ASSEMBLY APPROPRIATIONS COMMITTEE
STATEMENT TO
SENATE, No. 2788
with committee amendments
STATE OF NEW JERSEY
DATED: JUNE 24, 2024
The Assembly Appropriations Committee reports favorably and with committee amendments Senate Bill No. 2788.
This bill appropriates $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 also 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 amended and reported by the committee, Senate Bill
No. 2788 is identical to Assembly Bill No.
4569, which was also reported by the committee on this date.
COMMITTEE AMENDMENTS:
The committee amendments to the bill would:
(1) delete section 3 of the bill that provides for an appropriation for administrative and other expenses, and replace it with a new section that provides, subject to approval by the Director of the Division of Budget and Accounting, for appropriations for organizational, administrative, and other work and services, necessary to administer the provisions of P.L.2016, c.12 (C.13:8C-43 et seq.); and to allocate portions of the amounts appropriated for these purposes to the SADC in six-month periods, based upon reports by the SADC to the director of amounts expended for farmland acquisition for each six-month period;
(2) authorize the SADC to increase offers made for the purchase of development easements on, or fee simple titles to, 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 limitations as may be established by rules and regulations;
(3) require the SADC, if an offer is increased, to issue a public notice indicating that the offer was increased to an amount greater than the value established pursuant to the “Statewide Farmland Preservation Formula”; and increase the amount of any other outstanding offers in proportion to the increase so made, subject to the availability of monies for farmland acquisition; and
(4) require the SADC to adopt rules and regulations that would be effective immediately upon filing proper notice with the Office of Administrative Law, to establish limits on the amount of increased offers that may be made by the SADC under the bill, for the purchase of development easements on, or fee simple title to, agricultural lands for farmland preservation purposes.
FISCAL IMPACT:
This bill is not certified as requiring a fiscal note.