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Bill > A2962
NJ A2962
NJ A2962Specifies just compensation when property is condemned for use by profit-making entity.
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 reforms current eminent domain law as it pertains to the condemnation of property for use by a profit-making entity. The bill provides that when a property interest is taken for use by a profit-making entity, the fair market value of the property interest shall recognize the intended use of the property being taken and include the revenue generation potential of the property being taken. The bill also requires the payment of compensation to property owners for damages to property adjacent and nearby the condemned property, and the payment of additional compensation for consequential damages. Additionally, the bill provides that if the compensation awarded to a property owner in an eminent domain proceeding exceeds by 10 percent or more the highest offer the condemnor made to purchase the property interest, the condemnor must reimburse the property owner for litigation costs. Finally, the bill provides that if the profit-making entity fails to comply with all of the conditions of, or reasonably related to, an authorization to exercise the power of eminent domain, all property interests taken will automatically revert to the private property owners.
AI Summary
This bill modifies the process of eminent domain, which is the government's power to take private property for public use, specifically when the property is being taken for the benefit of a for-profit company. It mandates that when such a taking occurs, the compensation paid to the property owner must consider the intended use of the property and its potential to generate revenue. Furthermore, the bill requires compensation for damages to nearby properties, including issues like restricted access, interference with resource extraction, impacts on water sources, noise, visual blight, and diminished property value due to public perception or new property restrictions. It also includes compensation for consequential damages, such as costs related to contract interference or ongoing maintenance obligations. If the final court-awarded compensation is at least 10% higher than the highest offer made by the company seeking to acquire the property, the company must reimburse the property owner for their legal and expert fees. Finally, if the for-profit entity fails to meet the conditions associated with taking the property, ownership of the property will automatically return to the original private owners.
Committee Categories
Housing and Urban Affairs
Sponsors (1)
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/A2962 |
| BillText | https://pub.njleg.gov/Bills/2026/A3000/2962_I1.HTM |
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