BILL ANALYSIS                                                                                                                                                                                                    



                                        
                       SENATE LOCAL GOVERNMENT COMMITTEE
                            Senator Dave Cox, Chair

          
          BILL NO:  SB 1042                     HEARING:  3/17/10
          AUTHOR:  Walters                      FISCAL:  No
          VERSION:  2/12/10                     CONSULTANT:  Detwiler

                           COUNTY CONDEMNATION POWERS
          
                           Background and Existing Law  

          During World War I, the Legislature gave counties the power  
          to condemn private property and turn it over to the  
          Secretary of War for military bases.  With 2/3-voter  
          approval, counties can issue general obligation bonds to  
          raise the capital needed to pay compensation to the private  
          landowners (SB 1152, Luce, 1917).

          After the Cold War ended, the Pentagon and Congress closed  
          or realigned nearly three dozen military bases in  
          California.  The armed forces are unlikely to ask counties  
          to take more private property by eminent domain.  If the  
          Pentagon needs private land for military purposes, federal  
          officials will use their own eminent domain authority.   
          Further, it is unlikely that voters will pass general  
          obligation bonds and raise their property taxes to pay for  
          condemning private land.

          Some observers say the 1917 law is archaic and they want  
          legislators to repeal it.


                                   Proposed Law  

          Senate Bill 1042 repeals the state law that allows counties  
          to condemn private property for military bases and pay  
          compensation with general obligation bonds.


                                     Comments  

          1.   To everything there is a season  .  More than 90 years  
          ago, it may have made sense for county supervisors to use  
          their eminent domain powers to condemn private property for  
          Army bases and Navy shipyards.  Military bases attract  
          federal investment and create civilian jobs.  Further, it  
          may have made sense for county voters to pass general  




          SB 1042 -- 2/12/10 -- Page 2



          obligation bonds and shoulder higher property taxes and  
          long-term debt as a way of investing in the local economy.   
          But counties' political and fiscal realities in the early  
          21st Century are considerably different than what county  
          supervisors faced during the Great War.  If the Pentagon  
          wants to condemn private property for military uses, why  
          should local property owners pay?

          2.   No consensus, no omnibus  .  An identical proposal was in  
          SB 113, the Committee's 2009 omnibus bill.  The California  
          State Association of Counties, the Regional Council of  
          Rural Counties, and the Urban Counties Caucus did not  
          object to repealing the state law.  However, because the  
          State Military Department which manages and oversees the  
          California National Guard objected, the Committee removed  
          the item from last year's consensus bill.  The Department's  
          legal staff says that the U.S. military may --- at some  
          time in the future --- need larger training areas in  
          California and the military may want to partner with  
          counties.  They want to keep the law on the books.


                         Support and Opposition  (3/11/10)

           Support  :  California State Association of Counties,  
          Regional Council of Rural Counties, Urban Counties Caucus.

           Opposition  :  Unknown.