ASSEMBLY JUDICIARY COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4468

STATE OF NEW JERSEY

DATED:  DECEMBER 12, 2024

      The Assembly Judiciary Committee reports favorably Assembly Bill No. 4468.

      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.”  The bill eliminates those fixed rates and provides that the interest will be fixed and determined by the court in a summary manner after final determination of compensation. 

      Under the bill, in making its determination, the court may 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.