BILL ANALYSIS                                                                                                                                                                                                    



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          Date of Hearing:   July 10, 2007

                           ASSEMBLY COMMITTEE ON JUDICIARY
                                  Dave Jones, Chair
                      ACA 2 (Walters) - As Amended: July 5, 2007
           
          SUBJECT  :   Eminent Domain:  broad restrictions on use 

           KEY ISSUES  :  

          1)Should the eminent domain provisions of the California  
            Constitution be amended so as to BROADLY prohibit, subject to  
            certain exceptions, the use of eminent domain for purposes of  
            economic development, increasing tax revenue, or private use? 

          2)Should land near closed military installations in San  
            Bernardino County be exempted from the general prohibitions of  
            this measure?  Are there other communities facing economic  
            hardships as severe as those in San Bernardino County, which  
            might justifiably use eminent domain for purposes of  
            redevelopment?  
           
          3)IS THIS MEASURE SUFFICIENTLY DIFFERENT TO ACA 8, WHICH THE  
            COMMITTEE APPROVED LAST WEEK, TO MAKE IT INCONSISTENT FOR THE  
            COMMITTEE TO APPROVE IT AS WELL?  IF SO, WHAT ARE THESE  
            DIFFERENCES?  
           
                                      synopsis 

          This measure seeks to amend our state constitution so as to  
          broadly prohibit, subject to certain exceptions, the use of  
          eminent domain for purposes of economic development, increasing  
          tax revenue, or private use.  In addition, the measure seeks to  
          require that the "public use" for which property will be taken  
          must be stated in writing prior to the commencement of eminent  
          domain proceedings.  The measure includes provisions relating to  
          offers of just compensation and opportunities for the property  
          owner to repurchase in the event that the property is not used  
          for the stated public use.  Finally, the measure seeks to grant  
          a special exemption for redeveloping property located near a  
          closed military base or installation in San Bernardino County.   
          Supporters contend that this broad constitutional reform is  
          necessary in light of the U.S. Supreme Court's 2005  Kelo   
          decision, which employed a definition of "public use" to uphold  
          the taking of private property and its transfer to other private  








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          parties as part of a redevelopment project.  This proposed  
          constitutional amendment seeks to prevent such a taking and,  
          according to the author and supporters, limit the meaning of  
          "public use" to instances where the condemned property will be  
          owned or occupied by the condemning public entity.  Opponents  
          claim that this bill is an unwise over-reaction to the  Kelo  
           decision, and that it fails to take into account  
          socially-important situations in which it is necessary to use  
          eminent domain for purposes of economic revitalization.  While  
          opponents agree that carefully crafted and measured changes are  
          necessary in order to address legitimate concerns about the  
          potential abuse of the eminent domain, they strongly oppose this  
          broad approach and instead support what they suggest is the more  
          thoughtful and more surgical approach contained in ACA 8 (De La  
          Torre), which passed out of this Committee last week.  The  
          analysis suggests that this measure contains substantial  
          differences with the approach taken by ACA 8, thereby raising  
          the question whether passage of this measure would at all be  
          consistent with the Committee's passage of ACA 8 last week. 

           SUMMARY  :  Proposes to place before the voters of California a  
          constitutional amendment that would prohibit the use of eminent  
          domain for purposes of economic development, increasing tax  
          revenue, or private use.  Makes other changes relative to offers  
          of just compensation and a property owner's right to repurchase.  
           Specifically,  this bill :  

          1)Prohibits the taking of property under eminent domain for  
            purposes of economic development, increasing tax revenue, or  
            private use. 

          2)Provides that the public use for which private property shall  
            be taken must be stated in writing prior to the commencement  
            of eminent domain proceedings. 

          3)Prohibits the taking of private property without the express  
            written consent of the owner when the same use will be  
            maintained following the taking. 

          4)Provides that the property owner's acceptance of money  
            initially deposited as just compensation shall not prejudice  
            the owner's right to challenge the amount of just  
            compensation, or to challenge the taking as being for a  
            private use. 









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          5)Permits the taking of private property if necessary to  
            eliminate a specific, recurring, and ongoing threat to public  
            safety, provided that the conditions that pose the threat  
            exist on each parcel taken.

          6)Permits the taking of private property under a declared state  
            of emergency or to abate nuisances such as blight, obscenity,  
            pornography, or hazardous substances or environmental  
            conditions, provided that the taking is limited to abatement  
            of specific conditions on specific parcels. 

          7)Provides that if property taken by eminent domain ceases to be  
            used for the use stated at the time of the taking or if the  
            property is not put to the stated use within 10 years, then  
            the former owner and heirs shall have the right to acquire the  
            property at fair market value at the time of conveyance.   
            Provides further that, upon reacquisition the property shall  
            be assessed for purposes of taxation at its base year value,  
            with any authorized adjustments, at the time the property was  
            acquired by the condemnor. 

          8)Exempts from the provisions of this measure any real property  
            within a duly formed redevelopment project area as of January  
            1, 2008, if the real property is adjacent to a closed military  
            facility or installation. 

          9)Provides that the provisions of this measure shall apply to  
            both new and pending projects, unless a resolution of  
            necessity was adopted prior to the effective date of this  
            measure. 




           EXISTING LAW  : 

          1)Provides that private property may be taken or damaged for a  
            public use only when just compensation, ascertained by a jury  
            unless waived, has first been paid to, or into court for, the  
            owner.  (Cal. Const. Art. 1, Section 19.)

          2)Authorizes, under the Community Redevelopment Law, the  
            creation of redevelopment agencies in order to eradicate  
            "blight."  Provides that an area is blighted if it is  
            "predominantly urbanized" and subject to certain adverse  








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            physical and economic conditions that impose a serious  
            physical and economic burden on the community which cannot be  
            reversed or alleviated by private enterprise or governmental  
            action, or both, without redevelopment.  (Health & Safety Code  
            sections 33320.1, 33030, and 33031.) 

          3)Provides that a governing body may adopt a "resolution of  
            necessity" as a prerequisite to initiating an eminent domain  
            proceeding.  Provides that a resolution of necessity shall  
            include, among other things, a general statement of the public  
            use for which the property will be taken and a declaration  
            that the governing body has found and determined that (a)  
            public interest and necessity require the proposed project;  
            (b) the project has been planned in a manner that will promote  
            the greatest public good and the least private injury; and (c)  
            an offer to purchase has been made to the property owner or  
            owners.  (Code of Civil Procedure Sections 1245.210 through  
            1245.230; see also Government Code Sections 7267, 7267.1, and  
            7267, relating to government offers to purchase real  
            property.) 

          4)Establishes, under the Eminent Domain Law, the general  
            procedures by which a government entity may exercise its power  
            of eminent domain.  (Title 7 of Part 3 of the Code of Civil  
            Procedure, commencing with Section 1230.010.) 

          5)Found and declared, in 1989, that the closure of two military  
            facilities within the County of San Bernardino would cause  
            serious economic hardship in that county, including loss of  
            jobs, increased unemployment, deterioration of properties and  
            land utilization and undue disruption of the lives and  
            activities of the people.  Found and declared, further, that  
            it is the policy of the Legislature to assist communities  
            within the County of San Bernardino in their attempt to  
            preserve the military facilities and installations for their  
            continued use as airports and aviation-related purposes.   
            (Health & Safety Code Section 33492.40.) 

           FISCAL EFFECT  :  As currently in print this bill is keyed  
          non-fiscal.

           COMMENTS  :  This proposed constitutional amendment is one of a  
          number of pending efforts to reform the eminent domain process,  
          a reform movement that gained considerable momentum in the wake  
          of a recent and controversial U.S. Supreme Court decision.   








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          (Kelo v. City of New London Connecticut (2005) 125 U.S. S. Ct.  
          2655.)  The Kelo decision upheld a use of eminent domain to  
          acquire private property as part of a waterfront economic  
          development project.  Critics of the decision claim that in  
          upholding a redevelopment plan that transferred property from  
          one private party to another, the court ignored the clear  
          constitutional requirement that a taking of private property  
          must be justified by a "public use."  State and federal courts  
          have used a broad and elastic definition of "public use" since  
          at least the early 19th century, including private-to-private  
          transfers.  (Harry N. Scheiber, Property Law, Expropriation, and  
          Resource Allocation by Government, 1789-1910, in American Law  
          and Constitutional Order:  Historical Perspectives 132-41  
          (Friedman &  Schieber eds., 1978).)  But the Kelo decision  
          seemed to some particularly egregious, involving as it did the  
          displacement of modest homes in order to make way for a  
          development project anchored by a wealthy pharmaceutical  
          company.

          The Kelo decision spurred efforts around the nation to limit the  
          use of eminent domain, especially when it involved  
          private-to-private transfers in the name of economic  
          redevelopment.  This movement also found its way to California,  
          as witnessed by last year's narrowly defeated Proposition 90,  
          even though California law only permits private-to-private  
          takings if the property had been determined to be "blighted."   
          In Kelo, the condemning agency did not even claim, much less  
          present a finding, that the property was blighted.  Instead, the  
          City of New London defined "public use" in terms of the alleged  
          benefits that would accrue to the public at large in the form of  
          economic revitalization and corresponding increases in tax  
          revenue.  

          This proposed constitutional amendment responds to the broad  
          definition of "public use" upheld in the Kelo decision by  
          expressly prohibiting the use of eminent domain for purposes of  
          economic development, increasing tax revenue or public use.   
          This bill would exempt from this general prohibition the taking  
          of public property to eliminate specific and recurring threats  
          to public safety or to abate blight or other public nuisances.   
          Existing law already requires a finding of "blight" before a  
          public entity may use eminent domain for purposes of economic  
          redevelopment.  This measure would specify, however, that when  
          eminent domain is used to eliminate blight, nuisance, or threats  
          to public safety, the condemnation shall be limited to specific  








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          parcels.  Finally, this measure would exempt from its sweep any  
          property located near closed military facilities and  
          installations in San Bernardino County, since, as noted in the  
          legislative findings and declarations in a prior version of this  
          bill, the closure of bases there "has caused serious economic  
          hardship in that county."  

           Background:  A Brief History of Eminent Domain  :  Because this  
          bill would modify long-standing constitutional provisions, a  
          brief sketch of the overall developments in eminent domain law  
          is in order.  Eminent domain generally refers to the power of  
          government to require the sale of privately held property, so  
          long as the property is needed for a "public use" and the  
          property owner is given "just compensation."  Historically the  
          exercise of eminent domain did not require express statutory or  
          constitutional authority, but was rather assumed to be an  
          inherent attribute of the sovereign.  (See e.g. P. Nicholas, The  
          Law of Eminent Domain (1950) 7-34.)  Although the history of the  
          Fifth Amendment suggests that its drafters were primarily  
          concerned with creating a "just compensation" requirement,  
          modern courts now hold that the Fifth Amendment creates a two  
          prong test: the property must be taken (1) for a public use and  
          (2) just compensation must be given to the property owner.  (See  
          Treanor, The Origins and Original Significance of the Just  
          Compensation Clause of the Fifth Amendment, 94 Yale L. J. 694  
          (1985).

           Twentieth Century Case Law and the "Public Use" Question  :   
          Although "just compensation" is still an essential  
          constitutional requirement, the most controversial cases of the  
          past 50 years or so - including the 2005 Kelo decision - have  
          addressed the meaning of "public use."  The courts have  
          vacillated over time between a "narrow" and "broad" reading of  
          the public use requirement.  The broad view generally interprets  
          "public use" as a use primarily for the "public benefit" or  
          "public interest," while the narrow view means something more  
          akin to "public ownership," except that the narrow view could  
          permit the transfer of property to a privately-owned entity  
          (such as a public utility), so long as it performed a function  
          or service traditionally performed by government.  (Lawrence  
          Berger, The Public Use Requirement in Eminent Domain, 57 Or. L.  
          Rev. 203 (1978).)   

          In the past fifty years, the most controversial "public use"  
          decisions have necessarily involved cases in which the power of  








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          eminent domain was used to transfer property from one private  
          owner to another private owner.  To be sure, the earliest  
          eminent domain cases also involved private-to-private transfers,  
          as in the cases of railroad and canal construction.  However,  
          railroad and canal construction seemed consistent with  
          "traditional" uses of eminent domain and a narrow reading of  
          "public use," insofar as those services could be used by all  
          members of the public - assuming they had need of them and could  
          afford the fares or shipping rates.  

          However, in the second half of the twentieth century, state and  
          local governments began to use the power of eminent domain as  
          part of comprehensive plans of "urban renewal" and "economic  
          development."  Although the context of eminent domain may have  
          been changing, the courts continued their long-standing  
          precedent of defining "public use" flexibly, and generally  
          showing deference to legislative determinations.  In Berman v.  
          Parker (1954) a unanimous United States Supreme Court upheld the  
          use of eminent domain as authorized by Congress for  
          redevelopment in the District of Columbia.  In this important  
          case, the Court determined redevelopment to be a public purpose  
          for which Congress could exercise its power of eminent domain.   
          (348 U.S. 26.)

          This broad reading of public use and deference to legislative  
          determinations was reaffirmed and expanded thirty years later in  
          a case involving the Hawaii state legislature's attempt to  
          dismantle that state's near-feudal land tenure through a policy  
          that forced landholders to sell to long-term tenants under  
          certain circumstances.  Relying heavily on the Berman case,  
          Justice O'Connor's majority opinion held that a state can use  
          its power of eminent domain to pass property from one private  
          party to another private party so long as there was some  
          "justifying public purpose."  The question, according to the  
          Court, is not whether the legislative determinations will  
          accomplish its goals, but whether there is any rational basis  
          for the policy.  Justice O'Connor concluded that correcting the  
          social and economic problems created by Hawaii's skewed land  
          tenure system was a justifiable public purpose.  (Hawaii Housing  
          Authority v. Midkiff (1984) 467 U.S. 229.) 

           Kelo v. City of New London  :  The Kelo decision is best  
          understood in light of long-standing precedents permitting a  
          broad understanding of "public use" and judicial deference to  
          legislative determinations as to what constituted public use.   








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          Nonetheless, Kelo did mark a departure in certain respects.   
          Unlike the Berman case, the City of New London did not contend  
          that the condemned properties were "blighted."  Rather, the city  
          used its power of eminent domain to take a number of modest  
          homes for the purpose of developing a waterfront neighborhood  
          that would feature a Pfizer pharmaceutical complex and adjacent  
          offices, hotels, residences, shops, and services.  The city  
          contended that this development project would create a  
          significant public benefit by reviving an economically stagnant  
          neighborhood, creating jobs, and generating increased tax  
          revenues that could be used to fund needed public services.  A  
          slim majority of the Court voted to uphold the city's use of  
          eminent domain for this development project and, in so doing,  
          used a broad definition of "public use" and showed great  
          deference to legislative determinations by state and local  
          policy-makers.  In that sense, the Kelo decision was not so  
          different from prior cases.  

          But as was made clear in Justice O'Connor's dissent - recalling  
          that Justice O'Conner authored the Midkiff opinion - Kelo did  
          not involve "blight" and did not seek to address some historical  
          peculiarity, like Hawaii's skewed land tenure system.  However,  
          Justice Stevens' majority opinion assumed that the blight  
          finding in Berman was not essential to finding that the urban  
          renewal project served a legitimate public purpose.  Rather, the  
          clear conclusions to be drawn from Berman and Midkiff, Stevens  
          contended, was that an eminent domain action that transferred  
          property from one private party to another only needed to be  
          justified by a legislatively determined public purpose.  

           Redevelopment and Eminent Domain Law in California  :  In his  
          majority opinion in Kelo, Justice Stevens stressed that the  
          Fifth Amendment only establishes minimum requirements and that  
          "nothing in our opinion precludes any state from placing further  
          restrictions on its exercise of the takings power."  He cited as  
          an example California redevelopment law, which expressly  
          requires a finding of blight.  (Kelo, supra at 2668, fn. 23.)   
          Indeed, the California Legislature has long recognized the  
          controversial nature of eminent domain, and has over the years  
          added statutory restrictions on its use, particularly with  
          respect to redevelopment and the eradication of blight.  Unlike  
          other states, California redevelopment agencies derive their  
          authority to exercise the power of eminent domain from an  
          express grant in the Community Redevelopment Law.
          In addition, California redevelopment agencies are only  








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          authorized to exercise eminent domain within the boundaries of a  
          designated redevelopment project area and only after adopting a  
          redevelopment plan in compliance with specific statutory  
          procedures.  By definition, a redevelopment project area is  
          deemed "blighted," since a finding of blight must be made before  
          an area may be designated a redevelopment project area.
           
          How Does ACA 2 Compare With ACA 8, Which Recently Passed Out Of  
          This Committee?   A careful review of this measure along side ACA  
          8 (De La Torre) quickly demonstrates that this measure  
          substantially differs from ACA 8 (which was heard and passed by  
          this Committee last week) in a number of important ways.  Some  
          of the more significant differences appear to include the  
          following:   
           
                 First, while this measure imposes a general prohibition  
               against the use of eminent domain for any purpose of  
               economic development or increasing tax revenue, ACA 8 would  
               only limit the use of eminent domain for economic  
               development if it involved the conveyance of an  
               owner-occupied home or a small business to another private  
               party.  

                 Second, both ACA 2 and ACA 8 create exemptions for  
               purposes of responding to an emergency or eliminating  
               blight, nuisances or threats to public safety.  The most  
               significant difference, however, is that ACA 2 would  
               require that the conditions giving rise to the exemption -  
               and most relevantly to the blight exemption -- applied to  
               each particular parcel of property that is taken.  ACA 8,  
               other the other hand, would, like existing law, potentially  
               permit the taking of a non-blighted parcel within a wider  
               project area that is deemed to be blighted.
            
                 Third, the "public safety" exemption in ACA 2 would  
               require a finding by a superior court, by clear and  
               convincing evidence, that a specific, recurring, and  
               ongoing threat to public safety exists.  ACA 8 would  
               apparently permit this determination to be made by the  
               redevelopment agency, subject to existing notice and public  
               hearing requirements, without having to have its  
               determination affirmed by a superior court.  

                 Fourth, ACA 8, as amended in this Committee last week,  
               eliminated from its definition of "public work or  








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               improvement" any reference to "incidental" private uses.   
                                                                        ACA 2, however, despite its desire to more narrowly define  
               public use, defines "public use" to include leasing space  
               for privately-owned and operated business activity  
               "incidental to, and compatible with, the public work or  
               improvement." 

                 Fifth, both ACA 2 and ACA 8 require that the "public  
               use" for which property is taken shall be stated in  
               writing, and both permit the original owner to repurchase  
               the property in the event that the property is not used for  
               the stated public use.  However, where ACA 2 would permit  
               repurchase to the former owner "and heirs," ACA 8 expressly  
               states that the opportunity to repurchase does not apply to  
               any heirs or successors of the original owner.

                 Sixth, ACA 2 creates an exemption for property within a  
               redevelopment project area that is adjacent to a closed  
               military facility or installation in San Bernardino County.  
                ACA 8 makes no such geographical distinctions.   

                 Finally, ACA 8 provides that if eminent domain is used  
               under the exemption for eliminating blight, a small  
               business owner (25 employees or less) will have an  
               opportunity to participate in the redevelopment project.   
               ACA 2 has a more narrowly tailored definition of the blight  
               exemption, as noted above, but its blight exemption does  
               not include a requirement that a small business owner, or  
               anyone else, be given an opportunity to participate in the  
               project. 

           Because There Are Substantial Differences Between This Proposal  
          and ACA 8, As Noted Above, Would Not Passage Of This Measure Be  
          Inconsistent With The Committee's Passage Of ACA 8 Last Week?  

           Does the San Bernardino County Exemption Unwittingly Illustrate  
          The Need for Eminent Domain as a Redevelopment Tool?    As noted  
          above, this measure exempts from its provisions any property  
          within a duly formed redevelopment project area that is adjacent  
          to a recently closed military facility in San Bernardino County.  
           Although legislative findings have been deleted from the  
          current version of this measure, an earlier version included  
          legislative findings that the closure of military facilities in  
          San Bernardino County "has caused serious hardship to that  
          county."  These findings alluded to an existing section of the  








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          Community Redevelopment Law finding that closures would cause  
          serious economic hardship in San Bernardino County and declaring  
          a legislative intent to preserve the former bases for use as  
          airports or aviation-related purposes.  (Health & Safety Code  
          Section 33492.40.)  This provision, first enacted in 1989,  
          authorized the creation of a Joint Powers Authority to further  
          redevelopment in areas adjacent to Norton Air Force Base and  
          George Air Force Base, which were two of several military  
          installations closed in 1988 by Public Law 100-526.  Similar  
          special project areas have been established for closed military  
          facilities throughout the state, including Castle Air Force  
          Base, Mather Air Force, Fort Ord, Mare Island Naval Shipyard,  
          Alameda Naval Air Station, March Air Force Base, Hamilton Army  
          Air Field, and Tustin Marine Corps Air Station, among others.   
          These specially created project areas typically create  
          exemptions to existing redevelopment law, such as suspending the  
          usual requirement that a project area be "predominantly  
          urbanized" or modifying affordable housing requirements.   
          (Health & Safety Code Sections 33492 et seq.) 

          Nothing in existing law could be construed as requiring an  
          eminent domain exemption for areas affected by base closures in  
          San Bernardino, or any other redevelopment project area for that  
          matter.  Indeed, the major apparent purpose of this proposed  
          amendment is to curtail the use of eminent domain for purposes  
          of redevelopment. 

          But the exemption proposed in this measure is revealing.  In  
          creating the Joint Powers Authority in San Bernardino County in  
          1989, the Legislature did indeed issue findings and declarations  
          to the effect that the closure of military bases there would  
          cause economic hardship.  In particular, the legislation  
          expressly included among the hardships "loss of jobs, increased  
          unemployment, deterioration of properties and land utilization  
          and undue disruption of lives and activities of the people."   
          This measure, in short, by exempting project areas adjacent to  
          closed military installations in San Bernardino, tacitly admits  
          that eminent domain is sometimes necessary for purposes of  
          economic development and job creation, even in the absence of a  
          specific finding of blight on a specific parcel and even if the  
          taking involves conveyance to a private party for something  
          other than a narrowly defined "public use."

           The Committee may wish to ask the author  why areas near closed  
          military installations in San Bernardino County should be  








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          exempted when areas next to other closed installations should  
          not. But even more critically, the Committee may wish to ask the  
          author why it is acceptable to use eminent domain for purposes  
          of private development if the economic hardship and job loss is  
          caused by a base closure, but not if the economic hardship and  
          job loss is caused by something else.  Given that this bill is  
          presented as one based upon long-standing constitutional  
          principles, what is the precise constitutional principle that  
          would justify imposing greater or lesser limitations on the use  
          of eminent domain contingent upon the circumstances that give  
          rise to economic hardship? 

           ARGUMENTS IN SUPPORT  :  According to the author, U.S. Supreme  
          Court's Kelo decision "opened the door to government taking land  
          from one private owner to another in order to redevelop the land  
          and benefit the local government by the increase in tax  
          revenues."  This measure, the author writes, is a "direct  
          response" to that decision.  By weakening traditional  
          constitutional restrictions, the author contends, Kelo creates  
          the possibility that "local governments could decide that a  
          particular property owner is undesirable and force the sale of  
          his/her property."  The Framers of the Constitution, the author  
          believes, "did not intend for the Fifth Amendment to be abused  
          in this way.  In light of the resulting diminished Fifth  
          Amendment protections, it is incumbent upon our State government  
          to fill the void left by Kelo."  A fact sheet provided by the  
          author states this bill will help to remedy the void in part by  
          prohibiting the "condemnation of nonblighted property for  
          private business development." 

          At the time of this writing, the Committee had not received any  
          letters in support of the current version of this bill.   
          However, the single letter of support from Orange County  
          Supervisor Chris Norby in support of the previous version would  
          seem to apply to this version as well.  On behalf of the Orange  
          County Board of Supervisors, Norby writes that this measure will  
          ensure that eminent domain proceedings will only be used "to  
          acquire private property for public uses" and not for "economic  
          development or private purposes."  Norby claims this measure  
          "goes a long way toward protecting Californians and their  
          property from seizure by the government" for purposes of  
          economic development and will offer citizens "better protection  
          than that afforded through the U.S. Constitution based on the  
          Supreme Court's decision in Kelo."   









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           ARGUMENTS IN OPPOSITION  :  Opponents, all of whom support the  
          alternative measure ACA 8, generally contend that this measure  
          is an over-reaction to the Kelo decision.  The League of  
          California Cities (League) claims that this measure "is an  
          unnecessarily broad response to the U.S. Supreme Court decision  
          in Kelo v. the City of New London."  The League claims that the  
          Kelo majority was clear that the law of eminent domain is  
          particular to each state and specifically cited California  
          Redevelopment Law as a specific example of such a limitation.   
          The League, in an apparent reference to ACA 8, argues that "an  
          appropriate response [to] the Kelo decision would be to prohibit  
          the taking of single-family or owner-occupied residences when  
          the purpose of the [taking] is for economic development."  

          The League further argues that "ACA 2 would prohibit nearly all  
          actions where a property was condemned and then turned over to  
          another private party, even when the transaction fulfills an  
          important government objective."  This measure, the League  
          believes, will severely undermine the ability of cities to  
          "improve slums, clean contaminated properties, and revitalize  
          deteriorated business districts."  Finally, the League points  
          out that even the provision of ACA 2 that permits the use of  
          eminent domain to eliminate threats to public safety provides  
          that a court must find evidence of the threat by clear and  
          convincing evidence.  According to the League, this would mean  
          that "a city would be prohibited from acquiring a crack house  
          unless it first allowed a court to second-guess the  
          determination of criminal behavior that had been made by the  
          police."

          The California Redevelopment Association (CRA) similarly alleges  
          that this measure is "an overreaction to the U.S. Supreme  
          Court's Kelo vs. New London decision."  CRA also points to the  
          protections in existing law and claims that this measure will  
          only "hamstring government at those times its need to safeguard  
          the public's interest."  CRA claims that this measure would  
          prohibit local governments from engaging in many traditional  
          public projects that require the use of eminent domain.  "Local  
          governments," CRA agues, "use redevelopment to revitalize  
          run-down areas, to clean-up contaminated properties and return  
          land to productive use, and to deal with irresponsible property  
          owners."  ACA 2 will inhibit government's ability to perform  
          these vital functions, according to CRA.  For that reason CRA  
          endorses what it considers the "more balanced" approach of ACA  
          8.








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          The California State Association of Counties (CSAC) opposes this  
          measure for similar reasons as those noted above.  CSAC adds,  
          however, that the San Bernardino County exemption "explicitly  
          recognizes the utility of the eminent domain power."  CSAC notes  
          that "while the circumstances of the military base closure and  
          the economy of the region are undoubtedly worthy of continued  
          revitalization efforts, such a project serves as evidence that  
          eminent domain can be a useful tool for local agencies for  
          redevelopment purposes." 

           PENDING RELATED MEASURES  :  ACA 8 (De La Torre), which passed  
          this Committee last week, prohibits the use of eminent domain to  
          take owner-occupied homes and small businesses (25 or fewer  
          employees) if the property will be transferred to a private  
          party.  However, property may be taken from small business and  
          transferred to a private party if the purpose is to eradicate  
          blight, and the small business owner is given an opportunity to  
          participate in the project or is offered relocations expenses of  
          the fair market value of the business.  Makes other exemptions  
          as specified, and would require the public use to be stated in  
          writing. 

          SCA 1 (McClintock) provides generally that private property may  
          not be taken or damaged for economic development, increasing tax  
          revenue, or any other private use.  Provides generally that  
          property taken by eminent domain must be owned or occupied by  
          the government or condemning agency.  Provides that if the  
          property is not used for its stated use, it must be offered back  
          to the original owner. 

          AB 1161 (Tran) requires the state Department of Transportation,  
          when it acquires property through eminent domain, to sell  
          property that is not used for the purpose for which it was  
          acquired.

          AB 887 (De La Torre) provides that a redevelopment agency that  
          exercises the power of eminent domain must comply with certain  
          notification requirements before adopting a resolution of  
          necessity. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           








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          Chris Norby, Orange County Supervisor

           Opposition 
           
          California Redevelopment Association
          California State Association of Counties 
          League of California Cities 
           
          Analysis Prepared by  :  Thomas Clark / JUD. / (916) 319-2334