Provides "Highlands Water Protection and Planning Act" exemption, and clarifies municipal planning or zoning authority, for certain development along commercial corridors in Highlands Region.

A5009

ASSEMBLY, No. 5009

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MAY 7, 2026

Sponsored by:

Assemblyman� JOHN DIMAIO

District 23 (Hunterdon, Somerset and Warren)

Assemblywoman� DAWN FANTASIA

District 24 (Morris, Sussex and Warren)

SYNOPSIS

���� Provides "Highlands Water Protection and
Planning Act" exemption, and clarifies municipal planning or zoning
authority, for certain development along commercial corridors in Highlands
Region.�

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act

concerning development along commercial
corridors in the Highlands Region and amending P.L.2004, c.120.

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

���� 1.��� Section 3 of P.L.2004,
c.120 (C.13:20-3) is amended to read as follows:

���� 3.��� As used in
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
:

���� "Agricultural or
horticultural development" means construction for the purposes of
supporting common farmsite activities, including but not limited to:� the
production, harvesting, storage, grading, packaging, processing, and the
wholesale and retail marketing of crops, plants, animals, and other related
commodities and the use and application of techniques and methods of soil
preparation and management, fertilization, weed, disease, and pest control,
disposal of farm waste, irrigation, drainage and water management, and grazing
[
;
]

.

���� "Agricultural impervious
cover" means agricultural or horticultural buildings, structures, or
facilities with or without flooring, residential buildings, and paved areas,
but shall not mean temporary coverings
[
;
]

.

���� "Agricultural or
horticultural use" means the use of land for common farmsite activities,
including but not limited to:� the production, harvesting, storage, grading,
packaging, processing, and the wholesale and retail marketing of crops, plants,
animals, and other related commodities and the use and application of
techniques and methods of soil preparation and management, fertilization, weed,
disease, and pest control, disposal of farm waste, irrigation, drainage and
water management, and grazing
[
;
]

.

���� "Application for
development" means the application form and all accompanying documents
required for approval of a subdivision plat, site plan, planned development,
conditional use, zoning variance, or direction of the issuance of a permit pursuant
to the "Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.)
or R.S.40:27-1 et seq., for any use, development, or construction
[
;
]

.

���� "Capital
improvement" means any facility for the provision of public services with
a life expectancy of three or more years, owned and operated by or on behalf of
the State or a political subdivision thereof
[
;
]

.

����
"Commercial
corridor" means the land area with frontage on a State, county, or rail
thoroughfare in the Highlands Region zoned for commercial or industrial use as
of the effective date of P.L.2004, c.120 (C.13:20-1 et al.), or, subsequent to
that effective date, the land area along such a thoroughfare that is deemed by
a municipal planning board and governing body of a municipality to be necessary
for commercial or industrial use for the economic viability of the
municipality.

���� "Construction beyond site
preparation" means having completed the foundation for a building or
structure, and does not include the clearing, cutting, or removing of
vegetation, bringing construction materials to the site, or site grading or other
earth work associated with preparing a site for construction
[
;
]

.

���� "Construction materials
facility" means any facility or land upon which the activities of
production of ready mix concrete, bituminous concrete, or class B recycling
occurs
[
;
]

.

���� "Council" means the
Highlands Water Protection and Planning Council established by section 4 of
[
this act;
]

P.L.2004,
c.120 (C.13:20-4).

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

.

���� "Development" means
the same as that term is defined in section 3.1 of P.L.1975, c.291 (C.40:55D-4)

[
;
]

.

���� "Development
regulation" means the same as that term is defined in section 3.1 of
P.L.1975, c.291 (C.40:55D-4)
[
;
]

.

���� "Disturbance" means
the placement of impervious surface, the exposure or movement of soil or
bedrock, or the clearing, cutting, or removing of vegetation
[
;
]

.

���� "Environmental land use
or water permit" means a permit, approval, or other authorization issued
by the Department of Environmental Protection pursuant to the "Freshwater
Wetlands Protection Act," P.L.1987, c.156 (C.13:9B-1 et seq.), the
"Water Supply Management Act," P.L.1981, c.262 (C.58:1A-1 et seq.),
the "Water Pollution Control Act," P.L.1977, c.74 (C.58:10A-1 et
seq.), "The Realty Improvement Sewerage and Facilities Act (1954),"
P.L.1954, c.199 (C.58:11-23 et seq.), the "Water Quality Planning
Act," P.L.1977, c.75 (C.58:11A-1 et seq.), the "Safe Drinking Water
Act," P.L.1977, c.224 (C.58:12A-1 et seq.), or the "Flood Hazard Area
Control Act," P.L.1962, c.19 (C.58:16A-50 et seq.)
[
;
]
.

���� "Facility expansion"
means the expansion of the capacity of an existing capital improvement in order
that the improvement may serve new development
[
;
]

.

���� "Farm conservation
plan" means a site specific plan that prescribes needed land treatment and
related conservation and natural resource management measures, including forest
management practices, that are determined to be practical and reasonable for
the conservation, protection, and development of natural resources, the
maintenance and enhancement of agricultural or horticultural productivity, and
the control and prevention of nonpoint source pollution
[
;
]

.

���� "Farm management
unit" means a parcel or parcels of land, whether contiguous or
noncontiguous, together with agricultural or horticultural buildings,
structures and facilities, producing agricultural or horticultural products,
and operated as a single enterprise
[
;
]

.

���� "Highlands open
waters" means all springs, streams including intermittent streams,
wetlands, and bodies of surface water, whether natural or artificial, located
wholly or partially within the boundaries of the Highlands Region, but shall
not mean swimming pools
[
;
]

.

���� "Highlands Region"
means that region so designated by subsection a. of section 7 of
[
this act;
]

P.L.2004,
c.120 (C.13:20-7).

���� "Immediate family
member" means 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
[
;
]

.

���� "Impact fee" means
cash or in-kind payments required to be paid by a developer as a condition for
approval of a major subdivision or major site plan for the developer's
proportional share of the cost of providing new or expanded reasonable and necessary
public improvements located outside the property limits of the subdivision or
development but reasonably related to the subdivision or development based upon
the need for the improvement created by, and the benefits conferred upon, the
subdivision or development
[
;
]
.

���� "Impervious surface"
means any structure, surface, or improvement that reduces or prevents
absorption of stormwater into land, and includes porous paving, paver blocks,
gravel, crushed stone, decks, patios, elevated structures, and other similar
structures, surfaces, or improvements
[
;
]

.

���� "Individual unit of
development" means a dwelling unit in the case of a residential
development, a square foot in the case of a non-residential development, or any
other standard employed by a municipality for different categories of
development as a basis upon which to establish a service unit
[
;
]

.

���� "Local government
unit" means a municipality, county, or other political subdivision of the
State, or any agency, board, commission, utilities authority or other
authority, or other entity thereof
[
;
]

.

���� "Major Highlands
development" means, except as otherwise provided pursuant to subsection a.
of section 30 of
[
this
act
]

P.L.2004,
c.120 (C.13:20-28)
, (1) any non-residential development in the
preservation area; (2) any residential development in the preservation area
that requires an environmental land use or water permit or that results in the
ultimate disturbance of one acre or more of land or a cumulative increase in
impervious surface by one-quarter acre or more; (3) any activity undertaken or
engaged in the preservation area that is not a development but results in the
ultimate disturbance of one-quarter acre or more of forested area or that
results in a cumulative increase in impervious surface by one-quarter acre or
more on a lot; or (4) any capital or other project of a State entity or local
government unit in the preservation area that requires an environmental land
use or water permit or that results in the ultimate disturbance of one acre or
more of land or a cumulative increase in impervious surface by one-quarter acre
or more.� Major Highlands development shall not mean an agricultural or
horticultural development or agricultural or horticultural use in the
preservation area.� Solar panels shall not be included in any calculation of
impervious surface
[
;
]

.

���� "Mine" means any
mine, whether on the surface or underground, and any mining plant, material,
equipment, or explosives on the surface or underground, which may contribute to
the mining or handling of ore or other metalliferous or non-metalliferous
products.� The term "mine" shall also include a quarry, sand pit,
gravel pit, clay pit, or shale pit
[
;
]

.

���� "Mine site" means
the land upon which a mine, whether active or inactive, is located, for which
the Commissioner of Labor and Workforce Development has granted a certificate
of registration pursuant to section 4 of P.L.1954, c.197 (C.34:6-98.4) and the
boundary of which includes all contiguous parcels, except as provided below, of
property under common ownership or management, whether located in one or more
municipalities, as such parcels are reflected by lot and block numbers or metes
and bounds, including any mining plant, material, or equipment.�
"Contiguous parcels" as used in this definition of "mine
site" shall not include parcels for which mining or quarrying is not a
permitted use or for which mining or quarrying is not permitted as a prior
nonconforming use under the "Municipal Land Use Law," P.L.1975, c.291
(C.40:55D-1 et seq.)
[
;
]

.

���� "Office of Smart
Growth" means the Office of State Planning established pursuant to section
6 of P.L.1985, c.398 (C.52:18A-201)
[
;
]
.

���� "Planning area"
means that portion of the Highlands Region not included within the preservation
area
[
;
]

.

���� "Preservation area"
means that portion of the Highlands Region so designated by subsection b. of
section 7 of
[
this
act;
]

P.L.2004,
c.120 (C.13:20-7).

���� "Public utility"
means the same as that term is defined in R.S.48:2-13
[
;
]

.

���� "Recreation and
conservation purposes" means the same as that term is defined in section 3
of P.L.1999, c.152 (C.13:8C-3)
[
;
]

.

���� "Regional master
plan" means the Highlands regional master plan or any revision thereof
adopted by the council pursuant to section 8 of
[
this act;
]

P.L.2004,
c.120 (C.13:20-8).

���� "Resource management
systems plan" means a site specific conservation system plan that (1)
prescribes needed land treatment and related conservation and natural resource
management measures, including forest management practices, for the conservation,
protection, and development of natural resources, the maintenance and
enhancement of agricultural or horticultural productivity, and the control and
prevention of nonpoint source pollution, and (2) establishes criteria for
resources sustainability of soil, water, air, plants, and animals
[
;
]

.

���� "Service area" means
that area to be served by the capital improvement or facility expansion as
designated in the capital improvement program adopted by a municipality under
section 20 of P.L.1975, c.291 (C.40:55D-29)
[
;
]

.

���� "Service unit" means
a standardized measure of consumption, use, generation or discharge
attributable to an individual unit of development calculated in accordance with
generally accepted engineering or planning standards for a particular category
of capital improvements or facility expansions
[
;
]

.

���� "Soil conservation
district" means the same as that term is defined in R.S.4:24-2
[
;
]

.

���� "Solar panel" means
an elevated panel or plate, or a canopy or array thereof, that captures and
converts solar radiation to produce power, and includes flat plate, focusing
solar collectors, or photovoltaic solar cells and excludes the base or foundation
of the panel, plate, canopy, or array
[
;
]

.

���� "State Development and
Redevelopment Plan" means the State Development and Redevelopment Plan
adopted pursuant to P.L.1985, c.398 (C.52:18A-196 et al.)
[
;
]

.

���� "State entity" means
any State department, agency, board, commission, or other entity, district
water supply commission, independent State authority or commission, or bi-state
entity
[
;
]

.

���� "State Soil Conservation
Committee" means the State Soil Conservation Committee in the Department
of Agriculture established pursuant to R.S.4:24-3
[
;
]

.

���� "Temporary
coverings" means permeable, woven and non-woven geotextile fabrics that
allow for water infiltration or impermeable materials that are in contact with
the soil and are used for no more than two consecutive years
[
; and
]

.

���� "Waters of the Highlands" means all springs, streams including intermittent streams, and bodies of
surface or ground water, whether natural or artificial, located wholly or
partially within the boundaries of the Highlands Region, but shall not mean
swimming pools.

(cf: P.L.2010, c.4, s.5)

���� 2.��� Section 11 of P.L.2004,
c.120 (C.13:20-11) is amended to read as follows:

���� 11.� a.� The regional master
plan shall include, but need not necessarily be limited to:

���� (1)�� A resource assessment
which:

���� (a)�� determines the amount
and type of human development and activity which the ecosystem of the Highlands
Region can sustain while still maintaining the overall ecological values
thereof, with special reference to surface and ground water quality and supply;
contiguous forests and woodlands; endangered and threatened animals, plants,
and biotic communities; ecological factors relating to the protection and
enhancement of agricultural or horticultural production or activity; air
quality; and other appropriate considerations affecting the ecological
integrity of the Highlands Region; and

���� (b)�� includes an assessment
of scenic, aesthetic, cultural, historic, open space, farmland, and outdoor
recreation resources of the region, together with a determination of overall
policies required to maintain and enhance such resources;

���� (2)�� A financial component,
together with a cash flow timetable which:

���� (a)�� details the cost of
implementing the regional master plan, including, but not limited to, property
tax stabilization measures, watershed moratorium offset aid, planning grants
and other State aid for local government units, capital requirements for any development
transfer bank, payments in lieu-of-taxes, acquisition, within five years and
within 10 years after the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, of fee simple or other interests in lands for
preservation or recreation and conservation purposes, compensation guarantees,
general administrative costs, and any anticipated extraordinary or continuing
costs; and

���� (b)�� details the sources of
revenue for covering such costs, including, but not limited to, grants,
donations, and loans from local, State, and federal departments, agencies, and
other governmental entities, and from the private sector;

���� (3)�� A component to provide
for the maximum feasible local government and public input into the council's
operations, which shall include a framework for developing policies for the
planning area in conjunction with those local government units� in the planning
area who choose to conform to the regional master plan;

���� (4)�� A coordination and
consistency component which details the ways in which local, State, and federal
programs and policies may best be coordinated to promote the goals, purposes,
policies, and provisions of the regional master plan, and which details how land,
water, and structures managed by governmental or nongovernmental entities in
the public interest within the Highlands Region may be integrated into the
regional master plan;

���� (5)�� A transportation
component that provides a plan for transportation system preservation, includes
all federally mandated projects or programs, and recognizes smart growth
strategies and principles.� The transportation component shall include projects
to promote a sound, balanced transportation system that is consistent with
smart growth strategies and principles and which preserves mobility and
maintains the transportation infrastructure of the Highlands Region.�
Transportation projects and programs shall be reviewed and approved by the
council in consultation with the Department of Transportation prior to
inclusion in the transportation component; and

���� (6)�� A smart growth component
that includes an assessment, based upon the resource assessment prepared
pursuant to paragraph (1) of subsection a. of this section, of opportunities
for appropriate development, redevelopment, and economic growth, and a transfer
of development rights program which shall include consideration of public
investment priorities, infrastructure investments, economic development,
revitalization, housing, transportation, energy resources, waste management,
recycling, brownfields, and design such as mixed-use, compact design, and
transit villages.� In preparing this component, the council shall:

���� (a)�� prepare a land use
capability map;

���� (b)�� identify existing
developed areas capable of sustaining redevelopment activities and investment;

���� (c)�� identify undeveloped
areas in the planning area, which are not significantly constrained by
environmental limitations such as steep slopes, wetlands, or dense forests, are
not prime agricultural areas, and are located near or adjacent to existing
development and infrastructure, that could be developed;

���� (d)�� identify transportation,
water, wastewater, and power infrastructure that would support or limit
development and redevelopment in the planning area.� This analysis shall also
provide proposed densities for development, redevelopment, or voluntary receiving
zones for the transfer of development rights;

���� (e)�� identify potential
voluntary receiving zones in the planning area for the transfer of development
rights through the appropriate expansion of infrastructure or the modified uses
of existing infrastructure;

���� (f)�� issue model minimum
standards for municipal and county master planning and development regulations
outside of the preservation area, including density standards for center-based
development to encourage, where appropriate, the adoption of such standards;

���� (g)�� identify special
critical environmental areas and other critical natural resource lands where
development should be limited; and

���� (h)�� identify areas
appropriate for redevelopment and set appropriate density standards for
redevelopment.� Any area identified for possible redevelopment pursuant to this
subparagraph shall be either a brownfield site designated by the Department of
Environmental Protection or a site at which at least 70% of the area thereof is
covered with impervious surface.

���� b.��� The resource assessment,
transportation component, and smart growth component prepared pursuant to
subsection a. of this section shall be used only for advisory purposes in the
planning area and shall have no binding or regulatory effect therein.

����
c.���� Notwithstanding any
provision of this section to the contrary, nothing in the regional master plan
shall be deemed to supersede the right and authority of a municipality or a
county to exercise planning or zoning authority in connection with property located
within a commercial corridor.

(cf: P.L.2004, c.120, s.11)

���� 3.��� Section 12 of P.L.2004,
c.120 (C.13:20-12) is amended to read as follows:

���� 12.� In addition to the
contents of the regional master plan described in section 11 of
[
this act
]

P.L.2004,
c.120 (C.13:20-11)
, the plan shall also include, with respect to the
preservation area, a land use capability map and a comprehensive statement of
policies for planning and managing the development and use of land in the
preservation area, which shall be based upon, comply with, and implement the
environmental standards adopted by the Department of Environmental Protection
pursuant to sections 33 and 34 of
[
this
act
]

P.L.2004,
c.120 (C.13:20-31 and C.13:20-32)
, and the resource assessment prepared
pursuant to paragraph (1) of subsection a. of section 11 of
[
this act
]

P.L.2004,
c.120 (C.13:20-11)
.

���� These policies shall include
provision for implementing the regional master plan by the State and local
government units in the preservation area in a manner that will ensure the
continued, uniform, and consistent protection of the Highlands Region in accordance
with the goals, purposes, policies, and provisions of this act, and shall
include:

���� a.���� a preservation zone
element that identifies zones within the preservation area where development
shall not occur in order to protect water resources and environmentally
sensitive lands and which shall be permanently preserved through use of a
variety of tools, including but not limited to land acquisition and the
transfer of development rights; and

���� b.��� minimum standards
governing municipal and county master planning, development regulations, and
other regulations concerning the development and use of land in the
preservation area, including, but not limited to, standards for minimum lot
sizes and stream setbacks, construction on steep slopes, maximum appropriate
population densities, and regulated or prohibited uses for specific portions of
the preservation area.

����
Notwithstanding any
provision of this section to the contrary, nothing in the regional master plan
shall be deemed to supersede the right and authority of a municipality or a
county to exercise planning or zoning authority in connection with property located
within a commercial corridor.

(cf: P.L.2004, c.120, s.12)

���� 4.��� Section 14 of P.L.2004,
c.120 (C.13:20-14) is amended to read as follows:

���� 14.� a.� Within nine to 15
months after the date of adoption of the regional master plan or any revision
thereof, according to a schedule to be established by the council, each
municipality located wholly or partially in the preservation area shall submit
to the council such revisions of the municipal master plan and development
regulations, as applicable to the development and use of land in the
preservation area, as may be necessary in order to conform them with the goals,
requirements, and provisions of the regional master plan.� After receiving and
reviewing the revisions, the council shall approve, reject, or approve with
conditions the revised plan and development regulations, as it deems
appropriate, after public hearing, within 60 days after the date of submission
thereof.

���� Upon rejecting or
conditionally approving any such revised plan or development regulations, the
council shall identify such changes therein that it deems necessary for council
approval thereof, and the relevant municipality shall adopt and enforce the plan
or development regulations as so changed.

���� b.��� Within nine to 15 months
after the date of adoption of the regional master plan or any revision thereof,
according to a schedule to be established by the council, each county located
wholly or partially in the preservation area shall submit to the council such
revisions of the county master plan and associated regulations, as applicable
to the development and use of land in the preservation area, as may be
necessary in order to conform them with the goals, requirements, and provisions
of the regional master plan.� After receiving and reviewing the revisions, the
council shall approve, reject, or approve with conditions those revised plans
and associated regulations, as it deems appropriate, after public hearing,
within 60 days after the date of submission thereof.

���� Upon rejecting or
conditionally approving any such revised plan or associated regulations, the
council shall identify such changes therein that it deems necessary for council
approval thereof, and the relevant county shall adopt and enforce the plan or associated
regulations as so changed.

���� c.���� The council may revoke
a conformance approval granted pursuant to this section or section 15 of
[
this act
]

P.L.2004,
c.120 (C.13:20-15)
, after conducting a hearing, if the council finds that
the local government unit has taken action inconsistent with the regional
master plan.

���� d.��� In the event that any
municipality or county fails to adopt or enforce an approved revised master
plan, development regulations, or other regulations, as the case may be,
including any condition thereto imposed by the council, as required pursuant to
subsection a. or b. of this section, the council shall adopt and enforce such
rules and regulations as may be necessary to implement the minimum standards
contained in the regional master plan as applicable to any municipality or
county within the preservation area.� If any municipality or county fails to
adopt or enforce an approved revised master plan, development regulations, or
other regulations, as the case may be, including any condition thereto imposed
by the council, as required pursuant to subsection a. or b. of this section,
the council shall have all local enforcement authority provided pursuant to the
"Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.),
R.S.40:27-1 et seq., and this act, as well as the authority to issue stop
construction orders, as may be necessary to implement the provisions of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, any rules and regulations adopted pursuant
thereto, and the requirements and provisions of the regional master plan.

���� e.���� A municipality or
county may adopt revisions to its master plan, development regulations, or
other regulations for the purposes of this section that are stricter, as
determined by the council, than the minimum necessary to obtain approval of
conformance with the regional master plan.

���� f.���� The requirements of
this section shall not apply to any municipality or county located wholly
within the planning area.� Any municipality or county located partially within
the preservation area and partially within the planning area shall be required
to comply with the provisions of this section and the regional master plan only
with respect to that portion of the municipality or county lying within the
preservation area.� Voluntary conformance with the regional master plan as it
may apply to those portions of a municipality or county lying within the
planning area shall be permitted as provided pursuant to section 15 of
[
this act
]

P.L.2004,
c.120 (C.13:20-15)
.

����
g.��� Notwithstanding any
provision of this section or any other provision of P.L.2004, c.120 (C.13:20-1
et al.), or any regional master plan, or rule or regulation adopted pursuant
thereto, to the contrary, a municipality or county shall not be denied conformance
approval or be deemed to have taken an action inconsistent with the regional
master plan if the municipality or county is exercising planning or zoning
authority in connection with property located within a commercial corridor in a
manner inconsistent with the regional master plan.

(cf: P.L.2004, c.120, s.14)

���� 5.��� Section 15 of P.L.2004,
c.120 (C.13:20-15) is amended to read as follows:

���� 15.� a.� (1) For any
municipality located wholly in the planning area or for any portion of a
municipality lying within the planning area, the municipality may, by
ordinance, petition the council of its intention to revise its master plan and
development regulations, as applicable to the development and use of land in
the planning area, to conform with the goals, requirements, and provisions of
the regional master plan.

���� The municipality shall proceed
in revising its master plan and development regulations in accordance with the
framework adopted by the council pursuant to subsection a. of section 14 of
[
this act
]

P.L.2004,
c.120 (C.13:20-14)
.

���� After receiving and reviewing
those revisions, and after consulting with the State Planning Commission, the
council shall approve, reject, or approve with conditions the revised plan and
development regulations, as it deems appropriate, after public hearing, within
60 days after the date of submission thereof.

���� (2)�� Upon rejecting or
conditionally approving any such revised plan or development regulations, the
council shall identify such changes therein that it deems necessary for council
approval thereof, and the municipality may adopt and enforce the plan or
development regulations as so changed in order for them to be deemed approved
in conformance with the regional master plan.

���� (3)� Any municipality approved
by the council to be in conformance with the regional master plan pursuant to
this subsection shall be entitled to any financial or other assistance or
incentives received by a municipality from the State as a benefit or result of
obtaining council approval pursuant to section 14 of
[
this act
]

P.L.2004,
c.120 (C.13:20-14)
.

���� (4)� Upon the commencement of
each reexamination by the municipality of its master plan and development
regulations as required pursuant to section 76 of P.L.1975, c.291 (C.40:55D-89)
which have been previously approved by the council to be in conformance with
the regional master plan pursuant to this subsection, the municipality shall so
notify the council and, thereafter, submit to the council the draft revision of
its master plan and development regulations for review, by the council, of
conformance with the regional master plan.� If, after conducting the
reexamination, the municipality does not resubmit to the council its master
plan and development regulations as they pertain to the planning area and
obtain reapproval thereof from the council in accordance with this subsection,
or if the council finds the reexamined master plan or development regulations
not to be in conformance with the regional master plan, the council may require
the municipality to reimburse the council or the State, as appropriate, in
whole or in part for any financial or other assistance or incentives received
by the municipality from the State as a benefit or result of obtaining council
approval pursuant to this� subsection.

���� (5)�� A municipality may adopt
revisions to its master plan or development regulations for the purposes of
this subsection that are stricter, as determined by the council, than the
minimum necessary to obtain approval of conformance with the regional master plan.

���� b.��� (1)� Each county with
lands in the planning area may, by ordinance or resolution, as appropriate,
petition the council of its intention to revise its master plan and associated
regulations, as applicable to the development and use of land in the planning
area, to conform with the goals, requirements, and provisions of the regional
master plan.

���� The county shall proceed in
revising its master plan and associated regulations in accordance with the
framework adopted by the council pursuant to subsection b. of section 14 of
[
this act
]

P.L.2004,
c.120 (C.13:20-14)
.

���� After receiving and reviewing
those revisions, and after consulting with the State Planning Commission, the
council shall approve, reject, or approve with conditions the revised plan and
associated regulations, as it deems appropriate, after public hearing, within
60 days after the date of submission thereof.

���� (2)�� Upon rejecting or
conditionally approving any such revised plan or associated regulations, the
council shall identify such changes therein that it deems necessary for council
approval thereof, and the county may adopt and enforce the plan or associated regulations
as so changed in order for them to be deemed approved in conformance with the
regional master plan.

���� (3)�� Any county approved by
the council to be in conformance with the regional master plan pursuant to this
subsection shall be entitled to any financial or other assistance or incentives
received by a county from the State as a benefit or result of obtaining council
approval pursuant to section 14 of
[
this
act
]

P.L.2004,
c.120 (C.13:20-14)
.

����
c.���� Notwithstanding any
provision of this section or any other provision of P.L.2004, c.120 (C.13:20-1
et al.), or any regional master plan, or rule or regulation adopted pursuant
thereto, to the contrary, a municipality or county shall not be denied conformance
approval or be deemed to have taken an action inconsistent with the regional
master plan if the municipality or county is exercising planning or zoning
authority in connection with property located within a commercial corridor in a
manner inconsistent with the regional master plan.

(cf: P.L.2004, c.120, s.15)

���� 6.��� Section 30 of P.L.2004,
c.120 (C.13:20-28) is amended to read as follows:

���� 30.� a.� The following are
exempt from the provisions of this act, the regional master plan, any rules or
regulations adopted by the Department of Environmental Protection pursuant to
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, or any amendments to a master plan, development
regulations, or other regulations adopted by a local government unit to
specifically conform them with the regional master plan:

���� (1)�� the construction of a
single family dwelling, for an individual's own use or the use of an immediate
family member, on a lot owned by the individual on the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
or on a lot for which the individual has on or
before May 17, 2004 entered into a binding contract of sale to purchase that
lot;

���� (2)�� the construction of a
single family dwelling on a lot in existence on the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, provided that the construction does not result
in the ultimate disturbance of one acre or more of land or a cumulative
increase in impervious surface by one-quarter acre or more;

���� (3)�� a major Highlands
development that received on or before March 29, 2004:

���� (a)�� one of the following
approvals pursuant to the "Municipal Land Use Law," P.L.1975, c.291
(C.40:55D-1 et seq.):

���� (i)��� � preliminary or final
site plan approval;

���� (ii)�� � final municipal
building or construction permit;

���� (iii)� � minor subdivision
approval where no subsequent site plan approval is required;

���� (iv)� final subdivision
approval where no subsequent site plan approval is required; or

���� (v)� preliminary subdivision
approval where no subsequent site plan approval is required; and

���� (b)� at least one of the
following permits from the Department of Environmental Protection, if
applicable to the proposed major Highlands development:

���� (i)��� a permit or
certification pursuant to the "Water Supply Management Act,"
P.L.1981, c.262 (C.58:1A-1 et seq.);

���� (ii)�� a water extension
permit or other approval or authorization pursuant to the "Safe Drinking
Water Act," P.L.1977, c.224 (C.58:12A-1 et seq.);

���� (iii)� a certification or
other approval or authorization issued pursuant to the "The Realty
Improvement Sewerage and Facilities Act (1954)," P.L.1954, c.199
(C.58:11-23 et seq.); or

���� (iv) a treatment works
approval pursuant to the "Water Pollution Control Act," P.L.1977,
c.74 (C.58:10A-1 et seq.); or

���� (c)�� one of the following
permits from the Department of Environmental Protection, if applicable to the
proposed major Highlands development, and if the proposed major Highlands
development does not require one of the permits listed in subsubparagraphs (i)
through (iv) of subparagraph (b) of this paragraph:

���� (i)��� a permit or other
approval or authorization issued pursuant to the "Freshwater Wetlands
Protection Act," P.L.1987, c.156 (C.13:9B-1 et seq.); or

���� (ii)�� a permit or other
approval or authorization issued pursuant to the "Flood Hazard Area
Control Act," P.L.1962, c.19 (C.58:16A-50 et seq.).

���� The exemption provided in this
paragraph shall apply only to the land area and the scope of the major
Highlands development addressed by the qualifying approvals pursuant to
subparagraphs (a) and (b), or (c) if applicable, of this paragraph, shall
expire if any of those qualifying approvals expire, and shall expire if
construction beyond site preparation does not commence within three years after
the date of enactment of
[
this
act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
;

���� (4)�� the reconstruction of
any building or structure for any reason within 125% of the footprint of the
lawfully existing impervious surfaces on the site, provided that the
reconstruction does not increase the lawfully existing impervious surface by
one-quarter acre or more.� This exemption shall not apply to the reconstruction
of any agricultural or horticultural building or structure for a
non-agricultural or non-horticultural use;

���� (5)�� any improvement to a
single family dwelling in existence on the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, including but not limited to an addition, garage,
shed, driveway, porch, deck, patio, swimming pool, or septic system;

���� (6)�� any improvement, for
non-residential purposes, to a place of worship owned by a nonprofit entity,
society or association, or association organized primarily for religious
purposes, or a public or private school, or a hospital, in existence on the
date of enactment of
[
this
act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
, including but not limited to new structures, an
addition to an existing building or structure, a site improvement, or a
sanitary facility;

���� (7)�� an activity conducted
in accordance with an approved woodland management plan pursuant to section 3
of P.L.1964, c.48 (C.54:4-23.3) or a forest stewardship plan approved pursuant
to section 3 of P.L.2009, c.256 (C.13:1L-31), or the normal harvesting of forest
products in accordance with a forest management plan or forest stewardship plan
approved by the State Forester;

���� (8)�� the construction or
extension of trails with non-impervious surfaces on publicly owned lands or on
privately owned lands where a conservation or recreational use easement has
been established;

���� (9)�� the routine maintenance
and operations, rehabilitation, preservation, reconstruction, or repair of
transportation or infrastructure systems by a State entity or local government
unit, provided that the activity is consistent with the goals and purposes of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
and does not result in the construction of any new
through-capacity travel lanes;

���� (10)� the construction of
transportation safety projects and bicycle and pedestrian facilities by a State
entity or local government unit, provided that the activity does not result in
the construction of any new through-capacity travel lanes;

���� (11)� the routine maintenance
and operations, rehabilitation, preservation, reconstruction, repair, or
upgrade of public utility lines, rights of way, or systems, by a public
utility, provided that the activity is consistent with the goals and purposes of

[
this
act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
;

���� (12)� the reactivation of rail
lines and rail beds existing on the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
;

���� (13)� the construction of a
public infrastructure project approved by public referendum prior to January 1,
2005 or a capital project approved by public referendum prior to January 1,
2005;

���� (14)� the mining, quarrying,
or production of ready mix concrete, bituminous concrete, or Class B recycling
materials occurring or which are permitted to occur on any mine, mine site, or
construction materials facility existing on June 7, 2004;

���� (15)� the remediation of any
contaminated site pursuant to P.L.1993, c.139 (C.58:10B-1 et seq.);

���� (16)� any lands of a federal
military installation existing on the date of enactment of
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
that lie within the Highlands Region;
[
and
]

���� (17)� a major Highlands
development located within an area designated as Planning Area 1
(Metropolitan), or Planning Area 2 (Suburban), as designated pursuant to
P.L.1985, c.398 (C.52:18A-196 et seq.) as of March 29, 2004, that on or before
March 29, 2004 has been the subject of a settlement agreement and stipulation
of dismissal filed in the Superior Court, or a builder's remedy issued by the
Superior Court, to satisfy the constitutional requirement to provide for the
fulfillment of the fair share obligation of the municipality in which the
development is located.� The exemption provided pursuant to this paragraph
shall expire if construction beyond site preparation does not commence within
three years after receiving all final approvals required pursuant to the
"Municipal Land Use Law," P.L.1975, c.291 (C.40:55D-1 et seq.)
;
and

����
(18)� the construction or
reconstruction of commercial or industrial development within a commercial
corridor
.

���� b.��� The exemptions provided
in subsection a. of this section shall not be construed to alter or obviate the
requirements of any other applicable State or local laws, rules, regulations,
development regulations, or ordinances.

���� c.���� Nothing in
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
shall be construed to alter the funding allocation
formulas established pursuant to the "Garden State Preservation Trust
Act," P.L.1999, c.152 (C.13:8C-1 et seq.).

���� d.��� Nothing in
[
this act
]

P.L.2004,
c.120 (C.13:20-1 et al.)
shall be construed to repeal, reduce, or otherwise
modify the obligation of counties, municipalities, and other municipal and
public agencies of the State to pay property taxes on lands used for the
purpose and for the protection of a public water supply, without regard to any
buildings or other improvements thereon, pursuant to R.S.54:4-3.3.

(cf: P.L.2009, c.256, s.11)

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

STATEMENT

���� This bill amends the
�Highlands Water Protection and Planning Act,� P.L.2004, c.120 (C.13:20-1 et
al.), to (1) clarify municipal planning or zoning authority, and (2) provide an
exemption from the Highlands permitting review program for certain development
along commercial corridors in the Highlands Region.

���� Specifically, this bill
provides that, notwithstanding any provision of the �Highlands Water Protection
and Planning Act,� or any regional master plan, or rule or regulation adopted
pursuant thereto, to the contrary, a municipality or county would not be denied
conformance approval or be deemed to have taken an action inconsistent with the
regional master plan if the municipality or county is exercising its planning
or zoning authority for property located within a commercial corridor in a
manner inconsistent with the regional master plan.

���� In addition, the bill amends
the �Highlands Water Protection and Planning Act� to add a new exemption for
the construction or reconstruction of commercial or industrial development
within a commercial corridor.� This construction or reconstruction would be
exempt from the provisions of the �Highlands Water Protection and Planning
Act,� the regional master plan, any rules or regulations adopted by the
Department of Environmental Protection pursuant thereto, or any amendments to a
master plan, development regulations, or other regulations adopted by a local
government unit to specifically conform them with the regional master plan.

���� The bill defines a �commercial
corridor� as the land area with frontage on a State, county, or rail
thoroughfare in the Highlands Region zoned for commercial or industrial use as
of August 10, 2004, i.e., the effective date of the �Highlands Water Protection
and Planning Act,� or, subsequent to that date, the land area along such a
thoroughfare that is deemed by a municipal planning board and governing body of
a municipality to be necessary for commercial or industrial use for the
economic viability of that municipality.

���� This bill is meant to
encourage reasonable and necessary economic growth in the Highlands Region as
set forth in the findings and declarations section of the �Highlands Water
Protection and Planning Act� that �it is important to ensure the economic viability
of communities throughout the New Jersey Highlands; and that residential,
commercial, and industrial development, redevelopment, and economic growth in
certain appropriate areas of the New Jersey Highlands are also in the best
interests of all the citizens of the State, providing innumerable social,
cultural, and economic benefits and opportunities.�� This bill would further
these findings and declarations by providing that commercial corridors along
well-traveled thoroughfares are appropriate areas for economic development in
the Highlands Region.