Date: 1984-08-06
Speaker: PHILIP M. CRANE (republican)
Chamber: H

Mr. Speaker. I rise In strong support of H.R. 6027. the Local Government Antitrust Act of 1984. to clarify the application of Federal antritrust laws and the impact they have had on local governments. Since talking to local govemffient off icials as a followup to the Boulder decision. It has struck me that all local governments. and this cuts across all party lines. have been put In a unique and peculiar kind of jeopardy that has no precedent. A legislative remedy such as H.R. 6027 Is necessary to address situations facing local governments as a result of such decisions by our Federal courts. This bill limits antitrust actions against localities to suits for Injunctive relief. rather than for money damages. Icommend the work of the Judiciary Committee for adopting the Hyde amendment applying protection to all current cases that are filed and pendIng. Prior to tbls. H.R. 6027 would have protect r a these local governments which became defendants in antitrust actions after July 1. 1984. Without the Hyde amendment and passage of H.R. 6027. many local governments. Including the one that has come under discussion today. which is in my district. will be facing severe antitrust damages. On May 30 of this year. Mr. Fred Foreman. our distinguished Lake County States attorney. testified before the House Judiciary Committee regarding this particular antitrust case in my district. namely. Unity Ventures versus the County of Lake. This case Is typical of the problems faced by numerous municipalities nationwide. In essence. the plaintiff alleged that he had been unlawfully denied access to public sewer service and had thereby been prevented from developing a 600acre tract of farmland in central Lake County. Following a 3week jury trial. a verdict was returned in favor of developer William Alter and Unity Ventures. a partnership controlled by Alter. in the amount of $9.5 million against Lake County and the village of Grayslake. as well as three local officials. The jury found all five defendants guity of violating both section 1983 of the Civil Rights Act of 1871. and section 1 of the Sherman Act. After the verdict was returned. the court. acting pursuant to the Sherman Act. trebled the damages to $28.5 million. Lake County Is appealing this judgment. which has become very costlylegal fees are already approaching $1 million. If upheld. this will have a tremendous negative impact on the daytoday management of government affairs and decisionmaking in Lake County. Although Lake County Is one of the wealthier per capita counties In the United States. if this judgment Is not reversed It could very well become bankrupt. The impact on the taxpayer will be severe. The judgment entered in this case is 6.000 percent of the property tax collected last year by the village of Grayslake and 150 percent of the amount collected by all of Lake County. If Lake County were to increase Its taxes to the maximum legal rate and still provide necessary services to Its citizens. it would take the August 6. 1.984 taxpayers 70 years to pay this judgment. Even if they. used all of their cash reserves of $14.8 million. payment would still require 35 years. As I indicated. this is Just one example in Which local government officials are hampered daily by the threat of antitrust liability cases. Legislation must be passed to assist local government officials when they make decisions regarding cable television. Intergovernmental water agreements. waste disposal. nursing care homes for the aged. Industrial revenue bonds. mental health programs. et cetera. I urge my colleagues therefore to vote in favor of this bill and carefully consider the impact that Federal antitrust laws have on local government and local official decisionmaking.