AB675,1,2 1An Act to create 895.45 of the statutes; relating to: compensation for the
2reduction in the fair market value of private real property.
Analysis by the Legislative Reference Bureau
This bill allows an owner of private real property to seek compensation from the
state or a political subdivision of the state (governmental unit) if the governmental
unit enacts or enforces a statute, administrative rule, ordinance, or plan (land use
regulation) that restricts the use of the property and reduces its fair value. The
amount of the compensation is equal to the sum of the lost fair market value, the
value of any improvements ordered removed, plus the cost of removing those
improvements.
Under the bill, an aggrieved property owner is generally entitled to
compensation if the land use regulation continues to be enforced against the property
180 days after the owner sends a written demand for compensation to the
governmental unit. Instead of paying the owner compensation, the governmental
unit may modify, remove, or not apply the land use regulation to allow the owner to
use the property in a manner that was permitted at the time the owner acquired the
property. If the land use regulation remains in effect 180 days after a written
demand for compensation, the property owner may bring suit against the
governmental unit in the county in which the property is located. Finally, if
court-ordered compensation is not paid within two years after the order is entered
of if the governmental unit has not modified or removed or not applied the land use
regulation within two years after the owner has made a written demand for
compensation, the owner may use or develop the property in a manner that was
permitted at the time the owner acquired the property.

For further information see the state and local fiscal estimate, which will be
printed as an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB675, s. 1 1Section 1. 895.45 of the statutes is created to read:
AB675,2,2 2895.45 Compensation for public use of private land. (1) In this section:
AB675,2,63 (a) "Family member" means a person who is related to another person as a
4spouse, parent, child, brother, sister, son-in-law, daughter-in-law, father-in-law,
5mother-in-law, brother-in-law, sister-in-law, aunt, uncle, niece, nephew,
6stepparent, stepchild, grandparent, or grandchild.
AB675,2,107 (b) "Governmental unit" means the state, a political subdivision of the state,
8a special purpose district in the state, an agency or corporation of a political
9subdivision or special purpose district, or a combination or subunit of any of the
10foregoing.
AB675,2,1111 (c) "Land use regulation" means any of the following:
AB675,2,1312 1. A statute regulating farming, forest practices, or the use of private real
13property or of any interest in private real property.
AB675,2,1514 2. An administrative rule regulating the use of private real property or of any
15interest in private real property.
AB675,2,1716 3. An ordinance, including a zoning ordinance, regulating the use of private
17real property or of any interest in private real property.
AB675,2,1918 4. A town, county, or regional plan that regulates the use of real property or of
19any interest in real property.
AB675,3,220 (d) "Nuisance" means a condition that a court has found to be a nuisance under
21ch. 823, except that a widely accepted or utilized practice by a majority of landowners

1that are subject to the same ordinances is not a nuisance if that practice is not
2specifically prohibited by those ordinances.
AB675,3,53 (e) "Private real property" means real property or an interest in real property
4that is not owned by the United States, a governmental unit, or a nonprofit
5organization described in section 501 (c) of the Internal Revenue Code.
AB675,3,12 6(2) (a) If, after the effective date of this paragraph .... [revisor inserts date], a
7governmental unit enacts a land use regulation or enforces a land use regulation that
8was in effect on or after the effective date of this paragraph .... [revisor inserts date],
9that restricts the use of private real property or prohibits the development of
10property that otherwise could be developed and that reduces the fair market value
11of the property, the property owner shall be paid compensation for that restriction
12or prohibition. The compensation shall equal the sum of the following:
AB675,3,1313 1. The amount of the reduction in the fair market value of the real property.
AB675,3,1514 2. The value of any improvements to the real property that the government unit
15orders removed as part of the enforcement of the land use regulation.
AB675,3,1616 3. The reasonable costs of removing those improvements.
AB675,4,517 (b) The compensation shall be due if the land use regulation continues to be
18enforced against the private real property 180 days after the property owner makes
19a written demand for compensation to the governmental unit that is enforcing the
20land use regulation. If a claim for compensation arises from a land use regulation
21enacted before the effective date of this paragraph .... [revisor inserts date], the
22written demand for compensation must be made within 2 years after the date that
23the governmental unit applies the land use regulation to a land use application
24submitted by the property owner or within 2 years after the effective date of this
25paragraph .... [revisor inserts date], whichever is later. If a claim for compensation

1arises from a land use regulation enacted after the effective date of this paragraph
2.... [revisor inserts date], the written demand for compensation must be made within
32 years after the date that the governmental unit enacts the land use regulation or
4within 2 years after the property owner submits a land use application that is
5affected by the land use regulation, whichever is later.
AB675,4,11 6(3) A governmental unit may adopt procedures for the processing of claims for
7compensation under sub. (2), but those procedures may not be required as a
8prerequisite to the filing of a written demand for compensation under sub. (2). The
9failure of a property owner to file a land use application with a governmental unit
10is not grounds for dismissal, abatement, or delay of a claim for compensation under
11sub. (2).
AB675,4,16 12(4) In lieu of payment of compensation as the result of a written demand under
13sub. (2), the governmental unit that enacted or enforced the land use regulation may
14modify, remove, or not apply all or part of the land use regulation to allow the
15property owner to use the property in a manner that was permitted at the time that
16the owner acquired the property.
AB675,5,3 17(5) A property owner may bring an action in circuit court where the private real
18property is located for compensation listed under sub. (2) (a) 1. to 3. resulting from
19any land use regulation that restricts the use of the property that otherwise could
20be developed if the land use regulation continues to apply to the property more than
21180 days after the property owner has made a written demand for compensation
22under sub. (2). A property owner bringing an action under this subsection must
23include in his or her complaint the legal description of the property involved,
24substantiation of the damage done to the property, the land use regulation that
25resulted in the request for compensation, and the date that the land use regulation

1was enacted or enforced. The court, if ordering compensation, shall also order the
2governmental unit to pay the property owner's reasonable attorney fees, expenses,
3costs, and disbursements related to the circuit court action.
AB675,5,9 4(6) If compensation ordered under sub. (5) is not paid within 2 years after the
5order is entered, or if the governmental unit has not modified or removed or not
6applied all or part of the land use regulation as provided under sub. (4) within 2 years
7after the owner made a written demand for compensation, the property owner shall
8be allowed to use or develop the private real property in a manner that was permitted
9at the time that the owner acquired the property.
AB675,5,11 10(7) Subsection (2) does not apply to a land use regulation that meets any of the
11following criteria:
AB675,5,1212 (a) Restricts or prohibits nuisances.
AB675,5,1513 (b) Regulates or prohibits activities for the protection of public health and
14safety, including fire and building codes, health and sanitation laws and rules, solid
15or hazardous waste laws or rules, and pollution control laws and rules.
AB675,5,1616 (c) Is required to comply with federal law.
AB675,5,1717 (d) Prohibits the possession or sale of pornography.
AB675,5,2118 (e) Was enacted before the date that the owner acquired the private real
19property unless the regulation was enacted before the owner acquired the property
20but after a family member of the owner, the estate of a family member, or a legal
21entity owned by a family member, acquired the property.
AB675,5,23 22(8) The provisions of ss. 893.80 and 893.82 do not apply to claims made under
23this section.
AB675,5,2424 (End)
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