LCO No. 1550 1 of 16 General Assembly Raised Bill No. 5228 February Session, 2024 LCO No. 1550 Referred to Committee on ENVIRONMENT Introduced by: (ENV) AN ACT CONCERNING THE PURCHASE OF CERTAIN LANDS AT AGRICULTURAL VALUE. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Section 22-26bb of the 2024 supplement to the general 1 statutes is repealed and the following is substituted in lieu thereof 2 (Effective October 1, 2024): 3 As used in sections 22-26aa to 22-26nn, inclusive, as amended by this 4 act: 5 (a) "Agricultural land" means any land in the state suitable by 6 reference to soil types, existing and past use of such land for agricultural 7 purposes and other relevant factors for the cultivation of plants for 8 production of human food and fiber or production of other useful and 9 valuable plant products and for the production of animals, livestock and 10 poultry useful to man and the environment, and land capable of 11 providing economically profitable farm units, and may include adjacent 12 pastures, wooded land, natural drainage areas and other adjacent open 13 areas; 14 Raised Bill No. 5228 LCO No. 1550 2 of 16 (b) "Commissioner" means the Commissioner of Agriculture; 15 (c) "Department" means the Department of Agriculture; 16 (d) "Development rights" means the rights of the fee simple owner of 17 agricultural land to develop, construct on, sell, lease or otherwise 18 improve the agricultural land for uses that result in rendering such land 19 no longer agricultural land, but shall not be construed to include: (1) The 20 uses defined in subsection (q) of section 1-1, (2) the rights of the fee 21 owner of agricultural land to develop, construct on, sell, give or transfer 22 in any way the property in its entirety, or a portion thereof, provided 23 any such sale, gift or transfer of a portion of the property is of a property 24 that was first subject to a sale, transfer or gift of development rights on 25 or after June 28, 2023, lease the property in its entirety, or a portion 26 thereof, for a term of less than twenty-five years or otherwise improve 27 the agricultural land to preserve, maintain, operate or continue such 28 land as agricultural land, including but not limited to construction 29 thereon of residences for persons directly incidental to farm operation 30 and buildings for animals, roadside stands and farm markets for sale to 31 the consumer of food products and ornamental plants, facilities for the 32 storing of equipment and products or processing thereof or such other 33 improvements, activities and uses thereon as may be directly or 34 incidentally related to the operation of the agricultural enterprise, as 35 long as the acreage and productivity of arable land for crops is not 36 materially decreased and due consideration is given to the impact of any 37 decrease in acreage or productivity of such arable land upon the total 38 farm operation, provided any portion of land that is sold, given or 39 transferred, shall be determined in accordance with regulations adopted 40 pursuant to this chapter, except that new construction or modification 41 of an existing farm building necessary to the operation of a farm on 42 prime farmland, as defined by the United States Department of 43 Agriculture, of which the state has purchased development rights shall 44 be limited to not more than five per cent of the total of such prime 45 farmland, (3) the rights of the fee owner to provide for the extraction of 46 gravel or like natural elements to be used on the farm for purposes 47 directly or incidentally related to the operation of the agricultural 48 Raised Bill No. 5228 LCO No. 1550 3 of 16 enterprise or (4) the existing water and mineral rights, exclusive of 49 gravel, of the fee owner; 50 (e) "Owner" means any person, corporation, limited liability 51 company, partnership, trust, municipal corporation, public utility or 52 any other private or public entity that shall be the fee simple owner of 53 agricultural land or who shall by operation of law have the power to 54 exercise the rights of a fee simple owner; 55 (f) "Municipality" means any city, town, borough, district, or 56 association with municipal powers; 57 (g) "Prime farmland" means soils defined by the United States 58 Department of Agriculture as the best suited to producing food, feed, 59 forage, fiber and oilseed crops; 60 (h) "Restricted agricultural land" means land and the improvements 61 thereon for which development rights are held by the state of 62 Connecticut; 63 (i) "Restriction" means the encumbrance on development uses placed 64 on restricted lands as a result of the acquisition of development rights 65 by the state of Connecticut; 66 (j) "Residences" means single-family residential dwellings and any 67 associated on-site septic disposal system or potable well; 68 (k) "Building" means (1) any permanent structure used for holding 69 animals, (2) roadside stands and farm markets for sale to the consumer 70 of food products and ornamental plants, (3) facilities for the storing of 71 equipment and products or the processing of products, and (4) animal 72 waste storage facilities; 73 (l) "Arable land" means land currently used for the production of 74 crops or pasture and land considered prime and important farmland 75 soil by the United States Department of Agriculture; 76 (m) "Gravel or like natural elements" means rounded or angular 77 Raised Bill No. 5228 LCO No. 1550 4 of 16 fragments of rock and associated soil material; 78 (n) "Economically profitable farm unit" means an acreage of arable 79 land capable of producing a sustained annual gross income of 80 significant value as determined by the commissioner; 81 (o) "The property in its entirety" means the entire acreage of restricted 82 land without division or subdivision; 83 (p) "Persons directly incidental to the farm operation" means any 84 person who participates in the farm operation on the restricted land on 85 a full-time basis and any owner of the restricted land regardless of 86 whether or not he participates in the farm operation on a full-time basis; 87 (q) "Option to purchase at agricultural value" means a preemptive 88 option to purchase restricted agricultural land at its agricultural use 89 value; 90 (r) "Agricultural use value" means the fair market value of restricted 91 agricultural land; 92 (s) "Farmer-purchaser" means a purchaser who intends, in good faith, 93 to maintain restricted agricultural land in commercial agricultural 94 production and who can demonstrate, as determined by the holder of 95 an option to purchase at agricultural value, not less than three years of 96 farming experience and the derivation of fifty per cent or more of such 97 person's gross annual income from farming. 98 Sec. 2. Section 22-26cc of the general statutes is repealed and the 99 following is substituted in lieu thereof (Effective October 1, 2024): 100 (a) There is established within the Department of Agriculture a 101 program to solicit, from owners of agricultural land, offers to sell the 102 development rights to such land and to inform the public of the 103 purposes, goals and provisions of this chapter. The commissioner, with 104 the approval of the State Properties Review Board, shall have the power 105 to acquire or accept as a gift, on behalf of the state, the development 106 rights of any agricultural land, if offered by the owner. Notice of the 107 Raised Bill No. 5228 LCO No. 1550 5 of 16 offer shall be filed in the land records wherein the agricultural land is 108 situated. If ownership of any land for which development rights have 109 been offered is transferred, the offer shall be effective until the 110 subsequent owner revokes the offer in writing. The state conservation 111 and development plan established pursuant to section 16a-24 shall be 112 applied as an advisory document to the acquisition of development 113 rights of any agricultural lands. The factors to be considered by the 114 commissioner in deciding whether or not to acquire such rights shall 115 include, but not be limited to, the following: (1) The probability that the 116 land will be sold for nonagricultural purposes; (2) the current 117 productivity of such land and the likelihood of continued productivity; 118 (3) the suitability of the land as to soil classification and other criteria for 119 agricultural use; (4) the degree to which such acquisition would 120 contribute to the preservation of the agricultural potential of the state; 121 (5) any encumbrances on such land; (6) the cost of acquiring such rights; 122 [and] (7) the degree to which such acquisition would mitigate damage 123 due to flood hazards; and (8) whether the acquisition of development 124 rights will include an option to purchase at agricultural value. 125 Ownership by a nonprofit organization authorized to hold land for 126 conservation and preservation purposes of land which prior to such 127 ownership qualified for the program established pursuant to this section 128 shall not be deemed to diminish the probability that the land will be sold 129 for nonagricultural purposes. After a preliminary evaluation of such 130 factors by the Commissioner of Agriculture, he shall obtain and review 131 one or more fee appraisals of the property selected in order to determine 132 the value of the development rights of such property. The commissioner 133 shall notify the Department of Transportation, the Department of 134 Economic and Community Development, the Department of Energy 135 and Environmental Protection and the Office of Policy and Management 136 that such property is being appraised. Any appraisal of the value of such 137 land obtained by the owner and performed in a manner approved by 138 the commissioner shall be considered by the commissioner in making 139 such determination. The value of development rights for all purposes of 140 this section shall be the difference between the value of the property for 141 its highest and best use and its value for agricultural purposes as 142 Raised Bill No. 5228 LCO No. 1550 6 of 16 determined by the commissioner. The use or presence of pollutants or 143 chemicals in the soil shall not be deemed to diminish the agricultural 144 value of the land or to prohibit the commissioner from acquiring the 145 development rights to such land. The commissioner may purchase 146 development rights for a lesser amount provided he complies with all 147 factors for acquisition specified in this subsection and in any 148 implementing regulations. In determining the value of the property for 149 its highest and best use, consideration shall be given but not limited to 150 sales of comparable properties in the general area, use of which was 151 unrestricted at the time of sale. The commissioner may offer grants to 152 land trusts and municipalities that work to protect farmland from 153 development to purchase development rights in order to encourage the 154 continuation of land in agricultural production and maintain such land's 155 long-term availability and affordability for future generations of 156 farmers, including farmer-purchasers. The commissioner may consider 157 grant applications that utilize additional mechanisms for such purposes, 158 including, but not limited to, the option to purchase at agricultural 159 value, rights of first refusal, other deed restrictions or stewardship 160 requirements. The commissioner may allow a portion of such grant 161 funds to support the administrative costs associated with an option to 162 purchase at agricultural value. 163 (b) Upon the acquisition by the commissioner of the development 164 rights of agricultural land, the commissioner shall cause to be filed in 165 the appropriate land records and in the office of the Secretary of the 166 State a notice of such acquisition which shall set forth a description of 167 the agricultural land as will be sufficient to give any prospective 168 purchaser of such agricultural land or creditor of the owner thereof 169 notice of such restriction. Upon such filing, the owner of such 170 agricultural land shall not be permitted to exercise development rights 171 with respect to such land, and such development rights shall be 172 considered and deemed dedicated to the state in perpetuity, except as 173 hereinafter provided. If restricted land is to be sold, the owner shall 174 notify, in writing, the commissioner of such impending sale not more 175 than ninety days before transfer of title to the land and shall provide the 176 Raised Bill No. 5228 LCO No. 1550 7 of 16 commissioner with the name and address of the new owner. 177 (c) The commissioner shall have no power to release such land from 178 its agricultural restriction, except as set forth in this subsection. The 179 commissioner, in consultation with the Commissioner of Energy and 180 Environmental Protection and such advisory groups as the 181 Commissioner of Agriculture may appoint, may approve (1) a petition 182 by the owner of the restricted agricultural land to remove such 183 restriction provided such petition is approved by resolution of the 184 legislative body of the town, or (2) a petition by the legislative body of 185 the town in which such land is situated to remove such restriction 186 provided such petition is approved in writing by said owner. Upon 187 approval of such a petition by the commissioner, the legislative body of 188 the town shall submit to the qualified voters of such town the question 189 of removing the agricultural restriction from such land or a part thereof, 190 at a referendum held at a regular election or a special election warned 191 and called for that purpose. In the event a majority of those voting at 192 such referendum are in favor of such removal, the restriction shall be 193 removed from the agricultural land upon filing of the certified results of 194 such referendum in the land records and the office of the Secretary of 195 the State, and the commissioner shall convey the development rights to 196 such owner provided such owner shall pay the commissioner an 197 amount equal to the value of such rights. Such petition shall set forth the 198 facts and circumstances upon which the commissioner shall consider 199 approval, and said commissioner shall deny such approval unless he 200 determines that the public interest is such that there is an overriding 201 necessity to relinquish control of the development rights. The 202 commissioner shall hold at least one public hearing prior to the 203 initiation of any proceedings hereunder. The expenses, if any, of the 204 hearing and the referendum shall be borne by the petitioner. In the event 205 that the state sells any development rights under the procedure 206 provided in this subsection, it shall receive the value of such rights. 207 (d) Whenever the commissioner acquires the development rights of 208 any agricultural land and the purchase price of such development rights 209 is ten thousand dollars or more, said commissioner and the owner of 210 Raised Bill No. 5228 LCO No. 1550 8 of 16 such land may enter into a written agreement which provides for the 211 payment of the purchase price in two or three annual installments, but 212 no interest shall be paid on any unpaid balance of such purchase price. 213 (e) Whenever the commissioner acquires the development rights to 214 any agricultural land, and any municipality in which all or part of the 215 land is situated paid a part of the purchase price from a fund established 216 pursuant to section 7-131q, such municipality and the state may jointly 217 own the development rights. The land may be released from its 218 agricultural restriction in accordance with the provisions of subsection 219 (c) of this section. The commissioner shall adopt regulations in 220 accordance with the provisions of chapter 54 establishing procedures for 221 the joint acquisition of development rights to agricultural land. 222 (f) The acquisition of the development rights to any agricultural land 223 by the commissioner shall not be deemed to be ownership of such land 224 and the state shall not be liable for pollution or contamination of such 225 land and no person may bring a civil action against the state for 226 damages resulting from pollution or contamination of such agricultural 227 land. 228 (g) The commissioner may issue a letter of intent requesting the 229 assistance of a nonprofit organization, as defined in Section 501(c)(3) of 230 the Internal Revenue Code of 1986, or any subsequent corresponding 231 internal revenue code of the United States, as from time to time 232 amended, in acquiring the development rights to certain agricultural 233 land. If such organization acquires such rights it may sell them to the 234 commissioner based on a purchase agreement. Such agreement may 235 include reimbursement for reasonable expenses incurred in the 236 acquisition of the rights as well as payment for the rights. The 237 commissioner may enter into joint ownership agreements to acquire the 238 development rights to any qualified agricultural land with any 239 nonprofit organization, as defined in Section 501(c)(3) of the Internal 240 Revenue Code of 1986, or any subsequent corresponding internal 241 revenue code of the United States, as from time to time amended, 242 provided the mission of such nonprofit organization is the permanent 243 Raised Bill No. 5228 LCO No. 1550 9 of 16 protection of agricultural land for the purposes of continued 244 agricultural use. The commissioner may offer grants to land trusts and 245 municipalities that work to protect farmland from development for the 246 purchase of an option to purchase at agricultural value, as part of the 247 acquisition of development rights. Any such grant may be used to 248 acquire an option to purchase at agricultural value retroactively from 249 the landowner of restricted agricultural land. 250 (h) In addition to development rights, the commissioner may acquire 251 or accept as a gift the rights of the owner to construct any residences or 252 any farm structures on agricultural land. 253 (i) The Commissioner of Agriculture, pursuant to any cooperative 254 agreement with the United States Department of Agriculture for the 255 disbursement of funds under federal law, may require that any property 256 to which rights are acquired under this section with such funds shall be 257 managed in accordance with a conservation plan which utilizes the 258 standards and specifications of the Natural Resources Conservation 259 Service field office technical guide and is approved by such service. 260 Additionally, such conservation plan shall require the establishment of 261 model pollinator habitat, as described in section 22-90b. Any instrument 262 by which the commissioner acquires such rights and for which any such 263 funds are used may provide for a contingent right in the United States 264 of America in the event that the state of Connecticut fails to enforce any 265 of the terms of its rights acquired under this section which failure shall 266 be determined by the United States Secretary of Agriculture. Such 267 contingent right shall entitle the secretary to enforce any rights acquired 268 by the state under this section by any authority provided under law. 269 Such instrument may provide that such rights shall become vested in 270 the United States of America in the event that the state of Connecticut 271 attempts to terminate, transfer or otherwise divest itself of any such 272 rights without the prior consent of the United States Secretary of 273 Agriculture and payment of consideration to the United States and may 274 further provide that title to such rights may be held by the United States 275 of America at any time at the request of the United States Secretary of 276 Agriculture. In connection with such an agreement, the commissioner 277 Raised Bill No. 5228 LCO No. 1550 10 of 16 may hold the United States harmless from any action based on 278 negligence in the procurement or management of any rights acquired 279 under this section and may assure that proper title evidence is secured, 280 that the title is insured to the amount of the federal cost paid for the 281 interest of the United States of America and that, in the event of a failure 282 of title, as determined by a court of competent jurisdiction, and payment 283 of insurance to the state, the state will reimburse the United States for 284 the amount of the federal cost paid. 285 (j) The commissioner, when acquiring the development rights of any 286 agricultural lands on behalf of the state, may incorporate deed 287 requirements in accordance with the provisions of the federal Farm and 288 Ranch Lands Protection Program, 7 CFR 1491.1, et seq., or under the 289 Agricultural Conservation Easement Program, 7 CFR 1468.1, et seq., or 290 any successive federal farmland protection program. 291 Sec. 3. Section 22-26nn of the general statutes is repealed and the 292 following is substituted in lieu thereof (Effective October 1, 2024): 293 (a) The Commissioner of Agriculture may establish a community 294 farms program for the preservation of farmland that does not meet the 295 criteria of the farmland preservation program established pursuant to 296 section 22-26cc, as amended by this act, for reasons of size, soil quality 297 or location but that may contribute to local economic activity through 298 agricultural production. The commissioner may purchase up to one 299 hundred per cent of the value of development rights directly from an 300 eligible owner, or may acquire development rights on qualifying 301 farmland jointly with a municipality, subject to the appraisal and review 302 required by the regulations adopted pursuant to this section. For the 303 purposes of this section, "development rights" and "owner" have the 304 same meanings as provided in section 22-26bb, as amended by this act. 305 The commissioner may offer grants to land trusts and municipalities 306 that work to protect farmland from development to purchase 307 development rights in order to encourage the continuation of land in 308 agricultural production and maintain such land's long-term availability 309 and affordability for future generations of farmers, including farmer-310 Raised Bill No. 5228 LCO No. 1550 11 of 16 purchasers. The commissioner may consider grant applications that 311 utilize additional mechanisms for such purposes, including, but not 312 limited to, the option to purchase at agricultural value, rights of first 313 refusal, other deed restrictions or stewardship requirements. 314 (b) If the Commissioner of Agriculture establishes a program in 315 accordance with subsection (a) of this subsection, the commissioner 316 shall, in consultation with the Farmland Preservation Advisory Board 317 established under section 22-26ll, establish criteria for said program. 318 Such criteria shall give preference to farms that produce food or fiber, 319 and at a minimum shall consider (1) the probability that the land will be 320 sold for nonagricultural purposes, (2) the current productivity of the 321 land and the likelihood of continued productivity of such land, (3) the 322 suitability of the land for agricultural use, including whether the soil is 323 classified as locally important soils by the United States Department of 324 Agriculture, and (4) the demonstrated level of community support for 325 preservation of the parcel. The commissioner shall, in consultation with 326 said board, consider mechanisms that encourage continuation of the 327 land in agricultural production to maintain its long-term availability 328 and affordability for future generations of farmers, including, but not 329 limited to, deed restrictions or stewardship requirements. 330 (c) Upon the acquisition by the commissioner of the development 331 rights to agricultural land pursuant to this section, the commissioner 332 shall cause to be filed in the appropriate land records and in the office 333 of the Secretary of the State a notice of such acquisition which shall set 334 forth a description of the agricultural land as will be sufficient to give 335 any prospective purchaser of such agricultural land or creditor of the 336 owner thereof notice of such restriction. Upon such filing, the owner of 337 such agricultural land shall not be permitted to exercise development 338 rights with respect to such land, and such development rights shall be 339 considered and deemed dedicated to the state in perpetuity, except as 340 hereinafter provided. If restricted land is to be sold, the owner shall 341 notify the commissioner, in writing, of such impending sale not more 342 than ninety days before transfer of title to the land and shall provide the 343 commissioner with the name and address of the new owner. 344 Raised Bill No. 5228 LCO No. 1550 12 of 16 (d) The Commissioner of Agriculture shall have no power to release 345 such land from its agricultural restriction, except as set forth in this 346 subsection. The Commissioner of Agriculture, in consultation with the 347 Commissioner of Energy and Environmental Protection and such 348 advisory groups as the Commissioner of Agriculture may appoint, may 349 approve (1) a petition by the owner of the restricted agricultural land to 350 remove such restriction provided such petition is approved by 351 resolution of the legislative body of the town, or (2) a petition by the 352 legislative body of the town in which such land is situated to remove 353 such restriction provided such petition is approved in writing by said 354 owner. Upon approval of such a petition by the Commissioner of 355 Agriculture, the legislative body of the town shall submit to the 356 qualified voters of such town the question of removing the agricultural 357 restriction from such land or a part thereof, at a referendum held at a 358 regular election or a special election warned and called for that purpose. 359 In the event a majority of those voting at such referendum are in favor 360 of such removal, the restriction shall be removed from the agricultural 361 land upon filing of the certified results of such referendum in the land 362 records and the office of the Secretary of the State, and the 363 Commissioner of Agriculture shall convey the development rights to 364 such owner provided such owner shall pay the Commissioner of 365 Agriculture an amount equal to the value of such rights. Such petition 366 shall set forth the facts and circumstances upon which the 367 Commissioner of Agriculture shall consider approval, and said 368 commissioner shall deny such approval unless said commissioner 369 determines that the public interest is such that there is an overriding 370 necessity to relinquish control of the development rights. The 371 Commissioner of Agriculture shall hold at least one public hearing prior 372 to the initiation of any proceedings hereunder. The expenses, if any, of 373 the hearing and the referendum shall be borne by the petitioner. In the 374 event that the state sells any development rights under the procedure 375 provided in this subsection, it shall receive the value of such rights. 376 (e) Whenever the Commissioner of Agriculture acquires the 377 development rights of any agricultural land pursuant to this section and 378 Raised Bill No. 5228 LCO No. 1550 13 of 16 the purchase price of such development rights is ten thousand dollars 379 or more, said commissioner and the owner of such land may enter into 380 a written agreement which provides for the payment of the purchase 381 price in two or three annual installments, but no interest shall be paid 382 on any unpaid balance of such purchase price. 383 (f) Whenever the commissioner acquires the development rights to 384 any agricultural land, and any municipality in which all or part of the 385 land is situated paid a part of the purchase price from a fund established 386 pursuant to section 7-131q, such municipality and the state may jointly 387 own the development rights. The land may be released from its 388 agricultural restriction in accordance with the provisions of subsection 389 (d) of this section. The commissioner shall adopt regulations, in 390 accordance with the provisions of chapter 54, establishing procedures 391 for the joint acquisition of development rights to agricultural land. 392 (g) The acquisition of the development rights to any agricultural land 393 by the commissioner shall not be deemed to be ownership of such land 394 and the state shall not be liable for pollution or contamination of such 395 land and no person may bring a civil action against the state for 396 damages resulting from pollution or contamination of such agricultural 397 land. 398 (h) The commissioner may issue a letter of intent requesting the 399 assistance of a nonprofit organization, as defined in Section 501(c)(3) of 400 the Internal Revenue Code of 1986, or any subsequent corresponding 401 internal revenue code of the United States, as from time to time 402 amended, in acquiring the development rights to certain agricultural 403 land. If such organization acquires such rights it may sell them to the 404 commissioner based on a purchase agreement. Such agreement may 405 include reimbursement for reasonable expenses incurred in the 406 acquisition of the rights as well as payment for the rights. The 407 commissioner may enter into joint ownership agreements to acquire the 408 development rights to any qualified agricultural land with any 409 nonprofit organization, as defined in Section 501(c)(3) of the Internal 410 Revenue Code of 1986, or any subsequent corresponding internal 411 Raised Bill No. 5228 LCO No. 1550 14 of 16 revenue code of the United States, as from time to time amended, 412 provided the mission of such nonprofit organization is the permanent 413 protection of agricultural land for the purposes of continued 414 agricultural use. 415 (i) In addition to development rights, the commissioner may acquire 416 or accept as a gift the rights of the owner to construct any residences or 417 any farm structures on agricultural land. 418 (j) The Commissioner of Agriculture, pursuant to any cooperative 419 agreement with the United States Department of Agriculture for the 420 disbursement of funds under federal law, may require that any property 421 to which rights are acquired under this section with such funds shall be 422 managed in accordance with a conservation plan which utilizes the 423 standards and specifications of the Natural Resources Conservation 424 Service field office technical guide and is approved by such service. 425 Additionally, such conservation plan shall require the establishment of 426 model pollinator habitat, as described in section 22-90b. Any instrument 427 by which the commissioner acquires such rights and for which any such 428 funds are used may provide for a contingent right in the United States 429 of America in the event that the state of Connecticut fails to enforce any 430 of the terms of its rights acquired under this section which failure shall 431 be determined by the United States Secretary of Agriculture. Such 432 contingent right shall entitle the United States Secretary of Agriculture 433 to enforce any rights acquired by the state under this section by any 434 authority provided under law. Such instrument may provide that such 435 rights shall become vested in the United States of America in the event 436 that the state of Connecticut attempts to terminate, transfer or otherwise 437 divest itself of any such rights without the prior consent of the United 438 States Secretary of Agriculture and payment of consideration to the 439 United States and may further provide that title to such rights may be 440 held by the United States of America at any time at the request of the 441 United States Secretary of Agriculture. In connection with such an 442 agreement, the commissioner may hold the United States harmless from 443 any action based on negligence in the procurement or management of 444 any rights acquired under this section and may assure that proper title 445 Raised Bill No. 5228 LCO No. 1550 15 of 16 evidence is secured, that the title is insured to the amount of the federal 446 cost paid for the interest of the United States of America and that, in the 447 event of a failure of title, as determined by a court of competent 448 jurisdiction, and payment of insurance to the state, the state will 449 reimburse the United States for the amount of the federal cost paid. 450 (k) The commissioner, when acquiring the development rights of any 451 agricultural lands on behalf of the state pursuant to this section, may 452 incorporate deed requirements in accordance with the provisions of the 453 federal Farm and Ranch Lands Protection Program, 7 CFR 1491.1, et 454 seq., or under the Agricultural Conservation Easement Program, 7 CFR 455 1468.1, et seq., or any successive federal farmland protection program. 456 (l) A restriction may include a provision that enables a municipality 457 or a nonprofit land trust to acquire, at the expense of such municipality 458 or land trust, an option to purchase such restricted agricultural land at 459 agricultural value. If executed, an option to purchase at agricultural 460 value may be included within the recorded document evidencing an 461 agricultural restriction on such land and shall exist in perpetuity upon 462 such land and bind all future owners of such land. The municipality or 463 nonprofit land trust that acquires such an option to purchase at 464 agricultural value shall be solely responsible for enforcement of such 465 option at its own cost. 466 (m) Within available appropriations, the Department of Agriculture 467 may establish and administer a grant program to fund the acquisition of 468 options to purchase at agricultural value by municipalities and 469 nonprofit land trusts. 470 This act shall take effect as follows and shall amend the following sections: Section 1 October 1, 2024 22-26bb Sec. 2 October 1, 2024 22-26cc Sec. 3 October 1, 2024 22-26nn Raised Bill No. 5228 LCO No. 1550 16 of 16 Statement of Purpose: To authorize the issuance of state funds for municipalities and nonprofits to purchase options to purchase preserved agricultural lands at agricultural value. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]