S2349

An Act concerning the preservation and protection of land in the Highlands Region, amending P.L.2019, c.136 and supplementing P.L.2016, c.12 (C.13:8C-43 et seq.).

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

1. Section 1 of P.L.2019, c.136 (C.13:8C-47.1) is amended to read as follows:

1. a. [In] Except as otherwise provided in subsection c. of this section, in each State fiscal year commencing in State fiscal year 2020 and annually thereafter, of the amount credited by the State Treasurer to the Preserve New Jersey Fund Account pursuant to subparagraph (b) of paragraph (1) of subsection a. of section 4 of P.L.2016, c.12 (C.13:8C-46):

(1) 62 percent shall be deposited into the Preserve New Jersey Green Acres Fund;

(2) 31 percent shall be deposited into the Preserve New Jersey Farmland Preservation Fund; and

(3) seven percent shall be deposited into the Preserve New Jersey Historic Preservation Fund.

b. (1) Beginning July 1, 2022, and annually thereafter, the Garden State Preservation Trust shall conduct a review of the appropriations of constitutionally dedicated CBT moneys to, and the expenditures thereof by, the Department of Environmental Protection, the State Agriculture Development Committee, and the New Jersey Historic Trust for their respective programs. In conducting this review, the trust shall: evaluate the demonstrated need for funding for the acquisition or development of lands for recreation and conservation purposes, including Blue Acres projects, farmland preservation purposes, or historic preservation purposes based upon available projects, applicant demand, and past appropriations and expenditures for these purposes; and hold a public hearing to solicit public input on appropriate funding allocations for the department, committee, and New Jersey Historic Trust, for the upcoming fiscal year.

(2) If the trust determines, based on the review conducted pursuant to paragraph (1) of this subsection, that it would be appropriate to revise the allocations set forth in subsection a. of this section, or section 6, 8, or 9 of P.L.2016, c.12 (C.13:8C-48, 50, or 51), the trust shall send a written notification to the Chairperson of the Senate Environment and Energy Committee, the Assembly Agriculture and Natural Resources Committee, and the Assembly Environment and Solid Waste Committee, or their successors, of its findings and recommendations concerning future funding allocations for the Preserve New Jersey Green Acres Fund, the Preserve New Jersey Farmland Preservation Fund, or the Preserve New Jersey Historic Preservation Fund.

(3) A recommendation by the trust to reallocate constitutionally dedicated CBT moneys based on the review conducted pursuant to this subsection shall not alter the allocations set forth in subsection a. of this section or section 6, 8, or 9 of P.L.2016, c.12 (C.13:8C-48, 50, or 51) for any fiscal year unless authorized by the Legislature.

c. Commencing on July 1 next following the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) and in each State fiscal year annually thereafter, there shall be deposited by the State Treasurer the following amounts into the Preserve New Jersey Highlands Fund created pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill) to be used for the purposes of section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill):

(1) $5 million of the amount deposited into the Preserve New Jersey Green Acres Fund pursuant to paragraph (1) of subsection a. of this section; and

(2) $2.5 million of the amount deposited into the Preserve New Jersey Farmland Preservation Fund pursuant to paragraph (2) of subsection a. of this section.

(cf: P.L.2019, c.136, s.1)

2. (New section) a. The State Treasurer shall establish a fund to be known as the "Preserve New Jersey Highlands Preservation Fund" and shall deposit into the fund all moneys received pursuant to subsection c. of section 1 of P.L.2019, c.136 (C.13:8C-47.1) and any other moneys appropriated by law for deposit into the fund. Moneys in the fund shall be invested in permitted investments or shall be held in interest-bearing accounts in those depositories as the State Treasurer may select, and may be invested and reinvested in permitted investments or as other trust funds in the custody of the State Treasurer in the manner provided by law. All interest or other income or earnings derived from the investment or reinvestment of moneys in the fund shall be credited to the fund.

b. The moneys in the Preserve New Jersey Highlands Preservation Fund are specifically dedicated and shall be used by the Highlands Water Protection and Planning Council, established pursuant to section 4 of P.L.2004, c.120 (C.13:20-4), in accordance with the provisions of this section and section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill), only for:

(1) the acquisition of lands for recreation and conservation purposes;

(2) the acquisition of lands for farmland preservation purposes; and

(3) as the State match for federal funding available pursuant to the Highlands Conservation Act, Pub.L. 108-421, or any other similar federal funding, for the acquisition of land in the Highlands Region from a willing seller for the permanent protection of those lands.

c. Moneys in the fund shall not be expended except in accordance with appropriations from the fund made by law. Any act appropriating moneys from the Preserve New Jersey Highlands Preservation Fund shall identify any particular project or projects to be funded by the moneys, and any expenditure for a project for which the location is not identified by municipality and county in the appropriation shall require the approval of the Joint Budget Oversight Committee. Any change in project sponsor, site, or type that has received an appropriation from the fund, shall require the approval of the Joint Budget Oversight Committee or its successor but shall not require the approval of the Garden State Preservation Trust.

d. Unexpended moneys due to project withdrawals, cancellations, or cost savings shall be returned to the fund.

e. The Highlands Water Protection and Planning Council shall include an accounting of the moneys in the Preserve New Jersey Highlands Preservation Fund in the annual report prepared pursuant to section 29 of P.L.2004, c.120 (C.13:20-27). The accounting shall identify, for each year and cumulatively: the amount of appropriations from the fund; the expenditure of moneys from the fund; the amount of land preserved with moneys in the fund; and the amount of federal funds received from using moneys in the fund as the State match.

3. (New section) a. As used in this section:

“Agricultural deed restriction” means an “agricultural deed restriction for farmland preservation purposes” as defined in section 3 of P.L.1983, c.32 (C.4:1C-13).

“Agricultural preservation priority area” means an area identified in the Highlands regional master plan as an agricultural priority area.

“Charitable conservancy” means the same as the defined is defined in section 2 of P.L.1979, c.378 (C.13:8B-2). “Conservation easement” means a deeded transfer of an interest in real property under which the property owner agrees to permanently restrict the land in perpetuity from future development and to conserve and protect open space, scenic, agricultural, or other natural resource values on the land covered by the easement.

“Conservation preservation priority area” means an area identified in the Highlands regional master plan as a conservation priority area.

“Council” means the Highlands Water Protection and Planning Council established pursuant to section 4 of the “Highlands Water Protection and Planning Act,” P.L.2004, c.120 (C.13:20-4).

“Highlands development credit” means a transfer of development rights credit that may be bought, sold, or transferred in accordance with the transfer of development rights program for the Highlands Region established by the council pursuant to section 13 of P.L.2004, c.120 (C.13:20-13).

“Highlands Region” means the region designated by subsection a. of section 7 of P.L.2004, c.120 (C.13:20-7).

“Highlands regional master plan” means the regional master plan as defined in section 3 of P.L.2004, c.120 (C.13:20-3).

“Passive recreation” means a non-motorized outdoor recreational activity, such as nature observation, hiking, biking, and canoeing or kayaking, that requires a minimum of facilities or development and that has a minimal environmental impact on natural resources.

“Preserve New Jersey Highlands Preservation Fund” means the fund established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).

“Special environmental zone” means an area identified in the Highlands regional master plan as a special environmental zone.

b. Of the amount deposited in the Preserve New Jersey Highlands Preservation Fund, each year:

(1) $2,500,000 shall be allocated for the Highlands Open Space Partnership Funding program to provide grants to local government units, charitable conservancies, or qualifying tax exempt nonprofit organizations as provided in subsection c. of this section;

(2) $2,500,000 shall be allocated for the acquisition of Highlands development credits from landowners pursuant to the transfer of development rights program for the Highlands Region established pursuant to section 13 of P.L.2004, c.120 (C.13:20-13), and as provided in subsection d. of this section; and

(3) $2,500,000 shall be allocated for farmland preservation for the preservation of farmland that does not qualify for preservation by the State Agriculture Development Committee, and as provided in subsection e. of this section.

c. (1) Funds allocated pursuant to paragraph (1) of subsection b. of this section for the Highlands Open Space Partnership Funding program shall be used for:

(a) the fee simple acquisition of land for recreation and conservation, including passive recreation purposes, including, but not limited to:

(i) parks, natural areas, and greenways; and

(ii) the protection of natural resources as identified in the Highlands regional master plan; and

(b) the acquisition of conservation easements for conservation purposes, including, but not limited to:

(i) parks, natural areas, and greenways;

(ii) farmland preservation; and

(iii) the protection of natural resources and agricultural preservation priority areas.

(2) A grant awarded with funds pursuant to this section shall require the land to be restricted in perpetuity from future development to protect any existing natural resources located on the property in accordance with requirements of a conservation easement approved by the council, which conservation easement shall be:

(a) held by the council, the Department of Environmental Protection, a charitable conservancy, or a qualifying tax exempt nonprofit organization; and

(b) specifically and expressly enforceable by the entity which holds the conservation easement and the council; and

(3) A grant awarded pursuant to this section shall be in an amount not to exceed 50 percent of the total purchase price of the land.

d. (1) Funds allocated pursuant to paragraph (2) of subsection b. of this section shall be used for the acquisition of Highlands development credits for the protection of land:

(a) of significant ecological or agricultural importance;

(b) that serves to complement or buffer publicly-owned and managed lands preserved for recreation and conservation purposes;

(d) that otherwise furthers the purposes of the Highlands regional master plan.

(2) To be eligible for funding pursuant to this subsection, a landowner shall:

(a) possess a marketable title and be legally empowered to restrict the use of the land in a manner consistent with the “Highlands Water Protection and Planning Act,” P.L.2004, c.120 (C.13:20-1 et al.), any rules and regulations adopted pursuant thereto, the Highlands regional master plan, and this section; and

(b) place a conservation easement on the land, which conservation easement shall:

(i) be held by the council, a charitable conservancy, or a qualifying tax exempt nonprofit organization; and

(ii) specifically and expressly enforceable by the entity which holds the conservation easement and the council.

e. Funds allocated pursuant to paragraph (3) of subsection b. of this section shall be used for the preservation of farmland in the Highlands region, and shall comply with the requirements of subsections c. and d. as applicable to the application. Any land that receives funding pursuant to this subsection shall be subject to an agricultural deed restriction, and a copy of the agricultural deed restriction shall be provided to the State Agriculture Development Committee.

f. Priority for funding with moneys in the Preserve New Jersey Highlands Preservation Fund shall be provided to the acquisition of land based on the following criteria, in no specific order:

(1) land located in a special environmental zone area;

(2) land located in a high conservation preservation priority area or high agricultural preservation priority area;

(3) land located in a moderate conservation preservation priority area or moderate agricultural preservation priority area; and

(4) land that would provide or improve connectivity to existing preserved lands, are contiguous to existing preserved farmland, or otherwise improve access to existing lands preserved for recreation and conservation purposes.

g. In no case shall moneys in the Preserve New Jersey Highlands Preservation Fund be used for the acquisition in fee simple or a lesser interest of any land that:

(1) requires condemnation;

(2) contains significant environmental contamination, including, but not limited to, former landfill sites, sites with a history of operating as a facility with substantial potential for on-site contamination, or sites listed on the Department of Environmental Protection’s Known Contaminated Sites List; or

(3) is already preserved or acquired by the State, a local government unit, a charitable conservancy, or a qualifying tax exempt nonprofit organization.

h. All Highlands development credits acquired with moneys from the Preserve New Jersey Highlands Preservation Fund shall be retired permanently.

i. Every agricultural deed restriction or conservation easement, as applicable, placed on land pursuant to this section shall be filed and recorded with the county clerk of the county in which the land is located in the same manner as a deed.

j. The council shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations for the submittal and review of applications for funding pursuant to this section and may adopt criteria concerning the use of the funds pursuant to this section that are in addition to the criteria set forth in this section; provided however, that in no case shall funds allocated pursuant to this section be used for any other purpose than the acquisition and preservation of land for recreation and conservation purposes or farmland preservation purposes. The council may use the criteria in the rules codified at N.J.A.C.7:70-1.1 et seq., and adopted by the council pursuant to subsection y. of section 6 of P.L.2004, c.120 (C.13:20-6), provided that the rules are, at a minimum, consistent with the provisions of this section.

k. At least once each State fiscal year, the council shall submit to the Garden State Preservation Trust a list of projects recommended to be funded with moneys from the Preserve New Jersey Highlands Preservation Fund. The Garden State Preservation Trust shall review the submitted project list, and prepare and submit to the Governor and to the President of the Senate and the Speaker of the General Assembly for introduction in the Legislature, proposed legislation appropriating moneys pursuant to this section to fund projects on any such list. The Legislature may approve one or more appropriation bills containing a project list or lists submitted by the Garden State Preservation Trust pursuant to this subsection.

4. This act shall take effect immediately.

STATEMENT

This bill would amend and supplement the “Preserve New Jersey Act,” P.L.2016, c.12 (C.13:8C-43 et seq.), to allocate $7.5 million annually of constitutionally dedicated Corporation Business Tax (CBT) revenue to the Highlands Water Protection and Planning Council (council) for the preservation of land in the Highlands Region.

The funding in this bill is provided from constitutionally dedicated CBT revenues pursuant to Article VIII, Section II, paragraph 6 of the State Constitution, which dedicates six percent of the CBT for certain environmental purposes. Under the “Preserve New Jersey Act” (act), P.L.2016, c.12 (C.13:8C-43 et seq.), of the dedicated CBT revenues allocated for open space, farmland, and historic preservation, each year: 62 percent is allocated to the Department of Environmental Protection (DEP) for recreation and conservation purposes; 31 percent is allocated to the State Agriculture Development Committee (SADC) for farmland preservation; and the remaining seven percent is allocated to the New Jersey Historic Trust for historic preservation.

Under this bill, $5 million of the amount allocated each year to the DEP and $2.5 million of the amount allocated to the SADC would be deposited into the “Preserve New Jersey Highlands Preservation Fund,” a new fund created by the bill. These moneys, totaling $7.5 million each year would be used by the council to preserve lands located in the Highlands Region.