SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

SENATE, No. 4350

STATE OF NEW JERSEY

DATED:  JUNE 9, 2025

      The Senate Budget and Appropriations Committee reports favorably Senate Bill No. 4350.

      As reported, this bill would authorize the Garden State Preservation Trust (trust) to develop a program to acquire land for agricultural or horticultural purposes in urban areas of the State through the purchase of fee simple titles or lesser interests in land, including, but not limited to, a development easement, a conservation restriction or easement, or any other restriction or easement permanently restricting development, by purchase or installment purchase agreement using constitutionally dedicated moneys.

      The bill would require the trust to develop eligibility criteria for the acquisition of land in urban areas of the State for agricultural or horticultural purposes and an application process for landowners to apply to the trust to sell a fee simple title or a lesser interest in land.  The trust would be required to prioritize the purchase of small parcels of land in urban areas of the State that are suitable for agricultural or horticultural purposes.

      Under the bill, any land acquired in fee simple by the trust would be required to be held of record in the name of the State and may be offered for lease by the State using a competitive bidding process to interested parties, provided that the land is to be utilized for agricultural or horticultural purposes.  The trust would be required to establish an application process for the lease of land acquired by the trust, which would require applicants to provide information concerning the intended use of the land for agricultural or horticultural purposes.  The terms of the lease are to be established by the trust.

      The bill would require the trust to designate areas of the State as urban areas based on population density, residential and commercial development, and non-residential land uses, among other factors, in a specific region, and to adopt rules and regulations as necessary to implement the bill’s provisions.

      In addition, the bill would establish funding allocations for the constitutional dedication of Corporation Business Tax (CBT) revenues for fiscal year 2026 and thereafter.  Under the bill, on July 1 next following the bill’s effective date, $25 million of the amount credited to the Preserve New Jersey Fund Account pursuant to the “Preserve New Jersey Act,” P.L.2016, c.12 (C.13:8C-43 et seq.) would be required to be deposited into the Preserve New Jersey Urban Agriculture and Horticulture Fund, established pursuant to the bill.  In addition, in each State fiscal year commencing in State fiscal year 2026 and annually thereafter, of the amount credited by the State Treasurer to the Preserve New Jersey Fund Account pursuant to the “Preserve New Jersey Act,” P.L.2016, c.12 (C.13:8C-43 et seq.): (1) 62 percent would be required to be deposited into the Preserve New Jersey Green Acres Fund; (2) 26 percent would be required to be deposited into the Preserve New Jersey Farmland Preservation Fund; (3) seven percent would be required to be deposited into the Preserve New Jersey Historic Preservation Fund; and (4) five percent would be required to be deposited into the Preserve New Jersey Urban Agriculture and Horticulture Fund.

      The bill would also require the trust to establish and administer the Urban Agriculture and Horticulture Stewardship Grant Program (grant program) for the purpose of providing grants to qualified applicants for stewardship activity projects, including, but not limited to, projects that improve soil health, climate resiliency, and erosion and sediment control, on land that has been acquired by the trust and preserved for agricultural and horticultural purposes pursuant to the bill.  Section 6 of the bill establishes certain eligibility criteria and application requirements for qualified applicants applying for a grant under the grant program.  The trust would be required to approve applications for the grant program on a rolling basis subject to the availability of funds in the Preserve New Jersey Urban Agriculture and Horticulture Fund.  Upon the approval of an application, the trust would be required to provide a grant, in an amount not to exceed ninety percent of the total estimated costs of the stewardship activity project, to the qualified applicant.

      The bill would authorize the trust to utilize moneys in the Preserve New Jersey Urban Agriculture and Horticulture Fund for: (1) the fee simple acquisition or lesser interests in land, including, but not limited to, a development easement, a conservation restriction or easement, or any other restriction or easement permanently restricting development, by purchase or installment purchase agreement of land in urban areas of the State for agricultural or horticultural purposes; (2) providing grants under the grant program; and (3) paying certain administrative costs.  Of the monies deposited into the Preserve New Jersey Urban Agriculture and Horticulture Fund, not more than fifteen percent can be utilized by the trust for organizational, administrative and other work and services, including salaries, equipment, and materials necessary to administer the bill’s provisions.

      Finally, the bill would allow counties and municipalities to utilize open space trust funds for the additional purpose of acquiring lands in urban areas of the State for agricultural or horticultural purposes.  Under current law, counties are authorized to establish “County Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Funds” and municipalities are authorized to establish “Municipal Open Space, Recreation, Floodplain Protection, and Farmland and Historic Preservation Trust Funds.” This bill would expand this authorization to specifically include the acquisition and stewardship of lands in urban areas of the State for agricultural or horticultural purposes and would revise the names of these open space trust funds to include “urban agriculture and horticulture.”

FISCAL IMPACT:

      The Office of Legislative Services (OLS) concludes that the bill would result in indeterminate annual State and local expenditure increases and an indeterminate impact on local revenues.

      The State would incur annual expenditure increases for the administration of a new program to acquire land for agricultural or horticultural purposes in urban areas and for payment in lieu of taxes (PILOT) payments associated with this new program.  The PILOT payments would be made to local governments for the purpose of offsetting property tax revenue losses that may result from State acquisitions under the new program.

      The OLS notes that the bill would not impact corporation business tax revenue collections.  Rather, the bill changes the allocations for the 78 percent of constitutionally dedicated corporation business tax revenue that is set aside for the Preserve New Jersey program for FY 2026 and thereafter.