ACR161

A Concurrent Resolution proposing to amend Article I, paragraph 1 and repeal Article VIII, Section III, paragraph 1 of the Constitution of the State of New Jersey.

Be It Resolved by the General Assembly of the State of New Jersey (the Senate concurring):

1. The following proposed amendment to the Constitution of the State of New Jersey is agreed to:

PROPOSED AMENDMENT

Amend Article I, paragraph 20 to read as follows:

20. [Private property shall not be taken for public use without just compensation. Individuals or private corporations shall not be authorized to take private property for public use without just compensation first made to the owners.] No governmental entity shall take private property for use by the people without the payment of just compensation therefor. "Use by the people" shall be confined to traditional public purposes. The power of eminent domain shall not extend to any economic development activity or to any undertaking in which property so obtained is transferred to a private person or entity unless it is for a traditional public purpose.

(cf: Art. I, para. 20)

Amend Article VIII, Section III, paragraph 1 to read as follows:

1. [The clearance, replanning, development or redevelopment of blighted areas shall be a public purpose and public use, for which private property may be taken or acquired. Municipal, public or private corporations may be authorized by law to undertake such clearance, replanning, development or redevelopment; and improvements made for these purposes and uses, or for any of them, may be exempted from taxation, in whole or in part, for a limited period of time during which the profits of and dividends payable by any private corporation enjoying such tax exemption shall be limited by law. The conditions of use, ownership, management and control of such improvements shall be regulated by law.] (Deleted by referendum approved .)

(cf: Art. VIII, Sec. III, para. 1)

2. When this proposed amendment to the Constitution is finally agreed to pursuant to Article IX, paragraph 1 of the Constitution, it shall be submitted to the people at the next general election occurring more than three months after the final agreement and shall be published at least once in at least one newspaper of each county designated by the President of the Senate, the Speaker of the General Assembly and the Attorney General, not less than three months prior to the general election.

3. This proposed amendment to the Constitution shall be submitted to the people at that election in the following manner and form:

There shall be printed on each official ballot to be used at the general election, the following:

a. In every municipality in which voting machines are not used, a legend which shall immediately precede the question, as follows:

If you favor the proposition printed below make a cross (X), plus (+), or check (T) in the square opposite the word "Yes." If you are opposed thereto make a cross (X), plus (+) or check (T) in the square opposite the word "No."

b. In every municipality the following question:

		CONSTITUTIONAL AMENDMENT TO RESTRICT USE OF CONDEMNATION TO TRADITIONAL PUBLIC PURPOSES
	YES	Shall the amendment to Article I, paragraph 20 and the repeal of Article VIII, Section III, paragraph 1 of the New Jersey Constitution, agreed to by the Legislature and limiting the public purposes for which property may be taken by condemnation to traditional public purposes, and removing the ability to condemn private property for redevelopment purposes and grant long term tax abatements, be approved?
		INTERPRETIVE STATEMENT
	NO	This proposed amendment would restrict the use of eminent domain to condemn land and transfer the land to a private person or entity to projects that fulfill a traditional public purpose. The use of condemnation for any economic development activity that would result in the transfer of the condemned property to a private person or entity for any use that is a non-traditional "public purpose," such as a shopping center or commercial office building, would be prohibited. The proposed amendment also would repeal the constitutional provision that allows condemnation of properties in blighted areas for redevelopment purposes and also allows for the granting of long term tax exemptions for redevelopment improvements.

STATEMENT

Government traditionally possesses the right to seize property for public purposes, provided that it pays full and complete compensation to the owner thereof. Increasingly, though, the courts have expanded the definition of "public purpose" to permit governmental seizure of property for purely economic development projects, often projects which are owned by profit-making entities.

This proposed constitutional amendment would ensure against that sort of non-traditional exercise of the extraordinary power that government possesses to take private property, limiting the condemnation power to those circumstances in which a traditional public purpose is served, such as transportation, infrastructure and public buildings. Under this proposed constitutional amendment certain private entities, such as private railroads, could benefit from the use of the condemnation power, but the proposed amendment would not permit the involuntary seizure of private property for the benefit of private entities, such as for the construction of shopping centers or commercial office buildings. In these cases when private economic development is the primary motive, the proposed constitutional amendment would ensure that the rights of a property owner supersede those of the government, regardless of how economically beneficial the government may believe a project to be. This concurrent resolution also proposes an amendment to the Constitution that would repeal Article VIII, Section III, paragraph 1, the provision allowing for the condemnation of properties located in blighted areas for redevelopment purposes. That constitutional provision also currently authorizes the granting of long-term tax exemptions for redevelopment improvements.