Expands definition of "qualifying land" to include certain deeds of easement excluding certain portions of farm from preservation.

A4033

ASSEMBLY, No. 4033

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 12, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Assemblywoman� ANDREA KATZ

District 8 (Atlantic and Burlington)

SYNOPSIS

���� Expands definition of �qualifying land� to include
certain deeds of easement excluding certain portions of farm from preservation.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning qualifying land and rural microenterprise
special permits and amending
P.L.2005, c.314.�

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

���� 1.� Section 1 of P.L.2005,
c.314 (C.4:1C-32.1) is amended to read as follows:

���� 1.��� a.� Any person who owns
qualifying land may apply for a special permit pursuant to this section to
allow a rural microenterprise activity to occur on the land.

���� b.��� The committee, in its
sole discretion, may issue a special permit pursuant to this section to the
owner of the premises if the development easement is owned by the committee or
a board.� If the development easement is owned by a qualifying tax exempt nonprofit
organization, the committee, in consultation with the qualifying tax exempt
nonprofit organization, may issue a special permit pursuant to this section to
the owner of the premises.� The committee shall provide the holder of any
development easement on the farm with a copy of the application submitted for
the purposes of subsection a. of this section, and the holder of the
development easement shall have 30 days after the date of receipt thereof to
provide comments to the committee on the application.� Within 90 days after
receipt of a completed application, submitted for the purposes of subsection a.
of this section, the committee shall approve, approve with conditions, or
disapprove the application.

���� c.���� There shall be two
categories of rural microenterprise activities, as follows:

���� (1) Class 1 shall include
customary rural activities, which rely on the equipment and aptitude
historically possessed by the agricultural community, such as snow plowing, bed
and breakfasts, bakeries, woodworking, and craft-based businesses; and

���� (2) Class 2 shall include
agriculture support services, which have a direct and positive impact on
agriculture by supplying needed equipment, supplies, and services to the
surrounding agricultural community, such as veterinary practices, seed
suppliers, and tractor or equipment repair shops.

���� d.��� A special permit may be
issued pursuant to this section provided that:

���� (1)�� the owner of the
premises establishes, through the submission of tax forms, sales receipts, or
other appropriate documentation, as directed by the committee, that (a) the
qualifying land is a commercial farm as defined pursuant to section 3 of
P.L.1983, c.31 (C.4:1C-3), and (b) the owner of the premises is a farmer, as
defined pursuant to subsection k. of this section;

���� (2) the permit is for one
rural microenterprise only;

���� (3) no more than one permit is
valid at any one time for use on the qualifying land;

���� (4) the permit is for a
maximum duration of 20 years;

���� (5) the permit does not run
with the land and may not be assigned;

���� (6) the rural microenterprise
does not interfere with the use of the qualifying land for agricultural or
horticultural production;

���� (7) the rural microenterprise
utilizes the land and structures in their existing condition, except as allowed
in accordance with the use restrictions prescribed in subsection g. of this
section;

���� (8) the total area of land and
structures devoted to supporting the rural microenterprise does not exceed a
one-acre envelope on the qualifying land;

���� (9) the rural microenterprise
does not have an adverse impact upon the soils, water resources, air quality,
or other natural resources of the land or the surrounding area; and

���� (10) the rural microenterprise
is not a high traffic volume business, and is undertaken in compliance with the
parking and employment restrictions prescribed by subsection h. of this
section.

���� e.���� The owner of the
premises may apply to the committee to renew a permit within 10 years before
the date of the scheduled permit expiration. The committee shall review the
renewal application in accordance with the process and criteria set forth in
this section for the issuance of a special permit, including the consultation
required by subsection b. of this section.

���� f.���� The committee shall
provide reasonable opportunity for the continued operation of a rural
microenterprise in the event of:

���� (1) the death, incapacitation,
or retirement of the owner of the premises;

���� (2) transfer of the ownership
of the farm; or

���� (3) disruption of income from
gross sales of agricultural or horticultural products, caused by circumstances
beyond the farmer's control, such as crop failure.

���� g.��� The use of land and
structures for a rural microenterprise activity shall be subject to the
following conditions and restrictions:

���� (1) A structure that is
designated in the deed of easement as agricultural labor housing, or a
structure that has been constructed or designated as agricultural labor housing
since the date of the conveyance of the easement, shall not be used for the rural
microenterprise;

���� (2) No new structures may be
constructed on the premises to support a rural microenterprise.� Any structure
constructed on the premises since the date of the conveyance of the easement,
and in accordance with the farmland preservation deed restrictions, shall not
be eligible for a special permit for a rural microenterprise for a period of
five years following completion of its construction;

���� (3) Improvements shall not be
made to the interior of a non-residential structure in order to adapt it for
residential use;

���� (4) The entire floor area of
existing residential or agricultural building space may be used to support a
rural microenterprise where the building has not been substantially altered or
finished to support the microenterprise;

���� (5) No more than 2,500 square
feet of the interior of existing residential or agricultural building space may
be substantially altered or finished to support the rural microenterprise,
except that, at the request of the owner of the premises, the committee may
allow the alteration or finishing of up to 100 percent of an existing heritage
farm structure, provided that the owner agrees to place on the structure, in a
form approved by the committee, a heritage preservation easement, which shall
be recorded against the premises, shall be held by the committee, and shall run
with the land;

���� (6) The expansion of existing
building space shall be permitted, provided that:� (a) the expansion does not
exceed 500 square feet in total footprint area; (b) the purpose or use of the
expansion is necessary to the operation or functioning of the rural microenterprise;
and (c) the area of the proposed footprint of the expansion is reasonably
calculated, based solely upon the demands of accommodating the rural
microenterprise, and does not incorporate excess space;

���� (7) Improvements to the
exterior of a structure shall be compatible with the agricultural character of
the premises, and shall not diminish the historic or cultural character of the
structure;

���� (8) Repairs may be made to the
interior or exterior of a building provided that they do not diminish the
historic or cultural character of the structure;

���� (9) The location, design,
height, and aesthetic attributes of the rural microenterprise shall reflect the
public interest of preserving the natural and unadulterated appearance of the
landscape and structures;

���� (10) No public utilities,
including water, gas, or sewage, other than those already existing and
available on the qualifying land, shall be permitted to be extended to the
qualifying land for purposes of the rural microenterprise, except that the
establishment of new electric service required for the rural microenterprise
shall be permitted;

���� (11) On-site septic and well
facilities may be established, expanded, or improved for the purpose of
supporting the rural microenterprise provided such facilities are contained
within the one-acre envelope provided for in paragraph (8) of subsection d. of
this section; and

���� (12) No more than a combined
total of 5,000 square feet of land may be utilized for the outside storage of
equipment, vehicles, supplies, products, or by-products, in association with
the microenterprise.� Any improvements to the land that are undertaken for the
purposes described in this paragraph or paragraph (11) of this subsection shall
be limited to those that are necessary either to protect public health and
safety or to minimize disturbance of the premises and its soil and water
resources.

���� h.��� Parking and employment
at a rural microenterprise shall be subject to the following conditions and
restrictions:

���� (1) The area dedicated to
customer parking shall not exceed 2,000 square feet or provide for more than 10
parking spaces;

���� (2) Improvements to the
parking area shall be limited to those improvements that are required to
protect public health and safety or minimize the disturbance of soil and water
resources on the premises;

���� (3) The number of parking
spaces shall be sufficient to accommodate visitors to the rural microenterprise
under normal conditions; and

���� (4) At peak operational
periods, the maximum number of employees or workers who are associated with the
rural microenterprise and work on the premises shall not exceed four full-time
employees, or the equivalent, in addition to the owner or operator.

���� i.���� Committee approval of a
special permit for a rural microenterprise activity pursuant to this section
shall not relieve the applicant from obtaining all other permits, approvals, or
authorizations that may be required by federal, State, or local law, rule,
regulation, or ordinance.

���� j.���� (1) A rural
microenterprise shall not be considered to be an agricultural use as defined in
subsection b. of section 3 of P.L.1983, c.32 (C.4:1C-13).

���� (2) Nothing in this section
shall be interpreted as providing a rural microenterprise with protection under
section 6 of the "Right to Farm Act," P.L.1983, c.31 (C.4:1C-9) if
that rural microenterprise is not otherwise eligible for such protection.

���� k.��� For the purposes of this
section:

���� "Farmer" means the
owner and operator of the premises who:

���� (1) exclusive of any income
received from the rental of lands, realized gross sales of at least $2,500 for
agricultural or horticultural products produced on the premises during the
calendar year immediately preceding submission of a special permit application;
and

���� (2) continues to own and
operate the premises and meet that income threshold every year during the term
of the permit.

���� "Heritage farm
structure" means a building or structure that is significantly
representative of New Jersey's agrarian history or culture and that has been
designated as such by the committee exclusively for the purposes of sections 1
and 3 of P.L.2005, c.314 (C.4:1C-32.1 and C.4:1C-32.3).

���� "Heritage preservation
easement" means an interest in land less than fee simple absolute, stated
in the form of a deed restriction executed by or on behalf of the owner of the
land, appropriate to preserving a building or structure that is significant for
its value or importance to New Jersey's agrarian history or culture, and to be
used exclusively for the purposes of implementing sections 1 and 3 of P.L.2005,
c.314 (C.4:1C-32.1 and C.4:1C-32.3), to limit alteration in exterior form or
features of such building or structure.

���� "Owner of the
premises" means the person or entity who owns qualifying land.

���� "Qualifying land"
means a farm
:

����
(1)
on which a
development easement was conveyed to, or retained by, the committee, a board,
or a qualifying tax exempt nonprofit organization prior to January 12, 2006,
the date of enactment of P.L.2005, c.314 (C.4:1C-32.1 et seq.), and in
accordance with the provisions of section 24 of P.L.1983,

c.32 (C.4:1C-31), section 5 of P.L.1988, c.4 (C.4:1C-31.1), section 1 of
P.L.1989, c.28 (C.4:1C-38), section 1 of P.L.1999, c.180

(C.4:1C-43.1), or sections 37 through 40 of P.L.1999, c.152 (C.13:8C-37 through
C.13:8C-40)
[
,
]

;
and

����
(2)
for which
,
either
no portion of the farm was excluded from preservation in the deed of
easement
, or the portion of the farm excluded from preservation in the deed
of easement was so excluded (a) due to encroachment of neighboring property or
an area of clouded title, or (b) for the purposes or benefit of a third party
other than the landowner, such as, but not limited to, a road right-of-way, or
utility easement
.

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

���� "Rural
microenterprise" means a small-scale business or activity that is fully
compatible with agricultural use and production on the premises, does not, at
any time, detract from, diminish, or interfere with the agricultural use of the
premises, and is incidental to the agricultural use of the premises.�
"Rural microenterprise" shall not include a personal wireless service
facility as defined and regulated pursuant to section 2 of P.L.2005, c.314
(C.4:1C-32.2).

(cf: P.L.2015, c.275, s.2)

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

STATEMENT

���� This bill amends the
definition of �qualifying land� under P.L.2005, c.314 (C.4:1C-32.1 et seq.) to
include farms on which a portion of the farm was excluded from preservation in
the deed of easement due to encroachment of neighboring property or an area of
clouded title, or for the purposes or benefit of a third party other than the
landowner, including purposes or benefits such as a road right-of-way, or
utility easement.� For example, if a portion of a preserved farm is excluded
from preservation because the farm behind the preserved farm requires the deed
of easement to have an access road through the preserved farm, which the owner
of the preserved farm does not require, the owner of the portion of the
preserved farm on which the deed of easement is imposed for this reason should
not be disqualified from applying for a special permit for a rural
microenterprise activity.

���� A rural microenterprise, by
definition under the law, is a small-scale business or activity that: (1) is
fully compatible with agricultural use and production on the premises; (2) does
not, at any time, detract from, diminish, or interfere with the agricultural
use of the premises; and (3) is incidental to the agricultural use of the
premises.� Being able to operate a rural microenterprise is crucial for many
farmers who are struggling to keep their farming operations viable in a
challenging economy.����