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90_HB0212 New Act Creates the Property Rights Preservation Law and the Relief for Diminished Property Value Law. Requires the Attorney General to develop and provide to State and local agencies guidelines to assist in identifying and evaluating State and local government actions that may result in the taking of private property such that compensation to the property owner is required under the Illinois or United States constitution. Requires State and local agencies to assess whether a government action may result in such a taking of private property. Provides a cause of action for property owners and provides for enforcement by the Attorney General. Provides a cause of action for damages for a property owner whose property is diminished in value by 50% or more by application of a statute, ordinance, regulation, or policy or by denial of a permit or other governmental authorization. Provides for a civil action to invalidate a statute, ordinance, regulation, or policy or a provision of a permit or other governmental authorization that does not substantially advance its stated governmental purpose. LRB9001284DJcd LRB9001284DJcd 1 AN ACT concerning private property. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 ARTICLE 5. 5 Section 5-1. Short title. This Article may be cited as 6 the Property Rights Preservation Law. 7 Section 5-5. State policy; purpose. 8 (a) It is the policy of this State that no private 9 property may be taken for public use by governmental action 10 without payment of just compensation, in accordance with the 11 meaning ascribed to these concepts by the United States 12 Supreme Court and the Supreme Court of this State. 13 (b) The purpose of this Law is to require State 14 agencies, guided and overseen by the Attorney General, to 15 evaluate proposed government actions that may result in a 16 constitutional taking of private property in order to avoid 17 unnecessary burdens on the public treasury and unwarranted 18 interference with private property rights. It is not the 19 purpose of this Law to affect the scope of private property 20 protections afforded by the United States Constitution or the 21 Illinois Constitution. 22 Section 5-10. Definitions. In this Law: 23 "Constitutional taking" or "taking" means the taking of 24 private property by government action such that compensation 25 to the owner of that property is required under either the 26 Illinois Constitution or the Fifth or Fourteenth Amendment to 27 the United States Constitution. 28 "Government action" means any of the following: 29 (1) Existing or proposed rules or regulations that, -2- LRB9001284DJcd 1 if adopted or enforced, may limit the use of private 2 property. 3 (2) Existing or proposed conditions, requirements, 4 or limitations on the use of private property contained 5 in licenses or permits. 6 (3) Required dedications or exactions of private 7 property. 8 "Government action" does not include any of the 9 following: 10 (4) The formal exercise of the power of eminent 11 domain. 12 (5) The forfeiture or seizure of private property 13 by law enforcement agencies as evidence of a crime or for 14 a violation of law. 15 (6) Orders issued by a State agency or court of law 16 that result from a violation of law and that are 17 authorized by statute. 18 (7) The discontinuance of government programs. 19 "State agency" means the State of Illinois and any 20 officer, agency, board, commission, department, or similar 21 body of the executive branch of State government and also 22 means any unit of local government or school district or any 23 agency of a unit of local government or school district. 24 Section 5-15. Attorney General; guidelines for 25 determining takings. 26 (a) The Attorney General shall develop and provide to 27 State agencies guidelines to assist in identifying and 28 evaluating government actions that may result in a 29 constitutional taking. The Attorney General shall base the 30 guidelines on current law as articulated by the United States 31 Supreme Court and the Supreme Court of Illinois and shall 32 update the guidelines at least once each year to take account 33 of changes in the law. -3- LRB9001284DJcd 1 (b) In developing the guidelines, and subject to the 2 provisions of subsection (a), the Attorney General shall 3 observe the following principles: 4 (1) Government actions that result in a physical 5 invasion or occupancy of private property or that 6 decrease the value or limit the use of property may 7 constitute a taking. 8 (2) Government action may amount to a taking even 9 though it constitutes less than a complete deprivation of 10 all use or value of all separate and distinct interests 11 in the same private property or even though the action is 12 only temporary in nature. 13 (3) The mere assertion of a public purpose is 14 insufficient to avoid a taking. Government actions to 15 protect the public health and safety or to otherwise 16 further the public interest should be taken only in 17 response to real and substantial public needs and shall 18 be designed to significantly address those needs. 19 (4) Although normal government processes do not 20 ordinarily constitute takings, an undue delay in decision 21 making that interferes with private property use may be a 22 taking. In addition, a delay in processing may increase 23 significantly the amount of compensation due if a 24 constitutional taking is later found to have occurred. 25 (5) The constitutional protections against taking 26 private property are self-executing and require 27 compensation regardless of whether the underlying 28 authority for the action contemplated a taking or 29 authorized the payment of compensation for a taking. 30 Section 5-20. Designation of responsible official. The 31 Attorney General shall designate an official within the 32 office of the Attorney General who shall be responsible for 33 ensuring compliance with this Law. -4- LRB9001284DJcd 1 Section 5-25. Takings assessment by State agency. 2 Before a State agency takes any government action, the agency 3 shall prepare a written assessment of the constitutional 4 takings implications of that action, in compliance with the 5 guidelines developed under Section 5-15. The agency shall 6 deliver copies of this assessment to the Governor, the 7 appropriate financial management authority, and the Attorney 8 General. The agency's assessment shall do all of the 9 following: 10 (1) Assess the likelihood that the government 11 action may result in a constitutional taking. 12 (2) Clearly and specifically identify the purpose 13 of the government action. 14 (3) Explain why the government action is necessary 15 substantially to advance that purpose and why no 16 alternative action is available that would achieve the 17 agency's goals while reducing the impact on the private 18 property owner. 19 (4) Estimate the potential costs to the government 20 if a court determines that the action constitutes a 21 constitutional taking. 22 (5) Identify the source of payment within the 23 agency's budget for any compensation that may be ordered. 24 (6) Certify that the benefits of the government 25 action exceed the estimated compensation costs. 26 Section 5-30. Emergency action. If there is an 27 immediate threat to public health and safety that constitutes 28 an emergency and requires an immediate response, the takings 29 assessment required by Section 5-25 may be made when the 30 response is completed. 31 Section 5-35. Cause of action. 32 (a) An aggrieved property owner has a cause of action -5- LRB9001284DJcd 1 against a State agency that violates this Law for 2 compensatory damages, a writ of mandamus or prohibition, or 3 other appropriate legal or equitable relief. 4 (b) The Attorney General may bring an action to enforce 5 compliance with this Law. 6 Section 5-40. Attorney's fees and costs. An owner of 7 private property who successfully establishes that a 8 government action is a constitutional taking of the owner's 9 property requiring payment of just compensation shall be 10 awarded his or her reasonable attorney's fees and costs 11 incurred in establishing that claim, in addition to other 12 remedies provided by law. 13 Section 5-45. Source of compensation. Any award made to 14 an owner of private property from a State agency for a 15 constitutional taking, including any award of attorney's fees 16 and costs, shall come from the agency's existing budget 17 unless the agency has previously disclosed an estimate of the 18 costs to the appropriate financial management authority and 19 moneys were included in the budget for that purpose. 20 Section 5-50. Valuation of property. If a government 21 action is a constitutional taking, the effect of that 22 government action on the fair market value of the private 23 property taken shall be reflected in the assessed valuation 24 of the property for taxes, levies, and similar purposes. 25 ARTICLE 10. 26 Section 10-1. Short title. This Article may be cited as 27 the Relief for Diminished Property Value Law. 28 Section 10-5. Definitions. In this Law: -6- LRB9001284DJcd 1 "Diminution in value of 50% or more" means a reduction of 2 50% or more in the fair market value of property subject to a 3 statute, ordinance, regulation, rule, guideline, or policy or 4 subject to the denial of a permit, license, authorization, or 5 other governmental permission. 6 "Owner" means (i) the owner of property at the time a 7 statute, regulation, rule, guideline, or policy was enacted 8 or adopted or (ii) the owner of property at the time a 9 permit, license, authorization, or other governmental 10 permission was denied. 11 Section 10-10. Diminution in property value; cause of 12 action. 13 (a) The owner of any property may file a civil action 14 against the State or a unit of local government whenever the 15 application of a statute, ordinance, regulation, rule, 16 permit, license, authorization, or other governmental 17 permission of any kind by the State or a unit of local 18 government causes a diminution in value of the property of 19 50% or more. 20 (b) A civil action under subsection (a) may be filed in 21 the circuit court in the county in which the property is 22 located, which shall have exclusive jurisdiction of the 23 claim, and the owner may either (i) recover a sum equal to 24 the diminution in value of the property and retain title to 25 the property or (ii) recover the entire fair market value of 26 the property prior to the diminution in value of 50% or more 27 and transfer title to the property to the State or unit of 28 local government upon payment of the fair market value of the 29 property. If the statute, ordinance, regulation, rule, 30 guideline, or policy is rescinded, or if the permit, license, 31 authorization, or other governmental permission is granted, 32 prior to final judgment, then the owner is entitled to 33 recover in the pending action his or her other reasonable and -7- LRB9001284DJcd 1 necessary costs of the action incurred before that rescission 2 or grant, together with any economic losses sustained by 3 reason of the acts giving rise to the diminution in value. 4 (c) No compensation is required under this Law if the 5 owner's use or proposed use of the property amounts to a 6 public nuisance as commonly understood and defined by 7 principles of nuisance and property law. The State or unit 8 of local government bears the burden of proof with respect to 9 this affirmative defense. 10 Section 10-15. Invalidation of statute, rule, or 11 condition. 12 (a) For purposes of this Section, "person" means a 13 person or persons having an interest that is or may be 14 adversely affected by a statute, ordinance, regulation, rule, 15 guideline, or policy or by a provision or condition of a 16 permit, authorization, or other governmental permission. 17 (b) A person may commence a civil action on his or her 18 own behalf against the State or a unit of local government to 19 invalidate any statute, ordinance, regulation, rule, 20 guideline, or policy, or to invalidate a provision or 21 condition of a permit, authorization, or other governmental 22 permission, that does not substantially advance its stated 23 governmental purpose. The circuit court has exclusive 24 jurisdiction over actions brought under this Section. An 25 action under this Section may be pleaded in the alternative 26 in a complaint pleading a cause of action authorized under 27 Section 10-10. 28 (c) An action under this Section is ripe for 29 adjudication upon the enactment or adoption of the statute, 30 ordinance, regulation, rule, guideline, or policy or upon the 31 imposition of the provision or condition of the permit, 32 authorization, or other governmental permission against any 33 parcel of property. -8- LRB9001284DJcd 1 Section 10-20. Application of Law; statute of 2 limitation. 3 (a) This Law applies to statutes, ordinances, 4 regulations, rules, guidelines, policies, and the provisions 5 or conditions of any permit, authorization, or other 6 governmental permission in effect on or after the effective 7 date of this Law. 8 (b) An action may not be brought under this Law more 9 than 6 years after (i) the enactment or adoption of the 10 statute, regulation, rule, guideline, or policy or (ii) the 11 denial by the State or a unit of local government of the 12 permit, license, authorization, or other governmental 13 permission upon which the action is based. 14 Section 10-25. Award of costs. In issuing a final order 15 in an action brought under this Law the court shall award 16 costs of litigation (including reasonable attorney's fees and 17 expert witness's fees) to a plaintiff who prevails or 18 substantially prevails. 19 Section 10-30. Constitutional or statutory rights not 20 restricted. Nothing in this Law restricts any remedy or 21 right that a person or class of persons may have under any 22 provision of the Illinois Constitution or United States 23 Constitution or under any law of Illinois or the United 24 States.