| 4 | 3 | | |
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| 5 | 4 | | SENATE BILL 207 |
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| 6 | 5 | | By Johnson |
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| 7 | 6 | | |
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| 8 | 7 | | |
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| 9 | 8 | | SB0207 |
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| 10 | 9 | | 000920 |
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| 11 | 10 | | - 1 - |
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| 12 | 11 | | |
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| 13 | 12 | | AN ACT to amend Tennessee Code Annotated, Title 43, |
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| 14 | 13 | | Chapter 1, Part 1, relative to the farmland |
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| 15 | 14 | | preservation fund. |
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| 16 | 15 | | |
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| 17 | 16 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE: |
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| 18 | 17 | | SECTION 1. Tennessee Code Annotated, Title 43, Chapter 1, Part 1, is amended by |
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| 19 | 18 | | adding the following as a new section: |
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| 20 | 19 | | 43-1-1__. Farmland preservation fund. |
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| 21 | 20 | | (a) It is the intent of the general assembly to preserve farmland and forestland in |
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| 22 | 21 | | Tennessee without limiting the ability of farmers and foresters to use their property for |
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| 23 | 22 | | their agricultural pursuits. The general assembly intends to secure the economic, |
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| 24 | 23 | | environmental, and societal benefits of farmland and forestland for future generations. |
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| 25 | 24 | | Further, the general assembly finds Tennessee history and culture to be positively |
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| 26 | 25 | | impacted by agricultural endeavors and believes preserving farmland and forestland will |
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| 27 | 26 | | provide food security for generations to come. |
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| 28 | 27 | | (b) Subject to annual appropriations, there is established a fund for the |
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| 29 | 28 | | development and implementation of programs that benefit Tennesseans by preserving |
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| 30 | 29 | | farmland and forestland, including a grant program for conservation easements. |
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| 31 | 30 | | (1) There is established within the general fund a special agency account |
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| 32 | 31 | | to be known as the farmland preservation fund for funds allocated to the |
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| 33 | 32 | | department of agriculture for purposes of this section. |
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| 34 | 33 | | (2) Any unencumbered moneys and unexpended balance of the fund |
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| 35 | 34 | | remaining at the end of a fiscal year does not revert to the general fund but must |
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| 36 | 35 | | be carried forward and maintained until expended in accordance with this |
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| 37 | 36 | | |
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| 38 | 37 | | |
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| 39 | 38 | | - 2 - 000920 |
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| 40 | 39 | | |
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| 41 | 40 | | section. The state treasurer shall invest moneys in the fund for the fund's benefit |
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| 42 | 41 | | pursuant to § 9-4-603. Interest accruing on investments and deposits of the fund |
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| 43 | 42 | | must be returned to the fund and remain a part of the fund. The fund must only |
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| 44 | 43 | | consist of moneys appropriated from the general fund or interest accruing on |
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| 45 | 44 | | investments and deposits in the fund. |
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| 46 | 45 | | (3) The commissioner of agriculture shall administer the fund. |
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| 47 | 46 | | (c) |
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| 48 | 47 | | (1) As used in this subsection (c), "qualified easement holder" means a |
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| 49 | 48 | | 501(c)(3) nonprofit organization that is exempt from federal income taxation |
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| 50 | 49 | | under Section 501(c)(3) of the Internal Revenue Code (26 U.S.C. § 501(c)(3)) |
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| 51 | 50 | | and that acquires or proposes to acquire a conservation easement on farmland |
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| 52 | 51 | | or forestland in the state, whether through purchase, donation, or other transfer. |
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| 53 | 52 | | (2) Subject to the following, the department of agriculture shall develop a |
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| 54 | 53 | | grant program within the farmland preservation fund for farmland and forestland |
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| 55 | 54 | | owners to enroll their land in a permanent conservation easement held by a |
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| 56 | 55 | | qualified easement holder: |
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| 57 | 56 | | (A) The department of agriculture may award a grant to a |
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| 58 | 57 | | qualified easement holder or directly to the farmer or forester; |
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| 59 | 58 | | (B) A grant application must include, at a minimum, the following: |
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| 60 | 59 | | (i) Proof satisfactory to the department of agriculture that |
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| 61 | 60 | | the farmer or forester has entered into, or has contracted to enter |
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| 62 | 61 | | into, a conservation easement with a qualified easement holder; |
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| 63 | 62 | | and |
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| 64 | 63 | | |
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| 65 | 64 | | |
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| 66 | 65 | | - 3 - 000920 |
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| 67 | 66 | | |
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| 68 | 67 | | (ii) Proof satisfactory to the department of agriculture that |
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| 69 | 68 | | the farmland or forestland covered by the conservation easement |
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| 70 | 69 | | will be used for farm or forestry purposes; and |
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| 71 | 70 | | (C) A qualified easement holder shall not sell, transfer, release, or |
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| 72 | 71 | | otherwise divest a conservation easement acquired by participating in the |
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| 73 | 72 | | grant program. |
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| 74 | 73 | | (d) Governmental entities are not eligible to participate in a grant |
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| 75 | 74 | | program created pursuant to this section. |
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| 76 | 75 | | (e) The commissioner of agriculture is authorized to promulgate rules to |
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| 77 | 76 | | effectuate this section, including the establishment of eligibility criteria. The rules |
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| 78 | 77 | | must be promulgated in accordance with the Uniform Administrative Procedures |
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| 79 | 78 | | Act, compiled in title 4, chapter 5. |
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| 80 | 79 | | SECTION 2. The heading in this act is for reference purposes only and does not |
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| 81 | 80 | | constitute a part of the law enacted by this act. However, the Tennessee Code Commission is |
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| 82 | 81 | | requested to include the headings in any compilation or publication containing this act. |
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| 83 | 82 | | SECTION 3. For purposes of promulgating rules, this act takes effect upon becoming a |
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| 84 | 83 | | law, the public welfare requiring it. For all other purposes, this act takes effect on July 1, 2025, |
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| 85 | 84 | | the public welfare requiring it. |
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