Wednesday, August 30, 2006

The legislative "solution" to eminent domain abuse isn't good enough

Since the conclusion of the 2006 legislative short session many members of the General Assembly have proudly touted their support for a bill that purports to protect our private property from eminent domain abuse. Unfortunately, many of these same legislators opposed the only form of protection that will truly stand the test of time: an amendment to the North Carolina Constitution. The legislation that was passed and signed into law -- and of which many legislators are apparently quite proud -- can easily be undone by a future legislature. We believe North Carolinians deserve more than this mere band-aid.

Private property is one of the most fundamental rights of citizens in a free society. If you agree that this important right deserves constitutional protection, click here to sign our petition calling for a constitutional amendment that will give us protection that stands the test of time.


The John Locke Foundation's view of why we need an Eminent Domain amendment:

Property rights have received renewed attention in large part because of the Kelo v. City of New London case. In that case, the United States Supreme Court held that the government can seize private property solely for economic development reasons. In other words, if the government can find a better economic use for private property, it can seize it and transfer the property to a private developer. This opinion has sent shockwaves throughout the country. If anything good came out of Kelo, it was putting eminent domain abuse and other property-rights violations (e.g., forced annexation) on policymakers' radar screens.


A Constitutional Amendment is Needed

Eminent domain is the government's power to seize private property for a public use as long as just compensation is provided to the property owner. The Fifth Amendment of the United States Constitution states "Nor shall private property be taken for public use, without just compensation." After Kelo, the term "public use" basically has been deleted from the U.S. Constitution. Below are some frequently asked questions that demonstrate the need for North Carolina to develop a detailed constitutional amendment to protect against economic development takings and other eminent domain abuses.

  • Why does North Carolina need a constitutional amendment instead of legislation?

    Even if state statutes protected us from Kelo-type (economic development) takings, a statute can be changed at the whim of political interests. A constitutional amendment is difficult to change and provides the necessary protection. If the U.S. Supreme Court gutted our freedom of speech rights, would we feel comfortable that a state statute protected our freedom of speech? Property rights are fundamental rights that certainly deserve the same type of protection as other rights listed in the Bill of Rights.

  • Doesn't North Carolina law already protect us from Kelo-type takings?

    Absolutely not. There are local acts (bills passed by the General Assembly affecting a local community) that specifically allow for economic-development takings. North Carolina has a law that allows the state and local governments to use eminent domain to complete revenue bond projects that are designed to promote economic development.

    This revenue bond provision is a great example of why an express constitutional prohibition on economic-development takings is necessary. It was so buried in the statutes that legislative research staff for the special House eminent domain committee did not find it until a couple of weeks before the committee's interim report was completed. What other provisions are buried in the statutes?

    Most importantly, the state's urban redevelopment law (or "blight" statute) is so broad and subjective that it could allow economic-development takings, if not in name, then in effect. Even a prohibition on economic-development takings may not be enough to protect against the abuse of this law.

Click here for the rest of the John Locke Foundation report

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