act-2006-0-46•Pennsylvania Act 2006-46 — AGRICULTURAL AREA SECURITY LAW - OMNIBUS AMENDMENTS
Pennsylvania Act 2006-46 — AGRICULTURAL AREA SECURITY LAW - OMNIBUS AMENDMENTS
act-2006-0-462006 Pa. Act 46Law
Act text
AGRICULTURAL AREA SECURITY LAW - OMNIBUS AMENDMENTS
Act of May 15, 2006, P.L. 190, No. 46 Cl. 03
Session of 2006
No. 2006-46
SB 723
AN ACT
Amending the act of June 30, 1981 (P.L.128, No.43), entitled "An
act authorizing the creation of agricultural areas," further
providing for statement of legislative findings, for
definitions, for limitation on certain governmental actions,
for purchase of agricultural conservation easements, for the
Agricultural Conservation Easement Purchase Fund, for
legislative report and for the Land Trust Reimbursement
Program; providing for acquisitions by donation; and
abrogating a regulation.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2 of the act of June 30, 1981 (P.L.128,
No.43), known as the Agricultural Area Security Law, is amended
by adding a paragraph to read:
Section 2. Statement of legislative findings.
It is the declared policy of the Commonwealth to conserve and
protect and to encourage the development and improvement of its
agricultural lands for the production of food and other
agricultural products. It is also the declared policy of the
Commonwealth to conserve and protect agricultural lands as
valued natural and ecological resources which provide needed
open spaces for clean air, as well as for aesthetic purposes.
Article VIII, section 2 of the Constitution of Pennsylvania
provides that the General Assembly may, by law, establish
standards and qualifications for agricultural reserves.
Agriculture in many parts of the Commonwealth is under urban
pressure from expanding metropolitan areas. This urban pressure
takes the form of scattered development in wide belts around
urban areas, and brings conflicting land uses into
juxtaposition, creates high costs for public services, and
stimulates land speculation. When this scattered development
extends into good farm areas, ordinances inhibiting farming tend
to follow, farm taxes rise, and hopes for speculative gains
discourage investments in farm improvements. Many of the
agricultural lands in the Commonwealth are in jeopardy of being
lost for any agricultural purposes. Certain of these lands
constitute unique and irreplaceable land resources of Statewide
importance. It is the purpose of this act to provide means by
which agricultural land may be protected and enhanced as a
viable segment of the Commonwealth's economy and as an economic
and environmental resource of major importance.
It is further the purpose of this act to:
* * *
(6) Encourage financial partnerships between State and
local governments with nonprofit entities in order to
increase the funds available for agricultural conservation
easement purchases.
Section 2. Section 3 of the act is amended by adding a
definition 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:
* * *
"Eligible nonprofit entity." An entity that provides the
State board or an eligible county satisfactory proof of all of
the following:
(1) That the entity is tax exempt under section
501(c)(3) of the Internal Revenue Code of 1986 (Public Law
99-514, 26 U.S.C. § 501(c)(3)).
(2) That the entity has experience acquiring, whether
through purchase, donation or other transfer, an agricultural
or other conservation easement.
* * *
Section 3. Section 13(a) and (b) of the act, amended
December 14, 1988 (P.L.1202, No.149), are amended to read:
Section 13. Limitation on certain governmental actions.
(a) Approval required for condemnation and for certain other
actions by an agency of the Commonwealth.--No agency of the
Commonwealth having or exercising powers of eminent domain shall
condemn for any purpose any land within any agricultural
security area which land is being used for productive
agricultural purposes (not including the growing of timber)
unless prior approval has been obtained in accordance with the
criteria and procedures established in this section from the
Agricultural Lands Condemnation Approval Board as established in
section 306 of the act of April 9, 1929 (P.L.177, No.175), known
as "The Administrative Code of 1929." The condemnation approval
specified by this subsection shall not be required for an
underground public utility facility that does not permanently
impact the tilling of soil or for any facility of an electric
cooperative corporation or for any public utility facility the
necessity for and the propriety and environmental effects of
which has been reviewed and ratified or approved by the
Pennsylvania Public Utility Commission or the Federal Energy
Regulatory Commission. In addition, all State-funded development
projects which might affect land in established agricultural
security areas shall be reviewed by the appropriate local
agricultural advisory committee and by the Agricultural Lands
Condemnation Approval Board. Each reviewing body may suggest any
modification to the State-funded development projects which
ensures the integrity of the agricultural security areas against
nonfarm encroachment.
(b) Approval required for condemnation by a political
subdivision, authority, public utility or other body.--No
political subdivision, authority, public utility or other body
having or exercising powers of eminent domain shall condemn any
land within any agricultural security area for any purpose,
unless prior approval has been obtained from Agricultural Lands
Condemnation Approval Board and from each of the following
bodies: the governing bodies of the local government units
encompassing the agricultural security area, the county
governing body, and the Agricultural Security Area Advisory
Committee. Review by the Agricultural Lands Condemnation
Approval Board and the other indicated bodies shall be in
accordance with the criteria and procedures established in this
section. The condemnation approvals specified by this subsection
shall not be required for an underground public utility facility
that does not permanently impact the tilling of soil or for any
facility of an electric cooperative corporation or for any
public utility facility the necessity for and the propriety and
environmental effects of which has been reviewed and ratified or
approved by the Pennsylvania Public Utility Commission or the
Federal Energy Regulatory Commission, regardless of whether the
right to establish and maintain such underground or other public
utility facility is obtained by condemnation, or by agreement
with the owner.
* * *
Section 4. Section 14.1(a)(3)(vi) and (viii), (b)(2)(i)(B)
and (C), (xi) and (xii), (b.1) introductory paragraph and
(d)(1)(iii) of the act, amended or added December 21, 1998
(P.L.1056, No.138), May 30, 2001 (P.L.103, No.14) and November
1, 2005 (P.L.323, No.61), are amended, subsection (b)(2) is
amended by adding a subparagraph, subsection (b)(2)(i) is
amended by adding a clause, subsection (d)(1) is amended by
adding a clause and the section is amended by adding a
subsection 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.
* * *
(3) It shall be the duty and responsibility of the State
board to exercise the following powers:
* * *
(vi) To purchase agricultural conservation easements
jointly with a county, or jointly with a county and a
local government unit, or jointly with a county and an
eligible nonprofit entity, or jointly with a county, a
local government unit and an eligible nonprofit entity,
if recommended by a county and approved by the State
board as provided in subparagraph (iii).
* * *
(viii) To establish and maintain a central
repository of records which shall contain records of
county programs for purchasing agricultural conservation
easements, records of agricultural conservation easements
purchased by local government units, by local government
units and counties [and], by local government units and
the Commonwealth and by eligible nonprofit entities in
accordance with subsection (b.2) and records of
agricultural conservation easements purchased by the
Commonwealth. All records indicating the purchase of
agricultural conservation easements shall refer to and
describe the farm land subject to the agricultural
conservation easement.
* * *
(b) County programs.--After the establishment of an
agricultural security area by the governing body, the county
governing body may authorize a program to be administered by the
county board for purchasing agricultural conservation easements
from landowners whose land is either within an agricultural
security area or in compliance with the criteria set forth in
paragraph (2)(i).
* * *
(2) It shall be the duty and responsibility of the
county board to exercise the following powers:
(i) * * *
(A.1) Prior to exercising authority under
subsection (b.2), to include in such rules and
regulations, standards and procedures for the
participation with eligible nonprofit entities in the
purchase of agricultural conservation easements as
described in subsection (b.2).
(B) To include in such rules and regulations,
standards and procedures for the selection or
purchase of agricultural conservation easements, in
accordance with subsection (b.2), by the county
solely [or jointly with either the Commonwealth or a
local government unit, or both,] or jointly with the
Commonwealth, a local government unit, an eligible
nonprofit entity or any combination of these, on that
portion of a parcel which is not within an
agricultural security area if all of the following
criteria are complied with:
(I) The land is part of a parcel of farm
land which is bisected by the dividing line
between two local government units.
(II) The majority of the farm's viable
agricultural land is located within an existing
agricultural security area. Upon purchase of an
easement covering the portion of the parcel which
is not located within an agricultural security
area, that portion of the parcel shall
immediately become part of the previously
established agricultural security area which
contains a majority of the farm's viable
agricultural land. The governing body which
created the agricultural security area which
contains a majority of the farm's viable
agricultural land shall be responsible for the
recording, filing and notification outlined in
section 8(d) and (g) concerning land added to the
agricultural security area pursuant to this
clause.
(C) To include in such rules and regulations,
standards and procedures for the selection or
purchase of agricultural conservation easements, in
accordance with subsection (b.2), by the county
solely or jointly with [either] the Commonwealth
[or], a local government unit, [or both] an eligible
nonprofit entity or any combination of these, on that
portion of a parcel located in an adjoining county if
all of the following criteria are complied with:
(I) The land is part of a parcel of farm
land which is bisected by the dividing line
between the purchasing county and the adjoining
county.
(II) Either a mansion house is located on
that portion of the parcel which is within the
purchasing county or the dividing line between
the counties bisects the mansion house and the
owner of the parcel has chosen the purchasing
county as the situs of assessment for tax
purposes or, if there is no mansion house on the
parcel, the majority of the farm's viable
agricultural land is located in the purchasing
county.
(III) The portion of the parcel located in
the purchasing county is within an agricultural
security area. Upon purchase of an easement by
the purchasing county covering that portion of
the parcel located in the adjoining county, the
portion of the parcel located in the adjoining
county shall immediately become part of the
agricultural security area previously established
in the purchasing county. The governing body
which created the agricultural security area in
the purchasing county shall be responsible for
the recording, filing and notification outlined
in section 8(d) and (g) concerning land added to
the agricultural security area pursuant to this
clause.
* * *
(xi) To recommend to the State board the purchase of
agricultural conservation easements by the Commonwealth
and the county jointly[.], or jointly by the
Commonwealth, the county and a local government unit, or
jointly by the Commonwealth, the county and an eligible
nonprofit entity, or jointly by the Commonwealth, the
county, a local government unit and an eligible nonprofit
entity.
(xii) To purchase agricultural conservation
easements jointly with the Commonwealth[.], or jointly
with the Commonwealth, the county and a local government
unit, or jointly with the Commonwealth, the county and an
eligible nonprofit entity, or jointly with the
Commonwealth, the county, a local government unit and an
eligible nonprofit entity.
* * *
(xvi) Notwithstanding any other permitted or
required use of accrued interest distributed in
accordance with section 8(b.1) and (b.2) of the act of
December 19, 1974 (P.L.973, No.319), known as the
"Pennsylvania Farmland and Forest Land Assessment Act of
1974," to use any portion of that accrued interest in the
following manner:
(A) To develop conservation plans.
(B) To monitor and enforce agricultural
conservation easements, including the payment of
legal costs associated with defending an agricultural
conservation easement.
* * *
(b.1) Local government unit participation.--Any local
government unit that has created an agricultural security area
may participate along with an eligible county and the
Commonwealth, and an eligible nonprofit entity, in the
preservation of farmland through the purchase of agricultural
conservation easements.
* * *
(b.2) Eligible nonprofit entity participation.--An eligible
nonprofit entity may participate, along with an eligible county,
the Commonwealth and a local government unit eligible to
participate under subsection (b.1), in the preservation of
farmland through the purchase of agricultural conservation
easements.
(1) The eligible nonprofit entity may purchase an
agricultural conservation easement if all of the following
apply:
(i) The agricultural conservation easement is a
joint purchase with the county and may include the
Commonwealth or a local government unit, or both.
(ii) The deed of agricultural conservation easement
is as prescribed by the State board for agricultural
conservation easements purchased by the Commonwealth.
(2) The county board shall be responsible to record
agricultural conservation easements where an eligible
nonprofit entity is a party to the purchase of the easement.
The easement shall be recorded by the county board in the
office of the recorder of deeds of the county wherein the
agricultural conservation easements are located. The county
board shall submit to the State board a certified copy of
agricultural conservation easements within 30 days after
recording. The county board shall attach to all certified
copies of the agricultural conservation easements submitted
to the State board a description of the farmland subject to
the agricultural conservation easements.
* * *
(d) Program approval.--
(1) The standards, criteria and requirements established
by the State board for State board approval of county
programs for purchasing agricultural conservation easements
shall include, but not be limited to, the extent to which the
county programs consider and address the following:
* * *
(iii) The stewardship of the land and use of
conservation practices and best land management
practices, including, but not limited to, soil erosion
and sedimentation control as required by the act of June
22, 1937 (P.L.1987, No.394), known as "The Clean Streams
Law," and nutrient and odor management[.] as may be
required by 3 Pa.C.S. Ch. 5 (relating to nutrient and
odor management). A conservation plan shall only be
required to be updated when a change in land management
practice takes place or when a violation of "The Clean
Streams Law" occurs.
* * *
(v) (I) Provisions requiring a farmland tract to be
contiguous acreage of at least 50 acres in size
unless the tract is at least ten acres in size and is
either utilized for a crop unique to the area or is
contiguous to property which has a perpetual
conservation easement in place held by a "qualified
organization" as defined in section 170(h)(3) of the
Internal Revenue Code of 1986 (Public Law 99-514, 26
U.S.C. § 170(h)(3)).
(II) A county may require a farmland tract to be
contiguous acreage of at least 35 acres in size
unless the tract is at least ten acres in size and is
either utilized for a crop unique to the area or is
contiguous to a property which has a perpetual
conservation easement in place held by a "qualified
conservation organization" as defined in section
170(h)(3) of the Internal Revenue Code of 1986. If a
county implements the provisions of this subclause,
State funds used for the purchase of an agricultural
conservation easement less than 50 acres in size may
include costs incidental to the purchase and shall
not exceed 50% of the purchase price per acre, unless
it is at least ten acres in size and is either
utilized for a crop unique to the area or is
contiguous to a property which has a perpetual
conservation easement in place held by a "qualified
conservation organization" as defined in section
170(h)(3) of the Internal Revenue Code of 1986. A
county program shall require a minimum weighted value
of 20% for prioritizing applications for agricultural
conservation easement purchase when implementing the
provisions of paragraph (ii.1).
* * *
Section 5. Section 14.2(a) of the act, added December 14,
1988 (P.L.1202, No.149), is amended to read:
Section 14.2. Agricultural Conservation Easement Purchase
Fund.
(a) Purpose of fund.--
(1) The Agricultural Conservation Easement Purchase Fund
shall be the source from which all moneys are authorized with
the approval of the Governor to carry out the purpose of this
act. [The]
(2) Except as set forth in paragraph 3, the moneys
appropriated to the fund shall be utilized in accordance with
the expenditures and distribution authorized, required or
otherwise provided in the program for purchase of
agricultural conservation easements contained in section
14.1, for the purpose of paying all costs, except
administrative costs, incurred by the Commonwealth or a
county incident to the purchase of agricultural conservation
easements, and for the purpose of reimbursing nonprofit land
conservation organizations for expenses incurred in acquiring
and transferring agricultural conservation easements to the
Commonwealth or a county.
(3) Each fiscal year, up to $200,000 of the money in the
fund may be used for the purpose of reimbursement allocation
under section 14.6(b). Up to 10% of these funds may be used
for administrative expenses of the department incurred under
section 14.6(b).
* * *
Section 6. Section 14.4(7) of the act, added December 14,
1988 (P.L.1202, No.149), is amended to read:
Section 14.4. Legislative report.
The State board shall submit to the General Assembly an
annual report no later than May 1. The report shall include, but
not be limited to, the following information:
* * *
(7) The number and value of agricultural conservation
easements purchased jointly by the Commonwealth and the
counties, including the number and value of purchases made
during the preceding calendar and the preceding fiscal year
of the Commonwealth, and the extent of local government unit
or eligible nonprofit entity participation in the
transaction.
* * *
Section 6.1. The act is amended by adding sections to read:
Section 14.6. Land Trust Reimbursement Program.
(a) Establishment.--The Land Trust Reimbursement Program is
hereby established.
(b) Reimbursement.--The State board may allocate funds to
reimburse land trusts for expenses incurred in acquiring
agricultural conservation easements in this Commonwealth.
(c) Eligible expenses.--Eligible expenses include:
(1) Appraisals.
(2) Legal services.
(3) Title searches.
(4) Document preparation.
(5) Title insurance.
(6) Closing fees.
(7) Survey costs.
(d) Limitations.--
(1) Reimbursement shall be limited to $5,000 per
easement.
(2) The term of an agricultural conservation easement
shall be perpetual.
(e) Eligibility.--To be eligible under this subsection, a
land trust shall be an eligible nonprofit entity and shall:
(1) register with the State board;
(2) coordinate agricultural conservation easement
purchase activities with the eligible county in which the
activity occurs or coordinate such activities with the State
board, if the activity does not occur within an eligible
county; and
(3) submit an application to the State board, with the
statement of costs incidental to acquisition, the deed of
easement and any other documentation required by the State
board, within 60 days of closing on the easement.
Section 14.7. Acquisitions by donation.
(a) General rule.--Notwithstanding any other provision of
this act to the contrary, upon recommendation by an eligible
county, the donation of an agricultural conservation easement
may be acquired by the county, State board, an eligible
nonprofit entity or a local government unit if all of the
following apply:
(1) The land is used for agricultural production.
(2) The term of the agricultural conservation easement
is perpetual.
(3) The applicable county program provides for the
acquisition by donation of an agricultural conservation
easement.
(4) The agricultural conservation easement is being
acquired by donation by an eligible county or by the eligible
county in conjunction with the Commonwealth, an eligible
nonprofit entity or a local government unit, or any
combination of these.
(5) Instruments and documents for the acquisition by
donation of an agricultural conservation easement are
approved by the State board or the county board, as the case
may be, prior to execution and delivery. Proper releases from
mortgage holders and lienholders must be obtained and
executed to insure that all agricultural conservation
easements are acquired by donation free and clear of all
encumbrances.
(6) The agricultural conservation easement has title
insurance.
(7) The deed of agricultural conservation easement is as
prescribed by the State board for agricultural conservation
easements purchased by the Commonwealth.
(8) The applicable county board records an agricultural
conservation easement acquired by donation by the county in
the office of the recorder of deeds of the county wherein the
agricultural conservation easement is located and submits to
the State board a certified copy of the agricultural
conservation easement within 30 days after recording.
(9) If the land does not meet the minimum criteria
established by the State board for purchase of an
agricultural conservation easement, the land shall be
contiguous to property which is subject to an agricultural
conservation easement.
(b) Expenses.--The allocation of a county may be adjusted by
a maximum of $5,000 per easement for all costs, except
administrative costs, incurred by the Commonwealth or a county
incident to the acquisition by donation of an agricultural
conservation easement.
Section 7. The amendment or addition of the following
provisions shall apply to an agricultural conservation easement
jointly recorded with a recorder of deeds of this Commonwealth
by an "eligible nonprofit entity," as defined in section 3 of
the act, and a county or with the Commonwealth prior to or on
the effective date of this section:
(1) The addition of section 2(6) of the act.
(2) The addition of the definition of "eligible
nonprofit entity" in section 3 of the act.
(3) The following provisions of section 14.1 of the act:
(i) Subsection (a)(3)(vi) and (viii).
(ii) Subsection (b)(2)(i)(B) and (C), (xi) and
(xii).
(iii) The introductory paragraph of subsection
(b.1).
(iv) Subsection (b.2).
(4) The amendment of section 14.4(7) of the act.
Section 7.1. The provisions of 7 Pa. Code § 138e.16(a)(2)
are abrogated.
Section 8. This act shall take effect immediately.
APPROVED--The 15th day of May, A. D. 2006.
EDWARD G. RENDELL
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