State lawmakers have approved legislation to define, limit and restrict the use of eminent domain powers — by state agencies or municipal governments — for purely economic development purposes.

The bill, sponsored in the Senate by Sen. James C. Sheehan, D-North Kingstown, will be sent to Governor Carcieri for his consideration.

The legislation prevents executive agencies from unilaterally seizing private property for the sole purpose of economic development unless specifically authorized by an act of the General Assembly.

At the city and town level, the bill requires that redevelopment agencies secure council approval for proposed economic development takings of private property.

The bill also provides that owners of property that is taken will be compensated at a minimum of 150 percent of the fair market value of the real property, expenses incidental to transfer of ownership to the acquiring entity and any relocation expenses, including reasonable and necessary moving and reestablishment expenses.

New to the legislation this year is compensation for residents who are tenants of property taken for economic development purposes. That compensation will be a minimum of 150 percent of one month’s rent on such a dwelling, along with relocation, moving and reestablishment expenses.

Sheehan first introduced the legislation three years ago in response to a case of eminent domain in New London, Conn., that took private homes for a commercial and retail development and that was eventually allowed to stand by a ruling of the U.S. Supreme Court.

The bill spells out four permissible uses of eminent domain powers: providing for public ownership and use; providing for transportation infrastructure; providing for public utilities, telecommunications and common carriers; and eliminating an identifiable public harm and/or correcting conditions adversely affecting public health, safety or welfare.