Pennsylvania Act 1992-23 — AGRICULTURAL AREA SECURITY LAW - OMNIBUS AMENDMENTS

Act text

AGRICULTURAL AREA SECURITY LAW - OMNIBUS AMENDMENTS
                  Act of Apr. 13, 1992, P.L. 100, No. 23              Cl. 03
                             Session of 1992
                               No. 1992-23

     SB 1067

                                  AN ACT

     Amending the act of June 30, 1981 (P.L.128, No.43), entitled "An
        act authorizing the creation of agricultural areas," further
        defining "normal farming operations"; further providing for
        agricultural security areas, for decisions on proposed areas
        and for agricultural conservation easements; increasing
        limitation on debt obligations; and making an appropriation.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  The definition of "normal farming operations" in
     section 3 of the act of June 30, 1981 (P.L.128, No.43), known as
     the Agricultural Area Security Law, amended December 14, 1988
     (P.L.1202, No.149), is amended to read:
      Section 3.  Definitions.
        The following words and phrases when used in this act shall
     have the meanings given to them in this section, unless the
     context clearly indicates otherwise:
        * * *
        "Normal farming operations."  The customary and generally
     accepted activities, practices, and procedures that farmers
     adopt, use, or engage in year after year in the production and
     preparation for market of crops, livestock, and livestock
     products and in the production and harvesting of agricultural,
     agronomic, horticultural, silvicultural, and aquacultural crops
     and commodities. The term includes the storage and utilization
     of agricultural and food processing wastes for animal feed and
     the disposal of manure, other agricultural waste and food
     processing waste on land where the materials will improve the
     condition of the soil or the growth of crops or will aid in the
     restoration of the land for the same purposes.
        * * *
        Section 2.  Section 5(a), (a.1) and (a.2) of the act, amended
     December 14, 1988 (P.L.1202, No.149), are amended and the
     section is amended by adding a subsection to read:
      Section 5.  Agricultural security areas.
        (a)  Proposals for creation.--Any owner or owners of land
     used for agricultural production may submit a proposal to the
     governing body for the creation of an agricultural security area
     within such local government unit, provided that such owner or
     owners own at least 500 acres of viable agricultural land
     proposed to be included in the area. The proposed area may also
     consist of two or more noncontiguous tax parcels or [areas]
     accounts: Provided, That each tax parcel or [area] account is at
     least ten acres.
        (a.1)  Submitting the proposal.--Such proposal for creation
     of an agricultural security area shall be submitted in such
     manner and form as may be prescribed by the governing body of
     the local government unit wherein the proposed area is situated
     and shall include a description of the proposed area, including
     the boundaries thereof. Such proposal to the governing body
     shall be submitted by certified mail with return receipt
     requested. The return receipt shall serve as notice of the
     official receipt of the proposal by the governing body and shall
     verify the official submission date.
        (a.2)  Proposals for agricultural security areas in more than
     one local government unit.--If the land included in a proposal
     for an agricultural security area is situated in more than one
     local government unit, the proposal shall be submitted to, and
     approval of the proposal shall be sought from, the governing
     body of each such local government unit affected. The governing
     bodies may cooperate in the review of a proposed agricultural
     security area and may provide joint public notices, a joint
     agricultural security area advisory committee and a joint public
     hearing on the security area. A rejection by a governing body
     shall exclude that portion of the proposal which is situated
     within the local government unit. However, such rejection shall
     not preclude the approval of the remaining portion of the
     proposal as an agricultural security area by the governing body
     of the other affected local government units, provided that the
     total acreage approved is at least 500 acres and that such
     approved portion meets all other requirements imposed under this
     act for agricultural security areas.
        (a.3)  Fees.--A governing body shall not require landowners
     included in a proposed agricultural security area to pay any
     fees in connection with the application for or the review of
     agricultural security areas as required in this section and
     sections 6, 7, 8 and 9.
        * * *
        Section 3.  Section 8 of the act, amended December 14, 1988
     (P.L.1202, No.149), is amended to read:
      Section 8.  Decision on proposed area.
        (a)  Action by governing body.--The governing body, upon
     completion of the procedures and considerations prescribed in
     sections 5, 6 and 7, may adopt the proposal or any modification
     of the proposal the governing body deems appropriate, including
     the inclusion, to the extent feasible, of adjacent viable farm
     lands if the land owner has made application to be included,
     and, the exclusion, to the extent feasible, of nonviable farm
     land and nonfarm land. The existence of utility facilities on
     the proposed area shall not prevent the adoption of such area as
     an agricultural security area nor shall the rights of utilities
     with respect to the existing facilities be disturbed or affected
     by such adoption. The governing body shall act to adopt or
     reject the proposal, or any modification, no later than 180 days
     from the date the proposal was originally submitted. Failure by
     the governing body to act within this 180-day period shall be
     deemed adoption of the proposal without modification.
        (b)  Notification by governing body of reasons for
     rejection.--Within ten days of the governing body's decision to
     reject or modify the proposal, the governing body shall submit
     to the owner or owners of the land a written decision stating
     why the proposal was not adopted or was modified. The written
     decision shall include a finding of fact, review of the
     evaluation criteria prescribed in section 7 and a discussion of
     reasons for rejection or modification of the proposal.
        [(b)] (c)  Effective date of creation of area.--An
     agricultural security area shall become effective upon the
     adoption of the proposal or its modification by the governing
     body or upon expiration of the 180-day period as provided in
     subsection (a). If the proposal has included land situated in
     more than one local government unit, the agricultural security
     area shall become effective upon adoption by the local
     government unit or units of such portion of the proposal or
     proposed modifications as will meet the minimum acreage and
     other requirements of an agricultural security area provided in
     this act. Subsequent adoption of the remaining portion shall
     immediately effectuate such portion as an agricultural security
     area.
        [(c)] (d)  Filing of area description.--Within ten days of
     the creation of an agricultural security area, a description
     thereof shall be filed by the governing body with the recorder
     of deeds, who shall record the [filing] description, and with
     the planning commissions of the county and of the local
     government unit. [Filing] Recording shall be done in a manner
     which is sufficient to give notice to all persons who have, may
     acquire or may seek to acquire an interest in land in or
     adjacent to the created agricultural security area. Upon the
     failure of the governing body to file a description or recorder
     of deeds to [file or] record the created agricultural security
     area in accordance with the time or manner requirements
     prescribed in this subsection, any person adversely affected may
     file a petition with the court of common pleas to compel
     immediate compliance with the provisions of this subsection.
        [(d)] (e)  Participation.--Participation in the agricultural
     security area shall be available on a voluntary basis to
     landowners within the jurisdiction of the governing body
     including those not among the original petitioners. The deletion
     of land in the agricultural security area shall only occur after
     seven years or whenever the agricultural security area is
     subject to review by the governing body. The addition of land to
     the agricultural security area may occur at any time during the
     seven-year period provided for in section 9: Provided, That any
     proposal for such addition, and for approval or disapproval
     thereof, shall follow all the procedures and requirements of
     sections 5, 6 and 7 and this section for proposal, consideration
     and decision as to approval or disapproval of the original
     agricultural security area. If the land comprising the
     additional proposal could be added to more than one existing
     agricultural security area, or shall lie in more than one
     township, the proposal shall be considered as an addition to the
     agricultural security area which was first approved. Land added
     to an existing agricultural security area during any seven-year
     period shall be reviewed at the same time as all other land in
     the agricultural security area.
        (f)  Notification to secretary.--Within ten days of the
     recording of the agricultural security area, the governing body
     shall notify the Secretary of Agriculture that the area has been
     approved and recorded, modified or terminated. Such notification
     shall be in writing and shall include the number of landowners,
     the total acreage of the area, the date of approval by the
     governing body and the date of recording. The notification shall
     include only one landowner when land is under multiple ownership
     or is comprised of multiple parcels or accounts.
        Section 4.  Section 14.1(g) and (h) of the act, amended
     December 14, 1988 (P.L.1202, No.149) and June 22, 1990 (P.L.242,
     No.57), are amended and subsection (a) is amended by adding a
     paragraph to read:
      Section 14.1.  Purchase of agricultural conservation easements.
        (a)  State Agricultural Land Preservation Board.--The
     Department of Agriculture and the State Agricultural Land
     Preservation Board shall administer pursuant to this section a
     program for the purchase of agricultural conservation easements
     by the Commonwealth.
            * * *
            (4)  The State board is authorized to:
                (i)  Take the actions necessary to qualify for
            Federal guarantees and interest rate assistance for
            agricultural easement purchase loans under Chapter 2 of
            the Food, Agriculture, Conservation, and Trade Act of
            1990 (Public Law 101-624, 104 Stat. 3616).
                (ii)  Segregate from the Agricultural Conservation
            Easement Purchase Fund, into a Farms for the Future Trust
            Fund, funds necessary to qualify for the maximum amount
            of funding made available under the Federal act. There
            shall be deposited in this trust fund, and are
            appropriated for the purposes of this act, any interest
            rate assistance subsidies provided by participation in
            the Federal program. The State board is authorized to
            deposit interest accruing on moneys in the trust fund, in
            excess of the amounts needed to satisfy interest
            payments, in the Agricultural Conservation Easement
            Purchase Fund.
        * * *
        (g)  Purchase price.--The price paid for purchase of an
     agricultural conservation easement in perpetuity shall not
     exceed the difference between the nonagricultural value and the
     agricultural value determined pursuant to subsection (f) at the
     time of purchase, unless the difference is less than the State
     or county boards' original appraised value in which case the
     State or county boards' original easement value may be offered.
     The price paid for purchase of an easement for a term of 25
     years shall not exceed one-tenth of the difference between the
     nonagricultural value and the agricultural value determined
     pursuant to subsection (f) at the time of purchase. The purchase
     price may be paid in a lump sum, in installments over a period
     of years, or in any other lawful manner of payment. If payment
     is to be made in installments or another deferred method, the
     person selling the easement may receive, in addition to the
     selling price, interest in an amount or at a rate set forth in
     the agreement of purchase, and final payment shall be made
     within, and no later than, five years from the date the
     agricultural conservation easement purchase agreement was
     executed.
        (h)  Allocation of State moneys.--The State board shall make
     an annual allocation among counties, except counties of the
     first class, for the purchase of agricultural conservation
     easements.
            (1)  As used in this subsection, the following words and
        phrases shall have the meanings given to them in this
        paragraph unless the context clearly indicates otherwise:
                (i)  "Adjusted weighted transfer tax revenues."  An
            amount equal to the weighted transfer tax revenues of a
            county divided by the sum of the weighted transfer tax
            revenues of all counties except counties of the first
            class.
                (ii)  "Annual agricultural production."  The total
            dollar volume of sales of livestock, crops and
            agricultural products according to the most recent Annual
            Crop and Livestock Summary published by the Pennsylvania
            Agricultural Statistics Service.
                (iii)  "Annual easement purchase threshold."  An
            amount annually determined by the State board which
            equals at least $10,000,000.
                (iv)  "Average realty transfer tax revenues."  The
            total annual realty transfer tax revenues collected in
            all counties, except counties of the first class, divided
            by 66.
                (v)  "Realty transfer tax revenues."  The tax imposed
            and collected under section 1102-C of the act of March 4,
            1971 (P.L.6, No.2), known as the "Tax Reform Code of
            1971."
                (vi)  "Weighted transfer tax revenues."  An amount
            equal to the total annual realty transfer tax revenues
            collected in a county divided by the sum of the total
            annual realty transfer tax revenues collected in all
            counties except counties of the first class which does
            not exceed three times the average realty transfer tax
            revenues.
            (2)  An annual allocation shall be made to each county,
        except counties of the first class, for the purchase of
        agricultural conservation easements by the Commonwealth at
        the beginning of the county fiscal year which equals 50% of
        the annual easement purchase threshold multiplied by the
        adjusted weighted transfer tax revenues of the county for the
        preceding calendar year.
            (3)  If the aggregate annual allocation under this
        paragraph to all eligible counties does not exceed 50% of the
        annual easement purchase threshold, an additional annual
        allocation from 50% of the annual easement purchase threshold
        shall be made to a county, except a county of the first
        class, at the beginning of the county fiscal year for the
        joint purchase of agricultural conservation easements by the
        Commonwealth and a county. The additional annual allocation
        under this paragraph shall equal the sum of:
                (i)  The annual appropriation of local moneys by a
            county for the purchase of agricultural conservation
            easements which does not exceed the average annual
            allocation under paragraph (2) multiplied by four.
                (ii)  The annual appropriation of local moneys by a
            county for the purchase of agricultural conservation
            easements which does not exceed the average annual
            allocation under paragraph (2) multiplied by four, if the
            county has an annual agricultural production which equals
            at least 2% of the total annual agricultural production
            of the Commonwealth for the same year.
            (4)  If the aggregate annual allocation under paragraph
        (3) to all eligible counties would exceed 50% of the annual
        easement purchase threshold, paragraph (3) shall not apply,
        and an additional annual allocation shall be made under this
        paragraph at the beginning of the county fiscal year for the
        joint purchase of agricultural conservation easements by the
        Commonwealth and a county, except a county of the first
        class. The additional annual allocation to a county under
        this paragraph shall equal 50% of the annual easement
        purchase threshold multiplied by a percentage equal to the
        annual appropriation of local moneys appropriated by the
        county for the purchase of agricultural conservation
        easements divided by the aggregate of local moneys
        appropriated by all eligible counties for the purchase of
        agricultural conservation easements and in all cases shall
        not exceed the average annual allocation under paragraph (2)
        multiplied by four.
            (5)  An additional annual allocation shall be made to a
        county, except a county of the first class, from the amount
        by which 50% of the annual easement purchase threshold
        exceeds the total allocations made under paragraph (3) or
        (4), as the case may be, as follows:
                (i)  An additional annual allocation shall be made
            for the joint purchase of agricultural conservation
            easements by the Commonwealth and a county which equals
            six-tenths of the amount by which 50% of the annual
            easement purchase threshold exceeds the total allocations
            made under paragraph (3) or (4), as the case may be,
            multiplied by a percentage equal to the annual
            appropriation of local moneys appropriated by the county
            for the purchase of agricultural conservation easements
            divided by the aggregate of local moneys appropriated by
            all eligible counties for the purchase of agricultural
            conservation easements.
                (ii)  An additional annual allocation shall be made
            for the purchase of agricultural conservation easements
            by the Commonwealth which equals four-tenths of the
            amount by which 50% of the annual easement purchase
            threshold exceeds the total allocations made under
            paragraph (3) or (4), as the case may be, multiplied by
            the adjusted weighted transfer tax revenues of the county
            for the preceding calendar year.
            (6)  The allocation of a county shall be adjusted for
        purchases of agricultural conservation easements made with
        moneys from the county's allocation, for all costs, except
        administrative costs, incurred by the Commonwealth or a
        county incident to the purchase of agricultural conservation
        easements and for the costs of reimbursing nonprofit land
        conservation organizations for expenses incurred in acquiring
        and transferring agricultural conservation easements to the
        Commonwealth or county. No purchase of an agricultural
        conservation easement shall be made with State moneys
        allocated to a county unless the amount of the purchase price
        is equal to or less than the adjusted allocation or the
        county pays the portion of the purchase price which
        represents the difference between the purchase price and the
        adjusted allocation.
            (7)  The first annual allocation to a county under
        paragraphs (3), (4) and (5)(i) shall continue for three
        county fiscal years occurring after the effective date of
        this act, and the second and third such annual allocations
        shall each continue for two county fiscal years occurring
        after the effective date of this act. Thereafter each such
        annual allocation shall be for one county fiscal year. Such
        annual allocations which have not been expended or encumbered
        at the end of the period for which they were [made] allocated
        shall be reallocated in the subsequent county fiscal year to
        a county which used at least 90% of [such total annual
        allocation] the allocation made to the county at the start of
        the period. The reallocation to a county under this paragraph
        shall be the total amount of the annual allocation available
        for reallocation under this paragraph multiplied by a
        percentage equal to the annual appropriation of local moneys
        appropriated by the county [for the previous county fiscal
        year] for the purchase of agricultural conservation easements
        at the start of the county fiscal year in which the annual
        allocation was made divided by the aggregate of local moneys
        appropriated by all eligible counties for [the previous
        county fiscal year for the purchase of agricultural
        conservation easements.] the purchase of agricultural
        conservation easements at the start of the county fiscal year
        in which the annual allocation was made. Money reallocated to
        a county under this paragraph shall be available for one
        county fiscal year. Money reallocated to a county under this
        paragraph that has not been spent or encumbered at the
        conclusion of one county fiscal year shall be restored to the
        fund.
            (8)  Initial allocations to counties under paragraphs (2)
        and (5)(ii) shall continue until the end of the fourth county
        fiscal year occurring after the effective date of this act.
        The sum of the total annual allocations of all counties under
        paragraphs (2) and (5)(ii) which have not been expended or
        encumbered by the end of the [third] fourth county fiscal
        year, and every county fiscal year thereafter, occurring
        after the effective date of this act shall be reallocated in
        the subsequent county fiscal year to a county which used at
        least 90% of [such total allocation.] the allocation made to
        the county at the start of the period. For purposes of
        determining eligibility for reallocation of funds and the
        amounts of reallocation, funds allocated to counties will be
        segregated and accounted for on a county fiscal year basis.
        Fifty percent of the amount available for allocation under
        this paragraph shall be reallocated in the manner set forth
        in paragraph (2), and 50% of the amount available for
        allocation under this paragraph shall be reallocated in the
        manner set forth in paragraphs (3), (4) and (5). For purposes
        of reallocating funds in the manner set forth in paragraph
        (2), realty transfer tax revenues used to calculate weighted
        transfer tax revenues shall correspond to the year for which
        funds are being reallocated and weighted transfer tax
        revenues shall be calculated only for counties eligible under
        this paragraph. Money reallocated to a county under this
        paragraph shall be available for one county fiscal year.
        Money reallocated to a county under this paragraph that has
        not been spent or encumbered at the conclusion of one county
        fiscal year shall be restored to the fund.
            (9)  The allocation made to a county under this
        subsection shall be used for the purchase of agricultural
        conservation easements in perpetuity: Provided, That no more
        than 30% of such allocation may be used at the option of a
        county for the purchase of agricultural conservation
        easements for a term of 25 years in the manner provided for
        in this act.
        Section 5.  Section 14.3(e) of the act, added December 14,
     1988 (P.L.1202, No.149), is amended to read:
      Section 14.3.  Commonwealth indebtedness.
        * * *
        (e)  Annual limitation on debt obligations issued.--Bonds and
     notes (not including refunding bonds or replacement notes), as
     authorized herein, shall not be issued in the aggregate
     principal amount of more than [$20,000,000] $25,000,000 during
     any one State fiscal year. Any interfund transfers made or to be
     made pursuant to section 14.2(b)(1) during any State fiscal year
     may not be made, or cause to be outstanding at any time, in any
     amount greater than the difference between [$20,000,000]
     $25,000,000 and the aggregate principal amount of bonds and
     notes (not including refunding bonds or replacement notes)
     issued under the authority of this act during such State fiscal
     year.
        * * *
        Section 6.  This act shall take effect immediately.

     APPROVED--The 13th day of April, A. D. 1992.

     ROBERT P. CASEY