PRIOR PRINTER'S NO. 867 PRINTER'S NO. 879
No. 723 Session of 2005
INTRODUCED BY WENGER, WAUGH, VANCE, ERICKSON, MUSTO, RAFFERTY,
GREENLEAF, EARLL, BROWNE, O'PAKE, LEMMOND, PILEGGI AND
PICCOLA, JUNE 3, 2005
SENATOR WAUGH, AGRICULTURE AND RURAL AFFAIRS, AS AMENDED,
JUNE 8, 2005
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 statement of legislative findings; providing
4 for the definition of "authorized entity"; and further
5 providing for purchase of agricultural conservation easements
6 and for legislative report.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 2 of the act of June 30, 1981 (P.L.128,
10 No.43), known as the Agricultural Area Security Law, is amended
11 by adding a paragraph to read:
12 Section 2. Statement of legislative findings.
13 It is the declared policy of the Commonwealth to conserve and
14 protect and to encourage the development and improvement of its
15 agricultural lands for the production of food and other
16 agricultural products. It is also the declared policy of the
17 Commonwealth to conserve and protect agricultural lands as
18 valued natural and ecological resources which provide needed
1 open spaces for clean air, as well as for aesthetic purposes.
2 Article VIII, section 2 of the Constitution of Pennsylvania
3 provides that the General Assembly may, by law, establish
4 standards and qualifications for agricultural reserves.
5 Agriculture in many parts of the Commonwealth is under urban
6 pressure from expanding metropolitan areas. This urban pressure
7 takes the form of scattered development in wide belts around
8 urban areas, and brings conflicting land uses into
9 juxtaposition, creates high costs for public services, and
10 stimulates land speculation. When this scattered development
11 extends into good farm areas, ordinances inhibiting farming tend
12 to follow, farm taxes rise, and hopes for speculative gains
13 discourage investments in farm improvements. Many of the
14 agricultural lands in the Commonwealth are in jeopardy of being
15 lost for any agricultural purposes. Certain of these lands
16 constitute unique and irreplaceable land resources of Statewide
17 importance. It is the purpose of this act to provide means by
18 which agricultural land may be protected and enhanced as a
19 viable segment of the Commonwealth's economy and as an economic
20 and environmental resource of major importance.
21 It is further the purpose of this act to:
22 * * *
23 (6) Encourage financial partnerships between Federal, <--
24 State and local governments with private nonprofit entities
25 in order to leverage more funds for the purchase of
26 agricultural conservation easements.
27 (6) ENCOURAGE FINANCIAL PARTNERSHIPS BETWEEN STATE AND <--
28 LOCAL GOVERNMENTS WITH NONPROFIT ENTITIES IN ORDER TO
29 INCREASE THE FUNDS AVAILABLE FOR AGRICULTURAL CONSERVATION
30 EASEMENT PURCHASES.
20050S0723B0879 - 2 -
1 Section 2. Section 3 of the act is amended by adding a
2 definition to read:
3 Section 3. Definitions.
4 The following words and phrases when used in this act shall
5 have the meanings given to them in this section, unless the
6 context clearly indicates otherwise:
7 * * *
8 "Authorized entity." Any entity that is tax exempt under <--
9 section 501(c)(3) of the Internal Revenue Code of 1986 (Public
10 Law 99-514, 26 U.S.C. § 501(c)(3)) and has a primary purpose of
11 preserving agricultural land.
12 "ELIGIBLE NONPROFIT ENTITY." AN ENTITY THAT PROVIDES AN <--
13 ELIGIBLE COUNTY ADEQUATE PROOF OF THE FOLLOWING:
14 (1) THAT THE ENTITY IS TAX EXEMPT UNDER SECTION
15 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (PUBLIC LAW
16 99-514, 26 U.S.C. § 501(C)(3)).
17 (2) THAT THE ENTITY HAS AS A PRIMARY PURPOSE THE
18 PRESERVATION OF AGRICULTURAL LAND.
19 (3) THAT THE ENTITY'S PRINCIPAL REGISTERED BUSINESS
20 ADDRESS IS LOCATED EITHER WITHIN THE ELIGIBLE COUNTY OR IS
21 LOCATED IN A COUNTY THAT ADJOINS THE ELIGIBLE COUNTY.
22 (4) THAT THE ENTITY HAS ACQUIRED, WHETHER THROUGH
23 PURCHASE, DONATION OR OTHER TRANSFER, AT LEAST ONE
24 AGRICULTURAL CONSERVATION EASEMENT WITHIN THE ELIGIBLE COUNTY
25 IN THE PRECEDING OR CURRENT CALENDAR YEAR.
26 * * *
27 Section 3. Section 14.1(a)(3)(vi), (b)(2)(i)(B) and (C), <--
28 (xi) and (xii) and (b.1)(4)(i) of the act, amended or added
29 December 21, 1998 (P.L.1056, No.138) and May 30, 2001 (P.L.103,
30 No.14), are amended and subsection (b)(2)(i) is amended by
20050S0723B0879 - 3 -
1 adding a clause to read:
2 SECTION 3. SECTION 14.1(A)(3)(VI) AND (VIII), (B)(2)(I)(B) <--
3 AND (C), (XI) AND (XII) AND (B.1) INTRODUCTORY PARAGRAPH OF THE
4 ACT, AMENDED OR ADDED DECEMBER 21, 1998 (P.L.1056, NO.138) AND
5 MAY 30, 2001 (P.L.103, NO.14), ARE AMENDED, SUBSECTION (B)(2)(I)
6 IS AMENDED BY ADDING A CLAUSE AND THE SECTION IS AMENDED BY
7 ADDING A SUBSECTION TO READ:
8 Section 14.1. Purchase of agricultural conservation easements.
9 (a) State Agricultural Land Preservation Board.--The
10 Department of Agriculture and the State Agricultural Land
11 Preservation Board shall administer pursuant to this section a
12 program for the purchase of agricultural conservation easements
13 by the Commonwealth.
14 * * *
15 (3) It shall be the duty and responsibility of the State
16 board to exercise the following powers:
17 * * *
18 (vi) To purchase agricultural conservation easements
19 jointly with a county, a local government unit or an <--
20 authorized entity, OR JOINTLY WITH A COUNTY AND A LOCAL <--
21 GOVERNMENT UNIT, OR JOINTLY WITH A COUNTY AND AN ELIGIBLE
22 NONPROFIT ENTITY, OR JOINTLY WITH A COUNTY, A LOCAL
23 GOVERNMENT UNIT AND AN ELIGIBLE NONPROFIT ENTITY, if
24 recommended by a county and approved by the State board
25 as provided in subparagraph (iii).
26 * * *
27 (VIII) TO ESTABLISH AND MAINTAIN A CENTRAL <--
28 REPOSITORY OF RECORDS WHICH SHALL CONTAIN RECORDS OF
29 COUNTY PROGRAMS FOR PURCHASING AGRICULTURAL CONSERVATION
30 EASEMENTS, RECORDS OF AGRICULTURAL CONSERVATION EASEMENTS
20050S0723B0879 - 4 -
1 PURCHASED BY LOCAL GOVERNMENT UNITS, BY LOCAL GOVERNMENT
2 UNITS AND COUNTIES [AND], BY LOCAL GOVERNMENT UNITS AND
3 THE COMMONWEALTH, BY ELIGIBLE NONPROFIT ENTITIES IN
4 ACCORDANCE WITH SUBSECTION (B.2), AND RECORDS OF
5 AGRICULTURAL CONSERVATION EASEMENTS PURCHASED BY THE
6 COMMONWEALTH. ALL RECORDS INDICATING THE PURCHASE OF
7 AGRICULTURAL CONSERVATION EASEMENTS SHALL REFER TO AND
8 DESCRIBE THE FARM LAND SUBJECT TO THE AGRICULTURAL
9 CONSERVATION EASEMENT.
10 * * *
11 (b) County programs.--After the establishment of an
12 agricultural security area by the governing body, the county
13 governing body may authorize a program to be administered by the
14 county board for purchasing agricultural conservation easements
15 from landowners whose land is either within an agricultural
16 security area or in compliance with the criteria set forth in
17 paragraph (2)(i).
18 * * *
19 (2) It shall be the duty and responsibility of the
20 county board to exercise the following powers:
21 (i) * * *
22 (B) To include in such rules and regulations, <--
23 standards and procedures for the selection or
24 purchase of agricultural conservation easements by
25 the county solely or jointly with [either the
26 Commonwealth or a local government unit, or both,] a
27 participant on that portion of a parcel which is not
28 within an agricultural security area if all of the
29 following criteria are complied with:
30 (A.1) TO OPT TO INCLUDE IN SUCH RULES AND <--
20050S0723B0879 - 5 -
1 REGULATIONS, STANDARDS AND PROCEDURES TO PERMIT
2 PARTICIPATION WITH ELIGIBLE NONPROFIT ENTITIES IN THE
3 PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS AS
4 DESCRIBED IN SUBSECTION (B.2).
5 (B) TO INCLUDE IN SUCH RULES AND REGULATIONS,
6 STANDARDS AND PROCEDURES FOR THE SELECTION OR
7 PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS BY
8 THE COUNTY SOLELY [OR JOINTLY WITH EITHER THE
9 COMMONWEALTH OR A LOCAL GOVERNMENT UNIT, OR BOTH], OR
10 JOINTLY WITH THE COMMONWEALTH, A LOCAL GOVERNMENT
11 UNIT, AN ELIGIBLE NONPROFIT ENTITY, OR ANY
12 COMBINATION OF THESE, ON THAT PORTION OF A PARCEL
13 WHICH IS NOT WITHIN AN AGRICULTURAL SECURITY AREA IF
14 ALL OF THE FOLLOWING CRITERIA ARE COMPLIED WITH:
15 (I) The land is part of a parcel of farm
16 land which is bisected by the dividing line
17 between two local government units.
18 (II) The majority of the farm's viable
19 agricultural land is located within an existing
20 agricultural security area. Upon purchase of an
21 easement covering the portion of the parcel which
22 is not located within an agricultural security
23 area, that portion of the parcel shall
24 immediately become part of the previously
25 established agricultural security area which
26 contains a majority of the farm's viable
27 agricultural land. The governing body which
28 created the agricultural security area which
29 contains a majority of the farm's viable
30 agricultural land shall be responsible for the
20050S0723B0879 - 6 -
1 recording, filing and notification outlined in
2 section 8(d) and (g) concerning land added to the
3 agricultural security area pursuant to this
4 clause.
5 (C) To include in such rules and regulations,
6 standards and procedures for the selection or
7 purchase of agricultural conservation easements by
8 the county solely or jointly with [either the <--
9 Commonwealth or a local government unit, or both,] a <--
10 participant on that portion of a parcel located in an
11 adjoining county if all of the following criteria are
12 complied with:
13 (I) The land is part of a parcel of farm
14 land which is bisected by the dividing line
15 between the purchasing county and the adjoining
16 county.
17 (II) Either a mansion house is located on
18 that portion of the parcel which is within the
19 purchasing county or the dividing line between
20 the counties bisects the mansion house and the
21 owner of the parcel has chosen the purchasing
22 county as the situs of assessment for tax
23 purposes or, if there is no mansion house on the
24 parcel, the majority of the farm's viable
25 agricultural land is located in the purchasing
26 county.
27 (III) The portion of the parcel located in
28 the purchasing county is within an agricultural
29 security area. Upon purchase of an easement by
30 the purchasing county covering that portion of
20050S0723B0879 - 7 -
1 the parcel located in the adjoining county, the
2 portion of the parcel located in the adjoining
3 county shall immediately become part of the
4 agricultural security area previously established
5 in the purchasing county. The governing body
6 which created the agricultural security area in
7 the purchasing county shall be responsible for
8 the recording, filing and notification outlined
9 in section 8(d) and (g) concerning land added to
10 the agricultural security area pursuant to this
11 clause.
12 (D) For the purposes of this subparagraph, a <--
13 "participant" shall mean any of the following:
14 (I) The Commonwealth.
15 (II) A local government unit.
16 (III) An authorized entity.
17 (IV) Any combination of the entities listed
18 under this clause.
19 * * *
20 (xi) To recommend to the State board the purchase of <--
21 agricultural conservation easements by the Commonwealth
22 and the county or any authorized entity jointly.
23 (xii) To purchase agricultural conservation
24 easements jointly with the Commonwealth, any local
25 government unit or any authorized entity.
26 (XI) TO RECOMMEND TO THE STATE BOARD THE PURCHASE OF <--
27 AGRICULTURAL CONSERVATION EASEMENTS BY THE COMMONWEALTH
28 AND THE COUNTY JOINTLY[.], OR JOINTLY WITH THE
29 COMMONWEALTH, THE COUNTY AND A LOCAL GOVERNMENT UNIT, OR
30 JOINTLY WITH THE COMMONWEALTH, THE COUNTY AND AN ELIGIBLE
20050S0723B0879 - 8 -
1 NONPROFIT ENTITY, OR JOINTLY WITH THE COMMONWEALTH, THE
2 COUNTY, A LOCAL GOVERNMENT UNIT AND AN ELIGIBLE NONPROFIT
3 ENTITY.
4 (XII) TO PURCHASE AGRICULTURAL CONSERVATION
5 EASEMENTS JOINTLY WITH THE COMMONWEALTH[.], OR JOINTLY
6 WITH THE COMMONWEALTH, THE COUNTY AND A LOCAL GOVERNMENT
7 UNIT, OR JOINTLY WITH THE COMMONWEALTH, THE COUNTY AND AN
8 ELIGIBLE NONPROFIT ENTITY, OR JOINTLY WITH THE
9 COMMONWEALTH, THE COUNTY, A LOCAL GOVERNMENT UNIT AND AN
10 ELIGIBLE NONPROFIT ENTITY.
11 * * *
12 (b.1) Local government unit participation.--Any local
13 government unit that has created an agricultural security area
14 may participate along with an eligible county and the
15 Commonwealth, AND AN ELIGIBLE NONPROFIT ENTITY, in the <--
16 preservation of farmland through the purchase of agricultural
17 conservation easements.
18 * * *
19 (4) The local government unit may purchase an <--
20 agricultural conservation easement, provided that all of the
21 following apply:
22 (i) The agricultural conservation easement is
23 located within an agricultural security area of at least
24 500 acres or the easement purchase is a joint purchase
25 [with either a county or both a county and the
26 Commonwealth] pursuant to the criteria set forth in
27 subsection (b)(2)(i)[.] with any of the following:
28 (A) The Commonwealth.
29 (B) A county.
30 (C) An authorized entity.
20050S0723B0879 - 9 -
1 (D) Any combination of the entities listed in
2 clauses (A), (B) and (C).
3 * * *
4 (B.2) ELIGIBLE NONPROFIT ENTITY PARTICIPATION.--TO THE <--
5 EXTENT PROVIDED FOR IN CLAUSE (A.1), AN ELIGIBLE NONPROFIT
6 ENTITY MAY PARTICIPATE ALONG WITH AN ELIGIBLE COUNTY, THE
7 COMMONWEALTH AND A LOCAL GOVERNMENT UNIT ELIGIBLE TO PARTICIPATE
8 UNDER SUBSECTION (B.1), IN THE PRESERVATION OF FARMLAND THROUGH
9 THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS.
10 (1) THE ELIGIBLE NONPROFIT ENTITY MAY PURCHASE AN
11 AGRICULTURAL CONSERVATION EASEMENT IF ALL OF THE FOLLOWING
12 APPLY:
13 (I) THE AGRICULTURAL CONSERVATION EASEMENT IS A
14 JOINT PURCHASE WITH THE COUNTY, AND MAY INCLUDE THE
15 COMMONWEALTH OR A LOCAL GOVERNMENT UNIT, OR BOTH.
16 (II) THE DEED OF AGRICULTURAL CONSERVATION EASEMENT
17 IS AS PRESCRIBED BY THE STATE BOARD FOR AGRICULTURAL
18 CONSERVATION EASEMENTS PURCHASED BY THE COMMONWEALTH.
19 (2) THE COUNTY BOARD SHALL BE RESPONSIBLE TO RECORD
20 AGRICULTURAL CONSERVATION EASEMENTS WHERE AN ELIGIBLE
21 NONPROFIT ENTITY IS A PARTY TO THE PURCHASE OF THE EASEMENT.
22 THE EASEMENT SHALL BE RECORDED BY THE COUNTY BOARD IN THE
23 OFFICE OF THE RECORDER OF DEEDS OF THE COUNTY WHEREIN THE
24 AGRICULTURAL CONSERVATION EASEMENTS ARE LOCATED. THE COUNTY
25 BOARD SHALL SUBMIT TO THE STATE BOARD A CERTIFIED COPY OF
26 AGRICULTURAL CONSERVATION EASEMENTS WITHIN 30 DAYS AFTER
27 RECORDING. THE COUNTY BOARD SHALL ATTACH TO ALL CERTIFIED
28 COPIES OF THE AGRICULTURAL CONSERVATION EASEMENTS SUBMITTED
29 TO THE STATE BOARD A DESCRIPTION OF THE FARMLAND SUBJECT TO
30 THE AGRICULTURAL CONSERVATION EASEMENTS.
20050S0723B0879 - 10 -
1 Section 4. Section 14.4(7) of the act, added December 14,
2 1988 (P.L.1202, No.149), is amended to read:
3 Section 14.4. Legislative report.
4 The State board shall submit to the General Assembly an
5 annual report no later than May 1. The report shall include, but
6 not be limited to, the following information:
7 * * *
8 (7) The number and value of agricultural conservation
9 easements purchased jointly by the Commonwealth and the
10 counties or the Commonwealth and authorized entities, <--
11 including the number and value of purchases made during the
12 preceding calendar and the preceding fiscal year of the
13 Commonwealth, AND THE EXTENT OF LOCAL GOVERNMENT UNIT OR <--
14 ELIGIBLE NONPROFIT ENTITY PARTICIPATION IN THE TRANSACTION.
15 * * *
16 Section 5. The amendment or addition of the following
17 provisions shall apply to an agricultural conservation easement
18 jointly recorded with a recorder of deeds of this Commonwealth
19 by an authorized entity and a county or with the Commonwealth
20 prior to or on or after the effective date of this section:
21 (1) The addition of section 2(6) of the act.
22 (2) The addition of the definition of "authorized
23 entity" in section 3 of the act.
24 (3) The amendment of section 14.1(a)(3)(vi) AND (VIII), <--
25 (b)(2)(i)(B) and (C) and (xi) of the act.
26 (4) The amendment of section 14.4(7) of the act.
27 Section 6. This act shall take effect immediately.
E18L03MSP/20050S0723B0879 - 11 -