Requires SADC and any local board acquiring farmland for preservation purposes to provide partial payment to landowner, in advance of settlement, to demonstrate good faith intent to proceed with settlement and acquisition.

A4636

ASSEMBLY, No. 4636

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 10, 2026

Sponsored by:

Assemblyman� ALEX SAUICKIE

District 12 (Burlington, Middlesex, Monmouth and Ocean)

Co-Sponsored by:

Assemblywoman Fantasia

SYNOPSIS

���� Requires SADC and any local board acquiring farmland
for preservation purposes to provide partial payment to landowner, in advance
of settlement, to demonstrate good faith intent to proceed with settlement and
acquisition.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning
State and local acquisitions of
farmland, amending various parts of the statutory law, and supplementing
P.L.1983, c.32 (C.4:1C-11 et al.).

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

���� 1.��� (New section)� a. Upon
the committee�s or a board�s receipt of a landowner�s completed application seeking
to sell a development easement on, or fee simple title to, farmland for
farmland preservation purposes, and prior to settlement on the proposed
acquisition, the committee or board, as the case may be, shall award and
disburse an advance payment, to the applicant landowner, following a
determination by the committee or board that the purchase is likely to occur, in
order to demonstrate the committee or board�s good faith intention to proceed
with settlement and to effectuate the State or local acquisition of the
development easement or fee simple title, as the case may be, at the final
negotiated purchase price determined pursuant to subsection e. of section 8 of
P.L.2016, c.12 (C.13:8C-50), and in compliance with all of the agreed-upon
terms, contingencies, and conditions set forth in the final, negotiated
purchase agreement.

���� b.��� An advance payment
awarded pursuant to this section shall be disbursed to the landowner:

���� (1)�� in a single lump-sum
payment; and

���� (2)�� in an amount equal to 20
percent of the appraised fair market value of the development easement or the
fee simple title, as determined pursuant to subsection e. of section 8 of
P.L.2016, c.12 (C.13:8C-50), or, to the extent that a final purchase price has
been negotiated and agreed-upon, in an amount equal to 20 percent of the higher
of the appraised fair market value or the final negotiated purchase price of the
development easement or the fee simple title, as the case may be, as determined
pursuant to subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50).�

���� c.���� Any sum of moneys
distributed to a landowner, through a good faith advance payment awarded
pursuant to this section:

���� (1)�� shall be deducted from
the final negotiated purchase price that is required to be paid by the
committee or the board, at the time of settlement, in order to effectuate the
State or local acquisition of the development easement or fee simple title, as
the case may be; or

���� (2)�� if the purchase
agreement is voided, cancelled, or otherwise abandoned by either party prior to
settlement, or if settlement otherwise does not occur, shall be fully repaid by
the landowner to, and recouped by, the committee or board and dedicated for use
thereby in financing other farmland acquisition projects.

���� d.��� (1) Any moneys due to
the committee or board and owed by a landowner, as a result of the voiding,
cancellation, abandonment, or other negation of settlement pursuant to
paragraph (2) of subsection c. of this section, shall constitute a debt of the
landowner to the State or locality, as the case may be, which debt may be
recovered, from the landowner, by the respective committee or board to which
the debt is owed.� All owners of the subject property, at the time of
incurrence of the debt thereon pursuant to paragraph (2) of subsection c. of
this section, shall be jointly and severally liable for all costs recoverable
pursuant to this subsection.�

���� (2)�� An advance payment debt
owed pursuant to paragraph (1) of this subsection shall constitute a lien on
all property owned by the landowner.� The lien shall attach when a notice of
lien, incorporating the name of the landowner, and both a description of the
subject property of the landowner for which the debt was incurred, pursuant to
paragraph (2) of subsection c. of this section, and an identification of the
amount of advance payment funds disbursed to the landowner, and any related
costs expended by the committee or the board, either or both in endeavoring to
prevent the settlement default that forms the basis of the debt, or to collect
on the debt following settlement default, is duly filed with the county
recording officer, as defined in N.J.S.46:1-1, in the county in which the
subject property is located.� Upon receipt of a notice of lien filed pursuant
to this paragraph, the county recording officer shall promptly record, in the
public records of the county in which the relevant property is located, a claim
of lien stating the description of the property, the name and primary address
of the owner of record, the amount due, and the date when due, as set forth in
the notice of lien filed pursuant to this paragraph.� Upon entry pursuant to
this paragraph, the lien, in the amount committed by the committee or board for
advance payment and related costs, shall attach to the revenues and all real
and personal property of the landowner, whether or not the landowner is
insolvent.

���� (3)�� A notice of lien filed
and entered pursuant to this subsection, and affecting the property that is the
subject of settlement default establishing the debt, pursuant to paragraph (2)
of subsection c. of this section, shall create a lien having priority over all
other claims or liens which are or have been filed against such subject
property.� A notice of lien filed pursuant to this subsection, and affecting
any property of the landowner, other than the property that is the subject of
settlement default establishing the debt pursuant to subsection c. of this
section, shall create a lien having priority, from the day of the filing of the
notice of the lien pursuant to paragraph (2) of this subsection, over all other
claims and liens filed against the property, but shall not affect any valid
lien, right, or interest in such property which is filed, in accordance with
established procedure, prior to the filing of a notice of lien pursuant to this
subsection.

���� (4)�� A lien filed and entered
pursuant to this subsection shall be enforceable, through the sale of the
subject property, in the same manner provided for the enforcement of a
municipal lien pursuant to the �tax sale law,� R.S.54:5-1 et seq., and the In
Rem Tax Foreclosure Act (1948), P.L.1948, c.96 (C.54:5-104.29 et seq.), as
appropriate.

���� 2.��� Section 24 of P.L.1983,
c.32 (C.4:1C-31) is amended to read as follows:

���� 24.� a.� Any landowner
applying to the board to sell a development easement pursuant to section 17 of
P.L.1983, c.32 (C.4:1C-24) shall offer to sell the development easement at a
price which, in the opinion of the landowner, represents a fair value of the
development potential of the land for nonagricultural purposes, as determined
in accordance with the provisions of P.L.1983, c.32
(C.4:1C-11 et al.)
.

���� b.��� Any offer shall be
reviewed and evaluated by the board and the committee in order to determine the
suitability of the land for development easement purchase.� Decisions regarding
suitability shall be based on the following criteria:

���� (1)�� Priority consideration
shall be given, in any one county, to offers with higher numerical values
obtained by applying the following formula:

���� nonagricultural�� -��
agricultural�� -�� landowner's

���� developmental value������
value����������� asking price

---------------------------------------------------------------

���� ������������ nonagricultural��
-�� agricultural��������

���� ��������� development
value�������� value�����������

���� (2)�� The degree to which the
purchase would encourage the survivability of the municipally approved program
in productive agriculture; and

���� (3)�� The degree of imminence
of change of the land from productive agriculture to nonagricultural use.

���� The board and the committee
shall reject any offer for the sale of development easements which is
unsuitable according to the above criteria and which has not been approved by
the board and the municipality.

���� c.���� Two independent
appraisals paid for by the board shall be conducted for each parcel of land so
offered and deemed suitable.� The appraisals shall be conducted by independent,
professional appraisers selected by the board and the committee from among members
of recognized organizations of real estate appraisers.� The appraisals shall
determine the current overall value of the parcel for nonagricultural purposes,
as well as the current market value of the parcel for agricultural purposes.�
The difference between the two values shall represent an appraisal of the value
of the development easement.� If Burlington County or a municipality therein
has established a development transfer bank pursuant to the provisions of
P.L.1989, c.86 (C.40:55D-113 et seq.) or if any county or any municipality in
any county has established a development transfer bank pursuant to section 22
of P.L.2004, c.2 (C.40:55D-158) or the Highlands Water Protection and Planning
Council has established a development transfer bank pursuant to section 13 of
P.L.2004, c.120 (C.13:20-13), the municipal average of the value of the
development potential of property in a sending zone established by the bank may
be the value used by the board in determining the value of the development
easement.� If a development easement is purchased using moneys appropriated
from the fund, the State shall provide no more than 80
[
%
]

percent
,
except 100
[
%
]

percent

under emergency conditions specified by the committee pursuant to rules or
regulations, of the cost of the appraisals conducted pursuant to this section.

���� d.��� Upon receiving the
results of the appraisals, or in Burlington county or a municipality therein or
elsewhere where a municipal average has been established under subsection c. of
this section, upon receiving an application from the landowners, the board and
the committee shall compare the appraised value, or the municipal average, as
the case may be, and the landowner's offer and, pursuant to the suitability
criteria established in subsection b. of this section
, shall
:

���� (1)��
[
Approve
]

approve

the application to sell the development easement and rank the application in
accordance with the criteria established in subsection b. of this section; or

���� (2)��
[
Disapprove
]

disapprove

the application, stating the reasons therefor.

���� e.���� Upon approval by the
committee and the board, the secretary is authorized to provide the board,
within the limits of funds appropriated therefor, an amount equal to no more
than 80
[
%
]

percent
,
except 100
[
%
]

percent

under emergency conditions specified by the committee pursuant to rules or
regulations, of the purchase price of the development easement, as determined
pursuant to the provisions of this section.� The board shall provide its
required share
[
and
]
, shall

accept
, in writing,
the landowner's offer to sell the development
easement
, and shall contemporaneously award and disburse to the landowner,
as required by section 1 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill), an advance payment demonstrating the board�s good
faith intention to proceed with settlement on the accepted offer
.� The
written
notice of offer
acceptance shall
:

����
(1)
�� cite the specific
terms, contingencies
,
and conditions of the purchase
;

����
(2)�� identify the fair
market value of the development easement, as determined pursuant to subsection
d. of this section or subsection e. of section 8 of P.L.2016, c.12
(C.13:8C-50), as applicable, as well as the negotiated purchase price to be
paid for acquisition thereof, to the extent that such negotiated purchase price
has been finalized and agreed-upon;

����
(3)�� summarize the
landowner�s rights and responsibilities in relation to the receipt and
repayment of the good faith advance payment being awarded thereto pursuant to
this subsection and section 1 of P.L.��� , c.��� (C.������� ) (pending before
the Legislature as this bill); and

����
(4)�� identify the dollar
amount of the good faith advance payment to which the applicant landowner is
entitled, pursuant to this subsection and section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill), and include the
calculations that were used to determine that advance payment amount
.

���� f.����
(1)
� The
landowner shall accept or reject the
acceptance
offer
received
pursuant to subsection e. of this section,
within 30 days of receipt
thereof.� Any offer not accepted within that time shall be deemed rejected.

����
(2)�� Whenever the board�s
acceptance offer is deemed to have been rejected by the landowner pursuant to
paragraph (1) of this subsection, the landowner shall repay to the board, and
the board shall recoup in full, as provided by paragraph (2) of subsection c.
of section 1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as
this bill), the good faith advance payment that was previously disbursed to the
landowner, pursuant to subsection e. of this section and section 1 of P.L.��� ,
c.��� (C.��� ����) (pending before the Legislature as this bill), in
association with the rejected offer.

����
(3)�� The final, negotiated
purchase price that is required to be paid, by the board, at the time of
settlement on its proposed acquisition of a farmland development easement,
shall be reduced by the sum of moneys previously disbursed to the landowner,
through a good faith advance payment awarded for the same acquisition project,
pursuant to subsection e. of this section and section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill).

���� g.��� Any landowner whose
application to sell a development easement has been rejected for any reason
other than insufficient funds may not reapply to sell a development easement on
the same land within two years of the original application.

���� h.���
[
No
]

Except as
provided in subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50), no

development easement shall be purchased at a price greater than the appraised
value determined pursuant to subsection c. of this section or the municipal
average, as the case may be.�

���� i.���� The appraisals
conducted pursuant to this section or the fair market value of land restricted
to agricultural use shall not be used to increase the assessment and taxation
of agricultural land pursuant to the "Farmland Assessment Act of
1964," P.L.1964, c.48 (C.54:4-23.1 et seq.).

���� j.���� (1)� In determining the
suitability of land for development easement purchase, the board and the
committee may also include as additional factors for consideration the presence
of a historic building or structure on the land and the willingness of the landowner
to preserve that building or structure, but only if the committee first adopts,
pursuant to the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), rules and regulations implementing this subsection.� The
committee may, by rule or regulation adopted pursuant to the
"Administrative Procedure Act," assign any such weight it deems
appropriate to be given to these factors.

���� (2)�� The provisions of
paragraph (1) of this subsection may also be applied in determining the
suitability of land for fee simple purchase for farmland preservation purposes
as authorized by P.L.1983, c.31 (C.4:1C-1 et seq.), P.L.1983, c.32 (C.4:1C-11
et seq.), and P.L.1999, c.152 (C.13:8C-1 et seq.).

���� (3) (a) For the purposes of
paragraph (1) of this subsection: "historic building or structure"
means the same as that term is defined pursuant to subsection c. of section 2
of P.L.2001, c.405 (C.13:8C-40.2).

���� (b)�� For the purposes of
paragraph (2) of this subsection, "historic building or structure"
means the same as that term is defined pursuant to subsection c. of section 1
of P.L.2001, c.405 (C.13:8C-40.1).

(cf:� P.L.2004, c.120, s.44)

���� 3.��� Section 5 of P.L.1988,
c.4 (C.4:1C-31.1) is amended to read as follows:

���� 5.��� a.� Any landowner of
farmland within an agricultural development area certified by the committee may
apply to the committee to sell the fee simple absolute title at a price which,
in the opinion of the landowner, represents a fair market value of the property.

���� b.��� The committee shall
evaluate the offer to determine the suitability of the land for purchase.�
Decisions regarding suitability shall be based on the eligibility criteria for
the purchase of development easements listed in section 24 of P.L.1983, c.32
(C.4:1C-31) and the criteria adopted by the committee and the board of that
county.� The committee shall also evaluate the offer taking into account the
amount of the asking price, the asking price relative to other offers, the
location of the parcel relative to areas targeted within the county by the
board and among the counties, and any other criteria as the committee has
adopted pursuant to rule or regulation.� The committee may negotiate
reimbursement with the county and include the anticipated reimbursement as part
of the evaluation of an offer.

���� c.����
(1)
� The
committee shall rank the offers according to the criteria to determine which,
if any, should be appraised.�

����
(2)
�� The committee
shall reject any offer for the purchase of fee simple absolute title determined
unsuitable according to any criterion in this
[
subsection
]

section

or adopted pursuant to this
[
subsection
]

section
,
or may defer decisions on offers with a low ranking
[
. The committee
]
; and

shall state, in writing, its reasons for rejecting an offer.

���� d.���
(1)
� Appraisals
of
[
the
]

each

parcel
, for which an offer has not been rejected pursuant to subsection c.
of this section,
shall be conducted to determine the
parcel�s
fair
market value
[
according
to procedures adopted by regulation by the committee
]
, in accordance with the
provisions of subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50)
.

����
(2)�� Following the
appraisal of a parcel pursuant to paragraph (1) of this subsection, the
committee shall provide written notice of offer acceptance to the applicant
landowner, and shall contemporaneously award and disburse to the landowner, as
required by section 1 of P.L.��� , c.��� (C.������� ) (pending before the
Legislature as this bill), an advance payment demonstrating the committee�s
good faith intention to proceed with settlement on the accepted offer.� The
written notice of offer acceptance shall:� (a) cite the specific terms,
contingencies, and conditions of the purchase; (b) identify the fair market
value of the fee simple title, as determined pursuant to paragraph (1) of this
subsection or subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50), as
applicable, as well as the negotiated purchase price to be paid for acquisition
of the fee simple title, to the extent that such negotiated purchase price has
been finalized and agreed-upon; (c) summarize the landowner�s rights and responsibilities
in relation to the receipt and repayment of the good faith advance payment being
awarded thereto pursuant to this paragraph and section 1 of P.L.��� , c.���
(C.� ) (pending before the Legislature as this bill); and (d) identify the
dollar amount of the good faith advance payment to which the applicant
landowner is entitled, pursuant to this paragraph and section 1 of P.L.��� ,
c.��� (C.������� ) (pending before the Legislature as this bill), and include the
calculations that were used to determine that advance payment amount.

���� e.����
[
The
]

Based on
the fair market value of each offered parcel, as identified pursuant to
paragraph (1) of subsection d. of this section, the
committee
and
landowner
shall
[
notify
the landowner of the fair market value and
]

negotiate
the actual price to be paid by the committee, at settlement,

for the purchase of the title in fee simple absolute.�
The final, negotiated
purchase price that is agreed to be paid by the committee, pursuant to this
paragraph, shall be reduced, at the time of settlement, by the sum of moneys
previously disbursed thereby, to the landowner, through a good faith advance
payment awarded thereto for the same acquisition project, pursuant to paragraph
(2) of subsection d. of this section and section 1 of P.L.��� , c.���
(C.������� ) (pending before the Legislature as this bill).

���� f.���� Any land acquired by
the committee pursuant to the provisions of this
[
amendatory and supplementary act
]

section

shall be held of record in the name of the State and shall be offered for
resale by the State, notwithstanding any other law, rule or regulation to the
contrary, within a reasonable time of its acquisition with agricultural deed
restrictions for farmland preservation purposes as determined by the committee
pursuant to the provisions of
[
this
act
]

P.L.1988,
c.4 (C.4:1C-31.1 et al.)
.

���� g.��� The committee shall be
responsible for the operation and maintenance of lands acquired and shall take
all reasonable steps to maintain the value of the land and its improvements.

���� h.��� To the end that
municipalities may not suffer loss of taxes by reason of acquisition and
ownership by the State of New Jersey of property under the provisions of
[
this act
]

P.L.1988,
c.4 (C.4:1C-31.1 et al.)
, the State shall pay annually on October 1 to each
municipality in which property is so acquired and has not been resold a sum of
money equal to the tax last assessed and last paid by the taxpayer upon this
land and the improvement thereon for the taxable year immediately prior to the
time of its acquisition.� In the event that land acquired by the State pursuant
to
[
this
act
]

P.L.1988,
c.4 (C.4:1C-31.1 et al.)
had been assessed at an agricultural and
horticultural use valuation in accordance with provisions of the "Farmland
Assessment Act of 1964," P.L.1964, c.48 (C.54:4-23.1 et seq.), at the time
of its acquisition by the State, no rollback tax pursuant to section 8 of
P.L.1964, c.48 (C.54:4-23.8) shall be imposed as to this land nor shall this
rollback tax be applicable in determining the annual payments to be made by the
State to the municipality in which this land is located.

���� All sums of money received by
the respective municipalities as compensation for loss of tax revenue pursuant
to this section shall be applied to the same purposes as is the tax revenue
from the assessment and collection of taxes on real property of these
municipalities, and to accomplish this end the sums shall be apportioned in the
same manner as the general tax rate of the municipality for the tax year
preceding the year of receipt.

(cf:� P.L.2001, c.405, s.4)

���� 4.��� Section 25 of P.L.1983,
c.32 (C.4:1C-32) is amended to read as follows:

���� 25.� a.� No development
easement purchased pursuant to the provisions of
[
this act
]

P.L.1983,
c.32 (C.4:1C-11 et al.)
shall be sold, given, transferred
,
or
otherwise conveyed in any manner
,
except in those cases when development
easements have been purchased on land
[
included
]
in a farmland
preservation program
that is
included in a sending zone established by a
municipal development transfer ordinance adopted pursuant to P.L.1989, c.86
(C.40:55D-113 et al.).

���� b.��� Upon the purchase of the
development easement by the board, the landowner shall cause a statement
containing the conditions of the conveyance and the terms of the restrictions
on the use and development of the land to be attached to and recorded with the
deed of the land, in the same manner as the deed was originally recorded.�
These restrictions and conditions shall state that any development for
nonagricultural purposes is expressly prohibited, shall run with the land and
shall be binding upon the landowner and every successor in interest thereto.

���� c.���� At the time of
settlement
[
of
]

on
the
purchase of a development easement, the landowner, the board, and the committee
may agree upon and establish a
payment
schedule
[
of payment
]
which
provides
[
that
]

for

the landowner
[
may
]

to

receive consideration for the easement
, either
in a lump sum
[
,
]
or in
installments
to be paid out
over a period of up to 40 years from the
date of settlement, provided that, if a schedule of installments is agreed
upon, the State Comptroller each year shall retain in the fund, or the
governing body each year shall retain, an amount of money sufficient to pay the
landowner for the current year pursuant to the schedule.� For installment
purchases,
[
(1)
]
the landowner
may
annually
receive
[
annually
]
interest on
any unpaid balance remaining after the date of settlement, which
interest

shall accrue at a rate established in the installment contract; and
[
(2)
]
the committee
shall make annual payments to the board in an amount equal to the committee's
proportionate annual share of the purchase price of the development easement.�
The
total amount of consideration disbursed to a landowner pursuant to this
subsection, whether in a lump sum or on an installment basis, shall be reduced
by the amount of consideration that has previously been disbursed thereto,
through a good faith advance payment awarded for the same acquisition project,
pursuant to section 1 of P.L.��� , c.��� (C.�� ) (pending before the
Legislature as this bill).

���� d.��� Nothing in this section
shall prevent a board from receiving a lump sum from the committee and
from
thereafter
establishing a schedule of installment payments with the
landowner
; provided, however, that the total amount of consideration
authorized for disbursement on an installment basis, in any such case, shall be
appropriately reduced by the amount of consideration previously disbursed to
such landowner, through a good faith advance payment awarded thereto for the
same acquisition project, pursuant to section 1 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill)
.

(cf:� P.L.1999, c.163, s.1)

���� 5.��� Section 1 of P.L.1999,
c.180 (C.4:1C-43.1) is amended to read as follows:

���� 1.��� a.� There is established
in the State Agriculture Development Committee a farmland preservation planning
incentive grant program, the purpose of which shall be to provide grants to
eligible counties and municipalities for farmland preservation purposes as
authorized pursuant to this
[
act
]

section
.

���� b.��� To be eligible to apply
for a grant, a county or municipality shall:

���� (1)�� Identify project areas
of multiple farms that are reasonably contiguous and located in an agriculture
development area authorized pursuant to the "Agriculture Retention and
Development Act," P.L.1983, c.32 (C.4:1C-11 et seq.);

���� (2)�� Establish an
agricultural advisory committee.� In the case of a county, the county
agriculture development board shall serve this function.� In the case of a
municipality, members of a municipal agricultural advisory committee shall be
appointed by the mayor with the consent of the municipal governing body, and
the committee shall report to the municipal planning board.� A municipal
agricultural advisory committee shall be composed of at least three, but not
more than five, members who shall be residents of the municipality, with a
majority of the members actively engaged in farming and owning a portion of the
land they farm.� For the purposes of this paragraph, "mayor" shall
mean the same as that term is defined pursuant to section 3.2 of P.L.1975,
c.291 (C.40:55D-5);

���� (3)�� Establish and maintain a
dedicated source of funding for farmland preservation pursuant to P.L.1997,
c.24 (C.40:12-15.1 et seq.), or an alternative means of funding for farmland
preservation, such as, but not limited to, repeated annual appropriations or
repeated issuance of bonded indebtedness, which the State Agriculture
Development Committee deems to be, in effect, a dedicated source of funding
because of a demonstrated commitment on the part of the county or municipality;
and

���� (4)�� In the case of a
municipality, prepare a farmland preservation plan element pursuant to
paragraph (13) of section 19 of P.L.1975, c.291 (C.40:55D-28) in consultation
with the agriculture advisory committee established pursuant to paragraph (2)
of this subsection.

���� c.���� In the event a
municipality is seeking funding from the county toward the purchase of
development easements, the municipality shall submit an application to the
county agriculture development board.� In all other cases, a municipality shall
submit its application directly to the State Agriculture Development Committee.

���� d.��� A municipality, in
submitting an application to the county agriculture development board or the
State Agriculture Development Committee as appropriate, or a county, in
submitting an application to the State Agriculture Development Committee, shall
outline a multi-year plan for the purchase of multiple farms in a project area
and indicate its annual share of the estimated purchase price.� The
municipality, in order to enhance its application, may submit its proposal
jointly with one or more contiguous municipalities if the submission would
result in the preservation of a significant area of reasonably contiguous
farmland.� The application shall include, in the case of a municipality, a copy
of the farmland preservation plan element prepared pursuant to paragraph (13)
of section 19 of P.L.1975, c.291 (C.40:55D-28); an estimate of the cost of
purchasing development easements on all of the farms in a designated project
area, to be determined in consultation with the county agriculture development
board or through an appraisal for the entire project area; and an inventory
showing the characteristics of each farm in the project area which may include,
but need not be limited to, size, soils and agricultural use.

���� e.���� The State Agriculture
Development Committee shall make decisions regarding suitability for funding of
development easement purchases for planning incentive grants based on whether
the project area provides an opportunity to preserve a significant area of
reasonably contiguous farmland that will promote the long term viability of
agriculture as an industry in the municipality or county.� After the State
Agriculture Development Committee has given approval to an application, the
municipality or county shall submit
[
two
]
appraisals
for each parcel for which funding is requested
, in conformance with the
provisions of subsection e. of section 8 of P.L.2016, c.12 (C.13:8C-50)
.�
[
The appraisals
shall be conducted pursuant to the provisions of section 24 of P.L.1983, c.32
(C.4:1C-31).
]
�
Approved funding shall be allocated by the municipality, the county
,
and
the State to each parcel in the project area under an agreement that commits
each level of government to a specific payment in each of the years included in
the plan for purchase.�
Each such proportional payment agreement shall also
include provisions committing each level of government to provide a specific
share of the good faith advance payment that is required to be awarded and
disbursed to each landowner in the project area, in advance of settlement on
the landowner�s parcel, pursuant to section 1 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill).
� Nothing in this
[
act
]

section

shall be construed to require that any parcel in a project area receive a price
per acre that is the same as any other parcel in that project area or that any
parcel must be purchased with installment payments because other parcels in the
project area are so purchased.�

���� f.���� Purchases of
development easements on farmland
,
pursuant to this
[
act
]

section,

shall be made with the approval of the State Agriculture Development Committee
and the municipality, and in the event county funds are provided, with the
approval of the county agriculture development board.

���� g.��� If a county does not
provide funding toward the purchase of the development easement, the State
Agriculture Development Committee shall hold title to the development easement.

���� h.��� The State Agriculture
Development Committee shall adopt, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), such rules and
regulations as may be necessary to implement
the provisions of
this
[
act
]

section
,
and shall establish ranking and funding criteria separately from, but similar
to, those used in the program established pursuant to P.L.1983, c.32 (C.4:1C-11
et seq.), except that
the
ranking and funding criteria
established
for purposes of this section
shall be
[
applied
]

applicable

to the project area as a whole
,
and not to individual parcels
,

and priority shall be given to those applications that utilize option
agreements, installment purchases, donations,
[
and
]

or
other
methods for the purpose of leveraging monies made available by P.L.1999, c.152
(C.13:8C-1 et al.).

(cf:� P.L.1999, c.180, s.1)

���� 6.��� Section 20 of P.L.1999,
c.152 (C.13:8C-20) is amended to read as follows:

���� 20.� The State Treasurer shall
establish a fund to be known as the "Garden State Farmland Preservation
Trust Fund." The State Treasurer shall deposit into the fund all moneys
transferred from the trust to the State Treasurer for deposit into the fund
pursuant to paragraph (2) of subsection a. of section 18 of
[
this act
]

P.L.1999,
c.152 (C.13:8C-18)
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.� Such grants, contributions, donations, and reimbursements from
federal aid programs and from other public or private sources as may be used
lawfully for the purposes of section 37 of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-37)
shall also be held in the fund, but shall be expended in
accordance with any purposes for which the moneys were designated and in
compliance with any conditions or requirements attached thereto.� The moneys in
the fund are specifically dedicated and shall be applied to the cost of the
purposes set forth in section 37 of
[
this
act
]

P.L.1999,
c.152 (C.13:8C-37)
.� Moneys in the fund shall not be expended except in
accordance with appropriations from the fund made by law.�
Notwithstanding
the provisions of this section, or the provisions of any other law, rule, or
regulation, to the contrary, an appropriate portion of moneys held in the fund
may be annually allocated, by the committee, to finance the advance payments
that are required to be awarded and disbursed to applicant landowners, on a
tentative, contingency basis, and in advance of settlement, pursuant to section
1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill), in association with any State or local project which is undertaken for
the purposes set forth in section 37 of P.L.1999, c.152 (C.13:8C-37).
�
Unexpended moneys due to project withdrawals, cancellations, or cost savings
,
including unexpended moneys that have been tentatively expended for good faith
advance payment purposes, pursuant to section 1 of P.L.��� , c.��� (C.������� )
(pending before the Legislature as this bill), but which have been repaid by
and recouped from the landowner due to project withdrawal or cancellation,

shall be returned to the fund, except as otherwise provided pursuant to
paragraph (3) of subsection b. of section 23 of
[
this act
]

P.L.1999,
c.152 (C.13:8C-23)
, to be used for the purposes of the fund.

(cf:� P.L.2005, c.281, s.3)

���� 7.��� Section 38 of P.L.1999,
c.152 (
C.13:8C-38
) is amended to read as follows:

���� 38. a. All acquisitions or
grants made pursuant to section 37 of P.L.1999, c.152 (C.13:8C-37) shall be
made with respect to farmland devoted to farmland preservation under programs
established by law.

���� b.��� The expenditure and
allocation of constitutionally dedicated moneys for farmland preservation
purposes shall reflect the geographic diversity of the State to the maximum
extent practicable and feasible.

���� c.���� The committee shall
implement the provisions of section 37 of P.L.1999, c.152 (C.13:8C-37) in
accordance with the procedures and criteria established pursuant to the
"Agriculture Retention and Development Act," P.L.1983, c.32
(C.4:1C-11 et seq.)
, and in accordance with the advance payment procedures
and requirements established pursuant to P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill),
except as provided otherwise by
P.L.1999, c.152 (C.13:8C-1 et seq.).

���� d.��� The committee shall
adopt the same or a substantially similar method for determining, for the
purposes of P.L.1999, c.152 (C.13:8C-1 et seq.), the committee's share of the
cost of a development easement on farmland to be acquired by a local government
as that which is being used by the committee on the date of enactment of
P.L.1999, c.152 (C.13:8C-1 et seq.) for prior farmland preservation funding
programs.

���� e.���� Notwithstanding the
provisions of section 24 of P.L.1983, c.32 (C.4:1C-31) or� P.L.1999, c.152
(C.13:8C-1 et seq.), or any rule or regulation adopted pursuant thereto to the
contrary, whenever the value of a development easement on farmland to be
acquired using constitutionally dedicated moneys in whole or in part is
determined based upon the value of any pinelands development credits allocated
to the parcel pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.) and the
pinelands comprehensive management plan adopted pursuant thereto, the committee
shall determine the value of the development easement by:

���� (1) conducting a sufficient
number of fair market value appraisals as it deems appropriate to determine the
value for farmland preservation purposes of the pinelands development credits;

���� (2) considering development
easement values in counties, municipalities, and other areas (a) reasonably
contiguous to, but outside of, the pinelands area, which in the sole opinion of
the committee constitute reasonable development easement values in the
pinelands area for the purposes of this subsection, and (b) in the pinelands
area where pinelands development credits are or may be utilized, which in the
sole opinion of the committee constitute reasonable development easement values
in the pinelands area for the purposes of this subsection;

���� (3) considering land values in
the pinelands regional growth areas;

���� (4) considering the importance
of preserving agricultural lands in the pinelands area; and

���� (5) considering such other
relevant factors, including the rate of inflation, as may be necessary to
increase participation in the farmland preservation program by owners of
agricultural lands located in the pinelands area.

���� f.���� No pinelands
development credit that is acquired or obtained in connection with the
acquisition of a development easement on farmland or fee simple title to
farmland by the State, a local government unit, or a qualifying tax exempt
nonprofit organization using constitutionally dedicated moneys in whole or in
part may be conveyed in any manner.� All such pinelands development credits
shall be retired permanently.

���� g.��� (Deleted by amendment,
P.L.2010, c.70)

���� h.��� Any farmland for which a
development easement or fee simple title has been acquired pursuant to section
37 of P.L.1999, c.152 (C.13:8C-37) shall be entitled to the benefits conferred
by the "Right to Farm Act," P.L.1983, c.31 (C.4:1C-1 et al.) and the
"Agriculture Retention and Development Act," P.L.1983, c.32
(C.4:1C-11 et al.).

���� i.���� (Deleted by amendment,
P.L.2010, c.70)

���� j. (1) Commencing on the date
of enactment of P.L.2004, c.120 (C.13:20-1 et al.) and through June 30, 2029
for lands located in the Highlands Region as defined pursuant to section 3 of
P.L.2004, c.120 (C.13:20-3), when the committee, a local government unit, or a
qualifying tax exempt nonprofit organization seeks to acquire a development
easement on farmland or the fee simple title to farmland for farmland
preservation purposes using constitutionally dedicated moneys in whole or in
part, Green Acres bond act moneys in whole or in part, or constitutionally
dedicated CBT moneys pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) in whole
or in part, it shall conduct or cause to be conducted an appraisal or
appraisals of the value of the lands that shall be made using (a) the land use
zoning of the lands and any State environmental laws or Department of
Environmental Protection rules and regulations that may affect the value of the
lands, subject to the appraisal and in effect at the time of proposed
acquisition, and (b) the land use zoning of the lands and any State
environmental laws or Department of Environmental Protection rules and
regulations that may affect the value of the lands, subject to the appraisal
and in effect on January 1, 2004.� The higher of those two values shall be
utilized by the committee, a local government unit, or a qualifying tax exempt
nonprofit organization as the basis for negotiation with the landowner with
respect to the acquisition price for the lands.� The landowner shall be provided
with both values determined pursuant to this paragraph.

���� A landowner may waive any of
the requirements of this paragraph and may agree to sell the lands for less
than the values determined pursuant to this paragraph.

���� The provisions of this
paragraph shall be applicable only to lands the owner of which at the time of
proposed acquisition is the same person who owned the lands on the date of
enactment of P.L.2004, c.120 (C.13:20-1 et al.) and who has owned the lands continuously
since that enactment date, or is an immediate family member of that person.

���� (2) (Deleted by amendment,
P.L.2010, c.70)

���� (3) The requirements of this
subsection shall be in addition to any other requirements of law, rule, or
regulation not inconsistent therewith.

���� (4) This subsection shall not:

���� (a) apply in the case of lands
to be acquired with federal moneys in whole or in part;

���� (b) (Deleted by amendment,
P.L.2010, c.70); or

���� (c) alter any requirements to
disclose information to a landowner pursuant to the "Eminent Domain Act of
1971," P.L.1971, c.361 (C.20:3-1 et seq.).

���� (5) For the purposes of this
subsection, "immediate family member" means a spouse, child, parent,
sibling, aunt, uncle, niece, nephew, first cousin, grandparent, grandchild,
father-in-law, mother-in-law, son-in-law, daughter-in-law, stepparent,
stepchild, stepbrother, stepsister, half-brother, or half-sister, whether the
individual is related by blood, marriage, or adoption.

���� k.��� The committee and the
Department of Environmental Protection, pursuant to the "Administrative
Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall jointly adopt
rules and regulations that establish standards and requirements regulating any
improvement on lands acquired by the State for farmland preservation purposes
using constitutionally dedicated moneys to assure that any improvement does not
diminish the protection of surface water or groundwater resources.

���� Any rules and regulations
adopted pursuant to this subsection shall not apply to improvements on lands
acquired prior to the adoption of the rules and regulations.

���� l. (1) The committee, within
three months after the date of the first meeting of the Highlands Water
Protection and Planning Council established pursuant to section 4 of P.L.2004,
c.120 (C.13:20-4), shall consult with and solicit recommendations from the
council concerning farmland preservation strategies and acquisition plans in
the Highlands Region as defined in section 3 of P.L.2004, c.120 (C.13:20-3).

���� The council's recommendations
shall also address strategies and plans concerning establishment by the
committee of a methodology for prioritizing the acquisition of development
easements and fee simple titles to farmland in the Highlands preservation area,
as defined in section 3 of P.L.2004, c.120 (C.13:20-3), for farmland
preservation purposes using moneys from the Garden State Farmland Preservation
Trust Fund, especially with respect to farmland that has declined substantially
in value due to the implementation of the "Highlands Water Protection and
Planning Act," P.L.2004, c.120 (C.13:20-1 et al.).� The recommendations
may also include a listing of specific parcels in the Highlands preservation
area that the council is aware of that have experienced a substantial decline
in value and for that reason should be considered by the committee as a
priority for acquisition, but any such list shall remain confidential
notwithstanding any provision of P.L.1963, c.73 (C.47:1A-1 et seq.) or any
other law to the contrary.

���� (2) In prioritizing
applications for funding submitted by local government units in the Highlands
planning area, as defined in section 3 of P.L.2004, c.120 (C.13:20-3), to
acquire development easements on farmland in the Highlands planning area using
moneys from the Garden State Farmland Preservation Trust Fund, the committee
shall accord a higher weight to any application submitted by a local government
unit to preserve farmland in a municipality in the Highlands planning area that
has amended its development regulations in accordance with section 13 of
P.L.2004, c.120 (C.13:20-13) to establish one or more receiving zones for the
transfer of development potential from the Highlands preservation area, as
defined in section 3 of P.L.2004, c.120 (C.13:20-3), than that which is
accorded to comparable applications submitted by other local government units
to preserve farmland in municipalities in the Highlands planning area that have
not made such amendments to their development regulations.

���� m.�� Notwithstanding any
provision of P.L.1999, c.152 (C.13:8C-1 et seq.) to the contrary, for State
fiscal years 2005 through 2009, the sum spent by the committee in each of those
fiscal years for the acquisition by the committee of development easements and
fee simple titles to farmland for farmland preservation purposes using moneys
from the Garden State Farmland Preservation Trust Fund in each county of the
State shall be not less, and may be greater if additional sums become
available, than the average annual sum spent by the department therefor in each
such county, respectively, for State fiscal years 2002 through 2004, provided
there is sufficient and appropriate farmland within the county to be so
acquired by the committee for such purposes.

(cf:� P.L.2025, c.36, s.2)

���� 8.��� Section 40 of P.L.1999,
c.152 (C.13:8C-40) is amended to read as follows:

���� 40.� a.� The committee may
acquire and permanently retire development easements on farmland.

���� b.��� The committee shall
evaluate the suitability of the acquisition of a development easement based
upon the eligibility criteria listed in section 24 of P.L.1983, c.32
(C.4:1C-31) and any other criteria that may be adopted by the committee.

���� c.����
(1)
� Appraisals
,
when used
to determine the fair market value of a development easement to
be acquired by the committee
,
shall be conducted by appraisers approved
by the committee and in a manner consistent with the process set forth in
subsection c. of section 24 of P.L.1983, c.32 (C.4:1C-31)
; and

����
(2)�� Advance payments,
when used to demonstrate the committee�s good faith intention to proceed with
settlement and final acquisition of a farmland development easement, shall be
awarded and disbursed to the landowner, and shall be repaid to the committee or
deducted from the final, negotiated purchase price that is required to be paid
thereby at the time of settlement, as appropriate, in a manner consistent with
the process set forth in section 1 of P.L.��� , c.��� (C.������� ) (pending
before the Legislature as this bill) and the rules and regulations adopted
pursuant thereto
.

���� d.��� Any development easement
acquired by the committee shall be held of record in the name of the committee.

(cf:� P.L.2001, c.405, s.6)

���� 9.��� Section 8 of P.L.2016,
c.12 (C.13:8C-50) is amended to read as follows:

���� 8.��� a.� The State Treasurer
shall establish a fund to be known as the "Preserve New Jersey Farmland
Preservation Fund" and shall deposit all moneys received pursuant to
paragraph (3) of subsection a. of section 5 of P.L.2016, c.12 (C.13:8C-47), paragraph
(2) of subsection a. 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.��� (1) The moneys in the
fund are specifically dedicated and shall be used for the same purposes as
those set forth in section 37 of P.L.1999, c.152 (C.13:8C-37) and as provided
in
[
paragraph
(2) of
]

this subsection.

���� (2)�� Of the moneys deposited
into the Preserve New Jersey Farmland Preservation Fund:� (a) in State fiscal
year 2017 through and including State fiscal year 2019, up to three percent
shall be allocated by the committee on an annual basis for stewardship activities;
and (b) commencing in State fiscal year 2020 and annually thereafter, up to
four percent shall be allocated by the committee on an annual basis for
stewardship activities.

���� (3)�� Notwithstanding any
provision of P.L.2016, c.12 (C.13:8C-43 et seq.) to the contrary, stewardship
activities undertaken on farmland on which (a) the pinelands development
credits have been acquired pursuant to P.L.1979, c.111 (C.13:18A-1 et seq.),
and the pinelands comprehensive management plan adopted pursuant thereto, or
the development rights have been acquired pursuant to a 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 (b) there is deed restriction approved by the
committee, shall be eligible for funding pursuant to paragraph (2) of this
subsection.

����
(4)�� Notwithstanding the
provisions of this section, or the provisions of any other law, rule, or
regulation, to the contrary, an appropriate portion of moneys held in the fund
may be annually allocated, by the committee, to finance the advance payments
that are required to be awarded and disbursed to applicant landowners, on a
tentative, contingency basis, and in advance of settlement, pursuant to section
1 of P.L.��� , c.��� (C.������� ) (pending before the Legislature as this
bill), in association with any State or local project which is undertaken for
the purposes set forth in section 37 of P.L.1999, c.152 (C.13:8C-37).

���� 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
Farmland 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, or its
successor, except as permitted otherwise in accordance with the same exceptions
as those specified in paragraph (2) of subsection b. of section 23 of P.L.1999,
c.152 (C.13:8C-23).

���� d.��� Unexpended moneys due to
project withdrawals, cancellations, or cost savings
, including unexpended
moneys that have been tentatively expended for good faith advance payment
purposes, pursuant to section 1 of P.L.��� , c.��� (C.������� ) (pending before
the Legislature as this bill), but which have been repaid by and recouped from
the landowner due to project withdrawal or cancellation,
shall be returned
to the fund.

���� e.���� Notwithstanding the
provisions of section 24 of P.L.1983, c.32 (C.4:1C-31) or section 38 of
P.L.1999, c.152 (C.13:8C-38), or any rule or regulation adopted pursuant
thereto, to the contrary, when the committee, a local government unit, or a
qualifying tax exempt nonprofit organization seeks to acquire a development
easement on, or fee simple title to, farmland using, in whole or in part,
monies deposited into the Preserve New Jersey Farmland Preservation Fund, the
Garden State Farmland Preservation Trust Fund established pursuant to section
20 of P.L.1999, c.152 (C.13:8C-20), or any other State monies provided for
farmland preservation purposes, the value of the development easement, or fee
simple title, as applicable, shall be determined by the following:

���� (1) the procedure set forth in
section 24 of P.L.1983, c.32 (C.4:1C-31);

���� (2) a value determined in
accordance with a formula, to be known as the "Statewide Farmland
Preservation Formula," which formula is established by rule or regulation
adopted by the committee, pursuant to subsection f. of this section, and includes:

���� (a) conducting or analyzing a
sufficient number of fair market value appraisals of agricultural lands within
the municipality in which the land is located, or the surrounding market area,
or both, as the committee deems appropriate to determine the value of the land
for farmland preservation;

���� (b) considering farmland and
development easement values in counties and municipalities reasonably
contiguous to, but outside of, the municipality in which the land to be
acquired is located, which in the sole opinion of the committee constitute
reasonable farmland and development easement values for the purposes of this
subsection;

���� (c) considering the importance
of preserving agricultural lands in the municipality and county in which the
land is located;

���� (d) considering the status and
value of natural resources in the municipality and county in which the land is
located, and in counties and municipalities that are reasonably contiguous to,
but outside of, the municipality and county in which the land is located;

���� (e) considering such other
relevant factors as may be necessary to increase participation in the farmland
preservation program by owners of agricultural lands located in the
municipality and county in which the land is located, including, but not
limited to, the rate of inflation, the quality of the agricultural soils, the
size of the agricultural lands to be acquired, and the risk of conversion of
the land from productive agriculture to nonagricultural use; and

���� (f) providing additional value
for the proximity of agricultural lands located adjacent to preserved
agricultural lands, lands preserved for recreation and conservation purposes,
aquifer recharge areas, lands subject to development or conservation easements,
and lands whose conversion to nonagricultural use would lead to conflicting
land uses, including, but not limited to, utility and roadway rights-of-way,
military bases, and airports and associated airspace; and, if applicable,

���� (3) (a) in the case of
property located in the pinelands area, whenever the value of a development
easement on farmland to be acquired is determined based upon the value of any
pinelands development credits allocated to the parcel pursuant to P.L.1979, c.111
(C.13:18A-1 et seq.) and the pinelands comprehensive management plan adopted
pursuant thereto, the value determined by the committee pursuant to subsection
e. of section 38 of P.L.1999, c.152 (C.13:8C-38); or

���� (b) in the case of property
located in the Highlands Region, the value determined pursuant to subsection j.
of section 38 of P.L.1999, c.152 (C.13:8C-38).

���� The landowner shall be
provided with the values determined pursuant to paragraphs (1) and (2) of this
subsection, and if applicable, the value determined pursuant to paragraph (3)
of this subsection.� The higher of the values shall be utilized by the committee,
a local government unit, or a qualifying tax exempt nonprofit organization as
the basis for negotiation with the landowner with respect to the
[
acquisition
]

final
purchase
price
that is to be paid to effectuate the acquisition of the
development easement or fee simple title, as the case may be
.� A landowner
may waive any of the requirements of this subsection and may agree to sell the
lands for less than the values determined pursuant to this subsection.

���� f.���� Notwithstanding the
provisions of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.) to the contrary, the committee shall, immediately upon
filing proper notice with the Office of Administrative Law, adopt rules and
regulations to establish the "Statewide Farmland Preservation
Formula" required pursuant to paragraph (2) of subsection e. of this
section.� The rules and regulations adopted pursuant to this subsection shall
be in effect for a period not to exceed three years after the date of the
filing.� These rules and regulations shall thereafter be adopted, amended, or
readopted by the committee in accordance with the requirements of the
"Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).

(cf:� P.L.2023, c.245, s.2)

���� 10.� 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.), as may be
necessary to implement the provisions of this act.

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

STATEMENT

���� This bill would amend and
supplement the State�s farmland preservation laws in order to require State and
local purchasers of farmland development easements and fee simple titles to
tentatively provide applicant landowners, in advance of settlement, with a
portion of the total funds that are to be paid by the State or local purchaser
for acquisition of the development easement or fee simple title.

���� Specifically, the bill would
provide that, whenever the State Agriculture Development Committee (committee)
or a county agriculture development board or subregional agricultural retention
board (board) receives a landowner�s completed application seeking to sell
thereto a development easement on, or fee simple title to, farmland for
farmland preservation purposes, and prior to settlement on the proposed
acquisition, the committee or board, as the case may be, will be required to
award and disburse an advance payment, to the applicant landowner,
demonstrating the committee or board�s good faith intention to proceed with
settlement and to, thereby, effectuate the State or local acquisition of the
development easement or fee simple title at the final negotiated purchase
price, as determined pursuant to subsection e. of section 8 of P.L.2016, c.12
(C.13:8C-50), in compliance with all of the agreed-upon terms, contingencies,
and conditions set forth in the final, negotiated purchase agreement.� An advance
payment awarded under the bill would be disbursed to the landowner:� 1) in a
single lump-sum payment; and 2) in an amount that is equal to 20 percent of the
appraised fair market value of the development easement or the fee simple
title, or, to the extent that a final purchase price has been negotiated and
agreed-upon, in an amount that is equal to 20 percent of the higher of the
appraised fair market value or the final negotiated purchase price of the
development easement or the fee simple title, as the case may be.�

���� Any sum of moneys which is
distributed to a landowner, through a good faith advance payment awarded under
the bill:�

���� 1)��� is to be deducted from
the final negotiated purchase price required to be paid, by the committee or
the board, at the time of settlement on the State or local farmland acquisition
project; or

���� 2)��� if the purchase
agreement is voided, cancelled, or otherwise abandoned by either party prior to
settlement, or if settlement otherwise does not occur, is to be fully repaid by
the landowner to, and recouped by, the committee or board, and dedicated for use
in financing other State and local farmland acquisition projects.

���� The bill would further
provide, moreover, that any advance payment funds which are owed by a landowner
and are due to be repaid to the committee or board, as a result of the voiding,
cancellation, abandonment, or other negation of a settlement agreement for the
acquisition of a farmland development easement or fee simple title, will
constitute a debt of the landowner to the State or locality, as the case may
be, which may be recovered, from the landowner, by the respective committee or
board to which the debt is owed.� All owners of the subject property, at the
time of incurrence of the debt thereon (i.e., at the time of settlement
default), would be jointly and severally liable for all recoverable
debt-related costs, as set forth in the bill.�

���� Under the bill�s provisions,
any moneys that are due to the committee or board and owed by a landowner, as a
result of the voiding, cancellation, abandonment, or other negation of
settlement on the acquisition of a farmland development easement or fee simple
title, would constitute a debt of the landowner to the State or locality, as
the case may be, which debt may be recovered, from the landowner, by the
respective committee or board to which the debt is owed.

���� An advance payment debt owed
by a landowner, under the bill�s provisions, would constitute a lien on all
property owned by the landowner.� The lien would attach whenever a notice of
lien, incorporating the name of the landowner, and both a description of the
subject property of the landowner for which the debt was incurred, and an
identification of the amount of advance payment funds disbursed to the
landowner, as well as any related costs expended by the committee or the board,
is duly filed with the county register of deeds and mortgages or other county
clerk (county recording officer), as applicable.� Upon receipt of a notice of
lien filed pursuant to this paragraph, the county recording officer would be
required to promptly record, in the public records of the county in which the
relevant property is located, a claim of lien stating the description of the
property, the name and primary address of the owner of record, the amount due,
and the date when due, as set forth in the notice of lien filed by the committee
or board.� Such lien, in the amount committed by the committee or board for
advance payment and related costs, would be understood to attach to the
revenues and all real and personal property of the landowner, whether or not
the landowner is insolvent.

���� The bill would provide that
any notice of lien, filed and entered under the bill and affecting the property
that is the subject of settlement default establishing the debt, would create a
lien having priority over all other claims or liens which are or have been
filed against such subject property.� However, any such notice of lien that
affects any property of the landowner, other than the property that is the
subject of settlement default establishing the debt, would create a lien that
has priority, from the day of the filing of the notice of the lien, over all
other claims and liens filed against the property, but which would not affect
any valid lien, right, or interest in such property that has been filed, in
accordance with established procedure, prior to the filing of a notice of lien
under the bill�s provisions.

���� A lien entered under the bill
would be enforceable, through the sale of the subject property, in the same
manner provided for the enforcement of municipal liens pursuant to the State�s
existing �tax sale law,� R.S.54:5-1 et seq., and In Rem Tax Foreclosure Act
(1948), P.L.1948, c.96 (C.54:5-104.29 et seq.), as appropriate.