Enrolled Copy H.B. 371 1 WORKING FARM AND RANCH PROTECTION FUND 2 2023 GENERAL SESSION 3 STATE OF UTAH 4 Chief Sponsor: Casey Snider 5 Senate Sponsor: Scott D. Sandall 6 7 LONG TITLE 8 General Description: 9 This bill modifies provisions related to the management, regulation, conservation, and 10 use of natural resources. 11 Highlighted Provisions: 12 This bill: 13 < defines terms; 14 < renames the LeRay McAllister Critical Land Conservation Program; 15 < establishes the LeRay McAllister Working Farm and Ranch Fund; 16 < addresses county use of rollback taxes; and 17 < addresses county use of rollback tax funds. 18 Money Appropriated in this Bill: 19 None 20 Other Special Clauses: 21 None 22 Utah Code Sections Affected: 23 AMENDS: 24 4-46-102, as renumbered and amended by Laws of Utah 2022, Chapter 68 25 4-46-202, as renumbered and amended by Laws of Utah 2022, Chapter 68 26 4-46-301, as renumbered and amended by Laws of Utah 2022, Chapter 68 27 4-46-302, as renumbered and amended by Laws of Utah 2022, Chapter 68 28 4-46-303, as renumbered and amended by Laws of Utah 2022, Chapter 68 29 39A-8-104, as renumbered and amended by Laws of Utah 2022, Chapter 373 H.B. 371 Enrolled Copy 30 59-2-506, as last amended by Laws of Utah 2017, Chapter 319 31 59-2-511, as last amended by Laws of Utah 2007, Chapter 329 32 59-2-1705, as last amended by Laws of Utah 2017, Chapter 319 33 59-2-1710, as enacted by Laws of Utah 2012, Chapter 197 34 63J-1-602.2, as last amended by Laws of Utah 2022, Chapters 59, 68, 154, 224, 236, 35 242, and 447 and last amended by Coordination Clause, Laws of Utah 2022, 36 Chapter 154 37 ENACTS: 38 17-41-601, Utah Code Annotated 1953 39 17-41-602, Utah Code Annotated 1953 40 41 Be it enacted by the Legislature of the state of Utah: 42 Section 1. Section 4-46-102 is amended to read: 43 4-46-102. Definitions. 44 As used in this chapter: 45 (1) "Agricultural land" [has the same meaning as] means "land in agricultural use," 46 [under] as defined in Section 59-2-502. 47 (2) "Board" means the Land Conservation Board established in Section 4-46-201. 48 (3) "Conservation commission" means the Conservation Commission created in 49 Section 4-18-104. 50 (4) "Conservation district" means a limited purpose local government entity created 51 under Title 17D, Chapter 3, Conservation District Act. 52 (5) "Director" means the director of the Division of Conservation. 53 (6) "Division" means the Division of Conservation created in Section 4-46-401. 54 (7) "Fund" means the LeRay McAllister Working Farm and Ranch Fund created in 55 Section 4-46-301. 56 [(7)] (8) "Land use authority" means: 57 (a) a land use authority, as defined in Section 10-9a-103, of a municipality; or -2- Enrolled Copy H.B. 371 58 (b) a land use authority, as defined in Section 17-27a-103, of a county. 59 [(8)] (9) "Local entity" means a county, city, or town. 60 [(9)] (10) (a) "Open land" means land that is: 61 (i) preserved in or restored to a predominantly natural, open, and undeveloped 62 condition; and 63 (ii) used for: 64 (A) wildlife habitat; 65 (B) cultural or recreational use; 66 (C) watershed protection; or 67 (D) another use consistent with the preservation of the land in, or restoration of the 68 land to, a predominantly natural, open, and undeveloped condition. 69 [(b) (i) "Open land" does not include land whose predominant use is as a developed 70 facility for active recreational activities, including baseball, tennis, soccer, golf, or other 71 sporting or similar activity.] 72 [(ii)] (b) [The condition of land does not change from a natural, open, and undeveloped 73 condition because of the development or presence on the land of] "Open land" includes land 74 described in Subsection (10)(a) that contains facilities, including trails, waterways, and grassy 75 areas, that: 76 [(A)] (i) enhance the natural, scenic, or aesthetic qualities of the land; or 77 [(B)] (ii) facilitate the public's access to or use of the land for the enjoyment of the 78 land's natural, scenic, or aesthetic qualities and for compatible recreational activities. 79 (c) "Open land" does not include land whose predominant use is as a developed facility 80 for active recreational activities, including baseball, tennis, soccer, golf, or other sporting or 81 similar activities. 82 [(10) "Program" means the LeRay McAllister Critical Land Conservation Program 83 established in Section 4-46-301.] 84 (11) (a) "State conservation efforts" includes: 85 (i) efforts to optimize and preserve the uses of land for the benefit of the state's -3- H.B. 371 Enrolled Copy 86 agricultural industry and natural resources; and 87 (ii) conservation of working landscapes that if conserved, preserves the state's 88 agricultural industry and natural resources, such as working agricultural land. 89 (b) "State conservation efforts" does not include the purpose of opening private 90 property to public access without the consent of the owner of the private property. 91 (12) (a) "Working agricultural land" means agricultural land for which an owner or 92 producer engages in the activity of producing for commercial purposes crops, orchards, 93 livestock, poultry, aquaculture, livestock products, or poultry products and the facilities, 94 equipment, and property used to facilitate the activity. 95 (b) "Working agricultural land" includes an agricultural protection area established 96 under Title 17, Chapter 41, Agriculture, Industrial, or Critical Infrastructure Materials 97 Protection Areas. 98 Section 2. Section 4-46-202 is amended to read: 99 4-46-202. Board duties and powers -- No regulatory authority -- Criteria. 100 (1) The board shall: 101 (a) administer the [program] fund as provided in this chapter; and 102 (b) fulfill other responsibilities imposed on the board by the Legislature. 103 (2) The board may not exercise any regulatory authority. 104 (3) In carrying out the board's powers and duties under this chapter, the board shall 105 adopt ranking criteria that is substantially similar to the ranking criteria used by the Agriculture 106 Conservation Easement Program and Agriculture Land Easement as determined by the Natural 107 Resources Conservation Service under the United States Department of Agriculture. 108 Section 3. Section 4-46-301 is amended to read: 109 Part 3. LeRay McAllister Working Farm and Ranch Fund 110 4-46-301. LeRay McAllister Working Farm and Ranch Fund. 111 (1) There is created a [program] restricted account within the General Fund entitled the 112 "[LeRay McAllister Critical Land Conservation Program] LeRay McAllister Working Farm 113 and Ranch Fund." -4- Enrolled Copy H.B. 371 114 (2) [Funding for the program shall be a line item in the budget of the board. The line 115 item shall be nonlapsing.] The restricted account shall consist of: 116 (a) appropriations by the Legislature; 117 (b) grants from federal or private sources; and 118 (c) interest and earnings from the account. 119 (3) The Land Conservation Board created in Section 4-46-201 may use appropriations 120 from the fund in accordance with Section 4-46-302. 121 Section 4. Section 4-46-302 is amended to read: 122 4-46-302. Use of money in fund -- Criteria -- Administration. 123 (1) Subject to Subsection (2), the board may authorize the use of money in the 124 [program] fund, by grant, to: 125 (a) a local entity; 126 (b) the Department of Natural Resources created under Section 79-2-201; 127 (c) an entity within the department; or 128 (d) a charitable organization that qualifies as being tax exempt under Section 501(c)(3), 129 Internal Revenue Code. 130 (2) (a) The money in the [program] fund shall be used for preserving or restoring open 131 land and agricultural land. 132 (b) [(i)] Except as provided in Subsection [(2)(b)(ii)] (2)(c), money from the [program] 133 fund: 134 (i) may be used to: 135 (A) establish a conservation easement under Title 57, Chapter 18, Land Conservation 136 Easement Act; or 137 (B) fund similar methods to preserve open land or agricultural land; and 138 (ii) may not be used to: 139 (A) purchase a fee interest in real property to preserve open land or agricultural land[, 140 but may be used to establish a conservation easement under Title 57, Chapter 18, Land 141 Conservation Easement Act, or to fund similar methods to preserve open land or agricultural -5- H.B. 371 Enrolled Copy 142 land.]; or 143 (B) purchase additional property for the purpose of tax deferral. 144 [(ii)] (c) [Notwithstanding Subsection (2)(b)(i), money] Money from the [program] 145 fund may be used to purchase a fee interest in real property to preserve open land or 146 agricultural land if: 147 [(A)] (i) the [parcel] property to be purchased is no more than 20 acres in size; and 148 [(B)] (ii) with respect to a parcel purchased in a county in which over 50% of the land 149 area is publicly owned, real property roughly equivalent in size and located within that county 150 is contemporaneously transferred to private ownership from the governmental entity that 151 purchased the fee interest in real property. 152 [(iii)] (d) Eminent domain may not be used or threatened in connection with any 153 purchase using money from the [program] fund. 154 [(iv)] (e) A parcel of land larger than 20 acres in size may not be divided [into separate 155 parcels smaller than 20 acres each to meet the requirement of] to create one or more parcels 156 that are smaller than 20 acres in order to comply with Subsection [(2)(b)(ii)] (2)(c)(i). 157 [(c)] (f) A local entity, department, or organization under Subsection (1) may not 158 receive money from the [program] fund unless the local entity, department, or organization 159 provides matching funds equal to or greater than the amount of money received from the 160 [program] fund. 161 [(d)] (g) In granting money from the [program] fund, the board may impose conditions 162 on the recipient as to how the money is to be spent. 163 [(e)] (h) The board shall give priority to: 164 (i) working agricultural land; and 165 (ii) after giving priority to working agricultural land under Subsection [(2)(e)(i)] 166 (2)(h)(i), requests from the Department of Natural Resources for up to 20% of each annual 167 increase in the amount of money in the [program] fund if the money is used for the protection 168 of wildlife or watershed. 169 [(f)] (i) (i) The board may not make a grant from the [program] fund that exceeds -6- Enrolled Copy H.B. 371 170 $1,000,000 until after making a report to the Legislative Management Committee about the 171 grant. 172 (ii) The Legislative Management Committee may make a recommendation to the board 173 concerning the intended grant, but the recommendation is not binding on the board. 174 (3) In determining the amount and type of financial assistance to provide a local entity, 175 department, or organization under Subsection (1) and subject to Subsection [(2)(f)] (2)(i), the 176 board shall consider: 177 (a) the nature and amount of open land and agricultural land proposed to be preserved 178 or restored; 179 (b) the qualities of the open land and agricultural land proposed to be preserved or 180 restored; 181 (c) the cost effectiveness of the project to preserve or restore open land or agricultural 182 land; 183 (d) the funds available; 184 (e) the number of actual and potential applications for financial assistance and the 185 amount of money sought by those applications; 186 (f) the open land preservation plan of the local entity where the project is located and 187 the priority placed on the project by that local entity; 188 (g) the effects on housing affordability and diversity; and 189 (h) whether the project protects against the loss of private property ownership. 190 (4) If a local entity, department, or organization under Subsection (1) seeks money 191 from the [program] fund for a project whose purpose is to protect critical watershed, the board 192 shall require that the needs and quality of that project be verified by the state engineer. 193 (5) An interest in real property purchased with money from the [program] fund shall be 194 held and administered by the state or a local entity. 195 (6) (a) The board may not authorize the use of money under this section for a project 196 unless the land use authority for the land in which the project is located consents to the project. 197 (b) To obtain consent to a project, the person who is seeking money from the -7- H.B. 371 Enrolled Copy 198 [program] fund shall submit a request for consent to a project with the applicable land use 199 authority. The land use authority may grant or deny consent. If the land use authority does not 200 take action within 60 days from the day on which the request for consent is filed with the land 201 use authority under this Subsection (6), the board shall treat the project as having the consent of 202 the land use authority. 203 (c) An action of a land use authority under this Subsection (6) is not a land use decision 204 subject to: 205 (i) Title 10, Chapter 9a, Municipal Land Use, Development, and Management Act; or 206 (ii) Title 17, Chapter 27a, County Land Use, Development, and Management Act. 207 Section 5. Section 4-46-303 is amended to read: 208 4-46-303. Board to report annually. 209 The board shall submit an annual report to the Infrastructure and General Government 210 and Natural Resources, Agriculture, and Environmental Quality Appropriations 211 Subcommittees: 212 (1) specifying the amount of each disbursement from the [program] fund; 213 (2) identifying the recipient of each disbursement and describing the project for which 214 money was disbursed; and 215 (3) detailing the conditions, if any, placed by the board on disbursements from the 216 [program] fund. 217 Section 6. Section 17-41-601 is enacted to read: 218 Part 6. Open Land and Working Agricultural Land Use 219 17-41-601. Definitions. 220 As used in this part: 221 (1) "Agricultural land" means "land in agricultural use," as defined in Section 222 59-2-502. 223 (2) (a) "Open land" means land that is: 224 (i) preserved in or restored to a predominantly natural, open, and undeveloped 225 condition; and -8- Enrolled Copy H.B. 371 226 (ii) used for: 227 (A) wildlife habitat; 228 (B) cultural or recreational use; 229 (C) watershed protection; or 230 (D) another use consistent with the preservation of the land in, or restoration of the 231 land to, a predominantly natural, open, and undeveloped condition. 232 (b) "Open land" includes land described in Subsection (2)(a) that contains facilities, 233 including trails, waterways, and grassy areas, that, in the judgment of the county legislative 234 body: 235 (i) enhance the natural, scenic, or aesthetic qualities of the land; or 236 (ii) facilitate the public's access to, or use of, the land for the enjoyment of the land's 237 natural, scenic, or aesthetic qualities and for compatible recreational activities. 238 (c) "Open land" does not include land whose predominant use is as a developed facility 239 for active recreational activities played on fields or courses, including baseball, tennis, soccer, 240 golf, or other sporting or similar activities. 241 (3) "Public land county" means a county in which over 50% of the land area is publicly 242 owned. 243 (4) "Rollback tax funds" means the rollback taxes paid to a county in accordance with 244 Sections 59-2-506, 59-2-511, 59-2-1705, and 59-2-1710. 245 Section 7. Section 17-41-602 is enacted to read: 246 17-41-602. Use of money -- Criteria -- Administration.