Chapter § 10.2

• Jurisdiction: Oregon

§ 10.2 THE 1906 CONSTITUTIONAL AMENDMENTS

§ 10.2-1 Text

Oregon cities' constitutional home-rule powers derive from two 1906 amendments to the Oregon Constitution, which have not changed significantly since then. Article XI, section 2, both constrains the legislature and confers powers on local voters:

Corporations may be formed under general laws, but shall not be created by the Legislative Assembly by special laws. The Legislative Assembly shall not enact, amend or repeal any charter or act of incorporation for any municipality, city or town. The legal voters of every city and town are hereby granted power to enact and amend their municipal charter, subject to the Constitution and criminal laws of the State of Oregon, and the exclusive power to license, regulate, control, or to suppress or prohibit, the sale of intoxicating liquors therein is vested in such municipality; but such municipality shall within its limits be subject to the provisions of the local option law of the State of Oregon.

The current version of Article IV, section 1(5), substantially the same as its 1906 version (except for the portions about the percentages of voters needed to place a measure on the ballot), provides as follows:

The initiative and referendum powers reserved to the people by subsections (2) and (3) of this section are further reserved to the qualified voters of each municipality and district as to all local, special and municipal legislation of every character in or for their municipality or district. The manner of exercising those powers shall be provided by general laws, but cities may provide the manner of exercising those powers as to their municipal legislation. In a city, not more than 15 percent of the qualified voters may be required to propose legislation by the initiative, and not more than 10 percent of the qualified voters may be required to order a referendum on legislation.

§ 10.2-2 Historical Context

Before 1906, Oregon cities derived their powers from charters adopted by the legislature. Former Article XI, section 2, of the Oregon Constitution prohibited the legislature from forming corporations by special law, "except for municipal purposes." Thus, the legislature's control over cities' charters was by constitutional design: The constitution specifically exempted municipal corporations from the constitutional restraints on legislative power over corporations generally. All Oregon cities were incorporated by special act of the legislature...