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Bill > A439
NJ A439
NJ A439Replaces certain fixed interest rate award in eminent domain cases with interest rate based on just compensation awards.
summary
Introduced
01/13/2026
01/13/2026
In Committee
01/13/2026
01/13/2026
Crossed Over
Passed
Dead
Introduced Session
2026-2027 Regular Session
Bill Summary
This bill replaces the fixed interest rate award in eminent domain cases with an interest rate based on just compensation awards. Under current law, interest rate awards in certain eminent domain cases are either: (1) fixed at 6 percent, or (2) set at an applicable "legal rate." This bill eliminates the fixed rate and provides that the interest will be determined by the court in a summary manner after final determination of compensation. Under the bill, in making its determination, the court is permitted to consider any relevant factors, including but not limited to: (1) prevailing commercial interest rates; (2) the prime rate or rates; (3) the applicable legal rates of interest; and (4) an appropriate interest rate on a just compensation award that justly indemnifies the condemnee for the loss of the use of the compensation to which the condemnee was entitled.
AI Summary
This bill amends existing laws to change how interest is calculated on awards in eminent domain cases, which is when the government takes private property for public use. Currently, interest on these awards can be a fixed 6% or set at a general "legal rate." This bill eliminates the fixed 6% rate and instead requires courts to determine the interest rate in a straightforward manner after the final compensation amount is decided. When setting this rate, judges can consider various factors, such as current commercial interest rates, the prime rate, applicable legal rates, and what's needed to fairly compensate the property owner for the loss of use of their money.
Committee Categories
Housing and Urban Affairs
Sponsors (4)
Last Action
Introduced, Referred to Assembly Housing Committee (on 01/13/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2026/A439 |
| BillText | https://pub.njleg.gov/Bills/2026/A0500/439_I1.HTM |
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