Two Eminent Domain Measures on California June 3rd Ballot: No on 98 and Yes on 99

[courtesy of California Progress Report]

By Peter L. Stahl
Pete Rates the Propositions

Hey, voters!

The June primary is upon us. This ballot features two statewide propositions, both narrowing the government's ability to use its power of eminent domain to condemn and acquire private property. This is not a trivial issue. A ridiculous recent decision by the U. S. Supreme Court now allows governments to take private property, such as people's homes, for transfer to new, private owners, such as a Fortune 500 corporation, for no purpose other than increasing tax revenue. We must act to prevent this from happening in California.

Both Prop 98 and Prop 99 will curtail this new use of eminent domain. But while Prop 99 stops there, Prop 98 tracks on a sinister and gratuitous abolition of rent control. Obviously I don't think that's a good idea. Why? Read my ratings to find out. Then make up your own mind.

Proposition 98: Elimination of Rent Control – NO

Prop 98 prohibits governments from using eminent domain to acquire private property for transfer to new, private owners. Also prohibits governments from acquiring private property via eminent domain for use as the private owner used it. Requires governments to use acquired property for the purpose specified in the eminent domain process, or else offer to sell it back to the original owner. Increases the compensation provided to property owners. This effectively addresses the Kelo issues. Nothing wrong so far.

Prop 98 also prohibits the taking of private property "for the consumption of natural resources." This would make it nearly impossible for the government to build any new public water project. Uh oh.

Furthermore, there is a provision prohibiting laws and regulations that "transfer an economic benefit to one or more private persons at the expense of the private owner." Depending on who you believe, this provision might overturn most existing environmental and land-use regulations. That's not good.

Perhaps most significantly, Prop 98 also will abolish rent control for apartments and mobile homes. No new rent control measures may be enacted, and all existing rent-controlled units would go to market rate when the current tenants leave. Also, although the measure is ambiguously worded, Prop 98 would probably eliminate existing protections for renters and mobile home owners, such as laws requiring reasonable return of rental deposits and preventing unfair evictions. That's just awful.