New Jersey Assembly Bill A949

New Jersey 2022-2023 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Requires State compensation of property owners for certain property devalued due to certain environmental laws; and requires State agencies to evaluate proposed administrative rules for potential to constitute taking of real property.

Impact

The bill is designed to protect property owners from potential financial losses resulting from state regulations. It establishes a clear avenue for property owners to seek compensation, ensuring that they are not left bearing the financial brunt of regulations intended to protect the environment. This act differentiates between limited use of property due to state action and situations where such actions could be viewed as a taking of property rights, invoking the need for compensation under constitutional provisions. It also requires state agencies to evaluate the impact of certain regulations before implementing them, promoting a balance between regulatory needs and property rights.

Summary

Bill A949, also known as the New Jersey Property Rights Protection Act, mandates that the state must compensate property owners whose property values decline significantly (20% or more) due to state actions, particularly those related to environmental laws. The compensation amount is based on the decrease in fair market value of the property caused by actions such as the enactment of environmental regulations or administrative actions by state agencies involved in land use and development. Notably, if the property value decline exceeds 50%, the state is obligated to purchase the affected property at its fair market value, should the owner choose this option.

Contention

Discussions surrounding Bill A949 highlight a contentious debate over property rights versus environmental protection. Supporters argue that the bill is crucial for maintaining individual property rights and preventing state overreach in regulatory matters. They assert that without compensation, property owners are unfairly disadvantaged when regulations diminish their property’s value. Critics, however, may raise concerns that the bill could inhibit necessary environmental regulations by imposing financial burdens on the state, ultimately affecting its ability to implement policies crucial for ecological protection and public interest.