Establishes program in SADC for acquisition of development easements on privately-owned woodlands.

A1616

ASSEMBLY, No. 1616

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman SEAN T. KEAN

District 30 (Monmouth and Ocean)

Assemblywoman DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

Assemblyman DAVID BAILEY, JR.

District 3 (Cumberland, Gloucester and Salem)

Co-Sponsored by:

Assemblymen McGuckin, Peterson, DePhillips, Auth, Miller,
Inganamort, Schnall, Myhre, Kennedy and Assemblywoman Katz

SYNOPSIS

���� Establishes program in SADC for acquisition of
development easements on privately-owned woodlands.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning the acquisition of development easements on privately-owned
woodlands, supplementing Title 4 of the Revised Statutes, and amending
P.L.1999, c.152.

����
Be It Enacted

by the Senate and General Assembly of the State of New Jersey:

���� 1.��� (New section)� a.� As
used in this section:

���� "Local government
unit" means the same as that term is defined in section 3 of P.L.1999,
c.152 (C.13:8C-3).

���� "Qualifying tax-exempt
nonprofit organization" means the same as that term is defined in section
3 of P.L.1999, c.152 (C.13:8C-3).

���� "Woodland" means a
defined and continuous area of land that lies wholly within a property and has
at least 10 percent canopy cover.

���� b.� The State Agriculture
Development Committee shall establish a program for the acquisition, by the
State, a local government unit, or a qualifying tax-exempt nonprofit
organization, of a development easement restricting, in perpetuity, the
development of a privately-owned woodland.� The purpose of the program shall be
to promote the preservation and stewardship of lands for agricultural, silvicultural,
and horticultural use and production, and to protect the State's forested
lands.

���� c.� To be eligible for the
acquisition of development rights under the program, a woodland shall:

���� (1) be at least 20 acres in
size;

���� (2) be devoted, in whole or in
part, to either agricultural production or the production for sale of tree or
forest products; and

���� (3) for those areas not in
agricultural production, be managed by the landowner in accordance with a
forest stewardship plan approved pursuant to section 3 of P.L.2009, c.256
(C.13:1L-31), a woodland management plan approved pursuant to section 3 of the
"Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.3), or a
plan approved pursuant to the federal Forest Stewardship Program administered
by the United States Forest Service.

���� d.� The appraisal process for
development easements under the program shall be the same as that for farmland
under the provisions of subsection e. of section 8 of P.L.2016, c.12
(C.13:8C-50).

���� e.� The State Agriculture
Development Committee may use constitutionally dedicated corporation business
tax revenues in the "Preserve New Jersey Farmland Preservation Fund"
established by section 8 of P.L.2016, c.12 (C.13:8C-50) in order to fund the acquisition
of development easements under the program, or any other funds appropriated to
the committee for farmland preservation purposes, provided that the use of the
funds is consistent with the provisions of the "Preserve New Jersey
Act," P.L.2016, c.12 (C.13:8C-43 et seq.) and the State Constitution.

���� f.� The State Agriculture
Development Committee shall coordinate with the United States Forest Service
and any other applicable State or federal agency, in order to pursue any
federal, State, local, and private funding, which may be available to fund the
program established pursuant to this section, including funding made available
through the federal "Forest Legacy Program," administered by the
United States Forest Service, and through the federal "Health Forests
Reserve Program," administered by the United States Natural Resources
Conservation Service.

���� g.� No later than one year
after the effective date of this section, the State Agriculture Development
Committee shall adopt rules and regulations, pursuant to the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.),
for the establishment and implementation of the program, including, but not
limited to application procedures and criteria and policies for the evaluation
and priority ranking of projects.�

���� h.� Any development easement
permanently restricting, in perpetuity, development on privately-owned
woodlands acquired pursuant to this section shall be filed with the municipal
tax assessor and recorded with the county clerk in the same manner as a deed.

���� 2.��� Section 3 of P.L.1999,
c.152 (C.13:8C-3) is amended to read as follows:

���� 3.��� As used in sections 1
through 42 of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 to C.13:8C-42)
:

���� "Acquisition" or
"acquire" means the obtaining of a fee simple or lesser interest 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, installment purchase agreement, gift, donation,
eminent domain by the State or a local government unit, or devise; except that
any acquisition of lands by the State for recreation and conservation purposes
by eminent domain shall be only as authorized pursuant to section 28 of
P.L.1999, c.152 (C.13:8C-28);

���� "Bonds" means bonds
issued by the trust pursuant to
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
;

���� "Commissioner" means
the Commissioner of Environmental Protection;

���� "Committee" means
the State Agriculture Development Committee established pursuant to section 4
of P.L.1983, c.31 (C.4:1C-4);

���� "Constitutionally
dedicated moneys" means any moneys made available pursuant to Article
VIII, Section II, paragraph 7 of the State Constitution or through the issuance
of bonds, notes, or other obligations by the trust, as prescribed by Article
VIII, Section II, paragraph 7 of the State Constitution and P.L.1999, c.152
(C.13:8C-1 et seq.), or any moneys from other sources deposited in the trust
funds established pursuant to sections 19, 20, and 21 of P.L.1999, c.152
(C.13:8C-19, C.13:8C-20, and C.13:8C-21), and appropriated by law, for any of
the purposes set forth in Article VIII, Section II, paragraph 7 of the State
Constitution or
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
;

���� "Convey" or
"conveyance" means to sell, donate, exchange, transfer, or lease for
a term of 25 years or more;

���� "Cost" means the
expenses incurred in connection with:� all things deemed necessary or useful
and convenient for the acquisition or development of lands for recreation and
conservation purposes, the acquisition of development easements or fee simple
titles to farmland, or the preservation of historic properties, as the case may
be; the execution of any agreements or franchises deemed by the Department of
Environmental Protection, State Agriculture Development Committee, or New
Jersey Historic Trust, as the case may be, to be necessary or useful and
convenient in connection with any project funded in whole or in part using
constitutionally dedicated moneys; the procurement or provision of appraisal,
archaeological, architectural, conservation, design, engineering, financial,
geological, historic research, hydrological, inspection, legal, planning,
relocation, surveying, or other professional advice, estimates, reports,
services, or studies; the purchase of title insurance; the undertaking of
feasibility studies; the establishment of a reserve fund or funds for working
capital, operating, maintenance, or replacement expenses and for the payment or
security of principal or interest on bonds, as the Director of the Office of
Management and Budget in the Department of the Treasury may determine; and
reimbursement to any fund of the State of moneys that may have been transferred
or advanced therefrom to any fund established by
[
this act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
, or any moneys that may have been expended therefrom
for, or in connection with,
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
;

���� "Department" means
the Department of Environmental Protection;

���� "Development" or
"develop" means, except as used in the definitions of
"acquisition" and "development easement" in this section,
any improvement made to a land or water area designed to expand and enhance its
utilization for recreation and conservation purposes, and shall include the
construction, renovation, or repair of any such improvement, but shall not mean
shore protection or beach nourishment or replenishment activities;

���� "Development
easement" means an interest in land, less than fee simple title thereto,
which interest represents the right to develop that land for all
nonagricultural purposes and which interest may be transferred under laws
authorizing the transfer of development potential;

���� "Farmland" means
land identified as having prime or unique soils as classified by the Natural
Resources Conservation Service in the United States Department of Agriculture,
having soils of Statewide importance according to criteria adopted by the State
Soil Conservation Committee, established pursuant to R.S.4:24-3, or having
soils of local importance as identified by local soil conservation districts,
and which land qualifies for differential property taxation pursuant to the
"Farmland Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et
seq.), and any other land on the farm that is necessary to accommodate farm
practices as determined by the State Agriculture Development Committee;

���� "Farmland
preservation," "farmland preservation purposes," or
"preservation of farmland" means the permanent preservation of
farmland to support agricultural or horticultural production as the first
priority use of that land;

���� "Garden State Farmland
Preservation Trust Fund" means the Garden State Farmland Preservation
Trust Fund established pursuant to section 20 of P.L.1999, c.152 (C.13:8C-20);

���� "Garden State Green Acres
Preservation Trust Fund" means the Garden State Green Acres Preservation
Trust Fund established pursuant to section 19 of P.L.1999, c.152 (C.13:8C-19);

���� "Garden State Historic
Preservation Trust Fund" means the Garden State Historic Preservation
Trust Fund established pursuant to section 21 of P.L.1999, c.152 (C.13:8C-21);

���� "Green Acres bond
act" means:� P.L.1961, c.46; P.L.1971, c.165; P.L.1974, c.102; P.L.1978,
c.118; P.L.1983, c.354; P.L.1987, c.265; P.L.1989, c.183; P.L.1992, c.88;
P.L.1995, c.204; and any State general obligation bond act that may be approved
after the date of enactment of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
for the purpose of providing funding for the
acquisition or development of lands for recreation and conservation purposes or
for farmland preservation purposes;

���� "Historic
preservation," "historic preservation purposes," or
"preservation of historic properties" means any work relating to the
conservation, improvement, interpretation, preservation, protection,
rehabilitation, renovation, repair, restoration, or stabilization of any
historic property, and shall include any work related to providing access
thereto for persons with disabilities;

���� "Historic property"
means any area, building, facility, object, property, site, or structure
approved for inclusion, or which meets the criteria for inclusion, in the New
Jersey Register of Historic Places pursuant to P.L.1970, c.268 (C.13:1B-15.128
et seq.);

���� "Indoor recreation"
means active recreation that otherwise is or may be pursued outdoors but, for
reasons of extending the season or avoiding inclement weather, is or may be
pursued indoors within a fully or partially enclosed building or other
structure, and includes basketball, ice skating, racquet sports, roller
skating, swimming, and similar recreational activities and sports as determined
by the Department of Environmental Protection;

���� "Land" or
"lands" means real property, including improvements thereof or
thereon, rights-of-way, water, lakes, riparian and other rights, easements,
privileges, and all other rights or interests of any kind or description in,
relating to, or connected with real property;

���� "Local government
unit" means a county, municipality, or other political subdivision of the
State, or any agency, authority, or other entity thereof; except, with respect
to the acquisition and development of lands for recreation and conservation
purposes, "local government unit" means a county, municipality, or
other political subdivision of the State, or any agency, authority, or other
entity thereof the primary purpose of which is to administer, protect, acquire,
develop, or maintain lands for recreation and conservation purposes;

���� "New Jersey Historic
Trust" means the entity established pursuant to section 4 of P.L.1967,
c.124 (C.13:1B-15.111);

���� "Notes" means the
notes issued by the trust pursuant to
[
this
act
]

P.L.1999,
c.152 (C.13:8C-1 et seq.)
;

���� "Permitted
investments" means any of the following securities:

���� (1)�� Bonds, debentures,
notes, or other evidences of indebtedness issued by any agency or
instrumentality of the United States to the extent such obligations are
guaranteed by the United States or by another such agency the obligations
(including guarantees) of which are guaranteed by the United States;

���� (2)�� Bonds, debentures,
notes, or other evidences of indebtedness issued by any corporation chartered
by the United States, including, but not limited to, Governmental National
Mortgage Association, Federal Land Banks, Federal Home Loan Mortgage
Corporation, Federal National Mortgage Association, Federal Home Loan Banks,
Federal Intermediate Credit Banks, Banks for Cooperatives, Tennessee Valley
Authority, United States Postal Service, Farmers Home Administration,
Resolution Funding Corporation, Export-Import Bank, Federal Financing Bank, and
Student Loan Marketing Association;

���� (3)�� Bonds, debentures,
notes, or commercial paper rated in the highest two rating categories without
regard to rating subcategories (derogation) by all nationally recognized
investment rating agencies or by a nationally recognized investment rating
agency if rated by only one nationally recognized investment rating agency;

���� (4)�� Repurchase agreements or
investment agreements issued by (i) a commercial bank or trust company or a
national banking association, each having a capital stock and surplus of more
than $100,000,000, or (ii) an insurance company with the highest rating provided
by a nationally recognized insurance company rating agency, or (iii) a
broker/dealer, or (iv) a corporation; provided that the credit of such
commercial bank or trust company or national banking association or insurance
company or broker/dealer or corporation, as the case may be, is rated (or, in
the case of a broker/dealer or corporation, whose obligations thereunder are
guaranteed by a commercial bank or trust company or a national banking
association or insurance company with the highest rating provided by a
nationally recognized insurance company rating agency or corporation whose
credit is rated) not lower than the "AA" category without regard to
rating subcategories (derogation) of any two nationally recognized investment
rating agencies then rating the State; provided that any such agreement shall
provide for the investment of funds and shall be collateralized by obligations
described in paragraph 1 or paragraph 2 or paragraph 3 above at a level of at
least one hundred and two (102) percent in principal amount of those
obligations;

���� "Pinelands area"
means the pinelands area as defined pursuant to section 3 of P.L.1979, c.111
(C.13:18A-3);

���� "Pinelands regional
growth area" means a regional growth area established pursuant to the
pinelands comprehensive management plan adopted pursuant to P.L.1979, c.111
(C.13:18A-1 et seq.);

���� "Project" means all
things deemed necessary or useful and convenient in connection with the
acquisition or development of lands for recreation and conservation purposes,
the acquisition of development easements or fee simple titles to farmland, or
the preservation of historic properties, as the case may be;

���� "Qualifying open space
referendum county" means any county that has:� (1) approved and
implemented, and is collecting and expending the revenue from, an annual levy
authorized pursuant to P.L.1997, c.24 (C.40:12-15.1 et seq.) for an amount or at
a rate equivalent to at least one half of one cent per $100 of assessed value
of real property, or for an amount or at a rate established by the county and
in effect as of April 1, 1999, whichever is greater; or (2) adopted an
alternative means of funding for the same or similar purposes as an annual
levy, which the Department of Environmental Protection, in consultation with
the committee and the New Jersey Historic Trust, approves to be stable and
reasonably equivalent in effect to an annual levy;

���� "Qualifying open space
referendum municipality" means any municipality that has:� (1) approved
and implemented, and is collecting and expending the revenue from, an annual
levy authorized pursuant to P.L.1997, c.24 (C.40:12-15.1 et seq.) for an amount
or at a rate equivalent to at least one half of one cent per $100 of assessed
value of real property, or for an amount or at a rate established by the
municipality and in effect as of April 1, 1999, whichever is greater; or (2)
adopted an alternative means of funding for the same or similar purposes as an
annual levy, which the Department of Environmental Protection, in consultation
with the committee and the New Jersey Historic Trust, approves to be stable and
reasonably equivalent in effect to an annual levy;

���� "Qualifying tax exempt
nonprofit organization" means a nonprofit organization that is exempt from
federal taxation pursuant to section 501 (c)(3) of the federal Internal Revenue
Code, 26 U.S.C. s.501 (c)(3), and which qualifies for a grant pursuant to
section 27, 39, or 41 of P.L.1999, c.152 (C.13:8C-27, 13:8C-39, or 13:8C-41)
,
or section 1 of P.L.��� , c.�� �(C.������� ) (pending before the Legislature as
this bill)
;

���� "Recreation and
conservation purposes" means the use of lands for beaches, biological or
ecological study, boating, camping, fishing, forests, greenways, hunting,
natural areas, parks, playgrounds, protecting historic properties, water
reserves, watershed protection, wildlife preserves, active sports, or a similar
use for either public outdoor recreation or conservation of natural resources,
or both; and

���� "Trust" means the
Garden State Preservation Trust established pursuant to section 4 of P.L.1999,
c.152 (C.13:8C-4).

(cf: P.L.2017, c.131, s.15)

���� 3.��� Section 37 of P.L.1999,
c.152 (C.13:8C-37) is amended to read as follows:

���� 37.� a.� Moneys appropriated
from the Garden State Farmland Preservation Trust Fund to the State Agriculture
Development Committee for farmland preservation purposes shall be used by the
committee to:

���� (1)� Provide grants to local
government units to pay up to 80
[
%
]

percent

of the cost of acquisition of development easements on farmland, and to
qualifying tax exempt nonprofit organizations to pay up to 50
[
%
]

percent

of the cost of acquisition of development easements on farmland as provided in
section 39 of
[
this
act,
]

P.L.1999,
c.152 (C.13:8C-39), or to provide grants to local government units or
qualifying tax exempt nonprofit organizations to pay up to 80 percent of the
cost of acquisition of development easements on woodlands, as provided in
section 1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill),
provided that any funds received for the transfer of a
development easement shall be dedicated to the future purchase of development
easements on farmland and the State's pro rata share of any such funds shall be
deposited in the Garden State Farmland Preservation Trust Fund to be used for
the purposes of that fund and provided that the terms of any such development
easement to be acquired by a qualifying tax exempt nonprofit organization shall
be approved by the committee;

���� (2)� Provide grants to local
government units to pay up to 80
[
%
]

percent

of the cost of acquisition of fee simple titles to farmland from willing
sellers only, and to qualifying tax exempt nonprofit organizations to pay up to
50
[
%
]

percent

of the cost of acquisition of fee simple titles to farmland from willing
sellers only as provided in section 39 of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-39)
, which shall be offered for resale or lease with
agricultural deed restrictions, as determined by the committee, and any
proceeds received from a resale shall be dedicated for farmland preservation
purposes and the State's pro rata share of any such proceeds shall be deposited
in the Garden State Farmland Preservation Trust Fund to be used for the
purposes of that fund;

���� (3)� Pay the cost of
acquisition by the State of development easements on farmland,
or on
woodlands, as provided in section 1 of P.L.��� , c.�� �(C.������� ) (pending
before the Legislature as this bill),
provided that any funds received for
the transfer of a development easement shall be deposited in the Garden State
Farmland Preservation Trust Fund to be used for the purposes of that fund; and

���� (4)� Pay the cost of
acquisition by the State of fee simple titles to farmland from willing sellers
only, which shall be offered for resale or lease with agricultural deed
restrictions, as determined by the committee, and any proceeds received from a
resale or lease shall be deposited in the Garden State Farmland Preservation
Trust Fund to be used for the purposes of that fund.

���� b.��� Moneys appropriated from
the fund may be used to match grants, contributions, donations, or
reimbursements from federal aid programs or from other public or private
sources established for the same or similar purposes as the fund.

(cf: P.L.1999, c.152, s.37)

���� 4.��� This act shall take
effect immediately.

STATEMENT

����
This bill directs the State Agriculture Development
Committee (SADC) to establish a program for the acquisition of development
easements on privately-owned woodlands.� The purpose of the program would be to
promote the preservation and stewardship of lands for agricultural,
silvicultural, and horticultural use and production, and to protect the State's
forested lands.

����� To be eligible for inclusion in the new development
easement program, a woodland would be required to:

����� (1) be at least 20 acres in size;

����� (2) be devoted, in whole or in part, to either
agricultural production or the production for sale of tree or forest products;
and

����� (3) for those areas not in agricultural production,
be managed by the landowner in accordance with a forest stewardship plan
approved pursuant to section 3 of P.L.2009, c.256 (C.13:1L-31), a woodland
management plan approved pursuant to section 3 of the "Farmland Assessment
Act of 1964," P.L.1964, c.48 (C.54:4-23.3), or a plan approved pursuant to
the federal Forest Stewardship Program administered by the United States Forest
Service.

����� The appraisal process for development easements under
the program would be the same as that for farmland under the provisions of
subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50), which were recently
revised by P.L.2023, c.245.� Under the program, the SADC would be authorized to
use constitutionally dedicated corporation business tax (CBT) revenues to fund
the acquisition of development easements, provided that the use is consistent
with the "Preserve New Jersey Act," P.L.2016, c.12 (C.13:8C-43 et seq.)
and the State Constitution.� Grants distributed by the SADC would be authorized
to cover up to 80 percent of the costs of acquisition of a development easement
by a local government unit or nonprofit organization.