Bill > A1085

Introduced Session

This bill would require the State to compensate any property owner whose use of all or any portion of that person's property has been limited by State action, occurring during the time of ownership, that diminishes the fair market value of the entire property by 20 percent or more. The amount of the compensation would equal the diminution in fair market value that resulted from the State action. If the diminution in the fair market value of the property is greater than 50%, at the option of the owner the State would be required to purchase the entire property, or the affected portion thereof as designated by the owner, for its fair market value. For purposes of calculating the percentage diminution in fair market value pursuant to the bill, at the option of the property owner, the property at issue may be considered as one parcel regardless of the number of contiguous tax lots comprising that parcel, or each such component tax lot may be considered to be a separate parcel from all of the other contiguous tax lots owned by that person. The bill defines "State action" to mean enactment of an environmental law, adoption of a rule or regulation pursuant to an environmental law, an administrative application or interpretation by a State agency of such a rule or regulation, or an action of a State agency to grant, deny, modify, suspend, or revoke a license, permit, certificate, approval, registration, or other form of permission required by an environmental law; "State agency" to mean the Department of Environmental Protection, the Highlands Water Protection and Planning Council, the New Jersey Meadowlands Commission, or the Pinelands Commission; and "environmental law" to mean the waterfront development law, "The Wetlands Act of 1970," the "Freshwater Wetlands Protection Act," the "Hackensack Meadowlands Reclamation and Development Act," the "Pinelands Protection Act," the "Coastal Area Facility Review Act," the "Highlands Water Protection and Planning Act," and the "Flood Hazard Area Control Act," or any amendment or supplement to any of those laws. Real property with respect to which compensation has been paid under the bill could not thereafter be used contrary to the limitation imposed by the State action, even if that action is later rescinded or otherwise vitiated. If, however, that action is later rescinded or otherwise vitiated, and the property owner refunds the amount of the compensation paid, adjusted for inflation, to the State, the property could be used contrary to the limitation imposed by the State action. Under the bill, a person may apply for compensation pursuant to the bill only while the person still owns the parcel of real property that was subject to the State action. Also, an owner of real property may not apply for compensation pursuant to the bill for a State action that occurred prior to ownership. The bill would provide that any payment made pursuant to the bill to a property owner would, notwithstanding the provisions of any other law, be made by the State Treasurer from such funds as may be made available therefor pursuant to an annual appropriation by the Legislature to the applicable State agencies. If insufficient funds exist for the payment of compensation, the head of the affected State agency would be required to enter into a memorandum of understanding with the property owner that would provide that the State action leading to the diminution in fair market value of the real property shall not be applied, implemented, or enforced, as the case may be, with respect to that property, notwithstanding any law, rule, or regulation to the contrary. The bill also sets forth procedures for providing notice of the bill's provisions to affected property owners and procedures for applying to obtain compensation. This bill would also require that the notice of the adoption, amendment, or repeal of any administrative rule include an evaluation of the rule's potential to constitute a taking of real property in violation of the federal and State constitutional provisions that prohibit the taking of private property for public use without just compensation. The bill would require that the Attorney General establish guidelines for the review of administrative rules that conform to the law as articulated in the most current United States Supreme Court and Supreme Court of New Jersey opinions. The provisions of this bill put into action a national trend of state governments, as well as the federal government, to be more sensitive to the effect of regulations upon the rights of private property owners.

AI Summary

Committee Categories

John DiMaio (R)*, 

Introduced, Referred to Assembly Environment, Natural Resources, and Solid Waste Committee (on 01/09/2024)

Official Document