CHAPTER 238

SB 123 – FINAL VERSION

04/08/09 1191s

06Jan2010… 2009-2392h

2010 SESSION

09-0967

08/03

SENATE BILL 123

AN ACT relative to agricultural restricted grants.

SPONSORS: Sen. Cilley, Dist 6; Sen. Janeway, Dist 7; Rep. Sad, Ches 2; Rep. Owen, Merr 4; Rep. Knox, Carr 4

COMMITTEE: Public and Municipal Affairs

AMENDED ANALYSIS

This bill creates agricultural restricted grants.

This bill also restricts construction and building on agricultural easements.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

04/08/09 1191s

06Jan2010… 2009-2392h

09-0967

08/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Ten

AN ACT relative to agricultural restricted grants.

Be it Enacted by the Senate and House of Representatives in General Court convened:

238:1 Agricultural Preservation Restrictions. Amend RSA 432:18, I-II to read as follows:

I. “Agricultural land development rights” means the rights of the fee simple owner of agricultural land to construct on, sell, lease or otherwise improve the agricultural land for uses that result in rendering such land no longer suitable for agricultural use. Such development rights may be severed from the fee simple right to constitute a restriction for the preservation of the agricultural land as defined in paragraphs II and II-a.

II. “Agricultural preservation restriction” means the restraint placed on the development rights of agricultural land, whether stated in the form of a restriction, easement, covenant, or condition, in any deed, will, or other instrument executed by or on behalf of the owner of the land which is appropriate to retaining land or water areas predominantly in their agricultural use, to prohibit or limit (1) construction or placement of buildings except those used for agricultural purposes or for [dwellings] a dwelling used for family living by the landowner, his or her immediate family or employees; (2) excavation, dredging, or removal of loam, sod, peat, gravel, soil, rock, or other mineral substance in such a manner as to adversely affect the land’s future agricultural potential; or (3) other acts or uses detrimental to such retention of the land for agricultural use. Agricultural preservation restriction does not include agricultural restricted grants as defined in paragraph II-a.

238:2 New Paragraph; Agricultural Restricted Grants; Definition. Amend RSA 432:18 by inserting after paragraph II the following new paragraph:

II-a. “Agricultural restricted grant” means a grant given to a landowner by the department of agriculture, markets, and food for a limited time set by the parties with financial or technical assistance provided by the department in return for guarantees of continued farm use of the property for a minimum specified time period.

238:3 Site; Agricultural Restricted Grants Added. Amend RSA 432:18, IX to read as follows:

IX. “Site” means a specific land area for agricultural purposes in which agricultural land development rights including agricultural restricted grants are acquired in order to preserve land suitable for agricultural production.

238:4 New Paragraph; Duties of the Commissioner. Amend RSA 432:21 by inserting after paragraph V the following new paragraph:

VI. Adopt rules relative to procedures for granting financial or technical assistance for aid for the creation of agricultural restricted grants.

238:5 Administration; Agricultural Restricted Grants. Amend RSA 432:22, I to read as follows:

I. Acquisition of agricultural land development rights shall be conducted in cooperation with a landowner upon review pursuant to this section. Any proposal for designating a site as an agricultural preservation restriction area or a site for an agricultural restricted grant shall be submitted by the landowner to the committee for approval. Notwithstanding RSA 432:23, approval of a site for an agricultural restricted grant shall not be the only cause for a current use valuation as described in RSA 79-A.

238:6 Administration; Agricultural Restricted Grant. Amend RSA 432:22, V to read as follows:

V. The committee shall view each parcel subject to agricultural preservation restriction or an agricultural restricted grant not less than once every 2 years to assure that its use complies with law and the rules of the committee. The committee may delegate responsibility for monitoring of the agricultural preservation restriction to the conservation commission in the municipality, or to the conservation district, in which the parcel is situated. Such commission or district shall submit a report of its inspection to the committee in a timely manner.

238:7 Release; Agricultural Restricted Grants. Amend RSA 432:24, I-II to read as follows:

I. Agricultural preservation restrictions shall be in perpetuity except as released pursuant to this section and RSA 432:25. Agricultural restricted grants shall run in accordance with the agreement between a landowner and the department of agriculture, markets, and food except as terminated pursuant to this section and RSA 432:25. All customary rights and privileges of ownership shall be retained by the owner including the right to privacy and the right to carry out all regular agricultural practices which are not prohibited by RSA 432:18, II.

II. Agricultural preservation restrictions and agricultural restricted grants may be released or terminated by the committee if the site is no longer suitable for agricultural purposes. An owner of an agricultural preservation site may request the committee’s approval to release the restriction for the public good. Prior to the release of the agricultural land development rights by the committee, a public hearing shall be conducted in the municipality in which the site is located. A notice of said hearing shall specify the grounds for the hearing as well as the date, time, and place, and at least 14 days’ notice of the time and place of such hearing shall be published in a paper of general circulation in the municipality. A legal notice of the hearing shall also be posted in at least 3 public places in such city or town. The 14 days shall not include the day of publication nor the day of the meeting, but shall include any Saturdays, Sundays, and legal holidays within said period. At least 2 committee members shall sit on the hearing panel.

238:8 Agricultural Land Development; Special Account; Bonding Removed. Amend RSA 432:30 to read as follows:

432:30 Special Account[; Bonds Authorized].

[I.] The state treasurer shall establish a separate account to which shall be credited all funds appropriated or acquired to provide financial and technical assistance associated with agricultural restricted covenants or to fund the acquisition of development rights in accordance with RSA 432:17-31-a. This shall be a non-lapsing account, and funds in said account are hereby appropriated for the purposes of this subdivision.

[II. To provide funds for any appropriation made for the account established in RSA 432:30, I, the state treasurer may borrow upon the credit of the state a sum as approved by the general court and issue bonds and notes in the name of and on behalf of the state in accordance with RSA 6-A. Any bonds issued under this section shall be payable not later than 10 years from their date or dates of issue.

III. The payment of principal and interest on the bonds and notes issued for the purposes of this subdivision shall be made when due from the general fund.]

238:9 Contributions. Amend RSA 432:31 to read as follows:

432:31 Contributions. The committee is authorized to apply for and accept [federal funds] public or private grants, gifts, or donations of any kind and to use and dispose of money, services and property received from such contributions [and gifts] for the purposes of this subdivision.

238:10 Easement Restriction. For all agricultural easements acquired under RSA 432 after July 1, 2010, the construction or placement of any building is prohibited except those used solely for agricultural purposes.

238:11 Effective Date. This act shall take effect July 1, 2010.

Approved: July 1, 2010

Effective Date: July 1, 2010