New Jersey Assembly Bill A911

New Jersey 2022-2023 Regular Session

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

Caption

Specifies just compensation when property is condemned for use by profit-making entity.

Impact

The legislation aims to enhance the protections afforded to property owners under eminent domain, ensuring that they receive fair compensation that reflects not just the market value but also the prospective income the property could generate. A significant aspect of A911 is that it requires the reimbursement of litigation costs if the awarded compensation exceeds the condemnor's highest offer by ten percent or more. This aspect is designed to deter lowball offers by condemning entities, promoting transparency and fairness in the property acquisition process.

Summary

Assembly Bill A911 reforms current eminent domain laws, specifically focusing on the condemnation of property for use by profit-making entities. The bill establishes that when a property interest is taken, the fair market value must account for the intended use and revenue generation potential of that property. Additionally, compensation must be provided for damages to nearby properties, thus broadening the scope of what constitutes compensable loss in eminent domain cases. This shift aims to protect property owners from financial losses when their land is used for commercial purposes.

Contention

The bill could ignite considerable debate on the balance between public and private interests. Proponents argue that A911 fortifies property owners' rights and ensures justice in compensation, particularly in scenarios where their land’s use is altered by profit-driven motives. Conversely, critics may contend that the bill could inhibit development and infrastructure projects by complicating the process of land acquisition, thereby slowing economic progress. The tension between safeguarding individual property rights and encouraging economic development is likely to be a focal point in discussions surrounding this legislation.