ASSEMBLY, No. 99
STATE OF NEW JERSEY
Introduced Pending Technical Review by Legislative Counsel
PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION
By Assemblyman ROONEY
An Act concerning the conveyance of certain lands, providing for certain rights of first refusal thereon, and supplementing Title 13 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
"Commissioner" means the Commissioner of the Department of Environmental Protection.
"Convey" means to sell, exchange, or lease.
"Landowner" means a watershed landowner or an owner of land described pursuant to section 3 of this act.
"Purchase" means to buy, exchange, or lease.
"Watershed land" means those lands located above or upstream from a terminal water supply reservoir or surface water intake, including the land surrounding tributaries or feeder streams entering the water supply reservoir.
"Watershed landowner" means any county, municipality, county utilities authority, municipal utilities authority, or public utility, or any subsidiary or agency thereof, that owns watershed land.
2. Every watershed landowner who contracts to convey any watershed land, or any interest therein or option thereon, shall transmit, by certified mail, to the Commissioner of Environmental Protection and the governing bodies and park commissions of all counties and municipalities in which the watershed land to be conveyed is located, a written notice that a contract of conveyance has been executed for that watershed land. The notice shall set forth the terms and conditions of the executed contract of conveyance and shall have attached a copy of that contract. The notice shall also include any other information that the commissioner may reasonably require by regulation adopted pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
3. Any owner of land that is zoned by a municipality as or for recreation, conservation, open space, agriculture, wetland, woodland, or parkland, or for any similar purpose; or any owner of at least 25 contiguous acres of land located in a county of the first class; or any owner of at least 50 contiguous acres of land located in a county of the second class, who contracts to convey all or any portion of that land, or any interest therein or option thereon, shall transmit, by certified mail, to the commissioner and the governing bodies and park commissions of all counties and municipalities in which the land to be conveyed is located, a written notice that a contract of conveyance has been executed for that land. The notice shall set forth the terms and conditions of the executed contract of conveyance and shall have attached a copy of that contract. The notice shall also include any other information that the commissioner may reasonably require by regulation adopted pursuant to the "Administrative Procedure Act."
4. a. The commissioner shall have the right of first refusal to purchase any watershed land or any land described pursuant to section 3 of this act that is to be conveyed upon substantially similar terms and conditions as those in the contract of conveyance for that land.
b. If the commissioner does not exercise that right of first refusal to purchase within 30 days following the date of receipt of the notice of executed contract of conveyance, the governing body of each county in which the watershed land or land described pursuant to section 3 of this act, as the case may be, is located shall have the next such right of first refusal to purchase any such land that is located within its jurisdiction.
c. If the governing body of the county in which such land is located does not exercise its right of first refusal to purchase within 30 days following the date of expiration of the commissioner's right of first refusal, the governing body of each municipality in which the watershed land or land described pursuant to section 3 of this act, as the case may be, is located shall have the next such right of first refusal to purchase any such land that is located within its jurisdiction, provided that the governing body of each such municipality exercises that right within 30 days following the date of expiration of the county's right of first refusal.
5. a. In order to exercise its right of first refusal to purchase pursuant to this act, the commissioner, governing body of a county, or governing body of a municipality, as the case may be, shall transmit, by certified mail, to the landowner, a written notice within the applicable 30-day period prescribed in section 4 of this act.
If no such notices are transmitted by the commissioner, the governing body of a county, or the governing body of a municipality within the applicable 30-day periods set forth in section 4 of this act, the landowner may convey the watershed land or land described pursuant to section 3 of this act, as the case may be, to the proposed purchaser named in the executed contract of conveyance upon the terms and conditions specified therein, or to the proposed purchaser's assignee as provided in that executed contract of conveyance.
b. The fact that watershed land or land described pursuant to section 3 of this act is conveyed in accordance with the requirements of this act to a person other than the State, a county, or a municipality shall not exempt any future conveyance of that land from the requirements of this act if the land continues to qualify as watershed land or as land described pursuant to section 3 of this act.
6. a. A landowner shall convey the watershed land or land described pursuant to section 3 of this act, as the case may be, to the commissioner or to a governing body, as the case may be, upon the exercise of the commissioner's or a governing body's right of first refusal to purchase pursuant to this act, and such conveyance shall not be deemed a breach of the original executed contract of conveyance.
b. A landowner may convey the watershed land or land described pursuant to section 3 of this act, as the case may be, to the commissioner or to a governing body, as the case may be, upon the exercise of the commissioner's or a governing body's right of first refusal to purchase pursuant to this act under different terms and conditions, including for less consideration, than as specified in the original executed contract of conveyance, and such conveyance shall not be deemed a breach of the original executed contract of conveyance.
7. If the commissioner, governing body of a county, or governing body of a municipality does not exercise its right of first refusal pursuant to this act, and the landowner has complied with all applicable notice requirements pursuant to this act, the commissioner and each such governing body shall execute a certificate to that effect and stating that the right of first refusal to purchase of the commissioner or the governing body, as the case may be, has not been exercised, or has expired, for that particular conveyance. The landowner shall record all such certificates with the county clerk. Each such certificate shall be conclusive upon the commissioner or the governing body, as the case may be, and the landowner in favor of all persons who rely thereon in good faith.
8. Every landowner shall include notice of the provisions of this act in any contract of conveyance for watershed land or land described pursuant to section 3 of this act, as the case may be.
9. Any conveyance or any contract of conveyance made in violation of this act shall be voidable.
10. This act shall not apply to lands subject to the provisions of P.L.1989, c.28 (C.4:1C-38 et al.).
11. Nothing in this act may be construed to limit any authority of the State, the commissioner, any county, or any municipality to acquire any watershed land, land described pursuant to section 3 of this act, or any other lands, or interests therein or options thereon, in any other manner as may be provided by law.
12. This act shall take effect 90 days after enactment.
STATEMENT
This bill would grant to the State, through the Commissioner of Environmental Protection, and to county and municipal governing bodies within their respective jurisdictions, a right of first refusal to purchase, exchange, or lease, as the case may be, (1) any watershed land, or any interest therein or option thereon, that is owned by any county, municipality, county utilities authority, municipal utilities authority, or public utility, or any subsidiary or agency thereof; (2) all or any portion of any tract of land that is zoned by a municipality as or for recreation, conservation, open space, agriculture, wetland, woodland, or parkland, or for any similar purpose; (3) all or any portion of any tract of land in a county of the first class owned by any one person or entity that is at least 25 contiguous acres, or any interest therein or option thereon; and (4) all or any portion of any tract of land in a county of the second class owned by any one person or entity that is at least 50 contiguous acres, or any interest therein or option thereon, that is under contract for sale, exchange, or lease. The bill defines "watershed land" as those lands located above or upstream from a terminal water supply reservoir or surface water intake, including the land surrounding tributaries or feeder streams entering the water supply reservoir.
The bill establishes notice requirements for any landowner affected by the act. It also establishes procedures and deadlines that the commissioner and the appropriate county and municipal governing bodies must follow to exercise their respective rights of first refusal.
Any conveyance or any contract of conveyance made in violation of the bill would be voidable.
Lands subject to the right of first refusal law for certain agricultural lands, i.e., pursuant to P.L.1989, c.28 (C.4:1C-38 et al.), would be exempted from the provisions of the bill.
Establishes State's and local government's right of first refusal regarding conveyances of certain large tracts of land.