HomeMy WebLinkAboutMeasure 37
Proposed by Initiative Petition
MEASURE 37
GOVERNMENTS MUST PAY OWNERS, OR FORGO ENFORCEMENT, W:HEN
CERTAIN LAND USE RESTRICTIONS REDUCE PROPERTY VALUE
RESULT OF IIYESII VOTE: "Yes" vote requires that governments. pay owners, or forgo
enforcement by repealing, changing, not applying restrictions, when certain land use
restrictions reduce owners' property value.
RESULT OF IINO" VOTE: "No" vote rejects requiring that governments pay owners or forgo
enforcement by repealing, changing, not applying restrictions, when certain land use
restrictions reduce property value.
SUMMARY: Currently, Oregon Constitution requires government(s) to pay owner "just
compensation" when condemning private property or taking it by other action, including laws
precluding all substantial beneficial or economically viable use. Measure enacts statute
requiring that when state, city, county, metropolitan service district enacts. or enforces land use
regulation that restricts use of private real property or interest thereon, government rnust pay
owner reduction in fair market value of affected property interest, or forgo enforcement.
Governments may repeal, change, or not apply restrictions in lieu of payment; if compensation
not timely paid, owner not subject to restrictions. Applies to restrictions enacted after "family
member" (defined) acquired property. Creates civil right of action including attorney fees.
Provides no new revenue source for payments. Certain exceptions. Other provisions.
ESTIMATE OF FINANCIAL IMPACT:
The measure would require state administrative expenditures to respond to claims for
compensation of between $18 million and $44 million per year.
The measure may require compensation to landowners. The amount of state expenditures
needed to pay claims for compensation cannot be determined.
There is no financial effect on state revenues.
'The measure w01;1ld require l<?cal government administrative expenditures to respond. to claims
for compensation of between $46 million and $300 million per year. .
The measure may require compensation to landowners. The amount of local govermnent
expenditures needed to pay claims for compensation cannot be determined.
The effect of the measure on local government revenues cannot be determined.
November 2,2004 General Election
Ballot Measure 37
Explanatory S1tatement:
Ballot ~lIeasure 37 adds a new statute to ORS chapter 197. As specified in the measure, the owner
of private real property is entitled to receive just compensation when a land use regulation is enacted after
the owner or a family member became the owner of the property if the regulation restricts the use of the
property and reduces its fair market value.
If a property owner proves that a land use regulation restricts the use of the owner's property, and
reduces its value then the government responsible for the regulation will have a choice: pay the owner of
the property an amount equal to the reduction in value or modify, change or not apply the regulation to
the owner's property.
The measure allows the state, county, city or metropolitan service district to adopt procedures for
processing claims for compensation, but prohibits those procedures from being treated as a prerequisite to
the filing of a elaim in circuit court.
The measure does not apply to commonly and historically recognized public nuisances, public
health and saf(~ty regulations, regulations required to comply with federal law, and regulations restricting
or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing.
The measure specifies that compensation is due if the regulation remains in force 180 days after
the owner makes written demand for compensation. After that time, the present owner may file an action
in the circuit court in the county in which the property is located. The measure also specifies that the
present owner is entitled to reasonable attorney fees, expenses, costs and other disbursements reasonably
incurred to collect compensation.
The measure provides no new revenue source for payments, if any, required under this measure.
The measure defines several terms that are used in the statute including "family member" which is
defined as wift~, husband, son, daughter, mother, father, brother, brother-in-law, sister, sister-in-law, son-
in-law, daughter-in-law, mother-in-law, father-in-law, aunt, uncle, niece, nephew, stepparent, stepchild,
grandparent, or grandchild of the owner of the property, an estate of any of the foregoing family
members, or a legal entity owned by anyone or combination of these family members or the owner of the
property .