American Institute of Certified Planners (AICP) Practice Exam

The difference between the use of police power and eminent domain in environmental and land use regulation is that?

1. Eminent domain requires compensation

2. Police power requires compensation

3. Eminent domain is a power of the federal government only

4. Police power cannot be exercised by the local government

The correct answer is: Eminent domain requires compensation

The distinction between police power and eminent domain is fundamentally rooted in their definitions and applications. The correct answer highlights that eminent domain involves the government’s ability to take private property for public use, which by law necessitates giving just compensation to the property owner. This principle is grounded in the Fifth Amendment of the U.S. Constitution, which protects individuals from being deprived of their property without fair compensation when the government exercises its power for the greater public good. In contrast, police power refers to the authority of local, state, and federal governments to regulate behavior and enforce order within their jurisdiction, particularly regarding health, safety, morals, and general welfare. Police power does not require compensation to property owners when regulations affect property use; instead, it focuses on the government's ability to enact laws that serve the public interest, which may limit how property can be used or developed. The other responses touch on aspects of these powers but do not accurately capture the core differences. While the federal government does possess eminent domain, the power is not exclusive to it; state and local governments also utilize it, making the assertion that it is only a federal power incorrect. Furthermore, local governments do have the authority to exercise police power, so the notion that they cannot is also inaccurate. Lastly