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Oregon's Measure 37: Complete Ballot Title, Official Explanatory Statement, Chief Petitioners' Voter Pamphlet Statements, and Text

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Complete Ballot Title of Measure 37

Proposed by Initiative Petition

MEASURE 37

GOVERNMENTS MUST PAY OWNERS, OR FORGO ENFORCEMENT, WHEN CERTAIN LAND USE RESTRICTIONS REDUCE PROPERTY VALUE

RESULT OF “YES” 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 “NO” 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 must 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 would require local 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 government expenditures needed to pay claims for compensation cannot be determined.

The effect of the measure on local government revenues cannot be determined.


Official Explanatory Statement of Measure 37

Ballot Measure 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 claim in circuit court.

The measure does not apply to commonly and historically recognized public nuisances, public health and safety 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 wife, 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 any one or combination of these family members or the owner of the property.


Chief Petitioners' Voter Pamphlet Statements
(Chief Petitioners, Oregonians In Action)

Statement #1

As chief petitioners of Ballot Measure 37, it is necessary to correct the false statements made by groups who oppose common sense reform to Oregon land use system. In addition, this statement is provided in order to instruct and aid the Oregon courts, so to avoid the courts from misinterpreting our intent behind this measure, as the Oregon courts have a habit of doing.

Despite claims to the contrary, Ballot Measure 37 does not prohibit the state of Oregon and/or local governments from adopting laws that regulate public health and safety. In fact, Ballot Measure 37 specifically excludes statutes and regulations like fire codes, building codes, health codes, sanitation codes, solid wastes or hazardous waste regulations and/or codes, pollution control regulations, traffic safety regulations, from being subject to Ballot Measure 37's protections.

It is not our intention that Ballot Measure 37 be interpreted in such a way as to allow statutes, regulations, goals, ordinances or whatever other means of regulation currently defined in statute, regulation, case law etc. as a land use regulation to be bootstrapped into the definition of building codes, public health and safety codes, sanitation codes, or public welfare codes, by the courts.

In other words, there currently exists a body of law in Oregon which defines what constitutes regulation of land use. It is those regulations that are subject to the provisions of Ballot Measure 37. The state government and/or local governments should not be allowed to rename a land use regulation simply to avoid the protections of Ballot Measure 37.

In sum, it is likely that opponents of Ballot Measure 37 will continue to distort the intent and effect of the measure long after the measure is voted on. Hopefully we the chief petitioners have provided a clarity as to the intent of Section (3)(B) of Ballot Measure 37.

Thank you for taking the time to read our comments. Please join us in supporting Ballot Measure 37.

 

Statement #2

We are the chief petitioners of Ballot Measure 37. This statement is provided in order to instruct and aid the Oregon courts in determining the legislative intent behind Ballot Measure 37, and avoid a situation where the Oregon Courts misinterpret the intent of this law, as Oregon courts are known to do.

Several special interest groups are trying to confuse the voters about Ballot Measure 37. These groups are trying to make Ballot Measure 37 seem much more complicated than it really is.

For instance, opponents of Ballot Measure 37 are distorting the compensation protections of Ballot Measure 37. Through the normal condemnation process, the state government and local governments have an efficient statutory procedure already used to determine just compensation. The process is quick, clean, and extremely efficient and will be the basis for determining just compensation under Ballot Measure 37.

Next, opponents of Ballot Measure 37 try to confuse the issue of just compensation by claiming it will be impossible to determine what regulations will trigger a property owner’s rights under Ballot Measure 37. Again, any land use regulation (as that term is currently defined in Oregon law) enacted after a property owner acquired the property that has the effect of reducing the fair market value of your home will trigger Ballot Measure 37's protections. If, for instance, there are three regulations which reduce a property’s value, a property owner can demand use or compensation based upon the effect of any of the three regulations, or based upon the effect of all three regulation, or any combination thereof.

What’s more, subject to the statute of limitations in section (5), if a property owner submits demand for use or compensation based upon one regulation, the same property owner is not precluded from later demanding use or compensation based upon regulations that existed at the time the property owner submitted her first demand.

Please join us in voting Yes on Ballot Measure 37.

 

Statement #3

We are the chief petitioners for Ballot Measure 37. This statement is provided in order to instruct and aid the Oregon courts in determining the legislative intent behind Ballot Measure 37, and avoid misinterpretation of the intent of this law, as Oregon courts are known to do.

Voters are told that Ballot Measure 37 creates a large bureaucracy and red tape for property owners. Such claims are false. Ballot Measure 37 does not require any governmental unit to adopt any procedures for addressing Ballot Measure 37 claims. No applicant is required to follow a process conjured up by government. The measure makes this clear. All a property owner has to do is submit a letter or other communication demanding use or just compensation for his property – nothing more. There is no requirement that the state government or the local government adopt any new processes.

Second, voters are being told that the definition of "owner" is ambiguous. The term "owner" includes the current owners of the property. If the current owner sells an interest in her property, so long as the current owner still has a current possessory interest, or a reversionary interest in the property, the provisions of Ballot Measure 37 apply using the date the current owner acquired the property. Only if a current owner sells all of her interest in a piece of property does the date of acquisition change for purposes of determining what regulations are subject to Ballot Measure 37 protections.

Finally, opponents of Ballot Measure 37 are trying to scare voters into thinking the measure will prevent the state government and local governments from enacting nuisance abatement laws. This is incorrect. Nuisance abatement laws are exempt from Ballot Measure 37 protections, but again, a law that is currently considered a regulation of land use under Oregon law cannot be re-characterized as a nuisance abatement ordinance in order to avoid Ballot Measure 37.

Please vote Yes on Ballot Measure 37. 


TEXT OF MEASURE 37

The following provisions are added to and made a part of ORS chapter 197:

(1) If a public entity enacts or enforces a new land use regulation or enforces a land use regulation enacted prior to the effective date of this amendment that restricts the use of private real property or any interest therein and has the effect of reducing the fair market value of the property, or any interest therein, then the owner of the property shall be paid just compensation.

(2) Just compensation shall be equal to the reduction in the fair market value of the affected property interest resulting from enactment or enforcement of the land use regulation as of the date the owner makes written demand for compensation under this act.

(3) Subsection (1) of this act shall not apply to land use regulations:

(A) Restricting or prohibiting activities commonly and historically recognized as public nuisances under common law. This subsection shall be construed narrowly in favor of a finding of compensation under this act;

(B) Restricting or prohibiting activities for the protection of public health and safety, such as fire and building codes, health and sanitation regulations, solid or hazardous waste regulations, and pollution control regulations;

(C) To the extent the land use regulation is required to comply with federal law;

(D) Restricting or prohibiting the use of a property for the purpose of selling pornography or performing nude dancing. Nothing in this subsection, however, is intended to affect or alter rights provided by the Oregon or United States Constitutions; or

(E) Enacted prior to the date of acquisition of the property by the owner or a family member of the owner who owned the subject property prior to acquisition or inheritance by the owner, whichever occurred first.

(4) Just compensation under subsection (1) of this act shall be due the owner of the property if the land use regulation continues to be enforced against the property 180 days after the owner of the property makes written demand for compensation under this section to the public entity enacting or enforcing the land use regulation.

(5) For claims arising from land use regulations enacted prior to the effective date of this act, written demand for compensation under subsection (4) shall be made within two years of the effective date of this act, or the date the public entity applies the land use regulation as an approval criteria to an application submitted by the owner of the property, whichever is later. For claims arising from land use regulations enacted after the effective date of this act, written demand for compensation under subsection (4) shall be made within two years of the enactment of the land use regulation, or the date the owner of the property submits a land use application in which the land use regulation is an approval criteria, whichever is later.

(6) If a land use regulation continues to apply to the subject property more than 180 days after the present owner of the property has made written demand for compensation under this act, the present owner of the property, or any interest therein, shall have a cause of action for compensation under this act in the circuit court in which the real property is located, and the present owner of the real property shall be entitled to reasonable attorney fees, expenses, costs, and other disbursements reasonably incurred to collect the compensation.

(7) A metropolitan service district, city, or county, or state agency may adopt or apply procedures for the processing of claims under this act, but in no event shall these procedures act as a prerequisite to the filing of a compensation claim under subsection (6) of this act, nor shall the failure of an owner of property to file an application for a land use permit with the local government serve as grounds for dismissal, abatement, or delay of a compensation claim under subsection (6) of this act.

(8) Notwithstanding any other state statute or the availability of funds under subsection (10) of this act, in lieu of payment of just compensation under this act, the governing body responsible for enacting the land use regulation may modify, remove, or not to apply the land use regulation or land use regulations to allow the owner to use the property for a use permitted at the time the owner acquired the property.

(9) A decision by a governing body under this act shall not be considered a land use decision as defined in ORS 197.015(10).

(10) Claims made under this section shall be paid from funds, if any, specifically allocated by the legislature, city, county, or metropolitan service district for payment of claims under this act. Notwithstanding the availability of funds under this subsection, a metropolitan service district, city, county, or state agency shall have discretion to use available funds to pay claims or to modify, remove, or not apply a land use regulation or land use regulations pursuant to subsection (6) of this act. If a claim has not been paid within two years from the date on which it accrues, the owner shall be allowed to use the property as permitted at the time the owner acquired the property.

(11) Definitions – for purposes of this section:

(A) "Family member" shall include the wife, 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 any one or combination of these family members or the owner of the property.

(B) "Land use regulation" shall include:

(i) Any statute regulating the use of land or any interest therein;

(ii) Administrative rules and goals of the Land Conservation and Development Commission;

(iii) Local government comprehensive plans, zoning ordinances, land division ordinances, and transportation ordinances;

(iv) Metropolitan service district regional framework plans, functional plans, planning goals and objectives; and

(v) Statutes and administrative rules regulating farming and forest practices.

(C) "Owner" is the present owner of the property, or any interest therein.

(D) "Public entity" shall include the state, a metropolitan service district, a city, or a county.

(12) The remedy created by this act is in addition to any other remedy under the Oregon or United States Constitutions, and is not intended to modify or replace any other remedy.

(13) If any portion or portions of this act are declared invalid by a court of competent jurisdiction, the remaining portions of this act shall remain in full force and effect. 

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