New Jersey Assembly Bill A1085

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24

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 potential implications of A1085 are significant for state property law as it shifts the burden of compensation for regulatory impacts unto the State for specific environmental regulations. This could affect legislation related to the Department of Environmental Protection, the Highlands Water Protection and Planning Council, and similar agencies. Proponents of the bill argue that it is necessary to ensure justice for property owners whose investments have suffered due to excessive state regulations. Conversely, critics fear that it might inspire increased litigation against the State, complicating environmental governance and regulation, as states might become overly cautious in their regulatory approach to mitigate potential compensatory claims.

Summary

Assembly Bill A1085, also known as the New Jersey Property Rights Protection Act, seeks to address the issue of property value diminution caused by state actions related to environmental regulation. The bill mandates that the State must compensate property owners whose land use has been restricted and the fair market value of their property reduced by 20% or more due to environmental laws. Moreover, if the reduction in value exceeds 50%, the bill allows property owners to request that the State purchase the affected property at fair market value. This introduces a structured compensation process that aims to protect property owners’ rights while considering regulatory actions taken by the state on environmental grounds.

Contention

A fundamental point of contention arises from the notion of what constitutes an excessive regulation leading to 'taking' of private property without just compensation, a principle enshrined in both the U.S. Constitution and the New Jersey Constitution. Critics argue that the bill could limit the state's ability to enforce necessary environmental protections in a state beset with various ecological challenges. It raises concerns amongst environmental advocates who warn that this could lead to a 'chilling effect' where state agencies avoid enforcing regulations, potentially harming public interests in environmental conservation. The legislative debates surrounding A1085 reflect a broader national discourse on property rights versus the government's role in environmental stewardship.