Bill Text: NJ A4038 | 2022-2023 | Regular Session | Introduced
Bill Title: Requires State Agriculture Development Committee to compensate owners of preserved farmland for changes in regulations that increase cost of business.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Engrossed - Dead) 2022-06-20 - Received in the Senate, Referred to Senate Economic Growth Committee [A4038 Detail]
Download: New_Jersey-2022-A4038-Introduced.html
Sponsored by:
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblyman BENJIE E. WIMBERLY
District 35 (Bergen and Passaic)
SYNOPSIS
Requires State Agriculture Development Committee to compensate owners of preserved farmland for changes in regulations that increase cost of business.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning certain rules and regulations adopted by the State Agriculture Development Committee and supplementing P.L.1983, c.32 (C.4:1C-11 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Whenever the State Agriculture Development Committee adopts rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), or implements a new requirement or restriction upon an owner of preserved farmland, the committee shall compensate the owner of the preserved farmland for any loss of income or incremental costs incurred by the owner due to the new requirement or restriction. However, such rules or regulations may be applied without the provision of compensation pursuant to this section to prospective property owners.
b. (1) Within six months after the effective date of this section, the committee shall establish a system to provide compensation to the owner of preserved farmland for any loss of income or incremental costs incurred as a result of the new requirement or restriction.
The system established pursuant to this subsection shall include:
(a) a process by which the owner of preserved farmland may submit a claim for loss of income or incremental costs resulting from the rules and regulations;
(b) a process by which the committee shall evaluate claims received pursuant to this section and provide a written determination regarding a claim; and
(c) procedures that ensure that owners of preserved farmland are adequately reimbursed in a timely manner for any loss of income incurred or incremental costs incurred due to the new requirement or restriction.
(2) The system shall be presented to the State Board of Agriculture for review and approval as fair and reasonable. The State Board of Agriculture shall have the authority to hire outside consultants for determining the appropriateness of any compensation formula proposed by the committee pursuant to this section.
(3) The committee shall publish the process and procedures developed pursuant to this subsection in a prominent location on its Internet website and as a public notice in the New Jersey Register.
c. An affected landowner aggrieved by a determination of the committee pursuant to subsection b. of this section shall be entitled to hearing in accordance with the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), applicable to contested cases. The request for the hearing shall be filed with the committee by the 20th day after receipt by the person of notice of the determination.
d. In order to pay the costs of providing compensation to owners of preserved farmland pursuant to this section, the committee shall include in the Department of Agriculture's annual appropriations request an amount sufficient to compensate landowners for any loss of income or incremental costs incurred as a result of the committee's action. All moneys appropriated for this purpose by an annual appropriations act shall be timely distributed by the committee to the affected landowners.
e. The committee shall annually prepare and submit to the Governor and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), a written report that summarizes any rules and regulations adopted in the prior year imposed a new requirement or restriction upon the owner of preserved farmland, details the amount appropriated to the committee for the purposes of providing compensation to an owner of preserved farmland pursuant to this section, and itemizes the expenditure of such funds.
f. As used in this section, "preserved farmland" means the same as the term is defined in section 4 of P.L.2009, c.213 (C.54:4-23.3c).
2. This act shall take effect immediately.
STATEMENT
This bill would require the State Agriculture Development Committee (SADC), whenever it adopts rules or regulations, pursuant to the "Administrative Procedure Act," or implements a new requirement or restriction upon an owner of preserved farmland, to compensate the owner of the preserved farmland for any loss of income or incremental costs incurred due to the new requirement or restriction.
The bill directs the SADC, within six months after the bill is enacted into law, to establish a system to provide compensation to the owner of preserved farmland for any loss of income or incremental costs incurred from the new requirement or restriction imposed by the SADC. The system is to include: a process by which the owner of preserved farmland may submit a claim; the process by which the committee will evaluate claims received and provide a written determination regarding a claim; and procedures that ensure that owners of preserved farmland are adequately reimbursed in a timely manner for any loss of income or incremental costs incurred due to the SADC's action. The bill requires the SADC to submit the system to the State Board of Agriculture for review and approval as fair and reasonable, and authorizes the State Board of Agriculture to hire outside consultants for determining the appropriateness of any compensation formula proposed by the SADC pursuant to the bill.
An affected landowner aggrieved by a determination of the SADC would be entitled to hearing in accordance with the provisions of the "Administrative Procedure Act," applicable to contested cases.
In order to pay the costs of providing compensation to owners of preserved farmland pursuant to the bill, the SADC would be required to include in the Department of Agriculture's annual appropriations request an amount sufficient to provide the compensation required by the bill.
As used in the bill, "preserved farmland" means land on which a development easement was conveyed to, or retained by, the State Agriculture Development Committee, a county agriculture development board, or a qualifying tax exempt nonprofit organization pursuant to any State law enacted for farmland preservation purposes.
