The bill amends Section 42-82-16 of the "Farmland Preservation Act" to change the way agricultural operations are assessed for the extension of utility services. The amendment includes a new prohibition against assessing the owner of an agricultural operation for the extension of water utilities past their property, which includes any impact fee, connection fee, or similar fees designed to circumvent this prohibition. This protection applies to agricultural operations and land in existence as of July 1, 2024, and listed on the division of agriculture’s list of agricultural operations. The amendment also specifies that the owner of an agricultural operation may only be charged for the extension of sewer utilities if they have requested it, and they may tie into any sewer utility extension at the normal cost of tie-in without being charged for the infrastructure improvement, except for its base usable charge.

Furthermore, the bill clarifies that the owner of an agricultural operation cannot be charged for the extension of water utilities if they have requested it, and they may tie into any water utility extension without any cost for tie-in or infrastructure improvement, except for the base usable charge. However, if the owner develops or sells the property to a non-qualifying agricultural operation within twenty years of the utility extensions becoming operational, the protections are voided and assessments can be made. The bill will take effect upon passage.

Statutes affected:
8207: 42-82-16