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May 13, 2008

SBACC Positions on the June 2008 Statewide Propositions


Proposition 98

Regulation of Private Property
 

SBACC Position: OPPOSE


Proposition 98 aims to protect private property, including businesses and farms, from government profiting by seizing property from one private property owner and giving it to another private entity.

Private property may not be taken by eminent domain for private use under any circumstances (e.g. to build a shopping center, auto mall or industrial park).

Property may be taken by eminent domain only for public use (e.g.. freeway construction, parks, schools).

Property may not be taken by government and used for the same purposes (e.g. residential housing cannot be used for government housing).

Family farms and open space are protected from seizures by government for the purpose of selling the natural resources.

Background

- Provides full compensation to the property owner, even when property is seized for public projects.

- Removes the current $10,000 cap on reimbursable expenses associated with legal or other expenses.

- Property owners will be compensated for all reasonable costs associated with moving, loss of business, and reestablishment of the business.

- Should a public agency take immediate possession of property, the owner is entitled to prompt release of the money offered while keeping the right to challenge the agency's offer, and its right to take the property.

- Includes a provision that requires a public agency to return the seized property to its original owner if the public project is ever abandoned. Under this provision, property would also be taxed at the pre-condemnation value. This is known as the abandonment clause in the proposition.

- Limits government’s ability to decide the amount a property owner can charge to sell or lease his property.

- Does not limit government’s ability to use eminent domain for public projects like roads, parks and water supply projects, nor does it limit local zoning ordinances and land use decisions, workplace regulations or projects that benefit the health and safety of a community or environment.
 

Why SBACC Opposes


This proposition is an effort to eliminate rent control as a hidden agenda and not about eminent domain.

Would allow landlords to raise rents on seniors and working families by eliminating rent control.

Would stop future water projects, destroy local-use planning, erode environmental protections and lead to higher taxpayer costs.

According to the Association of California Water Agencies Proposition 98 could derail needed groundwater and surface water storage projects around the state and calls this flaw in the measure "cause for alarm."
 

Proposition 98 could lead to thousands of frivolous lawsuits and paralyze approval of new homes, businesses and other projects.
 

Opponents of Proposition 98 and Proponents of Proposition 99 argue that in the definitions section of the Proposition 98 has a clause that would prohibit laws and regulations that “transfer an economic benefit to one or more private persons at the expense of the private owner.”

 

Courts have ruled that virtually all local land-use decisions can transfer economic benefit from one party to another, which would lead to countless lawsuits.

 



Proposition 99

Acquisition of Owner-Occupied Residence

SBACC Position: SUPPORT


Proposition 99 Aims to prohibit the government from using eminent domain to take a home to transfer to another private party.

Will not change state or local rent control laws or ordinances as Proposition 98 would abolish rent control.

Background

Amends the California Constitution to respond specifically to the facts and the decision of the U.S. Supreme Court in Kelo v. City of New London, in which the Court held that it was permissible for a city to use eminent domain to take the home of a Connecticut woman for purpose of economic development.

Since that U.S. Supreme Court decision, more than 40 states have reformed their eminent domain laws.

Respects the decision of the voters to reject Proposition 90 in November 2006, a measure that included eminent domain reform but also included unrelated provisions that would have subjected taxpayers to enormous financial liability from a wide variety of traditional legislative and administrative actions to protect the public welfare.

Provides a comprehensive and exclusive basis in the California Constitution to compensate property owners when property is taken or damaged by state or local governments, without affecting legislative and administrative actions taken to protect the public health, safety and welfare.

Why SBACC Supports

True eminent domain reform without the “hidden agenda” of eliminating rent control laws and ordinances.

Proposition 99 will not threaten California’s water quality and supply as does Proposition 98, argued by proponents of this proposition.

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