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        PRIOR PRINTER'S NOS. 1180, 1368               PRINTER'S NO. 1402

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 881 Session of 2005


        INTRODUCED BY PICCOLA, BRIGHTBILL, WONDERLING, JUBELIRER,
           LEMMOND, RAFFERTY, EARLL, VANCE, D. WHITE, WOZNIAK, BROWNE,
           PUNT, ROBBINS, REGOLA, TOMLINSON, CORMAN, M. WHITE, PIPPY,
           WENGER, KASUNIC, MADIGAN, SCARNATI, THOMPSON, WAUGH, ORIE AND
           BOSCOLA, OCTOBER 3, 2005

        AS AMENDED ON THIRD CONSIDERATION, DECEMBER 5, 2005

                                     AN ACT

     1  Amending Title 26 (Eminent Domain) of the Pennsylvania
     2     Consolidated Statutes, providing for limitations on the use
     3     of eminent domain; and making a related repeal.

     4     The General Assembly of the Commonwealth of Pennsylvania
     5  hereby enacts as follows:
     6     Section 1.  Title 26 of the Pennsylvania Consolidated
     7  Statutes is amended by adding a chapter to read:
     8                             CHAPTER 2
     9                LIMITATIONS ON USE OF EMINENT DOMAIN
    10  Sec.
    11  201.  Short title of chapter.
    12  202.  Definitions.
    13  203.  Applicability.
    14  204.  Eminent domain for private business prohibited.
    15  205.  Blight.
    16  206.  Extraterritorial takings.
    17  207.  EMINENT DOMAIN OF AGRICULTURAL PROPERTY.                    <--

     1  § 201.  Short title of chapter.
     2     This chapter shall be known and may be cited as the Property
     3  Rights Protection Act.
     4  § 202.  Definitions.
     5     The following words and phrases when used in this chapter
     6  shall have the meanings given to them in this section unless the
     7  context clearly indicates otherwise:
     8     "AGRICULTURAL COMMODITY."  AS DEFINED UNDER SECTION 2 OF THE   <--
     9  ACT OF JUNE 10, 1982 (P.L.454, NO.133), REFERRED TO AS THE
    10  RIGHT-TO-FARM LAW.
    11     "AGRICULTURAL OPERATION."  A PERSON ENGAGED COMMERCIALLY IN
    12  THE PRODUCTION OF AN AGRICULTURAL COMMODITY THAT HAS AN
    13  ANTICIPATED YEARLY GROSS INCOME OF AT LEAST $2,000.
    14     "AGRICULTURAL PROPERTY."  PROPERTY THAT IS OWNED OR OPERATED
    15  BY AN AGRICULTURAL OPERATION IN THE COURSE OF THE OPERATION'S
    16  PRODUCTION, HARVESTING OR PREPARATION FOR MARKET OF AN
    17  AGRICULTURAL COMMODITY. THE TERM ALSO INCLUDES ANY RESIDENTIAL
    18  DWELLING OR WOODLOT SITUATED ON THE PROPERTY.
    19     "Commonwealth agency."  As defined in 2 Pa.C.S. § 101
    20  (relating to definitions).
    21     "Condemnee."  A person that owns property subject to the
    22  exercise of the power of eminent domain by a condemnor.
    23     "Condemnor."  Any of the following which is authorized by law
    24  to exercise the power of eminent domain:
    25         (1)  The Commonwealth, a Commonwealth agency or an
    26     instrumentality or authority of the Commonwealth.
    27         (2)  A political subdivision, an agency of a political
    28     subdivision or an instrumentality or authority of a political
    29     subdivision.
    30         (3)  A public utility as defined in 66 Pa.C.S. § 102
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     1     (relating to definitions).
     2         (4)  A private entity.
     3         (5)  An electrical cooperative corporation under 15
     4     Pa.C.S. Ch. 73 (relating to electric cooperative
     5     corporations).
     6     "Eminent domain."  The power of the Commonwealth to take
     7  private property for public use in return for reasonable JUST     <--
     8  compensation.
     9     "Private enterprise."  A for-profit or not-for-profit entity
    10  or organization. This term does not include any entity or
    11  organization that meets the definition of an institution of
    12  purely public charity pursuant to the act of November 26, 1997
    13  (P.L.508, No.55), known as the Institutions of Purely Public
    14  Charity Act.
    15     "Redevelopment area."  As defined in section 3(n) of the act
    16  of May 24, 1945 (P.L.991, No.385), known as the Urban
    17  Redevelopment Law.
    18     "UNIT OF PROPERTY."  A PARCEL OF REAL ESTATE OR CONDOMINIUM    <--
    19  UNIT, INCLUDING ANY INTEREST IN COMMON ELEMENTS WITH
    20  IMPROVEMENTS THEREON, IF ANY, THAT IS IDENTIFIED BY A LEGAL
    21  DESCRIPTION IN A RECORDED DEED OR A TAX IDENTIFICATION NUMBER.
    22  § 203.  Applicability.
    23     (a)  Authority.--Except as set forth in subsection (b), the
    24  limitations and protections set forth in this chapter apply to
    25  the exercise of eminent domain by a condemnor.
    26     (b)  Exception.--This chapter does not affect any of the
    27  following:
    28         (1)  The jurisdiction or power of the Pennsylvania Public
    29     Utility Commission.
    30         (2)  Any statute providing for the assessment of benefits
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     1     for public improvement on the properties benefited.
     2         (3)  The act of June 10, 1982 (P.L.454, No.133), referred  <--
     3     to as the Right-to-Farm Law.
     4         (3)  THE JURISDICTION OR POWER OF THE PHILADELPHIA         <--
     5     REGIONAL PORT AUTHORITY TO EXERCISE EMINENT DOMAIN WITHIN A
     6     DESIGNATED PORT ZONE FOR A PORT FACILITY AS DEFINED IN THE
     7     ACT OF JULY 10, 1989 (P.L.291, NO.50), KNOWN AS THE
     8     PHILADELPHIA REGIONAL PORT AUTHORITY ACT.
     9     (c)  Construction.--Nothing in this chapter shall be deemed
    10  to expand or enlarge the power of a condemnor to utilize eminent
    11  domain.
    12  § 204.  Eminent domain for private business prohibited.
    13     (a)  Prohibition.--Except as set forth in subsection (b), the
    14  exercise by any condemnor of the power of eminent domain to take
    15  private property in order to use it for private enterprise is
    16  prohibited.
    17     (b)  Exception.--Subsection (a) does not apply if any of the
    18  following apply:
    19         (1)  The condemnee consents to the use of the property
    20     for private enterprise.
    21         (2)  The property is taken by, to the extent the party
    22     has the power of eminent domain, transferred or leased to any
    23     of the following:
    24             (i)  A common carrier, public utility or railroad as
    25         defined in 66 Pa.C.S. § 102 (relating to definitions).
    26             (ii)  A private entity that occupies an incidental
    27         area within a public project, such as retail space,
    28         office space, restaurant and food service facility or
    29         similar private entity.
    30         (3)  There is, on or associated with the property taken,
    20050S0881B1402                  - 4 -     

     1     a threat to public health or safety. This paragraph includes
     2     the following:
     3             (i)  Removal of a public nuisance.
     4             (ii)  Removal of a structure which is:
     5                 (A)  beyond repair; or
     6                 (B)  unfit for human habitation or use.
     7         (4)  The property taken is abandoned.
     8         (5)  The property taken meets the requirements of section
     9     205 (relating to blight).
    10         (6)  The property taken is acquired by a condemnor
    11     pursuant to section 12.1 of the act of May 24, 1945 (P.L.991,
    12     No.385), known as the Urban Redevelopment Law.
    13         (7)  The property taken is acquired pursuant to the act    <--
    14     of May 28, 1937 (P.L.955, No.265), known as the Housing
    15     Authorities Law, or section 42 of the Internal Revenue Code
    16     of 1986 (Public Law 99-514, 26 U.S.C. § 42).
    17         (7)  THE PROPERTY TAKEN IS ACQUIRED FOR THE DEVELOPMENT    <--
    18     OF LOW-INCOME AND MIXED-INCOME HOUSING PROJECTS PURSUANT TO
    19     THE ACT OF MAY 28, 1937 (P.L.955, NO.265), KNOWN AS THE
    20     HOUSING AUTHORITIES LAW, OR TO BE DEVELOPED USING FINANCIAL
    21     INCENTIVES AVAILABLE FOR THE DEVELOPMENT OF LOW-INCOME AND
    22     MIXED-INCOME HOUSING PROJECTS UNDER:
    23             (I)  SECTION 42 OF THE INTERNAL REVENUE CODE OF 1986
    24         (PUBLIC LAW 99-514, 26 U.S.C. § 42);
    25             (II)  THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF
    26         1974 (PUBLIC LAW 93-383, 88 STAT. 633);
    27             (III)  THE NATIONAL HOMEOWNERSHIP TRUST ACT (PUBLIC
    28         LAW 101-625, 104 STAT. 4129);
    29             (IV)  53 PA.C.S. CH. 60 (RELATING TO OPTIONAL
    30         AFFORDABLE HOUSING FUNDING);
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     1             (V)  THE BROWNFIELDS FOR HOUSING AND REDEVELOPMENT
     2         ASSISTANCE PROGRAMS OF THE DEPARTMENT OF COMMUNITY AND
     3         ECONOMIC DEVELOPMENT;
     4             (VI)  THE HOMEOWNERSHIP CHOICE PROGRAM OF THE
     5         PENNSYLVANIA HOUSING FINANCE AGENCY; AND
     6             (VII)  ANY SUCCESSOR PROGRAM TO A PROGRAM UNDER THIS
     7         PARAGRAPH.
     8         (8)  The property taken is acquired pursuant to the act
     9     of June 25, 1999 (P.L.179, No.24), known as the Economic
    10     Development Eminent Domain Law in order to allow for the
    11     removal of blighted properties within the borders of a former
    12     military facility located in a county of the second class A.
    13         (9)  THE PROPERTY IS USED OR TO BE USED FOR ANY ROAD,      <--
    14     STREET, HIGHWAY, TRAFFICWAY OR FOR PROPERTY TO BE ACQUIRED TO
    15     PROVIDE ACCESS TO A PUBLIC THOROUGHFARE FOR A PROPERTY WHICH
    16     WOULD BE OTHERWISE INACCESSIBLE AS THE RESULT OF THE USE OF
    17     EMINENT DOMAIN OR FOR INGRESS, EGRESS OR PARKING OF MOTOR
    18     VEHICLES.
    19  § 205.  Blight.
    20     (a)  Scope.--This section applies notwithstanding the act of
    21  May 24, 1945 (P.L.991, No.385), known as the Urban Redevelopment
    22  Law.
    23     (b)  Single property.--For purposes of acquiring a single
    24  unit of property by eminent domain, a condemnor is authorized or
    25  permitted to declare a property, either within or outside of a
    26  redevelopment area, to be blighted only if the property is any
    27  of the following:
    28         (1)  A premises which, because of physical condition or
    29     use, is regarded as a public nuisance at common law or has
    30     been declared a public nuisance in accordance with the
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     1     municipality housing, building, plumbing, fire or related
     2     codes.
     3         (2)  A premises which, because of physical condition, use
     4     or occupancy, is considered an attractive nuisance to
     5     children. This paragraph includes an abandoned:
     6             (i)  well;
     7             (ii)  shaft;
     8             (iii)  basement;
     9             (iv)  excavation; or
    10             (v)  unsafe fence or structure.
    11         (3)  A dwelling which, because it is dilapidated,
    12     unsanitary, unsafe, vermin-infested or lacking in the
    13     facilities and equipment required by statute or an applicable
    14     municipal code, has been designated by the agency responsible
    15     for enforcement of the statute or code as unfit for human
    16     habitation.
    17         (4)  A structure which is a fire hazard or is otherwise
    18     dangerous to the safety of persons or property.
    19         (5)  A structure from which the utilities, plumbing,
    20     heating, sewerage or other facilities have been disconnected,
    21     destroyed, removed or rendered ineffective so that the
    22     property is unfit for its intended use.
    23         (6)  Any vacant or unimproved lot or parcel of ground in
    24     a predominantly built-up neighborhood which, by reason of
    25     neglect or lack of maintenance, has become a place for
    26     accumulation of trash and debris or a haven for rodents or
    27     other vermin.
    28         (7)  An unoccupied property which has been tax delinquent
    29     for a period of two years.
    30         (8)  A property which is vacant but not tax delinquent
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     1     and which has not been rehabilitated within one year of the
     2     receipt of notice to rehabilitate from the appropriate
     3     enforcement agency.
     4         (9)  An abandoned property. A property shall be
     5     considered abandoned under this paragraph if it:
     6             (i)  is a vacant or unimproved lot or parcel of
     7         ground on which a municipal lien for the cost of
     8         demolition of a structure located on the property remains
     9         unpaid for a period of six months;
    10             (ii)  is a vacant property or vacant or unimproved
    11         lot or parcel of ground on which the total of municipal
    12         liens on the property for tax or other type of claim of
    13         the municipality is in excess of 150% of the fair market
    14         value of the property as established by the Board of
    15         Revisions of Taxes or other body with legal authority to
    16         determine the taxable value of the property; or
    17             (iii)  has been declared abandoned by the owner,
    18         including an estate that is in possession of the
    19         property.
    20         (10)  A property which has defective or unusual
    21     conditions of title or no known owners rendering title
    22     unmarketable.
    23         (11)  A property which has environmentally hazardous
    24     conditions, solid waste pollution or contamination in a
    25     building or on the land which poses a direct and immediate
    26     threat to the health, safety and welfare of the community.
    27     (c)  Multiple properties.--For purposes of acquiring multiple  <--
    28     (C)  MULTIPLE PROPERTIES.--                                    <--
    29         (1)  FOR PURPOSES OF ACQUIRING MULTIPLE units of property
    30     by eminent domain, a condemnor is authorized or permitted to
    20050S0881B1402                  - 8 -     

     1     declare an area, either within or outside of a redevelopment
     2     area, to be blighted only if a majority of the units of
     3     property:
     4         (1)  meet any of the requirements under subsection (b)(1)  <--
     5     through (11); and
     6         (2)  represent a majority of the geographical area.
     7             (I)  MEET ANY OF THE REQUIREMENTS UNDER SUBSECTION     <--
     8         (B)(1) THROUGH (11); AND
     9             (II)  REPRESENT A MAJORITY OF THE GEOGRAPHICAL AREA.
    10         (2)  A CONDEMNOR MAY USE EMINENT DOMAIN TO ACQUIRE ANY
    11     UNIT OF PROPERTY WITHIN A BLIGHTED AREA SO DECLARED PURSUANT
    12     TO THIS SUBSECTION.
    13     (d)  Redesignation.--If a condemnor seeks to add or enlarge a
    14  blighted area, it must find that the area meets the requirements
    15  of subsection (b) or (c) at the time of the addition or
    16  enlargement.
    17     (e)  Expiration.--The declaration of a blighted area shall
    18  expire after 20 years.
    19  § 206.  Extraterritorial takings.
    20     No political subdivision shall exercise eminent domain
    21  authority against land that is situated in another political
    22  subdivision without the approval by resolution of the governing
    23  body of the political subdivision in which the land is situated.
    24  § 207.  EMINENT DOMAIN OF AGRICULTURAL PROPERTY.                  <--
    25     (A)  APPROVAL REQUIRED.--NOTWITHSTANDING ANY PROVISION OF LAW
    26  TO THE CONTRARY, APPROVAL BY THE AGRICULTURAL LANDS CONDEMNATION
    27  APPROVAL BOARD SHALL BE REQUIRED PRIOR TO AUTHORITY OF ANY
    28  AGENCY OF THE COMMONWEALTH OR POLITICAL SUBDIVISION OR MUNICIPAL
    29  AUTHORITY TO EXERCISE POWERS OF EMINENT DOMAIN ON AGRICULTURAL
    30  PROPERTY. APPROVAL SHALL BE OBTAINED IN ACCORDANCE WITH SECTION
    20050S0881B1402                  - 9 -     

     1  13 OF THE ACT OF JUNE 30, 1981 (P.L.128, NO.43), KNOWN AS THE
     2  AGRICULTURAL AREA SECURITY LAW.
     3     (B)  CRITERIA FOR APPROVAL.--IN ADDITION TO THE CRITERIA FOR
     4  APPROVAL PRESCRIBED IN OTHER LAWS, THE AGRICULTURAL LANDS
     5  CONDEMNATION APPROVAL BOARD SHALL CONSIDER AND DETERMINE WHETHER
     6  THE CONDEMNOR IS AUTHORIZED UNDER THIS CHAPTER TO TAKE THE
     7  PROPERTY BY EMINENT DOMAIN.
     8     (C)  DETERMINATION OF BLIGHT.--THE EXERCISE OF EMINENT DOMAIN
     9  POWERS BASED ON A CONDITION OF THE AGRICULTURAL PROPERTY SHALL
    10  NOT BE AUTHORIZED UNDER SECTION 205 UNLESS THE AGRICULTURAL
    11  LANDS CONDEMNATION APPROVAL BOARD DETERMINES THE EXERCISE IS
    12  NECESSARY TO PROTECT THE HEALTH AND SAFETY OF THE COMMUNITY.
    13     (D)  DISAPPROVAL.--THE AGRICULTURAL LANDS CONDEMNATION
    14  APPROVAL BOARD SHALL DISAPPROVE THE PROPOSED CONDEMNATION IF THE
    15  BOARD DETERMINES THE CONDEMNOR IS NOT AUTHORIZED UNDER THIS
    16  CHAPTER TO TAKE THE AGRICULTURAL PROPERTY BY EMINENT DOMAIN.
    17     Section 2.  Repeals are as follows:
    18         (1)  The General Assembly declares that the repeal under
    19     paragraph (2) is necessary to effectuate the addition of 26
    20     Pa.C.S. § 205.
    21         (2)  As much of section 2 of the act of May 24, 1945
    22     (P.L.991, No.385), known as the Urban Redevelopment Law, as
    23     relates to condemnation of blighted premises and that is
    24     inconsistent with this act, is repealed.
    25         (3)  All other acts and parts of acts are repealed
    26     insofar as they are inconsistent with this act.
    27     Section 3.  (A)  This act shall apply to the exercise of the   <--
    28  power of eminent domain on or after the effective date of this
    29  section.
    30     (B)  FOR PROPERTY ACQUIRED PURSUANT TO 26 PA.C.S. § 205, THIS  <--
    20050S0881B1402                 - 10 -     

     1  ACT SHALL NOT APPLY TO UNITS OF PROPERTY IDENTIFIED IN A
     2  REDEVELOPMENT PROPOSAL APPROVED BY A GOVERNING BODY BEFORE THE
     3  EFFECTIVE DATE OF THIS SECTION.
     4     Section 4.  This act shall take effect in 60 days.


















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