01/21/2021
We have been getting calls and email asking about House Bill 2238, a new bill introduced in the 2021 Oregon Legislative Session. There's a link to the bill at the bottom of this post.
For such a short bill, it has generated a ton of controversy. We think the bill does two things:
1. Eliminates a property owner's right to receive compensation when the government temporarily (not permanently) takes your property (real or personal property) during a government declared emergency, unless you have a right to compensation under the Takings Clause of the Oregon or United States Constitutions; and
2. Clarifies that the Governor has the authority to take private property (real or personal property) during an emergency if needed as a result of the emergency. We use the word "clarifies" here because we believe that Oregon law already gives the Governor that power, and this bill simply makes it clear that the Governor has that authority.
Based on comments we've received and have read, it's also important to set out what we believe the bill DOES NOT do. The bill DOES NOT:
1. Apply to any government action that takes property except in the case of an emergency declaration by the Governor. In other words, the bill is limited to emergencies only.
2. Allow the Governor to take property without compensation if compensation is required by the Takings Clause of the United States or Oregon Constitutions. The interpretation of the Takings Clause when private property is taken as a result of an emergency is complicated and extremely fact-specific (meaning each situation is unique), but the government can be required to pay compensation under the Takings Clause in some instances even if the property is only taken for a short time and then returned. For an interesting overview of the government's authority to confiscate property during an emergency, with citations to multiple decisions of the US Supreme Court, take a look at Orr v. United States, 145 Fed. Cl. 140, a 2019 decision of the United States Court of Federal Claims.
3. Allow the Governor to ignore any of her other constitutional obligations related to temporary or permanent confiscation of private property. For example, an order requiring the confiscation of fi****ms that violates the owners 2nd Amendment rights will result in the invalidation of the emergency order, notwithstanding this bill. This isn't controversial - the Oregon legislature cannot override the US Constitution, and can only refer amendments to the Oregon Constitution to the voters for approval or rejection.
In short, a lot of the comments we've been receiving about HB 2238 are overblown and based on a misunderstanding of the bill and constitutional principles. If HB 2238 passes, it won't be as devastating as some people are making it out to be. Nevertheless, HB 2238 is a bad bill that we will work to defeat.
The primary reason HB 2238 is a bad bill is because it impliedly overturns ORS 401.192(3), which requires the state to compensate a property owner any time the Governor seizes private property, or restrains its use as a result of a state declared emergency. The compensation provisions were enacted by the Oregon Legislature in 1983, and have remained unchanged to this day. If HB 2238 passes, property owners who have their land or personal property taken by the government, but who have not suffered a taking or been deprived of any right under the Oregon or United States Constitutions will not have a claim for compensation, even though the current law allows EVERY property owner to seek compensation when property is seized during an emergency.
To be clear, what the compensation provisions of ORS 401.192(3) require, and when they apply, is an open question. In fact, even though the law is nearly 40 years old, it has never been interpreted by the Oregon appellate courts. But the language of the law is clear, and it doesn't require the property owner to prove that the seizure of their property as a result of the emergency order also violates their constitutional rights. In other words, the existing statute seems to provide even greater protection for property owners than both Constitutions, and the Oregon legislature is free to remove those extra protections. That's what HB 2238 appears to do, and that's why we're opposed to it.
Here's a link to the bill: