Bill > A540

This bill, known as the "New Jersey Property Rights Protection Act," establishes a framework for compensating property owners whose land value is diminished by certain environmental laws and requires state agencies to assess the potential for their proposed rules to constitute a "taking" of private property. A "taking" refers to the government seizing private property for public use, which under the U.S. and New Jersey Constitutions, requires just compensation. The bill defines "environmental law" to include a list of specific New Jersey statutes related to wetlands, coastal areas, pinelands, highlands, and flood hazards, among others. It mandates that if a "State action," which includes enacting laws, adopting rules, or agency interpretations, reduces the "fair market value" (the price a willing buyer and seller would agree upon in an open market) of a property by 20% or more, the state must compensate the owner for that loss. If the value reduction exceeds 50%, the property owner has the option for the state to purchase the entire property or the affected portion at its fair market value. The bill also requires the Attorney General to create guidelines for state agencies to evaluate proposed administrative rules for their potential to cause a taking, and it amends existing law to ensure that such evaluations are included in the rule-making process.