The bill's requirements for such compensation apply only to regulations adopted after March 31, 1995. It also does not apply to state and local regulations adopted in response to federal requirements. For those that are, the agencies must publish notices advising property owners about the proposals and about the owners' rights to be compensated. After a regulation is enacted, owners of real property who feel they have suffered compensable losses may file claims for compensation. Loss in value is measured through an appraisal comparing the value of a property before the regulation was applied to its value afterward.
Compensation is paid in the form of tax credits.
Claims for compensation are filed with the regulating entity. An agency can respond to such a claim by exempting the claimant's property from the regulation, paying the amount claimed, or paying some lesser amount. A claimant must accept the agency's offer or enter into arbitration within 21 days.