NC Democrats Fail to Protect Property Rights

Annexation Reform and Restrictions on Abusive Condemnations are Sidetracked by 60 Democrats in General Assembly

July 15, 2009

NC NEWS -- The North Carolina Republican Joint Caucus reports that in key legislative action last week all 52 Republican House members voted to continue efforts to end abuses of private property rights. However, bills to reform annexation laws (HB 524) and to pass a constitutional amendment (HB 1268) limiting abusive condemnations were sidetracked by 60 Democrats. Each bill was returned again to Committee, therefore leaving their fate in doubt for this session of the legislature.

Republican Joint Caucus Leader, Senator Eddie Goodall

Annexation reform has been an intensely contested issue for several years, HB 524 is designed to address this concern, unfortunately this bill was referred to the Appropriations Committee by 60 Democrats for a second time. All 52 Republicans and seven Democrats opposed this attempt to kill the effort for Annexation reform. Additionally, even though the bill was not completely satisfactory to most members, it does bring significant progress toward providing fairness to property owners in areas proposed to be annexed. Key provisions within the bill, provide more equitable treatment under our annexation laws including:

• Requires extension of water and sewer lines within 3 years to annexed area annexed residents are no longer subject to municipal property taxes if this deadline is missed
• Prohibits use of "shoestring" annexations
• Requires cities to meet a threshold of meaningful services before involuntary annexation
• Extends to 20 years the time for property owners to pay any assessments
• Requires more information and structured public hearings provided to residents in proposed annexation areas

The second bill referred to Committee was HB 1268 Condemnation Reform, which provides a referendum on a constitutional amendment to protect private property rights from abusive condemnation. HB 1268 was sponsored by a large bipartisan majority of the House 52 Republicans and 31 Democrats. But even this support failed to prevent Democrats from mustering 60 votes to remove the Bill from the floor, sending it back to Committee, possibly killing it for this session. In this vote, all 52 Republicans and 5 Democrats opposed the motion.

The proposed constitutional amendment reads:

"Private property shall not be taken by eminent domain except for a public use. Public use does not include the taking of property in order to convey an interest in the property for economic development. The preceding two sentences do not apply to takings for access to property. Just compensation shall be paid and, if demanded, shall be determined by a jury."

If ratified, the people would vote on May 10, 2010, whether to make it a part of our constitution. Republican House Leader, Rep. Paul Stam of Wake County has requested that the Committee meet tomorrow and send HB 1268 back to the floor. Representative Stam said:

"The people of North Carolina want to feel secure that their property will not be arbitrarily taken by the government."

Republican Senate Leader, Phil Berger of Rockingham County said:

"Among the most important issues pending before the General Assembly are reform of North Carolina's annexation laws and protection of private property from overreaching condemnation. Failure on the part of Democrats to properly address these issues is yet another example of misplaced priorities"

Representative Nelson Dollar of Wake County said:

"Republicans are committed to reform of North Carolina's involuntary annexation laws. Cities must be able to plan for orderly growth and extend city services to urban areas of development on their borders; nevertheless, homeowners must have a real voice in the process when a city reaches out to take them in by force. North Carolina is one of only four states who ignore the rights of these citizens. We need to reform and modernize involuntary annexation to allow for a proper balance between need for cities to grow and protection of our citizen's rights."

Representative Pat Hurley of Randolph County said:

"I have been to many public hearings on annexation as well as serving on the Judiciary II Committee and have heard stories of the abuses of many municipalities. I feel that the citizens in the areas of the proposed annexations should have a chance to vote for or against the proposal."

Republicans in the General Assembly are determined to fight to protect private property rights, including the reform of North Carolina's annexation laws and enacting protections against local governments seeking to take private property through the use of Eminent Domain. Annexation is a taxing issue and Eminent Domain is a taking issue. Both need reform to protect the property rights of the citizens in North Carolina and the United States.