House Bill 1659 proposes a constitutional amendment to prohibit condemnation by Eminent Domain for economic development.

The bill would allow for a referendum to amend the state constitution to prohibit condemnation of private property except for a public use. It also clarifies that public use does not include taking where the property is conveyed to a third party for economic development. In addition it provides for payment of just compensation with the right of a jury trial- if wanted.

The bill was debated in the House Judiciary II committee this morning.
The League of Municipalities spokesperson said the amendment to the constitution wasn’t needed because there were no problems in NC and Kelo like takings could not occur in NC.  She also spoke of unintended consequences and cited the courts might have to rule on eminent domain takings as examples.  Rep. Rhyne commented that didn’t really sound like unintended consequences.

Representative Glazier presented an amendment to change the date of the vote on the constitutional amendment from Nov. 2, 2010 to Nov 8, 2011. A new fiscal note on the bill will be required.  In some areas, this would have to be a separate election. Representatives Stam and Glazier agree to change the date to Nov 6, 2012 (next General election). The Amendment passes unanimously.

The bill passed unanimously by voice vote and will now go to House Appropriation Committee next since it contains a $400 expense to add the amendment referendum to the ballot.