Article XI, Sections 4 to 6 of the Oregon State Constitution

In this post, we will look at sections 4 through 6 of Article XI of the Oregon State Constitution.  Article XI is entitled "Corporations and Internal Improvements" and deals with a variety of things such a municipalities, eminent domain, and State investment in private and public companies.

Section 4

This section refers to eminent domain.  It states that the compensation has to be given in accordance with law, but how this is balanced is in the details.  Note eminent domain was also Article I, section 18.  That section discussed "public use" of lands or services taken.  This section has no such requirement that the action has to be for public use or benefit.  This would be an interesting point to explore further to see what has been litigated on the issue.

Section 5

This section imposes that the approval of town charters by the Legislature has to ensure that the correct limits of taxation and taking on various forms of debt are in place in the town charter.

Section 6, Subsection (1)

This subsection prohibits that the State can decide to become an investor in any private or public company.  It can accept bequests and donations to fund higher education.  The idea here is that there is a firewall between the general government (including the Legislature and Governor) vs. the educational institutions.  In practice I would expect that any moneys and investments received by the State gets proportioned out to the Oregon university system almost automatically.

Section 6, Subsection (2)

This subsection provides an exception that if the state participates in a Private-Public Partnership and ends up owning stock out of that, then it is allowed.  Also, this subsection grandfathers anything owned prior to Dec 5, 2002.

Section 6, Subsection (3)

This subsection provides that subsections (1) and (2) do not apply to Public Universities, meaning the University of Oregon system.  However, to me it is not clear as to the intent here: Is it the intent that Public Universities (or really their investment trusts) are allowed to own, hold and dispose of stock, or is it that the notwithstanding parts are not applicable to public universities and as a result, they are not allowed to own, hold or dispose of stock?