NCICL Helps Protect North Carolinians From Potentially Unconstitutional Legislative Act

Last legislative session, the General Assembly considered the controversial Life Sciences Development Act, which would have created a constitutionally problematic State venture into the biotech start –up market, with taxpayers guaranteeing private investment.  Jason Kay, Senior Staff Attorney at NCICL was asked to testify before a legislative committee about the constitutional problems with the Act. 

Kay stated, “the act has several concerns, all centered on the central concept of the legislation.  You just can’t let a private body decide to give away government tax credits.  The constitution is clear on that.  More than that, though, the government cannot back investments in the risky bio-tech market by guaranteeing those investments with tax subsidies.  The people have to vote on that, and they haven’t here.”

The legislation was pulled from consideration in the last hours of the legislative session due in large part to constitutional concerns.

This session, the LSD Act came back for re-consideration.  Kay was again invited to share his analysis in a legal memo addressing the subject.  “Finding no substantive changes to the LSD Act as reconsidered, it appears as unconstitutional as it was last session,” said Kay.  Media reports voiced similar concerns.

The LSD Act was again shelved over the weekend for further study due in large part to the efforts of interested policy groups and legal groups, such as the North Carolina Institute for Constitutional Law and the John Locke Foundation.

What the future holds for the controversial and novel LSD Act is anyone’s guess, but NCICL will continue to monitor changes to the Act.