Rent Control Preemption Act Exposed

The Rent Control Preemption Act is listed under ALEC's Commerce, Insurance, and Economic Development Task Force and was included in the 1995 ALEC Sourcebook for American State Legislation. According to ALEC.org, the Act was re-approved by the Board of Directors on January 28, 2013. (Accessed on 7/14/2015).

CMD's Bill Summary

This bill would allow states to preempt its cities and counties from passing rent control legislation designed to help low-income residents afford housing. This is similar to Wisconsin Governor Scott Walker's efforts to preempt a pro-worker sick-leave law passed by a majority of voters in Milwaukee.

ALEC appears to support local control when it applies to state's rights against federal government, but opposes local control when it applies to cities' rights against the state. For example, see also Prohibition Against Regulation of Nutritional Information Regulation, Living Wage Mandate Preemption Act, State Power to Regulate Lending Act.

ALEC Bill Text

Summary

This legislation would effectively preempt all rent control ordinances at the local level. As a result, local governments would be prohibited from enacting, maintaining or enforcing an ordinance that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.

Model Legislation

{Title, enacting clause, etc.}

Section 1.

This Act may be cited as the Rent Control Preemption Act.

Section 2.

As used in this Act, "local governmental unit" means a political subdivision of this state, including, but not limited to, a county, city, village, or township, if the political subdivision provides local government services for residents in a geographically limited area of this State as its primary purpose and has the power to act primarily on behalf of that area.

Section 3.

(A) A local governmental unit shall not enact, maintain, or enforce an ordinance or resolution that would have the effect of controlling the amount of rent charged for leasing private residential or commercial property.

(B) This Section does not impair the right of any local governmental unit to manage and control residential property in which the local governmental unit has property interest.

Section 4. {Severability clause.}

Section 5. {Repealer clause.}

Section 6. {Effective date.}

1995 Sourcebook of American State Legislation