A4759

An Act concerning food and farm equipment donations made by commercial farm operators and supplementing Title 4 of the New Jersey Statutes.

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

1. a. As used in this section:

“Commercial farm operator” means the taxpayer primarily responsible for the on-site, day-to-day operation of a commercial farm, at which perishable foods and prepared foods are planted, managed, harvested, processed, and prepared for donation.

“Donate” means the same as that term is defined in section 2 of P.L.1982, c.178 (C.24:4A-2).

“Food bank” means the same as that term is defined in section 2 of P.L.1982, c.178 (C.24:4A-2).

“Food pantry” means a nonprofit organization or government entity that distributes food to individuals in need of assistance, including, but not limited to, a soup kitchen, homeless shelter, or religious organization.

“Perishable food” means the same as that term is defined in section 2 of P.L.1982, c.178 (C.24:4A-2).

“Prepared food” means the same as that term is defined in section 2 of P.L.1982, c.178 (C.24:4A-2).

“Wholesale value” means the quantity-weighted average price of a donated perishable food or prepared food item as determined using the actual wholesale prices the commercial farm operator received for that same or similar item, based on variety, grade, and size, during the month the donation was made.

b. Notwithstanding the provisions of any law, rule, or regulation to the contrary, a commercial farm operator that leases State-owned land for agricultural purposes pursuant to section 14 of P.L.1971, c.199 (C.40A:12-14) and P.L.1989, c.79 (C.4:1C-44 et seq.) and that makes a donation of perishable food or prepared food, or a donation of eligible farm equipment listed pursuant to subsection c. of this section, to a food bank or food pantry located in this State shall receive a deduction in the amount of cash rent due on the lease in an amount equal to 50 percent of the wholesale value of the perishable foods or prepared foods, or 50 percent of the value at point of sale of the eligible farm equipment, that are donated to the food bank or food pantry during the lease year.

c. For the purposes of this section, eligible donated farm equipment shall include:

(1) refrigerators, including commercial refrigerators;

(2) freezers, including commercial freezers;

(3) refrigerant and non-refrigerant box trucks;

(4) retrofit refrigerator units;

(5) mobile cooler units;

(6) cargo vans;

(7) pallet jacks;

(8) dollies;

(9) hand fork lifts;

(10) stoves;

(11) ovens;

(12) microwaves;

(13) freezer blankets;

(14) industrial shelving;

(15) reusable bags; and

(16) any other equipment the department deems necessary for food recovery operations.

d. In order to claim the deduction established pursuant to subsection b, of this section, a commercial farm operator shall obtain a written statement from the food bank or food pantry substantiating each donation of perishable food, prepared food, or eligible farm equipment made during the lease year. At the time a donation is made, the commercial farm operator shall provide to the food bank or food pantry the wholesale value of the donated perishable food or donated food, or the value at point of sale of the eligible farm equipment. The food bank or food pantry, upon receipt of the perishable food, prepared food, or eligible farm equipment, shall issue to the commercial farm operator making the donation a written statement, signed and dated by an individual authorized to accept the donation on behalf of the food bank or food pantry, that contains the name and quantity of the donated perishable food, prepared food, or farm eligible equipment, the name and address of the commercial farm operator making the donation, the name and address of the food bank and food pantry, and, as provided by the commercial farm operator, the wholesale value of the perishable food or prepared food, or the value at point of sale of the eligible farm equipment. When making a payment on the lease, a commercial farm operator shall present a copy of each written statement issued to the commercial farm operator by a food bank or food pantry during the lease year for which the deduction is sought.

2. The Department of Agriculture shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to implement the provisions of this act.

3. This act shall take effect immediately and shall apply to all leases executed or renewed in this State on or after the effective date of this act.

STATEMENT

This bill would provide that a commercial farm operator that leases State-owned land for agricultural purposes and that makes a donation of perishable food, prepared food, or eligible farm equipment to a food bank or food pantry located in this State would receive a deduction in the amount of cash rent due on the lease in an amount equal to 50 percent of the wholesale value of the perishable foods or prepared foods, or 50 percent of the value at point of sale of the eligible farm equipment, that are donated to the food bank or food pantry during the lease year. “Wholesale value” is defined by the bill as the quantity-weighted average price of a donated item as determined using the actual wholesale prices the commercial farm operator received for that same or similar item, based on variety, grade, and size, during the month the donation was made.

In addition, this bill would require that a commercial farm operator would be required to obtain a written statement from the food bank or food pantry substantiating each donation of perishable food, prepared food, or eligible farm equipment made during the lease year to claim the deduction. This bill would require a commercial farm operator, when making a rental payment on the lease, to present a copy of each written statement issued to the commercial farm operator by a food bank or food pantry during the lease year for which the deduction is sought.