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A 4468

Requires appointees of the minority leader of the senate and the minority leader of the assembly to be included in all legislatively enacted workgroups, task forces, commissions, and committees

2025 Regular Session Introduced by Joe Angelino and 11 co-sponsors

The bill shifts eminent-domain interest from fixed rates to court‑set rates considering market factors to better compensate for use of funds.

REFERRED TO GOVERNMENTAL OPERATIONS
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Bill Summary · A 4468

Summary — Assembly Bill A4468 (Introduced June 3, 2024)

Main purpose

A4468 changes how interest is awarded in certain eminent‑domain (condemnation) cases. It eliminates the current fixed interest awards (commonly a 6% fixed rate or the statutory “legal rate”) and instead requires courts to set a fixed interest rate — in a summary proceeding after final compensation is determined — based on factors relevant to just compensation.

Key provisions

  • Replaces existing statutory fixed interest awards (including the current 6% or applicable legal rate) in specified eminent‑domain contexts with an interest rate that the court determines in a summary manner after the final compensation award.
  • Permits the court to consider any relevant factors when setting the rate, explicitly including (but not limited to):
    • prevailing commercial interest rates;
    • the prime rate or rates;
    • applicable legal rates of interest; and
    • an interest rate that “justly indemnifies the condemnee for the loss of the use of the compensation” to which the condemnee was entitled.
  • Amends existing statutory provisions governing deposit and payment procedures in condemnation proceedings so that any recovery of a difference between deposited estimated compensation and final award bears interest at the rate fixed by the court (from the date of deposit).

Who is affected

  • State and local governmental entities (and other public authorities) that exercise eminent‑domain powers — because their ultimate cost of condemnations could rise or fall depending on the interest rate courts set.
  • Property owners/condemnees — who may receive a different (potentially higher or lower) interest payment on awards or on amounts deposited as estimated compensation.
  • The Judiciary — which gains the new administrative responsibility of determining interest rates in these summary proceedings.

Fiscal and administrative impact

  • The Office of Legislative Services (OLS) estimates an indeterminate periodic fiscal impact on State and local entities that use eminent domain. Because courts could set rates either above or below the current fixed rates, the bill could increase or decrease condemnation-related expenditures; the net effect depends on (unknown) case volume and award amounts.
  • OLS also projects an indeterminate increase in administrative costs to the Judiciary related to the court’s new duty to determine interest rates under the statutory factors.

Procedural status and timeline (selected)

  • Introduced: June 3, 2024.
  • Reported by Assembly committees: Housing (June 13, 2024), Judiciary (Dec 12, 2024), Appropriations (Feb 20, 2025).
  • Passed Assembly: Feb 27, 2025 (74–1–0).
  • Received in Senate and referred to Senate Community & Urban Affairs: March 3, 2025.
  • Reported favorably by Senate Community & Urban Affairs: May 12, 2025; referred to Senate Budget & Appropriations same day.
  • OLS fiscal estimate dated January 21, 2025.

Sponsors and related legislation

  • Sponsors listed: Jeff Gallahan (primary), Scott H. Bendett, Robert Smullen, John Lemondes, Matthew Simpson, Paula Bologna, Joe DeStefano, Keith Brown, Joe Angelino, Michael Durso, Philip Palmesano, Samuel Pirozzolo (cosponsors).
  • Companion/related bills: Senate Bill S4379 (companion), S3448 (companion), prior‑session bills A3207 and A8554.

Practical effect

If enacted, the bill shifts interest awards from a fixed statutory framework to a flexible, case‑by‑case judicial determination aimed at better reflecting market rates and compensating property owners for the loss of use of funds. This increases judicial discretion and could produce more variable financial outcomes for condemning authorities and for condemnees.

Compiled from official sources — confirm details with the bill’s official record.

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