4. a. Funds shall be distributed each State fiscal year from the "Highlands Protection Fund" created pursuant to section 21 of P.L.2004, c.120 (C.13:20-19) to each municipality within the Highlands Region that does not receive watershed moratorium offset aid pursuant to section 1 of P.L.1999, c.225 (C.58:29-8), but hosts watershed lands for those watershed lands, as determined by the Highlands Water Protection and Planning Council, in amounts equal to the per acre rate provided for watershed moratorium offset aid.
b. The State Treasurer shall include in its annual budget request to the Governor the moneys necessary to distribute funds to those municipalities eligible for watershed property municipal aid pursuant to subsection a. of this section. The Legislature shall appropriate the necessary funds to the department for this purpose.