HB 5064 — AN ACT ESTABLISHING A GRANT PROGRAM FOR AGRICULTURAL PRESERVATION AND FARMLAND ACCESS PURPOSES.

Substitute House ofBill Representatives General Assembly File No.

3895064 JanuaryPublic Session,Act 2025 Substitute House Bill No.

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PARKER of the 101st Dist., Chairperson of the Committee on the part of the House, that the substitute bill ought to pass.

AN ACT ESTABLISHING A GRANT PROGRAM FOR AGRICULTURAL PRESERVATION AND FARMLAND ACCESS PURPOSES.

(NEW) (Effective July 1, 2025)2027) The Department of Agriculture, within available appropriations, may establish and administer a grant program for the purpose of providing grants to hold land for agricultural preservation purposes by any:

In carrying out such purpose, any such grant may be expended for developing farmland access and affordability programs, other than such programs sHB5064that /may Fileexist No.as of the effective date of this section.

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389 that may exist as of the effective date of this section.

ThisSubstitute actHouse shallBill takeNo. effect as follows and shall amend the following sections:

Section5064 1Governor's JulyAction: 1, 2025 New section ENV Joint Favorable Subst.

sHB5064Approved /July File1, 2025 Public Act No.

38925-141 2 sHB5064of File2 No.

389 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 26 $ FY 27 $ Department of Agriculture GF - Potential 215,130 215,130 Cost State Comptroller - Fringe GF - Potential 83,508 83,508 Benefits1 Cost Department of Agriculture GF - Potential Significant Significant Cost Note:

GF=General Fund Municipal Impact:

None Explanation The bill results in a potential significant annual cost to the Department of Agriculture (DoAG), beginning in FY 26, associated with the establishment of a new grant program to fund various agricultural land preservation.

The bill allows but does not require DoAG to establish and administer the new grant program.

DoAG does not currently have the staff to establish and administer the new grant program and would require two new full-time positions, including:

one Grant and Contract Specialist (annual salary of $103,227) and one Property Agent 2 (annual salary of $101,903).

The additional full-time positions would result in a total cost of $205,130 (corresponding fringe benefits of $83,508) and approximately $10,000 in other expenses.

The fringe benefit costs for most state employees are budgeted centrally in accounts administered by the Comptroller.

The estimated active employee fringe benefit cost associated with most personnel changes is 40.71% of payroll in FY 26.

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389 Additionally, DoAG would require additional grant funding, for selected grantees.

It is estimated, based on similar programs, that an average eligible grant award would range from $500,000 to $1.5 million.

The total cost of the grants would vary based on the number of grantees and the amount of each award.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to inflation and the amount of grants awarded annually.

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389 OLR Bill Analysis sHB 5064 AN ACT ESTABLISHING A GRANT PROGRAM FOR AGRICULTURAL PRESERVATION AND FARMLAND ACCESS PURPOSES.

SUMMARY This bill allows the Department of Agriculture, within available appropriations, to establish and administer a grant program to fund agricultural land preservation by agricultural nonprofits, municipalities, groups of municipalities, municipalities in a regional interlocal agreement, or regional councils of governments.

Under the bill, grantees may use the funds to develop new farmland access and affordability programs.

Grants cannot be used for any purpose that conflicts with farmland preservation.

EFFECTIVE DATE:

July 1, 2025 COMMITTEE ACTION Environment Committee Joint Favorable Substitute Yea 33 Nay 0 (03/14/2025) sHB5064 / File No.