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Government Acquisition, Regulation of Private Property
Initiative Constitutional Amendment.

THE QUESTION

Should the California Constitution be amended to require that government entities pay property owners for substantial economic losses resulting from some new laws and regulations, and limit government authority to take ownership of private property?

THE SITUATION

State and local governments pass laws and rules that may reduce the value of private property, such as those that limit development on real property or require pollution reduction.

To carry out other public policies and/or to promote economic development, governments must sometimes purchase private property. Most of these purchases are negotiated with the owners but, if negotiations fail, the government may acquire the property through eminent domain. Eminent domain is the power of governments to take private property for a public use as long as the owner receives the fair market value of the real property.

THE PROPOSAL

Proposition 90 would:

• require additional compensation to property owners if new laws or rules result in substantial economic losses to the owner, such as limiting the number of homes that can be developed on a parcel, limiting the height of buildings, eliminating road access to the parcel, or requiring endangered species protection or historical preservation
• limit the purposes for which a government could take private property for building a government-owned public facility, correcting a public nuisance on a parcel, or responding to a declared state of emergency
• require that the government own and occupy the acquired property
• prohibit governments from using eminent domain for economic development purposes
• require governments to pay more than fair market value if a greater sum were necessary to place the property owner "in the same position monetarily" as if the property had never been taken

FISCAL EFFECT

The provisions regarding economic losses to the property owner could have a major effect on future governmental policymaking and costs, depending on how the courts interpret the measure's provisions and how governments implement them.

State and local governments probably would modify their policymaking practices to try to avoid the costs of compensating property owners for losses. There probably would be many cases, however, where such costs would be incurred and they could be significant on a statewide basis. This could prevent governments from taking actions that otherwise would have increased economic activity and state or local tax revenues, thus creating a negative fiscal effect.

WHAT A YES OR NO VOTE MEANS

A YES vote means that the California Constitution should be amended to require governments to pay property owners for substantial economic losses resulting from some new laws and rules, and limit government authority to take ownership of private property.

A NO vote means that the California Constitution will not amended to impose new requirements on governments for payment of property owners for economic losses.

SUPPORTERS SAY

• Prop 90 will limit the power of eminent domain available to governments in California to projects for public use.
• It ensures that, whenever government takes or damages private property for a public use, the owner of any affected property will receive just compensation for the property taken or damaged.

OPPONENTS SAY

• Prop 90 is a trap that will lead to huge new costs for all California taxpayers as unscrupulous property owners exploit these new provisions.
• This is a poorly written proposition loaded with unrelated and far-reaching provisions that will harm, not protect, California property owners.

FOR MORE INFORMATION

PRO 916-443-6703, www.90yes.com

CON 916-443-0872, www.noprop90.com