ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4569

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 4569.

This bill appropriates up to $128.241 million from constitutionally dedicated CBT revenues to the State Agriculture Development Committee (SADC) for certain farmland preservation purposes. 

     Of the funding provided by the bill, $115.091 million is appropriated to the SADC to pay the cost of acquisition by the SADC of development easements on, or fee simple titles to, farmland, to provide grants to counties and municipalities for up to 80 percent of the cost of acquisition of fee simple titles to farmland, and to provide grants to qualifying tax exempt nonprofit organizations for up to 50 percent of the cost of acquisition of fee simple titles to farmland, for farmland preservation purposes for projects approved as eligible for such funding pursuant to: the “Agricultural Retention and Development Act”; the “Garden State Preservation Trust Act”; and the “Preserve New Jersey Act.”

     The bill also appropriates to the SADC such sums from any additional proceeds which may become available, by the effective date of the bill, due to the lease or conveyance of farmland previously acquired in fee simple by the SADC, for the purpose of providing for the cost of acquisition by the SADC of development easements and fee simple titles to farmland for farmland preservation purposes.

     The appropriations in this bill for the acquisition of fee simple titles and development easements to farmland have been approved by the SADC and the Garden State Preservation Trust.

     This bill also appropriates from the “Preserve New Jersey Farmland Preservation Fund” to the SADC: an amount not to exceed $12 million for organizational, administrative, and other work and services, including salaries, equipment, materials, and services necessary to administer the applicable provisions of the “Preserve New Jersey Act,” a portion of which amount is to be allocated to the committee at the end of the six-month period immediately following the bill’s effective date, and each six-month period thereafter, based on the amounts expended by the committee for farmland acquisition purposes; $1 million for costs associated with the acquisition of farmland development easements, including appraisal, survey, and title costs; and $150,000 for the costs associated with legal advice and representation in connection with the committee’s enforcement of development easements acquired for farmland preservation purposes pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.). 

     The bill provides that notwithstanding the “Statewide Farmland Preservation Formula” established pursuant P.L.2023, c.245, if the total amount appropriated to the SADC pursuant to the bill is not expended within one calendar year following the bill’s enactment, the committee may increase its offers for the purchase of agricultural lands for farmland preservation purposes to an amount greater than the value established pursuant to the “Statewide Farmland Preservation Formula” of those lands, subject to such limitations as may be established by the rules and regulations adopted by the committee pursuant to the provisions of the bill.  If the SADC increases the amount of an offer pursuant to this provision, the bill requires the SADC to: (1) issue a public notice indicating that the committee has increased the amount of an offer to an amount greater than the value established pursuant to the “Statewide Farmland Preservation Formula”; and (2) increase the amount of any other outstanding offer in proportion to the increase so made, subject to the availability of monies appropriated to the committee for farmland acquisition.

     The “Preserve New Jersey Act,” P.L.2016, c.12 (C.13:8C-43 et seq.), implements the constitutional dedication of CBT revenues pursuant to Article VIII, Section II, paragraph 6 of the State Constitution, approved by the voters of the State in November 2014, for open space, farmland, and historic preservation.  The “Preserve New Jersey Farmland Preservation Fund” was established pursuant to section 8 of the “Preserve New Jersey Act.”  The funding in this bill is from these constitutionally dedicated CBT revenues.

      As reported by the committee, Assembly Bill No. 4569 is identical to Senate Bill No. 2788 as amended and reported by the committee on this date.

FISCAL IMPACT:

      This bill is not certified as requiring a fiscal note.