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Volume 19 Issue 4
IJ Fights
For Free Trade
On the Farm
IJ Returns to
IJ’s Campaign Finance Work
Pays Dividends U.S. Supreme Court
4 In Landmark School Choice Case
By Chip Mellor
began more than 10 years ago when the teachers’
When the U.S. Supreme Court considers Garriott union filed suit in state court. Eventually they lost
v. Winn next term, it will mark IJ’s fourth appearance when the Arizona Supreme Court upheld the program.
Celebrating the Power before the Court in only eight years. The Court will The ACLU then filed a new challenge in federal court
Of One Entrepreneur decide the constitutionality of Arizona’s individual tax that went all the way through the Ninth U.S. Circuit
credit program through which more than 27,000 chil- Court of Appeals before recently being accepted by
dren attend private schools. Having four cases before the U.S. Supreme Court. The Institute for Justice has
6 the Supreme Court in such a short time is further been involved every step of the way representing the
endorsement of IJ’s strategic approach to public inter- interests of parents, children and the scholarship orga-
est law. The fact that we have reached this pinnacle nizations that make use of the tax credits.
in three of our four mission areas (school choice, prop- After a three-judge panel of the Ninth Circuit
erty rights and economic liberty) makes the accom- ruled against us, we asked the full court to recon-
Published Bimonthly by the plishment all the more notable. sider its decision. It refused in a sharply divided
Institute for Justice This case also underscores the importance of IJ opinion that prompted a stinging dissent by eight
having the ability to stand toe-to-toe with our adversar- judges. The majority held that the program violated
visit us online: ies and never blink. The Arizona school choice fight Winn to U.S.S.C. continued on page 9
www.ij.org
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2
August 2010
Activism in Action
Protecting Private Property on the Front Lines
By Christina Walsh to fight their own New London-style govern-
June 23 marked the five-year anniversa- ment Goliaths and illegitimate landgrabs. So
ry of the death and re-birth of property rights far, IJ has held 67 workshops at the local, Beyond Kelo
in America. On that fateful morning five
years ago, the U.S. Supreme Court handed
regional, state and national levels, training
well over 1,000 community activists. Since
By The Numbers
down the Kelo decision and told tax-hungry Kelo, these activists have defeated 48 projects IJ has continued to work hard to protect pri-
government officials and land-hungry devel- and proposals that threatened to use eminent vate property owners since 2005. Here are
opers that they could take property that does domain for private development. These vic- just a few of the things we have accomplished
not belong to them. Emboldened by the tories, seen as impossible prior to Kelo, have in the wake of the Kelo decision:
decision, the next day officials began seizing now become the norm.
perfectly fine properties for redevelop- 48
ment. Within one year of the Kelo ruling, Projects Defeated
the rate of these takings had tripled.
But that didn’t last long—and what
followed was an unprecedented citizen
81
Site Visits
backlash.
Kelo angered Americans, who were
universally shocked to learn that, in the 32
“land of the free,” private property could Activist Groups Formed
be seized for luxury condos and upscale
www.ij.org/KeloAt5Video
retail. Polls demonstrated that the over-
whelming majority of Americans were
52
Watch IJ’s video, “Kelo: Five Years Later.” Rallies and Press Conferences
opposed to eminent domain for private
gain. Although eminent domain abuse
was an ongoing problem before Kelo (as Our most recent victory comes from 67
documented in IJ’s Public Power, Private Gain California, where a group of property own- Training Sessions
report), this decision thrust the issue onto the ers in San Pablo mobilized against the city’s
front pages of newspapers nationwide and
into every American’s living room.
proposal to reauthorize the use of eminent
domain on properties comprising more than
1,149
Activists and Property Owners Trained
As soon as Kelo was handed down, IJ’s 90 percent of the city. Local residents invited
Castle Coalition launched our Hands Off My the Castle Coalition to speak at a community
Home campaign, dedicated to changing state forum, and in the following weeks, they pro-
laws. All told, IJ has helped guide 43 states tested at public hearings, drawing hundreds can protect and keep what they have worked
to tighten their eminent domain laws to better of supporters. When the city could no longer so hard to own.
protect property rights post-Kelo. In addition, take the heat, it tried to indefinitely postpone These activists demonstrate that every
nine state supreme courts have rejected the its vote; these activists would not stand for single one of us has the power to mobilize a
use of public power for private gain while that. On the same night they planned to block, a neighborhood, a city, a state or even
only one has followed the decision. authorize the project, the city council voted our nation to fight and defeat
With the launch of the campaign’s activ- instead to ban eminent domain for private injustice.u
ism component, we hit the road running and development. This demonstrates the power
held training sessions across the country to of the grassroots in the wake of Kelo: Without Christina Walsh is the Institute’s
director of activism and coalitions.
better educate property owners and activists setting foot in a courtroom, property owners
3
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Campaign Finance:
IJ’s Long-Term
Investment Pays Off By Steve Simpson
T
to Colorado’s campaign finance laws. Federal Election Commission.
his year is turning out to be one
of the best yet for the First
Amendment and the protection of
2006: IJ files suit in federal
free speech. And, as you may have court on behalf of Parker North
come to expect, IJ is in the thick of it. neighbors against the Colorado
Secretary of State.
In January, the U.S. Supreme Court finance laws for having the temerity to speak This past March,
handed down Citizens United v. FEC, one of about a ballot issue without first registering IJ won an important
the most significant campaign finance deci- with the government. In 2007 IJ, along with victory in the D.C.
sions in decades. By the end of 2010, we co-counsel at the Center for Competitive Circuit in our challenge
may well see other Supreme Court victories Politics (CCP), began representing to contribution limits in the SpeechNow.org
protecting ordinary Americans’ right to talk SpeechNow.org before the Federal Election case. (We lost on our challenge to the oner-
about politics—a right that just a few years ago Commission. SpeechNow.org—a group of ous administrative and reporting requirements
seemed at risk of being washed away in a sea individuals who wants to pool their resources that apply to the group, but we have appealed
of regulation. And IJ is at the center of all of and run ads against political candidates who that portion of the case to the U.S. Supreme
it. But it is not luck that has gotten us to this are hostile to the First Amendment—was Court.) Recently, the Supreme Court halted
point. We are reaping the gains of an invest- restricted from pursuing that campaign distribution of matching funds to taxpayer-
ment made years ago. because of draconian campaign finance supported candidates in our Arizona Clean
Our first campaign finance cases were restrictions. Ultimately, IJ and CCP teamed Elections challenge, which makes us very
a challenge to Arizona’s misnamed “Clean up to file suit on behalf of SpeechNow.org in optimistic that the Court will accept the case
Elections” Act and a Washington state case in 2008 challenging these federal laws. Later for review when we appeal later this summer.
which we represented a ballot issue campaign that same year, we challenged laws in Florida And, as described on page 5 of this newsletter,
that failed to report as “contributions” the on- that prevented small groups from effectively we recently launched an outlet to showcase
air commentary of two talk show hosts who speaking out during elections. our First Amendment expertise with IJ’s new
supported the campaign’s cause. In 2005, we In addition to winning several of these First Amendment blog: Congress Shall Make
made a conscious choice to focus significant cases, we developed institutional expertise No Law, which is located at MakeNoLaw.org.
institutional efforts in this area of the law and in the area of First Amendment litigation The battle for free speech is by no means
our campaign finance practice was born. and contributed strategic research that has over. But we remain at the center of the fight
That same year, we took over the rep- been cited in cases all the way up to the U.S. over campaign finance restrictions and the
resentation of the Independence Institute, a Supreme Court. All the while, IJ generated future of the First Amendment. This invest-
Colorado-based free market think tank, in a a flood of media attention about our efforts ment will continue to pay divi-
challenge to that state’s onerous ballot-issue to transform the terms of the national debate dends well into the future for all
campaign financing laws. The next year, we in favor of freedom. In 2009, we thrust our- those who cherish free speech.u
followed with another Colorado case repre- selves into the center of the debate about the
senting a group of neighbors who were sued Citizens United case and were there to defend Steve Simpson is an
IJ senior attorney.
by their political opponents under campaign the decision in 2010.
4
August 2010
2008: IJ and CCP file suit 2009: IJ successfully challenged a 2010: IJ takes center stage defending the Citi-
on behalf of SpeechNow.org Florida law that made it illegal for any zens United decision in the media and in numer-
to protect the free speech group to mention a candidate or ballot ous debates. IJ’s challenge to Arizona’s Clean
rights of groups of individuals. issue without registering with the state. Elections Act appealed to U.S. Supreme Court.
5
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The P
Hector Ricketts
Thane Hayhurst
By John E. Kramer regulation—the Institute for Justice hired These reports are an important part
They are the industrious individuals seasoned journalists and policy writers of the Institute for Justice’s three-year-long
who ensure your favorite bagel and cream to document the inspirational lives and matching-grant campaign to expand our
cheese are ready for you first thing in the impact of five entrepreneurs (all former advocacy on behalf of entrepreneurs. For
morning, who make your computers run or current IJ clients) to show how they more information on how you can earn IJ a
like a top, who transport you to and from improve individual lives and entire com- generous matching grant for your donation,
the office, or who ensure that the remains munities through honest enterprise. All visit: www.ij.org/Power.
of loved ones who have passed away are the while, each of these slice-of-life Those featured in the series of Power
buried with dignity and respect. They are narratives shows the reader the many of One Entrepreneur reports are:
American entrepreneurs, and despite all bureaucratic barriers each of these Funeral home and cemetery owner
they do for us each day—and all they want entrepreneurs has faced, barriers with Kim Powers Bridges from Knoxville,
to do to make our lives better through free the potential to destroy an entrepreneur’s Tenn., who battled bureaucrats in her home
enterprise—too often they find government- American Dream. One way or another— state of Oklahoma where she wanted to sell
imposed roadblocks standing in their way. either through IJ-initiated litigation or by caskets online. Unsuccessful in that fight,
To champion the cause of the entre- moving to a freer state—each of the fea- she grew a brick-and-mortar business in
preneur, the Institute for Justice released tured entrepreneurs overcame these need- Tennessee and now has holdings in nine
in July a series of studies called The less obstacles, but not without serious states from the Gulf Coast to New Mexico
Power of One Entrepreneur. Expanding financial expense and opportunity costs and Colorado. Read about the dramatic
our work to humanize the issue of eco- in the form of delays and distractions that lengths this entrepreneur went to in order
nomic liberty—the right to pursue an prevented them from putting even more to recover and restore the remains of those
honest living in the occupation of your people to work and improving the services entrusted to her after Hurricane Katrina hit
choice free from needless government we use each day. her newly purchased Mississippi cemetery.
6
August 2010
Melony Armstrong
POWER of ONE
Dennis Ballen
Entrepreneur
High-tech entrepreneur Thane “They are American entrepreneurs, and despite all they do for
Hayhurst from Dallas not only helps
businesses across the state keep their
us each day—and all they want to do to make our lives better
computers running at peak efficiency, he through free enterprise—too often they find government-imposed
also places skilled high-tech workers from roadblocks standing in their way.”
across the nation in hard-to-fill jobs in
Texas and he volunteers for local commu- for his First Amendment right and, in the to work as his vans take people to work,
nity centers. Despite all this good work, process, secured a precedent that has and he offers invaluable guidance, inspi-
the state of Texas is threatening to put since freed other businesses to advertise. ration and mentoring to other fledgling
him out of business under a new law that And now he is the undisputed bagel king small business owners across the Big
effectively requires anyone who conducts of the Northwest with 50 employees, Apple.
computer repair to become a licensed pri- including many individuals who would oth- A model Power of One Entrepreneur
vate investigator. Sound ridiculous? Well, erwise find it nearly impossible to secure released last year featured African
that’s because it is. a good job. hairbraider Melony Armstrong from
Seattle-area bagel businessman New York City commuter van owner Tupelo, Miss. Melony joined with IJ to
Dennis Ballen donates nearly as many Hector Ricketts, too, demonstrates successfully challenge an anti-competitive
bagels as he sells, supporting nonprofit the power of one entrepreneur. Ricketts’ licensing law in her state and has since
organizations across his region. But “dollar vans” have battled the politically gone on to help create at least 300 jobs
Ballen’s thriving enterprise was almost powerful and heavily subsidized public across the state through her advocacy
driven out of business by a local law that buses for years. Despite overwhelming and education, while also improving the
barred him from advertising his business. odds against him, Hector continues to lives of those around her by providing
Read about how he joined with IJ to fight grow his own business that puts people Entrepreneurs continued on page 8
7
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www.ij.org/DallasSignBan
Watch the award-winning case video, “City of Dallas Bans
Signs for Small Business.”
8
August 2010
Double or Triple
Your Donation with
Parents Glenn and Rhonda Dennard with their children, (from left), Glenn II, Joshua, Matching Gift Opportunities
Marché, Sarah, and Micah. Glenn II, Joshua, Marché and Sarah attend Grace
Community Christian School and Micah recently graduated from Xavier High School.
Now your contributions in the fight for
“This case is most notable for what it does not freedom can go even further!
With IJ’s matching-gift program, you
involve: state action advancing religion. Arizona can double or even triple your contribution.
structured its tax credit program to be Thousands of companies offer employees and
completely neutral with regard to religion.” retirees—and sometimes even their spouses—the
option of increasing their personal, tax-deduct-
Winn to U.S.S.C. continued from page 1 ible donations through matching-gift programs.
the Establishment Clause, even though the program is completely neutral with Many companies match dollar-for-dollar and
regard to religion and the tax credits are directed to scholarship organizations only some even do a two-for-one match. And, even
through the private, independent choice of taxpayers. Those were the key hall- if you have already sent in your contribution, it
marks of the program at issue in Zelman v. Simmons-Harris, IJ’s Supreme Court may not be too late to make that gift even more
case that upheld vouchers in Cleveland. generous: A large number of companies will
The Ninth Circuit, however, seized upon the fact that more taxpayers chose to
match your gift well after the day we receive it.
give to religious organizations and most parents chose to use scholarships at religious
Visit www.ij.org/MatchingGifts to find a
schools to declare the program unconstitutional. It did this even though parents and
list of companies with matching-gift programs.
donors have a free choice among scholarship organizations that provide scholarships
to religious schools, others that provide nonreligious scholarships, and still others
IJ’s search feature allows you to type in the name
that provide both. In adopting this rationale, the Ninth Circuit simply ignored the of your company. You may be able to access
admonition in Zelman that a dynamic program is not to be evaluated on a statistic your company’s matching-gift form directly from
that will change every year; so long as the government does not tilt the funding of the the IJ website search. Otherwise, matching-
program for or against religious schools, it is presumptively constitutional. gift forms are typically available from human
Tim Keller, executive director of the IJ Arizona Chapter and IJ’s lead attorney resources departments. Generally, all you need
on the case, explained why we are confident the program will be upheld: “This to do is fill out a form and send it to us, and
case is most notable for what it does not involve: state action advancing religion. then we’ll do the rest.
Arizona structured its tax credit program to be completely neutral with regard to It’s that simple!
religion. Neither taxpayers nor parents have any financial incentive to donate to a If you have questions or need additional
religiously affiliated scholarship organization over a nonreligious scholarship organi- information, feel free to contact Nicole Barcic at
zation or to select religious over nonreligious schools.” (703) 682-9320 x230.
This case comes at a propitious time for the national school choice move- And thank you for your generosity!u
ment. The fall elections could well bring changes to a number of state legislatures
that will then be poised to consider new choice legislation next year. In the mean-
time, we will work tirelessly to prevail in court and to use the case
to thrust school choice into the national limelight to an extent not
seen since 2002, when IJ successfully defended the Cleveland
voucher program.u
9
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IJ attorneys, staff and our local counsel meet with IJ clients and supporters outside the Austin courthouse where the fight to protect the
livelihoods of Texas horse teeth floaters continues.
By Clark Neily Medical Examiners’ Committee on Equine agencies make significant changes in enforce-
IJ’s efforts to corral an out-of-control Dentistry, which found that “there are not ment policy, as the Board tried to do with
Texas bureaucracy have heated up again, as enough veterinarians skilled in equine dentistry horse teeth floating in our case.
we continue our long-running battle to stop the to meet the public’s needs” and that “[m]ost In response, the Board offered a hodge-
Lone Star State’s veterinary cartel from out- veterinarians do not feel comfortable perform- podge of arguments ranging from the merely
lawing horse teeth floating. Before a packed ing dental procedures.” unpersuasive to the patently absurd. The
Austin courtroom on Wednesday, June 30, So confident is the State Board of its abil- Board’s lawyers even tried to persuade the
lawyers from IJ’s headquarters and our Austin- ity to whitewash those findings and impose its judge that although its campaign against horse
based state chapter launched a frontal assault will on horse owners in Texas, that it filed a teeth floaters is well into its third year, the
on Texas bureaucrats’ vision of judicial abdica- motion this spring asking the judge to throw Board actually has no generally applicable rule
tion. out IJ’s legal challenge and declare that—no on horse teeth floating, and instead has been
As loyal Liberty & Law readers know, matter how harmful the Board’s new policy on persecuting our clients and dozens of other
teeth “floating” is a common animal hus- horse teeth floating might be, and no matter teeth floaters on a purely “case-by-case” basis.
bandry practice that involves filing down sharp how obviously driven by the veterinary cartel— This did not appear to sit well with the
enamel points that can develop on a horse’s the courts can provide no meaningful check trial court judge, who seemed to recognize a
molars and prevent the horse from chewing its on the Board’s arbitrary exercise of govern- bureaucratic snow-job when she saw one. We
food properly. Horse teeth floaters have much ment power in shutting down teeth floaters. are still awaiting a ruling on the state’s motion
in common with farriers, who not only shoe During a two-hour trial court hearing in for summary judgment and our cross-motion,
horses, but also trim and level their hooves. June, we fought back against that perverse and we remain optimistic that freedom, com-
For reasons that have nothing to do with theory and explained that we—like the Texas mon sense and our clients will still be standing
public (or animal) welfare and everything to do Constitution—have a much different under- when the dust settles.u
with stifling fair competition, veterinary associ- standing of the role of the courts in protecting
ations in various states, including Texas, have economic liberty. Our briefs and oral argu- Clark Neily is an IJ
senior attorney.
been clamoring for their friends on state vet ments documented in meticulous detail how
boards to confine the practice of teeth float- the Board had simply ignored legal require-
ing to licensed veterinarians. Never mind the ments that are specifically designed to ensure 10
2004 report by the Texas Board of Veterinary maximum public participation anytime state
10
August 2010
Volume 19 Issue 4
Website: www.ij.org
E-mail: general@ij.org
Mother Jones
“Today I hold out the olive branch of comity to my libertarian friends. The Institute
for Justice has just released a lengthy report on ‘civil asset forfeiture,’ the ability
of state and federal agencies to seize property used in the commission of a crime
even if no one has actually been convicted of a crime, and I recommend reading
it. The practice is appalling all by itself, but it’s even worse than it sounds: In most
states and under federal law, law enforcement can keep some or all of the proceeds
from civil forfeitures. This incentive has led to concern that civil forfeiture encour-
ages policing for profit, as agencies pursue forfeitures to boost their budgets at the
expense of other policing priorities.”
11
“[T]he Institute Institute for Justice
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Suite 900 P A I D
for Justice [is] ... Arlington, VA 22203 INSTITUTE FOR
J U S T I C E
a great champion
of economic lib-
erty and the rights
of entrepreneurs.”
—National Review Online
I am IJ.