HB2573 103RD GENERAL ASSEMBLY

LRB103 27253 RLC 53624 b

103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB2573

Introduced 2/15/2023, by Rep. Lance Yednock

SYNOPSIS AS INTRODUCED:

New Act

Creates the Agricultural and Natural Resources Legacy Act. Creates the Agricultural and Natural Resources Legacy Fund as a separate fund in the State treasury to be managed by the Department of Agriculture. Provides that from the Fund, moneys shall be made available in each fiscal year for grants to qualified easement holdings having an application which has been reviewed by the Department of Agriculture and approved by the Agricultural Legacy Council. Creates the Agricultural Legacy Council to annually review and approve award grants recommended by the Department of Agriculture, review and approve rules adopted by the Department of Agriculture for administration of the program, and review outcomes of the program and advise the Department of Agriculture of changes in the program or rules to ensure success of the program in achieving the intent of the Act.

A BILL FOR

AN ACT concerning agriculture.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Agricultural and Natural Resources Legacy Act.

Section 5. Legislative findings and intent. The General Assembly finds all of the following:

(1) That the preservation of farmland is important for current and future agricultural production in this State, including the production of food and other products needed to sustain the life, health, and welfare of the people of this State.

(2) That the preservation of farmland is important for the current and future State economy and for the current and future environment of this State.

(3) That establishment of agricultural conservation easements, as provided in this Act, serve important public purposes of statewide significance.

(4) The Agricultural Areas Conservation and Protection Act provides that it is the policy of the State to conserve, protect, and to encourage the development and improvement of its agricultural lands for the production of food and other agricultural products and to conserve and protect agricultural lands as valued natural and ecological resources that provide needed open spaces for clean air sheds as well as aesthetic purposes.

(5) The Illinois Farmland Preservation Act provides that conversion and loss of agricultural land has diminished Illinois cropland base and affects environmental quality. The supply of land most suitable for farming is finite. Conversion of this land to urban development and other non-farm uses reduces future food production capability and may ultimately undermine agriculture as a major economic activity in Illinois.

(6) The intent of this Act is to ensure permanent conservation of farmland in order to protect Illinois's agricultural economy, the ecological benefits and associated natural habitat provided by agricultural lands and activities, and community character enhanced by agricultural and natural landscapes by:

(A) incentivizing farmland owners to voluntarily protect their farms;

(B) facilitating the transition of farms under development pressure to next generation farmers;

(C) increasing the supply of locally grown food in the State of Illinois; and

(D) facilitating utilization of federal and local funds to benefit Illinois's farmland and natural resources.

Section 10. Definitions. In this Act:

"Agricultural conservation easement" means a nonpossessory interest of a holder in real property within Illinois imposing limitations or affirmative obligations, the purposes of which include retaining or protecting agricultural production capability and natural, scenic, habitat, or open-space values of real property.

"Application" means any application seeking moneys from the Agricultural and Natural Resources Fund.

"Cost of acquisition" means all out-of-pocket direct costs of activities incurred in connection with the acquisition, processing, recording, and documentation of an agricultural conservation easement, such as appraisals, land surveys, title verification, and closing, which may be required by applicable State laws and local ordinances, or otherwise, in order to establish a conservation easement on real property; however, such costs shall not include any costs incurred by a holder for staffing, overhead, or operations.

"Qualified easement holder" means a State agency, federal agency, county, municipality, or a 501(c)(3) nonprofit organization with experience acquiring, whether through purchase, donation or transfer, an agricultural or other conservation easement.

"Qualified farmland" means agricultural land in an undeveloped state or that has been developed only to the extent consistent with agricultural production, including row crops, livestock, nurseries, orchards, or pastures.

Section 15. Establishment of the Agricultural and Natural Resources Legacy Fund. The Agricultural and Natural Resources Legacy Fund shall be established as a separate fund in the State treasury to be managed by the Department of Agriculture, separate and distinct from the General Revenue Fund. Interest earned by the Agricultural and Natural Resources Fund shall be credited to the fund. Such funds shall not lapse to the General Revenue Fund. Such funds shall be used to support the protection and conservation of agricultural land and shall be used to supplement, not supplant, Department of Agriculture resources.

The Agricultural and Natural Resources Fund consists of:

(1) annual appropriations by the General Assembly to the fund;

(2) public or private grants, gifts, donations, or contributions dedicated to the fund for farmland conservation;

(3) funds from any other source, including proceeds from the sale of bonds, State, federal, or private mitigation funds, or funds from any other local, State, or federal program that may be dedicated to the fund for farmland conservation; and

(4) revenue derived from the sale of land or other assets donated or bequeathed to the fund.

Section 20. Grants; conditions of eligibility; permissible use of funds. From within the Agricultural and Natural Resources Legacy Fund, moneys shall be made available in each fiscal year for grants to any qualified easement holder having an application that has been reviewed by the Department of Agriculture and approved by the Agricultural Legacy Council, as provided in this Section.

As a condition of eligibility for any such grant, an application shall have as its primary purpose advancing farmland conservation and supporting active farming and food production in Illinois. Award grants may include the following:

(1) Payment to qualified easement holders for the purchase of agricultural conservation easements on qualified farmland.

(2) Payment for the costs of acquisition related to the purchase of agricultural conservation easements approved by the program.

The Agricultural and Natural Resources Heritage Fund shall be used to pay administrative costs of this program by the Department of Agriculture, annually not to exceed 5% of the annual allocation of moneys to the Fund.

Section 25. Administration; prioritization of farmland. The Department of Agriculture shall have primary responsibility for administration of the Agricultural and Natural Resources Fund program, under the direction and advice of the Agricultural Legacy Council, as provided in this Act. The Department shall:

(1) give priority to applications that protect agricultural lands that are susceptible to development, including subdivision and fragmentation;

(2) adopt a scoring process to be used in evaluating applications that considers the following for prioritization of projects:

(A) protecting farmland in active or planned cultivation;

(B) preventing development or fragmentation that would result in farmland loss by conversion;

(C) supporting transition of farmland to next generation farmer owner-operators;

(D) leveraging local, federal, or private funding, including a match requirement;

(E) supporting conservation priorities including protection of habitat, water quality, watershed conservation, climate resiliency, local conservation plans, and public viewshed;

(F) preserving or Enhancing Soil Quality.

(3) ensure the following easement terms are met to be eligible for funds:

(A) An agricultural conservation easement shall be perpetual.

(B) Agricultural conservation easement terms shall align with existing federal and local programs to maximize potential for matching funds.

Section 30. Authority to adopt rules. The Department of Agriculture shall adopt rules as necessary to implement the provisions of this Act on or before December 31, 2023, including the adoption of rules that establish a process for submitting and processing applications for grants. The Department, after consultation with the Illinois Agricultural Legacy Council, shall solicit applications. The Department shall issue each solicitation in writing and shall publish a notice announcing the solicitation.

Section 35. Establishment of the Illinois Agricultural Legacy Council; membership; role and duties of the Council. There is established the Illinois Agricultural Legacy Council to advise and assist the Department of Agriculture with administration and implementation of the program utilizing the criteria proposed by the Department and adopted by the Council. The Advisory Council shall consist of 9 members, as follows:

(1) the Director of the Department of Agriculture;

(2) the Director of the Department of Natural Resources;

(3) other members appointed by the Governor as follows:

(A) one member who operates a family farm in this State;

(B) one member who is the designated representative of a banking or lending organization and who has significant experience in agricultural lending;

(C) one member who is the designated representative of a statewide agricultural organization;

(D) one member who is a designated representative of a land trust or statewide nonprofit conservation organization operating in this State;

(E) one member who is a designated representative of an educational institution with an agricultural program;

(F) one member who is the designated representative of Soil and Water Conservation Districts, Illinois Extension, or the United States Department of Agriculture Natural Resources Conservation Services; and

(G) one member representing the planning profession.

Appointed members of the council serve staggered terms of 3 years, with 4 of the members' terms expiring on December 31 of each odd-numbered year.

Appointments to and removal from the council shall be made by the Governor and the Director of Agriculture without regard to the race, color, disability, sex, religion, age, or national origin of the appointees.

The Council shall meet at least quarterly each year for the transaction of its business. Three-fifths of the members of the Council present at any board meeting shall constitute a quorum in order to conduct business; however, in the absence of a quorum, a majority of the members present may adjourn the meeting from time to time until a quorum shall attend. Any Council action or recommendation must be approved by a simple majority of the members of the entire Council then in office, unless specified otherwise in this Act.

The Council shall:

(1) annually review and approve award grants recommended by the Department of Agriculture;

(2) review and approve rules adopted by the Department of Agriculture for administration of the program; and

(3) review outcomes of the program and advise Department of Agriculture on changes in the program or rules to ensure success of the program in achieving the intent of this Act.