New Jersey S 1814: Authorizes payment of just compensation to businesses for losses due to public health emergency closures.

Bill Text

SENATE, No. 1814  
 
STATE OF NEW JERSEY 
220th LEGISLATURE 
   
INTRODUCED FEBRUARY 28, 2022 
 
 
Sponsored by: 
Senator  JAMES W. HOLZAPFEL 
District 10 (Ocean) 
 
 
 
 
SYNOPSIS 
 Authorizes  payment  of  just  compensation  to  businesses  for  losses  due  to 
public health emergency closures.  
 
CURRENT VERSION OF TEXT  
 As introduced. 
    

 
S1814 HOLZAPFEL 
2 
 
 
AN ACT concerning  just  compensation  for  businesses  closed  by 1 
public  health  emergency and  supplementing  Title  26  of  the 2 
Revised Statutes. 3 
 4 
 BE IT ENACTED by the Senate and General Assembly of the State 5 
of New Jersey: 6 
 7 
 1. a.    An  order declaring a  public  health  emergency, pursuant 8 
to the "Emergency Health Powers Act," P.L.2005, c.222 (C.26:13-1 9 
et  seq.), that  requires  a  business  to  partially  or  completely  close 10 
shall  be  a  public  purpose  for  which  the  State  may  be  compelled  to 11 
exercise condemnation and pay just compensation.   12 
 b. An  owner   of   a   business   that   is   ordered  to   partially   or 13 
completely  close  under  a  public  health  emergency  may  bring  an 14 
action    to    compel    condemnation    and    the    payment    of    just 15 
compensation for: 16 
 (1) loss  of  income  during,  and  for  a  reasonable  period  of  time 17 
after,  a  temporary  partial  or  complete  closure  of  the  business  that 18 
would not have occurred but for compliance with the order; or 19 
 (2) loss  of  going  concern,  including  the  loss  of  real  property,  if 20 
the  closure  of  the  business  results  in  the  owner  going  out  of 21 
business  and  the  owner  proves  the  owner  would  not  have  gone  out 22 
of business but for compliance with the order. 23 
 c. An  owner  shall  have  the  burden  of  proving  that  the  alleged 24 
loss  is  due  to  the public  health  emergency and  the  burden  of 25 
proving the amount of compensation for losses.   26 
 d. An  action  to  compel  condemnation  and  the  payment  of  just 27 
compensation brought  under  this  section shall  be filed  within  one 28 
year  of  the  expiration  of  the  order  that  declared  or  renewed  the 29 
public health emergency. 30 
 31 
 2. This act shall take effect immediately and be applicable to a 32 
public health emergency declared on or after January 1, 2020.   33 
 34 
 35 
STATEMENT 36 
 37 
 This  bill  provides  that  the  closure  of  a  business  due  to  an  order 38 
declaring a  public  health emergency is a  public  purpose for  which 39 
the  State  may  have  to  pay  the  business  owner  just  compensation.  40 
Under  the  bill,  the  owner  of  a  business  may  bring  an  action  to 41 
compel   the   State   to   exercise   condemnation   and   to   pay   just 42 
compensation for either: 43 
 loss of  income  during,  and  for  a  reasonable  time  after,  a 44 
temporary  partial  or  complete  closure  of  the  business,  if  the 45 
business  would  not  have  closed  but  for  compliance  with  the 46 
order; or 47 

 
S1814 HOLZAPFEL 
3 
 
 
 loss  of  going  concern,  including  the  loss  of  real  property,  if 1 
the  closure  of the  business  results in the owner  going  out of 2 
business  and  the  owner  proves  the  owner  would  not  have 3 
gone out of business but for compliance with the order. 4 
 The  bill  would  assign  to  the  business  owner:  the  burden  of 5 
proving  that  the  alleged  loss is due  to the  public  health  emergency; 6 
and the burden of proving the amount of compensation for losses.   7 
 The  bill provides that it’s  provisions  would  apply  to  a public 8 
health  emergency  declared  on  or  after  January  1,  2020.    An  action 9 
to  compel  condemnation and  the  payment  of  just  compensation 10 
brought   under   the   bill   must   be   filed   within   one   year   of   the 11 
expiration  of  the  order  that  declared  or  renewed  the  public  health 12 
emergency. 13