Just Compensation - constitutional amendment supports property rights in Oregon - Brief Article

In November, Oregon, notorious for its expansive land use regulations, passed a constitutional amendment that just might rein them in. The new law will help citizens get compensation from the state government if its regulations lessen the value of their property.

Measure 7 passed with 54 percent of the vote, despite strong opposition from the governor, most other state officials, environmentalist groups, and some business interests. Opponents warned that compensation under the measure would total $5.4 billion a year--effectively admitting that they intend to impose that much cost on property owners without compensation. David Hunnicutt of Oregonians in Action, a landowners' rights group that helped get the measure on the ballot, says the victory was unexpectedly large, given that Measure 7's opponents outspent proponents by a 5-to-1 margin.

The new law applies only to regulations that went into effect after the current owner bought the property. Unlike many state-level laws that ask government to "consider" property values in its regulations, Measure 7 "provides teeth and ties takings compensation to going beyond what common law would provide," says Steven Eagle, professor of law at George Mason University and author of Property Rights and Regulatory Takings. "I think that's extremely significant."

The new rule already seems to be making a difference. Oregon's Department of Land Conservation and Development was set to issue new rules about expanding the state's urban growth boundary, which restricts development outside of designated areas. Any new such rules are now on hold, pending a full legal understanding of Measure 7 and its ramifications.

COPYRIGHT 2001 Reason Foundation
COPYRIGHT 2001 Gale Group