Bill Text: NJ S3035 | 2016-2017 | Regular Session | Introduced


Bill Title: Concerns leases of publicly-owned land for agricultural or horticultural use.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2017-02-27 - Introduced in the Senate, Referred to Senate Environment and Energy Committee [S3035 Detail]

Download: New_Jersey-2016-S3035-Introduced.html

SENATE, No. 3035

STATE OF NEW JERSEY

217th LEGISLATURE

 

INTRODUCED FEBRUARY 27, 2017

 


 

Sponsored by:

Senator  DIANE B. ALLEN

District 7 (Burlington)

 

 

 

 

SYNOPSIS

     Concerns leases of publicly-owned land for agricultural or horticultural use.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning leasing of publicly-owned real property for agricultural or horticultural use, supplementing Title 4 of the Revised Statutes, and amending P.L.1971, c.198, P.L.1971, c.199, and P.L.2006, c.52.

 

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

 

     1.    (New section)  Notwithstanding the provisions of P.L.1954, c.48 (C.52:34-6 et seq.) or any other law to the contrary, for any State-owned real property that, prior to acquisition by the State, was in agricultural or horticultural use by the prior owner, or was leased from the prior owner by a private person for agricultural or horticultural use, and, until such time as the real property is needed for public use, the private agricultural or horticultural use would not compromise that public use, upon request of the seller, or a prior lessee, the State shall lease the real property to the seller, or prior lessee, as applicable, for agricultural or horticultural use for such time period, consideration, and other terms and conditions as shall be mutually agreed upon.

     Notwithstanding the provisions of P.L.1954, c.48 (C.52:34-6 et seq.) or any other law to the contrary, in the case of a lease of State-owned real property to a private person for agricultural or horticultural use, the State shall give preference to a prior lessee to promote continuity of the agricultural or horticultural use, considering the proximity of the bidder to the property, the investment, maintenance, or renovation of the real property by the prior lessee for agricultural or horticultural use, and the proximity and interconnection of other farming operations on property that is in agricultural or horticultural use by the prior lessee near the State-owned real property.  The State need not award the lease to the highest bidder.

 

     2.    Section 13 of P.L.1971, c.198 (C.40A:11-13) is amended to read as follows:

     13.  Specifications. Any specifications for the provision or performance of goods or services under this act shall be drafted in a manner to encourage free, open and competitive bidding. In particular, no specifications under this act may:

     (a)   Require any standard, restriction, condition or limitation not directly related to the purpose, function or activity for which the contract is awarded; or 

     (b)   Require that any bidder be a resident of, or that the bidder's place of business be located in, the county or municipality in which the contract will be awarded or performed, unless the physical proximity of the bidder is requisite to the efficient and economical performance of the contract; except that in the case of a lease of real property to a private person for agricultural or horticultural use, the physical proximity of the bidder to the property may be required; and except that no specification for a contract for the collection and disposal of municipal solid waste shall require any bidder to be a resident of, or that the bidder's place of business be located in, the county or municipality in which the contract will be performed; or

     (c)   Discriminate on the basis of race, religion, sex, national origin, creed, color, ancestry, age, marital status, affectional or sexual orientation, familial status, liability for service in the Armed Forces of the United States, or nationality; or

     (d)   Require, with regard to any contract, the furnishing of any "brand name," but may in all cases require "brand name or equivalent," except that if the goods or services to be provided or performed are proprietary, such goods or services may be purchased by stipulating the proprietary goods or services in the bid specification in any case in which the resolution authorizing the contract so indicates, and the special need for such proprietary goods or services is directly related to the performance, completion or undertaking of the purpose for which the contract is awarded; or 

     (e)   Fail to include any option for renewal, extension, or release which the contracting unit may intend to exercise or require; or any terms and conditions necessary for the performance of any extra work; or fail to disclose any matter necessary to the substantial performance of the contract; or 

     (f)   Require that any bidder submit a financial statement if either a guarantee, by certified check, cashier's check or bid bond, or a surety company certificate is also required to be furnished by the bidder, unless any law or regulation of the United States imposes a condition upon the awarding of a monetary grant to be used for the purchase, contract or agreement, which condition requires that a financial statement be submitted.

     (g)   As used in this subsection:

     "asphalt price index" means the asphalt price index as determined and published by the New Jersey Department of Transportation;

     "basic asphalt price index" means the asphalt price index for the month preceding the month in which the bids are opened;

     "department" means the New Jersey Department of Transportation;

     "fuel price index" means the fuel price index as determined and published by the New Jersey Department of Transportation; and

     "pay item" means a specifically described item of work for which the bidder provides a per unit or lump sum price in a bid specification determined and published by the New Jersey Department of Transportation.

     In addition to the requirements of paragraphs (a) through (f) of this section, any bid specification for the provision or performance of goods or services under P.L.1971, c.198 (C.40A:11-1 et seq.) that includes the purchase or use of 1,000 or more tons of hot mix asphalt shall include a pay item for an asphalt price adjustment reflecting changes in the cost of asphalt cement.  The pay item for asphalt price adjustment shall apply to each ton of hot mix asphalt purchased or used by the contracting unit.  Any bid specification prepared pursuant to P.L.1971, c.198 (C.40A:11-1 et seq.) that includes the purchase or use of less than 1,000 tons of hot mix asphalt shall include a pay item for an asphalt price adjustment applicable to any quantity of hot mix asphalt exceeding 1,000 tons that may be purchased or used in the work in the event that performance of the work, including change orders, requires more than 1,000 tons of hot mix asphalt.  As set forth in section 7 of P.L.1971, c.198 (C.40A:11-7), no contract shall be divided to disaggregate the quantity of hot mix asphalt or equivalent asphalt cement-based paving product to be purchased or used for the purpose of avoiding compliance with this paragraph.

     The asphalt price adjustment shall be calculated in accordance with the formula and relevant instructions published in the most recent edition of the "New Jersey Department of Transportation Standard Specifications for Road and Bridge Construction."  All invoices for payment shall be accompanied by the calculation of any asphalt price adjustment and a showing of the current month's asphalt price index and the basic asphalt price index.

     Every bid specification prepared pursuant to P.L.1971, c.198 (C.40A:11-1 et seq.) shall be eligible for a fuel price adjustment.  Fuel that is eligible for a fuel price adjustment shall be the sum of the quantities of the eligible pay items in the contract multiplied by the fuel usage factors as determined by the department.  The types of fuel furnished shall be at the discretion of the contractor.

     The fuel requirement for items not determined by the department to be eligible, and for pay items in the bid specifications calling for less than 500 gallons of fuel, shall not be eligible for a fuel price adjustment.  If more than one pay item has the same nomenclature but with different thicknesses, depths, or types, each individual pay item must require 500 gallons or more of fuel to be eligible for a fuel price adjustment. If more than one pay item has the same nomenclature, similar pay items shall be combined and the combination must require 500 gallons or more of fuel to be eligible for the fuel price adjustment.

     Fuel price index adjustments shall not be made in those months for which the monthly fuel price index has changed by less than five percent from the basic fuel price index.

     Any specification which knowingly excludes prospective bidders by reason of the impossibility of performance, bidding or qualification by any but one bidder, except as provided herein, shall be null and void and of no effect and shall be readvertised for receipt of new bids, and the original contract shall be set aside by the governing body.

     Any specification for a contract for the collection and disposal of municipal solid waste shall conform to the uniform bid specifications for municipal solid waste collection contracts established pursuant to section 22 of P.L.1991, c.381 (C.48:13A-7.22).

     Any specification may include an item for the cost, which shall be paid by the contractor, of creating a file to maintain the notices of the delivery of labor or materials required by N.J.S.2A:44-128.

     Any prospective bidder who wishes to challenge a bid specification shall file such challenges in writing with the contracting agent no less than three business days prior to the opening of the bids.  Challenges filed after that time shall be considered void and having no impact on the contracting unit or the award of a contract.

 (cf:  P.L.2015, c.201, s.1)

 

     3.    Section 14 of P.L.1971, c.199 (C.40A:12-14) is amended to read as follows:

     14.  Any county or municipality may lease any real property, capital improvement or personal property not needed for public use as set forth in the resolution or ordinance authorizing the lease, other than county or municipal real property otherwise dedicated or restricted pursuant to law, and except as otherwise provided by law, all such leases shall be made in the manner provided by this section.

     (a)   In the case of a lease to a private person, except for a lease to a private person for a public purpose as provided in subsection (j) of section 15 of P.L.1971, c.199 (C.40A:12-15) or for agricultural or horticultural use as provided in subsection e. of this section and section 2 of P.L.2006, c.52 (C.40A:12-14.1), said lease shall be made to the highest bidder by open public bidding at auction or by submission of sealed bids.  Advertisement of the method of bidding shall be published in a newspaper circulating in the municipality or municipalities in which the leasehold is situated by two insertions at least once a week during two consecutive weeks; the lease publication to be not earlier than seven days prior to the letting of the lease.  The governing body may, by resolution, fix a minimum rental with the reservation of the right to reject all bids where the highest bid is not accepted.  Notice of such reservation shall be included in the advertisement of the letting of the lease and public notice thereof shall be given of the time of the letting of the lease. Such resolution may provide that upon the completion of the bidding, the highest bid may be accepted or all of the bids may be rejected.  It shall also set out the conditions, restrictions and limitations upon the tenancy subject to the lease.  Acceptance or rejection of the bid or bids shall be made not later than at the second regular meeting of the governing body following the completion of the bidding, and, if the governing body shall not so accept such highest bid, or reject all bids, said bids shall be deemed to have been rejected.  Any such award may be adjourned at the time advertised for not more than one week without readvertising.

     (b)   In the case of a lease to a public body, the lease may be upon such terms and conditions and for nominal or other consideration as the governing body of the county or municipality shall approve by ordinance or resolution.

     (c)   In the case of a lease to a nonprofit corporation or association for a public purpose, the lease shall be authorized by resolution, in the case of a county, or by ordinance, in the case of a municipality, and may be for nominal or other consideration.  Said authorization shall include the nominal or other consideration for the lease; the name of the corporation or corporations who shall be the lessees; the public purpose served by the lessee; the number of persons benefiting from the public purpose served by the lessee, whether within or without the municipality in which the leasehold is located; the term of the lease, and the officer, employee or agency responsible for enforcement of the conditions of the lease.  Said ordinance or resolution shall also require any nonprofit corporation holding a lease for a public purpose pursuant to this section, to annually submit a report to the officer, employee or agency designated by the governing body, setting out the use to which the leasehold was put during each year, the activities of the lessee undertaken in furtherance of the public purpose for which the leasehold was granted; the approximate value or cost, if any, of such activities in furtherance of such purpose; and an affirmation of the continued tax-exempt status of the nonprofit corporation pursuant to both State and federal law.

     (d)   In the case of a lease to a housing corporation or resident first-time homebuyer for the public purposes, and pursuant to the provisions of P.L.1983, c.335 (C.55:18-1 et seq.), the lease shall be authorized by ordinance by a municipality.

     (e)   In the case of a lease of county or municipal real property to a private person for agricultural or horticultural use, the county or municipality may give preference to a prior lessee to promote continuity of the agricultural or horticultural use, may consider the proximity of the bidder to the property, the investment, maintenance, or renovation of the real property by the prior lessee for agricultural or horticultural use, and the proximity and interconnection of other farming operations on property that is in agricultural or horticultural use by the prior lessee, and need not award the lease to the highest bidder.

(cf:  P.L.2006, c.52, s.1)

 

     4.    Section 2 of P.L.2006, c.52 (C.40A:12-14.1) is amended to read as follows:

     2.    Whenever a county or municipality acquires real property that, [immediately] prior to acquisition, was leased from the prior owner by a private person for agricultural or horticultural use, and the county or municipality determines that, until such time as the real property is needed for public use, the [temporary continuance of the] private agricultural or horticultural use would not compromise that public use, it may lease the real property to the prior lessee for agricultural or horticultural use for such time  period, consideration, and other terms and conditions as shall be mutually agreed upon.

(cf:  P.L.2006, c.52, s.2)

 

     5.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill would assure continuity of farming operations for those farmers that lease publicly-owned land for agricultural or horticultural purposes.  Sustainable farming requires consistent long-term practices.  This bill would provide that for any State-owned real property that, prior to acquisition by the State, was in agricultural or horticultural use by the prior owner, or was leased from the prior owner by a private person for agricultural or horticultural use, until such time as the real property is needed for public use, and the private agricultural or horticultural use would not compromise that public use, upon request of the seller, or a prior lessee, the State must lease the real property to the seller, or prior lessee, as applicable, for agricultural or horticultural use for such time period, consideration, and other terms and conditions as shall be mutually agreed upon.  In addition, the bill would require that in the case of a lease of State-owned real property to a private person for agricultural or horticultural use, the State must give preference to a prior lessee to promote continuity of the agricultural or horticultural use, considering the proximity of the bidder to the property, the investment, maintenance, or renovation of the real property by the prior lessee for agricultural or horticultural use, and the proximity and interconnection of other farming operations on property that is in agricultural or horticultural use by the prior lessee near the State-owned real property.  The bill also provides that the State need not award the lease to the highest bidder.

     The bill would also amend existing law to provide additional discretion to a county or municipality when leasing public land to a private person for agricultural or horticultural use.  The bill would authorize a county or municipality to require in a bid specification the physical proximity of the bidder to county or municipal real property leased for agricultural or horticultural use.  The bill also authorizes a county or municipality to give preference to a prior lessee of land that is leased for agricultural or horticultural purposes in order to promote continuity of use of the property, and to consider the proximity of the bidder to the property, as well as the investment, maintenance, or renovation of the real property by the prior lessee for agricultural or horticultural use, and the proximity and interconnection of other farming operations on property that is in agricultural or horticultural use by the prior lessee near the county or municipally-owned real property.  Finally, the bill clarifies that a lease for such purposes need not be awarded to the highest bidder, in order to allow the county or municipality to weigh factors other than price.

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