Bill Restricts State's Use of Eminent Domain | Jackson Free Press | Jackson, MS

Bill Restricts State's Use of Eminent Domain

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Gov. Haley Barbour heads to Chicago today, where he will outline his own plan for national economic policies.

Mississippi Gov. Haley Barbour could face his first veto override if he refuses to sign a House bill limiting the state's right to take property. House Bill 803 restricts any governmental usage of eminent domain "for the purpose of converting privately owned real property for retail, office, commercial, industrial or residential development; or for enhancement of tax revenue or for transfer to a person."

The bill also restricts the government from claiming property for transfer to a non-government entity, a corporation or other business entity, or for public/private partnerships.

The bill does not apply to drainage and levee facilities, public roads and bridges, and public utilities or institutions of higher learning or colleges, but Barbour is leery of signing the bill, and may veto it. The Daily Journal reported that Barbour felt the bill could discourage development projects like Nissan or Toyota.

The bill will not affect Toyota, though an eminent domain debacle involving the Nissan plant left a lesson. The Mississippi legislature passed the controversial "Nissan Act" in 2000, which authorized state incentives for the Nissan manufacturing plant in Canton, but the legislation also gave the Mississippi Major Economic Impact Authority the power to condemn privately-owned property to make way for the new plant.

MMEIA condemned three homes in 2001 to transfer the land to Nissan, which set off a firestorm of media attention with The Institute for Justice rushing down to assist property-owners Percy and Minnie Bouldin, and Andrew Archie and his family in retaining their property.

Nissan admitted at the time that the disputed land wasn't necessary, but MMEIA representatives argued that allowing the homeowners to keep the land without a fight would send the wrong message to other prospective companies looking to invest in Mississippi.

The state reversed its demolition order on the Canton properties in 2002, but in 2005 the U.S. Supreme Court ruled that a government could use eminent domain to snatch private property for transfer to a business for development, which kicked the Mississippi Legislature into opposition mode last year.

Barbour told the Daily Journal that legislation like HB 804, which doesn't give the state adequate power of eminent domain for major economic projects is "fatally flawed."

The House bill passed the Republican-controlled Senate March 3 with no nays, however, and Public Property Committee Chairman Jack Gordon, D-Okolona, said the Senate would likely override the governor's veto—a first since Barbour became governor.

"The U.S. Supreme Court says they can take your property and turn it over to a developer and use the commercial property to get more taxes out of it, but eminent domain should be used only when it's absolutely necessary," Gordon said. "I heard (Barbour) may veto it, but it's a House bill and I think the House would override it, and I'm sure the Senate would override it on that issue too, because it passed with an overwhelming vote."

The same bill passed the House on Feb. 4 with only three nays, those of Republicans Rep. Jim Ellington, of Raymond, and Michael Janus and Steven Palazzo, both of Biloxi.

Previous Comments

ID
144658
Comment

I hope the legislature overrides a veto. People's property should not be taken to benefit the greedy.

Author
golden eagle
Date
2009-03-12T20:29:17-06:00

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