Portending what is likely to be a significant legislative
session for local government powers and real property rights in
North Carolina, the first "substantial" bill introduced
in the 2015-2016 session of the North Carolina General Assembly
takes aim at State government's and local government's
ability to take property for economic development purposes.
House Bill 3, available
here, seeks to amend the North Carolina State Constitution to
ban State and local governments from employing eminent domain
powers, inherent with the governments, for private use. While
this might seem non-controversial -- how can a government take my
property and give it to another individual or to a private company?
-- it's widely recognized that taking of private property for
use by another private individual or entity is acceptable under
State and federal constitutional principles. In fact, such a
legal gambit is an important part of economic development
processes.
House
Bill 3 would require government to pay just compensation for
land seizures, and it would also allow the determination of
compensation to be set by a jury "at the request of any
party."
Lastly, House
Bill 3 amends
N.C.G.S. 40A-3 to limit takings by "private
condemnors" to those for "public use" only, a change
from the current "private condemnor" power to take for
"public use or benefit". But, in a sign of the
times, the House
Bill 3 also changes the takings powers of "private
condemnors" by (1) removing "telephones" and
"telegraphs" as proper bases for takings, and adds
the apparently more broad term "communication
facilities", a nod to technological changes, and by (2)
allowing takings by "private condemnors" for the
construction of "facilities related to the distribution of
natural gas", a nod to American efforts toward energy
independence and, some might say, perhaps a future of fracking or
the rise of the Dominion Pipeline.
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