Authorizes payment of just compensation to businesses for losses due to public health emergency closures.
Impact
Under A672, business owners can bring actions against the state to compel condemnation proceedings, thereby requiring the state to pay just compensation for losses incurred during closures. The compensation covers losses of income incurred during the closure and extends to claims for the loss of going concern, including real property losses if the business fails as a direct result of the mandated closure. The burden of establishing the facts surrounding the loss falls on the business owner, who must prove that the loss was directly due to compliance with the state orders related to the public health emergency.
Summary
Assembly Bill A672, titled 'An Act concerning just compensation for businesses closed by public health emergency,' aims to provide financial relief to businesses that suffer losses due to mandated closures during public health emergencies. This bill permits business owners to seek compensation from the state when they are ordered to partially or fully close their operations as a result of such emergencies. The bill specifies that these business closures, enforced under the Emergency Health Powers Act, will be considered a public purpose warranting state compensation.
Contention
The implementation of A672 could provoke debates surrounding state responsibilities towards businesses during emergencies. While sponsors of the bill emphasize the protection of small businesses and their right to compensation for losses incurred by government mandates, critics might argue about the feasibility of the state meeting such compensation claims, especially regarding the financial implications on state resources. Additionally, concerns could arise about the potential for disputes regarding what constitutes a valid claim and the measures businesses must undertake to prove their losses.
Notable_points
The bill applies specifically to public health emergencies declared on or after January 1, 2020. It requires that actions for compensation be initiated within one year of the expiration of the order imposing the business closure. These provisions emphasize a time-sensitive approach to compensatory claims, and the bill seeks to balance business interests with state capabilities in addressing public health needs.