A4367

An Act concerning certain soil and water conservation projects and amending P.L.1983, c.32.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 17 of P.L.1983, c.32 (C.4:1C-24) is amended to read as follows:

17. a. (1) Landowners within a municipally approved program or other farmland preservation program shall enter into an agreement with the board, and the municipal governing body, if appropriate, to retain the land in agricultural production for a minimum period of eight years.

(2) Any landowner whose land is within a municipally approved program or other farmland preservation program or any landowner whose land qualifies for differential property tax assessment pursuant to the "Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), and which is included in an agricultural development area, may enter into an agreement to convey a development easement on the land to the board. The development easement may be permanent or for a term of 20 years.

(3) Any agreement entered into pursuant to paragraph (1) of this subsection shall constitute a restrictive covenant and shall be filed with the municipal tax assessor and recorded with the county clerk in the same manner as a deed. Any development easement conveyed pursuant to paragraph (2) of this subsection shall be filed with the municipal tax assessor and recorded with the county clerk in the same manner as a deed. The recording of any such agreement or development easement of limited term shall include notification that the committee may exercise the first right and option to purchase a fee simple absolute interest in the land pursuant to P.L.1989, c.28 (C.4:1C-38 et al.).

b. A landowner, or a farm operator as an agent for the landowner, whose land is within a municipally approved program or other farmland preservation program, or is subject to a development easement conveyed pursuant to subsection a. of this section, shall be eligible to, and may, apply to the local soil conservation district [and the board] for a grant for a soil and water conservation project approved by the State Soil Conservation Committee, subject to the provisions of P.L.1983, c.32 (C.4:1C-11 et al.).

c. (Deleted by amendment, P.L.1989, c.310.)

d. Approval by the local soil conservation district [and the board] for grants for soil and water conservation projects shall be contingent upon a written agreement by the person who would receive funds that the project shall be maintained for a specified period of not less than three years, and shall be a component of a farmland conservation plan approved by the local soil conservation district. If an applicant fails to maintain the project for the agreed upon term, they may be required to repay, on a pro rata basis as determined by the entities providing the grant funds, to the board or the committee, or both, as the case may be, any remaining funds from grants for soil and water conservation projects provided pursuant to this section, except in the case of bankruptcy, death, or incapacitating illness of the owner, or as the result of a documented extreme weather event, in which case no repayment of grant funds shall be required.

e. If [the landowner applying for funds] an applicant for a soil and water conservation project pursuant to this section [provides 50% of those] will receive funds [without assistance] from [the] a county, the local soil conservation district shall review, approve, conditionally approve, or disapprove the application and forward the application to the applicable county agriculture development board for concurrence. If an applicant will not receive funds from a county, the local soil conservation district shall review, approve, conditionally approve, or disapprove the application. In either case, the local soil conservation district shall forward the application to the State Soil Conservation Committee. The committee shall certify that the land on which the soil and water conservation project is to be conducted has had a development easement conveyed from it pursuant to subsection a. of this section or is part of a municipally approved program or other farmland preservation program and shall review, approve, conditionally approve, or disapprove the application.

(cf: P.L.1989, c.310, s.1)

2. This act shall take effect immediately.

STATEMENT

This bill would revise certain requirements concerning grants to fund soil and water conservation projects on preserved farms.

Specifically, the bill would clarify that an application for a soil and water conservation project grant would be required to be submitted to a county agriculture development board (CADB) only when the county is providing a share of the funding. If a county is not providing a share of the funding, the grant application would only be required to be submitted to the local soil conservation district, which would forward the application to the State Soil Conservation Committee.

The bill would also establish provisions that would require grant recipients to pay back grant funding to a CADB or the State Agriculture Development Committee (SADC), in the event that the recipient did not maintain the project for the agreed upon time. The bill would establish exceptions in the case of the bankruptcy, death, or incapacitating illness of the owner, or as the result of a documented extreme weather event.

Finally, the bill would also eliminate the statutory cost-share requirement for grants for soil and water conservation projects. Under current law, the landowner is required to provide 50 percent of the project costs.

Soil and water conservation projects are considered “stewardship activities” under the “Preserve New Jersey Act,” P.L.2016, c.12 (C.13:8C-43 et seq.) and are thus eligible to receive corporation business tax (CBT) funds that are constitutionally dedicated to farmland preservation. In order to obtain a soil and water conservation grant, landowners apply to local soil conservation districts, which assist in developing farm conservation plans and ensure projects are necessary and feasible. Applications are then forwarded to the State Soil Conservation Committee, which recommends projects to the SADC for funding approvals.