New Jersey-2024-A530-Introduced

An Act concerning the use of constitutionally dedicated corporation business tax revenues for recreation and conservation purposes, and amending and supplementing P.L.2016, c.12.

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

1. Section 6 of P.L.2016, c.12 (C.13:8C-48) is amended to read as follows:

6. a. The State Treasurer shall establish a fund to be known as the "Preserve New Jersey Green Acres Fund" and shall deposit into the fund all moneys received pursuant to paragraph (1) of subsection a. of section 5 of P.L.2016, c.12 (C.13:8C-47), paragraph (1) 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. Moneys derived from the payment of principal and interest on the loans to local government units authorized by P.L.2016, c.12 (C.13:8C-43 et seq.) shall also be held in the fund.

b. Of the amount deposited in State fiscal year 2017 through and including State fiscal year 2019 into the Preserve New Jersey Green Acres Fund pursuant to paragraph (1) of subsection a. of section 5 of P.L.2016, c.12 (C.13:8C-47):

(1) 55 percent shall be allocated for the purpose of paying the cost of acquisition and development of lands by the State for recreation and conservation purposes, and the amount provided pursuant to this paragraph shall be allocated as follows:

(a) 50 percent shall be allocated for the purpose of paying the cost of acquisition of lands by the State for recreation and conservation purposes; and

(b) 50 percent shall be allocated for the purpose of paying the cost of development of lands by the State for recreation and conservation purposes, and of the amount provided pursuant to this subparagraph:

(i) up to 22 percent shall be allocated for the purpose of paying the cost for stewardship activities undertaken on lands administered by the Division of Fish and Wildlife in the department; and

(ii) up to 22 percent shall be allocated for the purpose of paying the cost for stewardship activities undertaken on lands administered by the Division of Parks and Forestry in the department;

(2) 38 percent shall be allocated for the purposes of providing grants and loans to assist local government units to pay the cost of acquisition and development of lands for recreation and conservation purposes, and of this amount, up to two percent shall be allocated for stewardship activities undertaken by local government units; and

(3) seven percent shall be allocated for the purposes of providing grants to assist qualifying tax exempt nonprofit organizations to pay the cost of acquisition and development of lands for recreation and conservation purposes, and of this amount, 11 percent shall be allocated for stewardship activities undertaken by qualifying tax exempt nonprofit organizations.

c. Any repayments of the principal and interest on loans issued to local government units for the acquisition or development of lands for recreation and conservation purposes using constitutionally dedicated CBT moneys shall be deposited into the Preserve New Jersey Green Acres Fund, and shall be specifically dedicated for the issuance of additional grants and loans in the same manner as provided in subsections a. and b. of section 27 of P.L.1999, c.152 (C.13:8C-27) and this section.

d. (1) The moneys in the fund are specifically dedicated and shall be used for the same purposes and according to the same criteria and provisions as those set forth in section 26 of P.L.1999, c.152 (C.13:8C-26), and as provided pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) and this section.

(2) Grants and loans issued to local government units and grants issued to qualifying tax exempt nonprofit organizations using constitutionally dedicated CBT moneys for the acquisition and development of lands for recreation and conservation purposes shall be subject to the same provisions as those prescribed in section 27 of P.L.1999, c.152 (C.13:8C-27), except as otherwise provided in section 10 of P.L.2016, c.12 (C.13:8C-52).

(3) Notwithstanding any provision of P.L.2016, c.12 (C.13:8C-43 et seq.) or P.L.1999, c.152 (C.13:8C-1 et seq.) to the contrary, projects of the Palisades Interstate Park Commission established pursuant to P.L.1980, c.104 (C.32:14-1.1 et seq.) for the acquisition or development of land for recreation and conservation purposes in New Jersey shall be considered State projects for the purposes of eligibility for funding pursuant to the provisions of P.L.2016, c.12 (C.13:8C-43 et seq.).

e. 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 Green Acres 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 a. of section 23 of P.L.1999, c.152 (C.13:8C-23).

f. Unexpended moneys due to project withdrawals, cancellations, or cost savings shall be returned to the fund.

g. Of the amount authorized pursuant to this section, not more than five percent shall be utilized for organizational, administrative and other work and services, including salaries, equipment and materials necessary to administer the applicable provisions of P.L.2016, c.12 (C.13:8C-43 et seq.).

h. To the end that municipalities may not suffer a loss of taxes by reason of the acquisition and ownership by the State of lands in fee simple for recreation and conservation purposes, or the acquisition and ownership by qualifying tax exempt nonprofit organizations of lands in fee simple for recreation and conservation purposes that become certified as exempt from property taxes pursuant to P.L.1974, c.167 (C.54:4-3.63 et seq.) or similar laws, the State shall make payments annually in the same manner as payments are made pursuant to section 29 of P.L.1999, c.152 (C.13:8C-29).

i. The State shall not use the power of eminent domain in any manner for the acquisition of lands by the State for recreation and conservation purposes using constitutionally dedicated CBT moneys in whole or in part unless a concurrent resolution approving that use is approved by both Houses of the Legislature; except that, without the need for such a concurrent resolution, the State may use the power of eminent domain to the extent necessary to establish a value for lands to be acquired from a willing seller by the State for recreation and conservation purposes using constitutionally dedicated CBT moneys in whole or in part.

j. Of the amount deposited in each State fiscal year commencing in State fiscal year 2020 and annually thereafter into the Preserve New Jersey Green Acres Fund pursuant to paragraph (1) of subsection a. of section 1 of P.L.2019, c.136 (C.13:8C-47.1):

(1) 60 percent shall be allocated for the purpose of paying the cost of acquisition and development of lands by the State for recreation and conservation purposes, and the amount provided pursuant to this paragraph shall be allocated as follows:

(a) 45 percent shall be allocated for the purpose of paying the cost of acquisition of lands by the State for recreation and conservation purposes, and of this amount, a minimum of 10 percent shall be allocated for Blue Acres projects; [and]

(b) 55 percent shall be allocated for the purpose of paying the cost of development of lands by the State for recreation and conservation purposes, and of the amount provided pursuant to this subparagraph:

(i) up to 22 percent shall be allocated for the purpose of paying the cost for stewardship activities undertaken on lands administered by the Division of Fish and Wildlife in the department; and

(ii) up to 22 percent shall be allocated for the purpose of paying the cost for stewardship activities undertaken on lands administered by the Division of Parks and Forestry in the department; and

(c) commencing in State fiscal year 2021 and annually thereafter, of the amount allocated pursuant to subparagraph (b) of this paragraph, $10 million shall be allocated to pay the cost of development of lands for recreation and conservation purposes for the management and maintenance of lakes as provided pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(2) 30 percent shall be allocated for the purposes of providing grants and loans to assist local government units to pay the cost of acquisition and development of lands for recreation and conservation purposes, including Blue Acres projects, and of this amount, up to 10 percent shall be allocated for stewardship activities undertaken by local government units; and

(3) 10 percent shall be allocated for the purposes of providing grants to assist qualifying tax exempt nonprofit organizations to pay the cost of acquisition and development of lands for recreation and conservation purposes, including Blue Acres projects, and of this amount, 11 percent shall be allocated for stewardship activities undertaken by qualifying tax exempt nonprofit organizations.

k. (1) In addition to the purposes set forth in subsection d. of this section, moneys in the Preserve New Jersey Green Acres Fund may be applied for the purposes of providing moneys to:

(a) meet the Blue Acres costs to the State for the acquisition of lands for a Blue Acres project; or

(b) provide grants, pursuant to the provisions of paragraph (2) of this subsection, to assist a qualifying tax exempt nonprofit organization in meeting the Blue Acres costs for the acquisition of lands for a Blue Acres project.

(2) A grant by the State for lands to be acquired by a qualifying tax exempt nonprofit organization for a Blue Acres project may include up to 50 percent of the Blue Acres cost of acquisition of the lands by the qualifying tax exempt nonprofit organization.

(a) A qualifying tax exempt nonprofit organization shall not use as its matching share of the Blue Acres cost of acquisition of lands for a Blue Acres project any constitutionally dedicated moneys, as defined pursuant to section 3 of P.L.1999, c.152 (C.13:8C-3), or any grant moneys obtained from a Green Acres bond act.

(b) To qualify to receive a grant from the Preserve New Jersey Blue Acres Fund, the board of directors or governing body of the applying tax exempt nonprofit organization shall:

(i) demonstrate to the commissioner that the organization qualifies as a charitable conservancy for the purposes of P.L.1979, c.378 (C.13:8B-1 et seq.);

(ii) demonstrate that the organization has the resources to match the grant requested;

(iii) agree to make and keep the lands accessible to the public, unless the commissioner determines that public accessibility would be detrimental to the lands or any natural resources associated therewith;

(iv) agree not to convey the lands except to the federal government, the State, a local government unit, or another qualifying tax exempt nonprofit organization, for recreation and conservation purposes; and

(v) agree to execute and donate to the State at no charge a conservation restriction pursuant to P.L.1979, c.378 (C.13:8B-1 et seq.) on the lands to be acquired with the grant.

l. In addition to any other reporting requirements required by law, the department shall annually send a written report to the Chairperson of the Senate Environment and Energy Committee, the Assembly Agriculture and Natural Resources Committee, and the Assembly Environment and Solid Waste Committee, or their successors, identifying the projects funded with moneys pursuant to subparagraph (b) of paragraph (1) of subsection j. of this section. This report shall: (1) identify the project type, location, and cost for each development project; and (2) identify the stewardship activities, including the location and cost for each stewardship activity, undertaken on lands administered by the Division of Fish and Wildlife and Division of Parks and Forestry pursuant to subparagraph (b) of paragraph (1) of subsection j. of this section.

(cf: P.L.2019, c.136, s.3)

2. (New section) a. The department shall establish a program for the purpose of providing grants with the moneys allocated pursuant to subparagraph (c) of paragraph (1) of subsection j. of section 6 of P.L.2016, c.12 (C.13:8C-48) to assist qualified entities to pay the cost of development of lands for the management and maintenance of lakes for recreation and conservation purposes.

b. (1) In establishing the program required pursuant to this section, in addition to the provisions of section 24 of P.L.1999, c.152 (C.13:8C-24), and any rule or regulation adopted pursuant thereto, the department shall develop criteria for the evaluation and ranking of applications to provide priority to projects:

(a) submitted by qualified entities located in the Highlands Region and Pinelands area; and

(b) to improve water quality and increase recreational access and use of lakes, including projects to control nutrient levels in lakes in order to prevent future harmful algal blooms.

(2) A grant issued pursuant to this section may be used for stormwater and nonpoint source pollution management activities that would, as determined by the department, directly enhance, improve, or protect the use of a lake for recreation and conservation purposes.

(3) (a) An application received by the department from the Greenwood Lake Commission for funding pursuant to this section shall be approved by the department and shall receive a minimum grant award of $750,000 in each fiscal year. A grant awarded to the Greenwood Lake Commission pursuant to this section shall be used solely for development for recreation and conservation purposes of that part of Greenwood Lake which lies within the State, and may be utilized without matching funds from substantially similar legislation by the State of New York.

(b) An application received by the department from the Lake Hopatcong Commission for funding pursuant to this section shall be approved by the department and shall receive a minimum grant award of $750,000 in each fiscal year.

c. (1) Notwithstanding the provisions of section 13 of P.L.2016, c.12 (C.13:8C-55 et seq.) to the contrary, each fiscal year, the department shall submit a list of qualified entities and a description of the projects to receive funding pursuant to this section to the President of the Senate and the Speaker of the General Assembly to be introduced in each House in the form of legislative appropriations bills. The Legislature may approve one or more appropriation bills containing a project list or lists submitted by the department pursuant to this subsection.

(2) The department shall not submit, and the Legislature shall not approve, any other list of projects to receive funding pursuant to P.L.2016, c.12 (C.13:8C-43 et seq.) until the department has submitted to the President of the Senate and the Speaker of the General Assembly the list required pursuant to paragraph (1) of this subsection.

d. As used in this section:

"Greenwood Lake Commission" means the commission created pursuant to section 3 of P.L.1999, c.402 (C.32:20A-3). "Highlands Region" means the region as defined pursuant to section 3 of P.L.2004, c.120 (C.13:20-3).

"Lake Hopatcong Commission" means the commission created pursuant to section 3 of P.L.2000, c.175 (C.54:4B-3).

"Qualified entity" means the Greenwood Lake Commission, the Lake Hopatcong Commission, or a local government unit.

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

3. This act shall take effect immediately.

STATEMENT

This bill would amend and supplement the "Preserve New Jersey Act" to allocate $10 million annually from constitutionally dedicated corporation business tax (CBT) revenues for providing grants to assist certain entities to pay the cost of development of lands for recreation and conservation purposes for the management and maintenance of lakes. The bill directs the Department of Environmental Protection (DEP) to establish a program for the issuance of these grants.

The bill requires the DEP to develop criteria for the evaluation and ranking of applications to provide priority to projects located in the Highlands Region and Pinelands area and to improve water quality and increase recreational access and use of lakes, including projects to control nutrient levels in lakes in order to prevent future harmful algal blooms. The bill provides priority for funding for projects located in the Highlands Region and Pinelands area in recognition of the critical role lakes in these ecologically significant locations provide in the supply of drinking water to residents throughout the State, watershed protection, and for recreation and conservation purposes.

The bill provides that a grant issued pursuant to the bill may be used for stormwater and nonpoint source pollution management activities, if the DEP determines that those activities would directly enhance, improve, or protect the use of a lake for recreation and conservation purposes. Harmful algal blooms occur when colonies of microscopic algae or bacteria grow at exponential rates and produce toxins harmful to humans and animals. Exposure to these algal blooms can cause a range of health effects, including skin rashes, allergy-like reactions, flu-like symptoms, gastroenteritis, respiratory irritation and eye irritation. The issuance by the DEP of "no contact" advisories or other warnings cautioning against contact with the water in certain lakes due to the presence of harmful algal blooms directly impacts the public's use of lakes for recreation and conservation purposes. Certain stormwater and nonpoint source pollution management activities may control harmful algal blooms, which would result in improvements to water quality and increase recreational access to lakes.

The Greenwood Lake Commission, the Lake Hopatcong Commission, and local government units may apply for grants pursuant to the bill. The DEP would be required to approve any applications submitted by the Greenwood Lake Commission and the Lake Hopatcong Commission, and each commission would receive a minimum grant award of $750,000 in each fiscal year under the bill.

The funding in this bill is provided from constitutionally dedicated corporation business tax (CBT) revenues pursuant to Article VIII, Section II, paragraph 6 of the State Constitution, approved by the voters of the State in November 2014. The "Preserve New Jersey Act," P.L.2016, c.12 (C.13:8C-43 et seq.), implements the constitutional dedication of CBT revenues for open space, farmland, and historic preservation. The act provides that a certain amount of the portion of dedicated CBT revenues allocated each year for the Green Acres program is to be used for: the acquisition of lands for open space, including Blue Acres projects, and development projects, including stewardship activities, on State lands administered by the DEP's Division of Fish and Wildlife and Division of Parks and Forestry; grants and loans to fund local government open space acquisition and development projects; and grants to nonprofit entities to acquire or develop lands for recreation and conservation purposes. The "Preserve New Jersey Green Acres Fund" was established by section 6 of the "Preserve New Jersey Act."

This bill provides that $10 million of the amount currently allocated for development of lands by the State for recreation and conservation purposes would be used instead to fund the grants to be awarded pursuant to the bill.

The bill requires the DEP, each fiscal year, to submit a list of projects to receive funding pursuant to the bill to the President of the Senate and the Speaker of the General Assembly to be introduced in the Legislature as appropriations bills. The bill further provides that the DEP shall not submit, and the Legislature shall not approve, any other list of projects to receive funding pursuant to the "Preserve New Jersey Act" until the DEP has submitted to the Legislature the list of projects recommended to receive funding pursuant to the program established by the bill.

The "Preserve New Jersey Act" defines the terms "development," "recreation and conservation purposes," and "stewardship." "Development" means any improvement, including a stewardship activity, made to a land or water area designed to expand and enhance its utilization for recreation and conservation purposes, and includes the construction, renovation, or repair of any such improvement, but does not mean shore protection or beach nourishment or replenishment activities. "Recreation and conservation purposes" means the use of lands for beaches, biological or ecological study, boating, camping, fishing, forests, greenways, hunting, natural areas, parks, playgrounds, protecting historic properties, water reserves, watershed protection, wildlife preserves, active sports, or a similar use for either public outdoor recreation or conservation of natural resources, or both. "Stewardship activity" means an activity, which is beyond routine operations and maintenance, undertaken by the State, a local government unit, or a qualifying tax exempt nonprofit organization to repair, or restore lands acquired or developed for recreation and conservation purposes for the purpose of enhancing or protecting those lands for recreation and conservation purposes.