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                                                      PRINTER'S NO. 4295

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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.
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     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.


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