Proposition 90 One of the Greatest Threats to California in Decades

1. Proposition 90One of the Greatest Threatsto California in Decades

2. What is Prop 90?

3. What is Prop 90? It’s a Taxpayer TRAP! The Bait = Eminent Domain • Proponents want voters to believe this is about eminent domain The TRAP = Hidden Provisions • Huge taxpayer payouts for basic laws that protect communities • Increased costs to taxpayers for infrastructure - roads, schools, water, utility services, etc.

4. What is Prop 90? 3 Basic Provisions Provision #1: The Bait Prohibits use of eminent domain unless property owned and occupied by government Provision #2: The TRAP Requires taxpayer payments whenever government takes action that a property owner claims devalues their property Provision #3: The TRAP Redefines “just compensation” to require inflated payments when government acquires property for infrastructure/public works • No longer based on “fair market value” but on the “highest and best use.” In many cases, this would be the value of the land after government improvements have been made.

5. Prop 90 What’s at Stake?

6. What is at Stake Prop 90 fundamentally shifts the balance of power in California • Prop 90 fundamentally changes our system of representative democracy to put the interests of a few above the well-being of ALL Californians.

7. What is at Stake Taxpayers pay billions for basic laws that protect quality of life, our environment, manage growth and development, and build infrastructure Basic laws or actions to protect residents aren’t enacted, vital infrastructure doesn’t get done Lose/Lose situation for California and its residents: Either or

8. What is at Stake Taxpayers on the Hook Thousands of local government entities in California • 478 cities • 58 counties • 2,300 special districts Thousands of actions by state and local governments and voters each year could trigger Prop 90 taxpayer-funded“payouts” • Prop 90 requires payouts for any “statute, charter provision, ordinance, resolution, law, rule or regulation” (Sec. 19.(b)(8))

9. What is at Stake Basic Actions that Could Trigger New Taxpayer Payouts Under Prop 90 Are Virtually Limitless: Land use and zoning actions... Protection of environment/ species... Restrictions on adult businesses and liquor stores... Business regulations... Protection of open space and farmland... Growth management measures, including urban growth boundaries... Limits on vehicle and industrial emissions... CEQA mitigation measures not related to health and safety... Protection of Native American burial, archeological, and other sacred sites… Building regulations not related to health and safety… Road design requirements not related to health and safety... Animal welfare protections...Worker discrimination protections...Restrictions on hours of operation...Historic preservation ordinances... Planning and building moratoria... Rent control... Inclusionary housing requirements... Noise ordinances that restrict the operation of a business... Logging restrictions, including stream and river bed protections... Disabled access requirements, etc, etc, etc…

10. What is at Stake All taxpayers on the hook for billions “Prop 90 could require billions of dollars in new taxpayer costs each year, if communities and the state continue to pass or enforce basic laws to protect neighborhoods, limit unwanted development, protect the environment, restrict unsavory businesses and protect consumers.” William G. Hamm, former Legislative Analyst, State of California

11. Consequences of Prop 90

12. Real World Consequences Looking at the past to predict the future…

13. Real World Consequences Proposition O, LA City (1988) • Passed by voters • Limited oil drilling on beachfront land in Pacific Palisades If Prop 90 had been in effect at that time … LA City taxpayers could have been liable for up to $740 million* in payouts to oil companies *estimate compiled by LECG research in analyzing Prop 90

14. Real World Consequences Restrictions on CommercialSalmon Fishing (’05-’06) Series of actions (state and other) due to serious declines in the salmon runs If Prop 90 had been in effect … Combined impacts (and required payout) could reach as high as $150 million* *estimate compiled by LECG research in analyzing Prop 90

15. Real World Consequences Oregon Measure 37 (approved 2004)Similar “takings” provisions as Prop 90 Since passage, in Oregon: • 1,809 claims (including retroactive claims) • Seeking $3.7 billion in compensation (Oregon has 1/10 the population of California)

16. Real World Consequences “CITIES AND COUNTIES SPEND MORE TIME AND MONEY ON CLAIMS, LESS TIME ON RESIDENTS' EVERYDAY NEEDS” -The Oregonian Newspaper, 7/3/06 Oregon Measure 37 “A landowner wants $203 million or the right to drill geothermal test wells, expand a pumice mine and eventually build a vacation home subdivision inside the Newberry National Monument”. -Associated Press, June 28, 2006

17. Real World Consequences Oregon Measure 37 Victims “This is every farmer’s nightmare. ... Our lifetime investment can be wiped out overnight. Measure 37’s backers never told us it would lead to this kind of unplanned mega-development.” -Penny Cox, Polk County Oregon “When they start up (the gravel mine), it’ll be within 200 feet of our house. They’ll be doing blasting, and they’ll run a rock-crushing machine. They can operate from 7 a.m. to 6 p.m., Monday through Saturday. … We’re just devastated. … It’s happening all over Oregon. -Renee Ross, Molalla, Oregon

18. Real World Consequences Future Impacts of Proposition 90 on California…

19. Real World Consequences CalTrans projects $1 billion in right-of-way acquisitions over next 10 years NOT COUNTING POTENTIAL PASSAGE OF INFRASTRUCTURE BOND PACKAGE Major blow to infrastructure and public works • Billions in higher costs • Fewer projects done • Delays, delays, delays

20. Real World Consequences Traffic gridlock will worsen.

21. Real World Consequences Will paralyze land-use decision making while courts sort out provisions • Hinder new economic growth and job creation

22. Real World Consequences Land, air, water, coastline, and wildlife protections weakened

23. Real World Consequences • Due to dramatically higher costs to expand transmission and distribution lines, and site new power plants Higher Electric Rates

24. Real World Consequences • Gridlocked with tens of thousands of new Prop 90 lawsuits Crowded Courts

25. The Campaign to Defeat Proposition 90

26. Campaign to Defeat Proposition 90 • Elements of initiative popular with voters, but Prop 90 is certainly vulnerable • Defeating Prop 90 will require a major campaign effort in which voter contact efforts are extensive and begin early

27. Campaign to Defeat Proposition 90 THE TAXPAYER TRAP What this means… • To be effective, opponents must be first to FRAME THE ISSUE • Cannot let proponents frame measure • Requires disciplined, sustained and controlled campaign • Cannot rely on earned media to tell story

28. How You Can Help

29. How You Can Help • Fundraising – early donations critical • Join the No on Prop 90 coalition and get information out to your membership • Help recruit other organizations to join the opposition coalition • Become part of the regional teams that will be taking a more active role with local grassroots activities