BUSINESS CLOSURE COMPENSATION/CONST. AMD.

View NCGA Bill Details2019-2020 Session
House Bill 1174 (Public) Filed Friday, May 22, 2020
AN ACT TO AMEND THE NORTH CAROLINA CONSTITUTION TO AUTHORIZE INVERSE CONDEMNATION BY A BUSINESS CLOSED BY ORDER OF THE GOVERNOR OR A LOCAL GOVERNMENT DUE TO A STATE OF EMERGENCY.
Intro. by Bumgardner.

Status: Ref to the Com on Judiciary, if favorable, Rules, Calendar, and Operations of the House (House action) (May 26 2020)
H 1174

Bill Summaries:

  • Summary date: May 22 2020 - More information

    Subject to statewide voter approval at the 2020 general election, adds new Section 39 to Article I of the NC Constitution to allow a business owner to bring an inverse condemnation action against the State or a local government if the owner's business is partially or completely closed by a gubernatorial or local order due to a state of emergency declared by the Governor. Deems such closure for a public use and allows for just compensation for (1) loss of income during, and for a reasonable period of time after, a temporary partial or complete closure of business that would not have occurred but for compliance with the described order, and (2) loss of going concern, including real property loss, if the closure of the business results in the owner going out of business which would not have occurred but for compliance with the described order. Places the burden of proving causation and the amount of losses on the business owner. Allows the owner to petition for reimbursement of reasonable costs and expenses, including attorney fees and appraisal fees. Sets the statute of limitations for a cause of action under the Section at one year of the expiration of the order that resulted in the closure. Provides for proper venue. Authorizes the NCGA to prescribe general law to further define and implement the Section.


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