PRINTER'S NO. 4295
No. 2801 Session of 2004
INTRODUCED BY HERSHEY, ROSS, DALEY, BUNT, NICKOL, GODSHALL, BAKER, BALDWIN, BARD, BARRAR, BASTIAN, CALTAGIRONE, CIVERA, CLYMER, S. E. CORNELL, COY, CRAHALLA, DAILEY, DiGIROLAMO, FICHTER, FLEAGLE, FLICK, GABIG, GILLESPIE, HARHART, HARPER, HENNESSEY, KILLION, LEH, MACKERETH, MAITLAND, MAJOR, McILHINNEY, MELIO, MICOZZIE, R. MILLER, NAILOR, O'NEILL, PICKETT, REICHLEY, SANTONI, SAYLOR, SCHRODER, SEMMEL, STAIRS, STEIL, TANGRETTI, E. Z. TAYLOR, VITALI AND WATSON, JULY 3, 2004
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, JULY 3, 2004
AN ACT 1 Amending the act of June 30, 1981 (P.L.128, No.43), entitled "An 2 act authorizing the creation of agricultural areas," further 3 providing for definitions, for limitation on local 4 regulations and for the purchase of agricultural conservation 5 easements. 6 The General Assembly of the Commonwealth of Pennsylvania 7 hereby enacts as follows: 8 Section 1. The definitions of "agricultural conservation 9 easement," "agricultural security area," "farmland value" and 10 "viable agricultural land" in section 3 of the act of June 30, 11 1981 (P.L.128, No.43), known as the Agricultural Area Security 12 Law, amended December 14, 1988 (P.L.1202, No.149), November 23, 13 1994 (P.L.648, No.100) and May 30, 2001 (P.L.103, No.14), are 14 amended and the section is amended by adding a definition to 15 read:
1 Section 3. Definitions. 2 The following words and phrases when used in this act shall 3 have the meanings given to them in this section unless the 4 context clearly indicates otherwise: 5 * * * 6 "Agricultural conservation easement." An interest in land, 7 less than fee simple, which interest represents the right to 8 prevent the development or improvement of a parcel for any 9 purpose other than agricultural production or a commercial 10 equine activity. The easement may be granted by the owner of the 11 fee simple to any third party or to the Commonwealth, to a 12 county governing body or to a unit of local government. It shall 13 be granted in perpetuity as the equivalent of covenants running 14 with the land. The exercise or failure to exercise any right 15 granted by the easement shall not be deemed to be management or 16 control of activities at the site for purposes of enforcement of 17 the act of October 18, 1988 (P.L.756, No.108), known as the 18 "Hazardous Sites Cleanup Act." 19 * * * 20 "Agricultural security area." A unit of 250 or more acres of 21 land used for the agricultural production of crops, livestock 22 and livestock products or a commercial equine activity under the 23 ownership of one or more persons and designated as such by the 24 procedures set forth in this act or designated as such pursuant 25 to the act of January 19, 1968 (1967 P.L.992, No.442), entitled 26 "An act authorizing the Commonwealth of Pennsylvania and the 27 counties thereof to preserve, acquire or hold land for open 28 space uses," prior to the effective date of this amendatory act, 29 by the governing body of the county or governing body of the 30 municipality in which such agricultural land is located on the 20040H2801B4295 - 2 -
1 basis of criteria and procedures which predate the effective 2 date of this amendatory act: Provided, That an owner of land 3 designated as such under the authority of the act of January 19, 4 1968 (1967 P.L.992, No.442) may withdraw such land from an 5 agricultural security area by providing written notice of 6 withdrawal to the county governing body or governing body of the 7 municipality in which such land is located within 180 days of 8 the effective date of this amendatory act. 9 "Commercial equine activity." The term includes the 10 following activities where a fee is collected: 11 (1) The boarding of equines. 12 (2) The training of equines. 13 (3) The instruction of people in handling or riding 14 equines. 15 (4) The use of equines for recreational riding purposes. 16 * * * 17 "Farmland value." The price as of the valuation date for 18 property used for normal farming operations or a commercial 19 equine activity which a willing and informed seller who is not 20 obligated to sell would accept for the property, and which a 21 willing and informed buyer who is not obligated to buy would pay 22 for the property. 23 * * * 24 "Viable agricultural land." Land suitable for agricultural 25 production or a commercial equine activity and which will 26 continue to be economically feasible for such use if real estate 27 taxes, farm use restrictions, and speculative activities are 28 limited to levels approximating those in commercial agricultural 29 areas not influenced by the proximity of urban and related 30 nonagricultural development. 20040H2801B4295 - 3 -
1 Section 2. Section 11 of the act, amended December 14, 1988 2 (P.L.1202, No.149), is amended to read: 3 Section 11. Limitation on local regulations. 4 (a) General rule.--Every municipality or political 5 subdivision within which an agricultural security area is 6 created shall encourage the continuity, development and 7 viability of agriculture within such an area by not enacting 8 local laws or ordinances which would unreasonably restrict farm 9 structures or farm practices or a commercial equine activity 10 within the area in contravention of the purposes of this act 11 unless such restrictions or regulations bear a direct 12 relationship to the public health or safety. 13 (b) Public nuisance.--Any municipal or political subdivision 14 law or ordinance defining or prohibiting a public nuisance shall 15 exclude from the definition of such nuisance any agricultural 16 activity or operation conducted using normal farming operations 17 or a commercial equine activity within an agricultural security 18 area as permitted by this act if such agricultural activity or 19 operation does not bear a direct relationship to the public 20 health and safety. 21 Section 3. Section 14.1(c) and (i), amended November 23, 22 1994 (P.L.621, No.96) and December 21, 1998 (P.L.1056, 23 No.138),are amended to read: 24 Section 14.1. Purchase of agricultural conservation easements. 25 * * * 26 (c) Restrictions and limitations.--An agricultural 27 conservation easement shall be subject to the following terms, 28 conditions, restrictions and limitations: 29 (1) The term of an agricultural conservation easement 30 shall be perpetual. 20040H2801B4295 - 4 -
1 (2) Unless otherwise authorized in accordance with 2 subsection (i), an agricultural conservation easement shall 3 not be sold, conveyed, extinguished, leased, encumbered or 4 restricted in whole or in part for a period of 25 years 5 beginning on the date of purchase of the easement. 6 (3) Unless otherwise authorized in accordance with 7 subsection (i), if the land subject to the agricultural 8 conservation easement is no longer viable agricultural land, 9 the Commonwealth, subject to the approval of the State board, 10 and the county, subject to the approval of the county board, 11 may sell, convey, extinguish, lease, encumber or restrict an 12 agricultural conservation easement to the current owner of 13 record of the farmland subject to the easement after the 14 expiration of 25 years from the date of purchase of the 15 easement for a purchase price equal to the value at the time 16 of resale determined pursuant to subsection (f) at the time 17 of conveyance. A conveyance by the Commonwealth pursuant to 18 this subsection shall not be subject to the requirements of 19 Article XXIV-A of the act of April 9, 1929 (P.L.177, No.175), 20 known as "The Administrative Code of 1929." The purchase 21 price shall be payable to the Commonwealth and the county as 22 their respective legal interests in the agricultural 23 conservation easement appear, and a separate payment shall be 24 made to the Commonwealth and the county accordingly at the 25 time of settlement. Any payment received by the Commonwealth 26 pursuant to this provision shall be paid into the fund. 27 (4) Instruments and documents for the purchase, sale and 28 conveyance of agricultural conservation easements shall be 29 approved by the State board or the county board, as the case 30 may be, prior to execution and delivery. Proper releases from 20040H2801B4295 - 5 -
1 mortgage holders and lienholders must be obtained and 2 executed to insure that all agricultural conservation 3 easements are purchased free and clear of all encumbrances. 4 (5) Whenever any public entity, authority or political 5 subdivision exercises the power of eminent domain and 6 condemns land subject to an agricultural conservation 7 easement, the condemnor shall provide just compensation to 8 the owner of the land in fee and to the owner of the easement 9 as follows: 10 (i) The owner of the land in fee shall be paid the 11 full value which would have been payable to the owner but 12 for the existence of an agricultural conservation 13 easement less the value of the agricultural conservation 14 easement at the time of condemnation. 15 (ii) The owner of the easement shall be paid the 16 value of the easement at the time of condemnation. 17 (iii) For easements owned jointly by the 18 Commonwealth and an eligible county, if the eligible 19 county commits its share of funds received under this 20 paragraph toward the purchase of agricultural 21 conservation easements, the condemnor shall provide the 22 Commonwealth's share of funds to the eligible county for 23 use in purchasing agricultural conservation easements in 24 accordance with this act. 25 (iv) For easements owned by the Commonwealth, the 26 condemnor shall provide the Commonwealth's share of funds 27 received under this paragraph to the eligible county for 28 use in purchasing agricultural conservation easements in 29 accordance with this act. 30 (v) Funds received by an eligible county under this 20040H2801B4295 - 6 -
1 paragraph shall not be considered matching funds under 2 subsection (h). 3 (vi) If an eligible county which receives funds 4 under this paragraph fails to spend the Commonwealth's 5 share of funds within two years of receipt of the funds, 6 the eligible county shall pay the Commonwealth the 7 Commonwealth's share of funds received under this 8 paragraph plus 6% simple interest. These funds shall be 9 deposited into the Agricultural Conservation Easement 10 Purchase Fund. 11 (6) An agricultural conservation easement shall not 12 prevent: 13 (i) The granting of leases, assignments or other 14 conveyances or the issuing of permits, licenses or other 15 authorization for the exploration, development, storage 16 or removal of coal by underground mining methods, oil and 17 gas by the owner of the subject land or the owner of the 18 underlying coal by underground mining methods, oil and 19 gas or the owner of the rights to develop the underlying 20 coal by underground mining methods, oil and gas, or the 21 development of appurtenant facilities related to the 22 removal of coal by underground mining methods, oil or gas 23 development or activities incident to the removal or 24 development of such minerals. 25 (ii) The granting of rights-of-way by the owner of 26 the subject land in and through the land for the 27 installation of, transportation of, or use of water, 28 sewage, electric, telephone, coal by underground mining 29 methods, gas, oil or oil products lines. 30 (iii) Construction and use of structures on the 20040H2801B4295 - 7 -
1 subject land necessary for agricultural production or a 2 commercial equine activity. 3 (iv) Construction and use of structures on the 4 subject land for the landowner's principal residence or 5 for the purpose of providing necessary housing for 6 seasonal or full-time employees: Provided, That only one 7 such structure may be constructed on no more than two 8 acres of the subject land during the term of the 9 agricultural conservation easement. 10 (v) Customary part-time or off-season minor or rural 11 enterprises and activities which are provided for in the 12 county Agricultural Conservation Easement Purchase 13 Program approved by the State board under subsection (d). 14 (7) Land subject to an agricultural conservation 15 easement shall not be subdivided for any purpose which may 16 harm the economic viability of the farmland for agricultural 17 production or a commercial equine activity. Land may be 18 subdivided prior to the granting of an agricultural 19 conservation easement, provided that subdividing will not 20 harm the economic viability for agricultural production or a 21 commercial equine activity of the land subject to the 22 easement. 23 (8) Nothing in this act shall prohibit a member of the 24 State board or county board or his or her family from selling 25 a conservation easement under this program, provided that all 26 decisions made regarding easement purchases be subject to the 27 provisions of section 3(j) of the act of October 4, 1978 28 (P.L.883, No.170), referred to as the Public Official and 29 Employee Ethics Law. 30 * * * 20040H2801B4295 - 8 -
1 (i) Subdivision of land after easement purchase.-- 2 (1) Each county program shall specify the conditions 3 under which the subdivision of land subject to an 4 agricultural conservation easement may be permitted. In no 5 case, however, shall a county program permit a subdivision 6 which will: 7 (i) harm the economic viability of the farmland for 8 agricultural production or a commercial equine activity; 9 or 10 (ii) convert land which has been devoted primarily 11 to agricultural use or a commercial equine activity to 12 another primary use, except that a county program may 13 permit one subdivision for the purpose of the 14 construction of a principal residence for the landowner 15 or an immediate family member. 16 (2) The county board may agree to permit a parcel of 17 land subject to an agricultural conservation easement to be 18 subdivided after the granting of such easement as follows: 19 (i) The landowner of record may submit an 20 application, in such form and manner as the county board 21 may prescribe, to the county board requesting that a 22 parcel of the land subject to an easement be subdivided. 23 Upon receipt of the application, the county board shall 24 cause to be forwarded written notification thereof to the 25 county zoning office, county planning office and county 26 farmland preservation office, herein referred to as the 27 reviewing agencies. Each reviewing agency shall have 60 28 days from receipt of such notification to review, comment 29 and make recommendations on the proposed application to 30 the county board. 20040H2801B4295 - 9 -
1 (ii) After reviewing the application and the 2 comments and recommendations submitted by the reviewing 3 agencies, the county board shall approve or reject the 4 application to subdivide within 120 days after the date 5 of its filing unless the time is extended by mutual 6 agreement of the landowner and reviewing agencies. 7 (iii) If the application to subdivide land is 8 approved by the county board, a copy of the application, 9 along with the comments and recommendations of the 10 reviewing agencies, shall be forwarded to the State board 11 for review and approval or disapproval. When reviewing an 12 application to subdivide land subject to an agricultural 13 conservation easement, the State board shall consider 14 only whether the application complies with the conditions 15 under which subdivisions are permitted by the approved 16 county program. The State board shall notify the county 17 board of its decision regarding the application. 18 (iv) If the application to subdivide is rejected by 19 the county board, the application shall be returned to 20 the landowner with a written statement of the reasons for 21 such rejection. Within 30 days after the receipt of the 22 statement of rejection, the landowner may appeal the 23 rejection in accordance with 2 Pa.C.S. Ch. 5 Subch. B 24 (relating to practice and procedure of local agencies) 25 and Ch. 7 Subch. B (relating to judicial review of local 26 agency action). 27 Section 4. This act shall take effect in 60 days. G1L03SFL/20040H2801B4295 - 10 -