Bill Summary – FastDemocracy

APPROVED                  CHAPTER
                                                                      JUNE 10, 2021                   135
                                                                     BY GOVERNOR                PUBLIC LAW
                                    STATE OF MAINE
                                             _____
                            IN THE YEAR OF OUR LORD
                          TWO THOUSAND TWENTY-ONE
                                             _____
                                     H.P. 413 - L.D. 568
 An Act To Establish a Working Farmland Access and Protection Program
  within the Department of Agriculture, Conservation and Forestry and a
Working Farmland Access and Protection Fund within the Land for Maine's
                            Future Program
   Emergency preamble. Whereas, acts and resolves of the Legislature do not
become effective until 90 days after adjournment unless enacted as emergencies; and
     Whereas, agriculture is critically important to the State's economy and food supply,
and, because the State's working farms positively contribute to their communities as well
as the State's overall quality of life, it is in the public interest to strengthen the agricultural
sector by preserving productive agricultural soils, working farmland and open space land;
and
    Whereas, the United States Department of Agriculture, Natural Resources
Conservation Service has defined, mapped and classified the State's most productive
agricultural soil types as prime farmland, unique farmland, farmland of statewide
importance and farmland of local importance throughout the State; and
    Whereas, the preservation and conservation of farmland and open space land,
agricultural and natural resources based businesses, productive agricultural soils and
maintenance of open space land are important to the people of the State, as evidenced by
the Constitution of Maine, Article IX, Section 8 and the farm and open space tax law in the
Maine Revised Statutes, Title 36, chapter 105, subchapter 10, which confers current use
property tax assessment to prevent the conversion of farmland and open space land to
nonagricultural uses; and
    Whereas, the protection of farmland is identified as a conservation priority by the
Land for Maine's Future program; and
    Whereas, the Land for Maine's Future Board has, since 1987, awarded partial funding
to 42 farms in 9 counties to protect 9,882 acres of working farmland; and
    Whereas, farmland protection projects funded by the Land for Maine's Future Board
leverage matching funds from a variety of partners, including the United States Department
                                      Page 1 - 130LR0082(03)
of Agriculture, Natural Resources Conservation Service, land trusts, municipalities, water
districts and nongovernmental organizations; and
    Whereas, for these reasons it is critically important that this legislation take effect
before the expiration of the 90-day period; and
    Whereas, in the judgment of the Legislature, these facts create an emergency within
the meaning of the Constitution of Maine and require the following legislation as
immediately necessary for the preservation of the public peace, health and safety; now,
therefore,
Be it enacted by the People of the State of Maine as follows:
    Sec. 1. 5 MRSA §6201, sub-§3, as amended by PL 1993, c. 728, §3, is further
amended to read:
    3. Matching funds. "Matching funds" means any combination of public and private
funds used in conjunction with the Land for Maine's Future Fund or, the Public Access to
Maine Waters Fund and the Maine Working Farmland Access and Protection Fund for the
purpose of this chapter, including, but not limited to: private contributions of cash or
securities; money from municipal or other public agencies; money from a federal matching
program, subject to the limitations of applicable federal and state laws, in an amount
authorized by the federal program; contributions of real property, or interest in real
property, that serves the acquisition needs of the State as determined by the Land for
Maine's Future Board; in-kind contributions; or any combination of those funds.
Contributions of land or interest in land must be valued, for purposes of this section, in the
amount of their appraised value.
    Sec. 2. 5 MRSA §6201, sub-§4-A is enacted to read:
    4-A. Working farmland or working farmland property. "Working farmland" or
"working farmland property" means land managed as a farm and available for commercial
production of agricultural products, as defined in Title 7, section 152, subsection 2.
    Sec. 3. 5 MRSA §6203, sub-§3, as amended by PL 2021, c. 33, §1, is further
amended to read:
    3. Fund proceeds. The proceeds of the Land for Maine's Future Fund may be applied
and expended to:
    A. Acquire property or an interest in property that is determined by the board to be of
    state significance under the guidelines of this chapter;
    B. When interest in land is acquired with proceeds from the Land for Maine's Future
    Fund, fund minor capital improvements on such lands and on adjoining lands in the
    same ownership or under the same management to improve accessibility, as long as
    these improvements do not exceed 5% of the appraised value of the acquired property;
    and
    C. When interest in farmland is acquired with proceeds from the Land for Maine's
    Future Fund, fund the development of a business plan and capital improvements to
    provide for the land's continuing use as a working farm, as long as these improvements
    do not exceed 5% of the appraised value of the acquired property. Capital
                                    Page 2 - 130LR0082(03)
    improvements under this paragraph may also be made on adjoining farmland in the
    same ownership or under the same management; and
    D. When land or interest in land is acquired with proceeds from the Land for Maine's
    Future Fund, fund minor capital investments in the stewardship and management of
    that land. Stewardship and management investments under this paragraph must be held
    in a dedicated stewardship endowment and identified for use on the funded property.
    Stewardship and management investments may not exceed 5% of the appraised value
    of the acquired property.
    Sec. 4. 5 MRSA §6203-C is enacted to read:
§6203-C. Maine Working Farmland Access and Protection Fund
    1. Fund established. The Maine Working Farmland Access and Protection Fund,
referred to in this section as "the fund," is established and is administered by the board in
cooperation with the Commissioner of Agriculture, Conservation and Forestry under the
provisions of this chapter and Title 7, section 164. The fund consists of the proceeds from
the sale of bonds authorized for the purposes set forth in subsection 3 and funds received
as contributions from private and public sources for those purposes. The fund must be held
separate and apart from all other money, funds and accounts. Eligible investment earnings
credited to the assets of the fund become part of the assets of the fund. Any balance
remaining in the fund at the end of a fiscal year must be carried forward for the next fiscal
year.
    2. Grants. The board may make grants to state agencies and designated cooperating
entities for the purposes identified in subsection 3. Grants are made according to rules
adopted by the board. Rules adopted pursuant to this subsection are routine technical rules
as defined in chapter 375, subchapter 2-A.
    3. Fund proceeds. The proceeds of the fund may be applied and expended to acquire
property or interests in property that are designed to protect access to working farmland.
The board shall include as a condition of an acquisition or grant made under this section
the requirement that the protected property may not be used, altered or developed in a
manner that precludes its availability for commercial production of agricultural products.
     4. Matching funds. For each grant made under this section, the board shall require
the applicant or the grant recipient to provide matching funds at least equal to the amount
of the grant.
    5. Uses of the fund. When an interest in land or an interest in working farmland is
acquired with proceeds from the fund, the board may fund minor capital investments in the
stewardship of that land. Funds for stewardship investments must be held in a dedicated
stewardship endowment and identified for use on the funded property. The stewardship
investments may not exceed 5% of the appraised value of the acquired property.
    A. When an interest in land is acquired with proceeds from the fund, the board may
    fund minor capital improvements on the land and on adjoining lands in the same
    ownership or under the same management to improve public access, as long as these
    improvements do not exceed 5% of the appraised value of the acquired property.
    B. When an interest in working farmland is acquired with proceeds from the fund, the
    board may fund the development of a business plan and capital improvements to
    provide for the land's continuing use as working farmland, as long as these
                                   Page 3 - 130LR0082(03)
    improvements do not exceed 5% of the appraised value of the acquired property.
    Capital improvements under this paragraph may also be made on adjoining farmland
    in the same ownership or under the same management.
    Sec. 5. 7 MRSA §164 is enacted to read:
§164. Maine Working Farmland Access and Protection Program
    1. Program established; administration. The Maine Working Farmland Access and
Protection Program, referred to in this section as "the program," is established to provide
protection to strategically significant working farmland properties as defined in Title 5,
section 6201, subsection 4-A whose continued availability to commercial agricultural
businesses is essential to the long-term future of the economic sector. The department shall
administer the program either directly or by contract with a suitable organization.
    2. Review panel. The department shall establish a review panel to advise the
commissioner in the operation of the program, including, but not limited to, evaluating
applications and recommending to the department applicants for participation in the
program.
    3. Selection criteria. The selection criteria with which to evaluate applications for
protection of working farmland property under the program must include, but are not
limited to:
    A. The interest of the owner of the working farmland property to make the farmland
    available via lease or transfer the protected property to another farmer or other farmers
    to advance the department's goal of preserving and increasing access to farmland for
    new and growing farms;
    B. The threat of conversion of the working farmland property such that it would
    become unavailable for commercial production of agricultural products;
    C. The percentage of soils classified by the United States Department of Agriculture
    as prime farmland, unique farmland, farmland of statewide importance and farmland
    of local importance;
    D. The agricultural structures and improvements associated with the working farmland
    property;
    E. The economic viability of the working farmland property in terms of current and
    potential future commercial agricultural activities in local, regional and statewide
    markets; connection of the working farmland property to agricultural services
    including processors, aggregators and distributors; and number of on-farm jobs
    supported by the working farmland property;
    F. The proximity of other working farmland properties in the town or region;
    G. The degree of community support for the proposed protection of the working
    farmland property;
    H. The multiple natural resources values associated with the working farmland
    property, including open space land, forested land and wetlands; riparian buffers;
    wildlife habitat; and freshwater aquifers; and
                                   Page 4 - 130LR0082(03)
    I. Whether the applicant is from or serving an underserved or underprivileged
    community as defined by the department by rule. Rules adopted under this paragraph
    are routine technical rules pursuant to Title 5, chapter 375, subchapter 2-A.
   4. Grant agreements. The commissioner shall enter into grant agreements with state
agencies and cooperating entities for the purpose of receiving grants from the Maine
Working Farmland Access and Protection Fund under Title 5, section 6203-C.
    Sec. 6. Appropriations and allocations. The following appropriations and
allocations are made.
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF
Maine Working Farmland Access and Protection Fund N360
Initiative: Provides a base allocation to establish the Maine Working Farmland Access and
Protection Fund to allow expenditure of contributions received from private and public
sources for the acquisition of property or interests in property that are designed to protect
access to working farmland.
OTHER SPECIAL REVENUE FUNDS                                      2021-22           2022-23
 All Other                                                          $500              $500
                                                              __________        __________
OTHER SPECIAL REVENUE FUNDS TOTAL                                   $500              $500
    Emergency clause. In view of the emergency cited in the preamble, this legislation
takes effect when approved.
                                   Page 5 - 130LR0082(03)
Statutes affected: 
Bill Text LD 568, HP 413: 5.6201, 5.6203
Bill Text ACTPUB , Chapter 135: 5.6201, 5.6203