culture, Rural Development, Food and 

20 Drug Administration, and Related 

21 Agencies Appropriations Act, 2001 

22 (Public Law 106–387; 114 Stat. 

23 1549A–17) and the Agriculture, Rural 

24 Development, Food and Drug Admin25 istration, and Related Agencies Ap-
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1 propriations Act, 2005 (Public Law 

2 108–447; 118 Stat. 2826). 

3 (II) The program for loans and 

4 grants for essential community facili5 ties under section 306(a)(1) of the 

6 Consolidated Farm and Rural Devel7 opment Act (7 U.S.C. 1926(a)(1)). 

8 (v) FARM SERVICE AGENCY.—The 

9 program for loans to Indian tribes and 

10 tribal corporations under the Consolidated 

11 Farm and Rural Development Act (7 

12 U.S.C. 1921 et seq.). 

13 (vi) RURAL BUSINESS INVESTMENT

14 PROGRAM.—The rural business investment 

15 program under subtitle H of the Consoli16 dated Farm and Rural Development Act (7 

17 U.S.C. 2009cc et seq.). 

18 (B) DEPARTMENT OF COMMERCE—ECO19 NOMIC DEVELOPMENT ADMINISTRATION.—Any 

20 program for financial assistance under the Pub21 lic Works and Economic Development Act of 

22 1965 (42 U.S.C. 3121 et seq.). 

23 (C) DEPARTMENT OF HOUSING AND

24 URBAN DEVELOPMENT.— 
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1 (i) The community development block 

2 grant programs under title I of the Hous3 ing and Community Development Act of 

4 1974 (42 U.S.C. 5301 et seq.), including 

5 the entitlement grants, small cities, special 

6 purpose and insular areas grants, States, 

7 Indian tribe grants, and loan guarantee 

8 programs. 

9 (ii) The brownfields economic develop10 ment initiative under section 108(q) of the 

11 Housing and Community Development Act 

12 of 1974 (42 U.S.C. 5308(q)). 

13 (iii) The rural housing and economic 

14 development program of the Department of 

15 Housing and Urban Development pursuant 

16 to title II of the Departments of Veterans 

17 Affairs and Housing and Urban Develop18 ment, and Independent Agencies Appro19 priations Act, 2005 (Public Law 108–447; 

20 118 Stat. 3300) and title II of the Depart21 ments of Veterans Affairs and Housing 

22 and Urban Development, and Independent 

23 Agencies Appropriations Act, 1999 (Public 

24 Law 105–276; 112 Stat. 2475). 
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1 (iv) The Indian housing block grant 

2 program under the Native American Hous3 ing Assistance and Self-Determination Act 

4 of 1996 (25 U.S.C. 4101 et seq.). 

5 (D) EMPOWERMENT ZONES PROGRAM.— 

6 The empowerment zones, enterprise commu7 nities, and rural development investment areas 

8 programs under subchapter U of chapter 1 of 

9 the Internal Revenue Code of 1986 (26 U.S.C. 

10 1391 et seq.). 

11 (E) DEPARTMENT OF THE INTERIOR— 

12 BUREAU OF INDIAN AFFAIRS.—The programs 

13 for grants, loans, and loan guarantys for Indian 

14 economic development of the Office of Eco15 nomic Development, Bureau of Indian Affairs 

16 of the Department of the Interior. 

17 (F) DEPARTMENT OF THE TREASURY.— 

18 The community development financial institu19 tions fund program under subtitle A of title I 

20 of the Riegle Community Development and 

21 Regulatory Improvement Act of 1994 (12 

22 U.S.C. 4701 et seq.). 

23 (G) APPALACHIAN REGIONAL COMMIS24 SION.—Any program for assistance for Appa-
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1 lachian regional development under subtitle IV 

2 of title 40, United States Code. 

3 (H) NATIONAL CREDIT UNION ADMINIS4 TRATION.—The community development revolv5 ing loan fund program for credit unions under 

6 the Community Development Credit Union Re7 volving Loan Fund Transfer Act (42 U.S.C. 

8 9822 note). 

9 (I) DENALI COMMISSION.—The Denali 

10 Commission program under the Denali Com11 mission Act of 1998 (42 U.S.C. 2131 et seq.). 

12 (J) DELTA REGIONAL AUTHORITY.—The 

13 program for Delta regional development under 

14 subtitle F of the Consolidated Farm and Rural 

15 Development Act (7 U.S.C. 2009aa et seq.). 

16 (K) DEPARTMENT OF HEALTH AND

17 HUMAN SERVICES.—The discretionary award 

18 program for community economic development 

19 under section 680 of the Community Services 

20 Block Grant Act (42 U.S.C. 9921). 

21 (2) FEDERAL FINANCIAL ASSISTANCE.—The 

22 term ‘‘Federal financial assistance’’ has the meaning 

23 given such term in section 101 of the Uniform Relo24 cation Assistance and Real Property Acquisitions 

25 Policies Act of 1970 (42 U.S.C. 4601). 
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1 (3) STATE.—The term ‘‘State’’ means any of 

2 the States of the United States, the District of Co3 lumbia, the Commonwealth of Puerto Rico, the Com4 monwealth of the Northern Mariana Islands, Guam, 

5 the Virgin Islands, American Samoa, and any other 

6 territory or possession of the United States. 

7 (4) UNIT OF LOCAL GOVERNMENT.—The term 

8 ‘‘unit of local government’’ means any city, county, 

9 town, township, parish, village, or other general pur10 pose political subdivision of a State or any commu11 nity redevelopment agency, housing authority, spe12 cial district, or other special purpose political sub13 division of a State. 

14 SEC. 4. APPLICABILITY. 

15 at any time after the date of the enactment of this 

16 Act, has engaged in either of the following acts 

Æ