THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MATZIE, D. COSTA, FRANKEL, JOSEPHS, KORTZ, MANN, MELIO, M. O'BRIEN, K. SMITH AND WALKO, JUNE 24, 2009

REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 24, 2009  

AN ACT

Amending the act of January 19, 1967 (1968 P.L.992, No.442),

entitled "An act authorizing the Commonwealth of Pennsylvania

and the local government units thereof to preserve, acquire

or hold land for open space uses," further providing for

acquisition of interests in real property, for local taxing

options and for exercise of eminent domain.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Section 5(c) of the act of January 19, 1967 (1968

P.L.922, No.442), entitled "An act authorizing the Commonwealth

of Pennsylvania and the local government units thereof to

preserve, acquire or hold land for open space uses," amended

December 18, 1996 (P.L.994, No.153), is amended to read:

Section 5.  Acquisition of Interests in Real Property.--* * *

(c)  (1)  A local government unit may acquire any interest in

real property situate within its boundaries by purchase,

contract, [condemnation, gift, devise or otherwise] gift or

devise, for any of the purposes set forth in clauses [(1)

through (8) of subsection (a) of this section, and may acquire

any interest in real property situate within its boundaries by

purchase, contract, gift or devise, for any of the purposes set

forth in clause (1) of subsection (b) of this section, including

limiting the use of real property to achieve open space benefits

by reselling real property acquired in fee simple, subject to

restrictive covenants or easements limiting the use thereof for

the purposes set forth in clauses (1) through (7) of subsection

(a) and clause (1) of subsection (b) of this section.] (1)

through (7) of subsection (a) and clause (1) of subsection (b),

or may limit the use of real property to achieve open space

benefits by reselling real property acquired in fee simple,

subject to restrictive covenants or easements limiting the use

thereof for those purposes.

(1.1)  A county or county authority may also acquire any

interest in real property situate within its boundaries by

condemnation for any of the purposes set forth in clauses (1)

through (8) of subsection (a) in accordance with section 8 of

this act.

(2)  During the time that real property or any interest in

real property acquired by a local government unit for open space

purposes in accordance with this act is held by the local

government unit, the real property shall be ineligible for the

purchase of agricultural conservation easements authorized in

the act of June 30, 1981 (P.L.128, No.43), known as the

"Agricultural Area Security Law."

Section 2.  Section 7 of the act, amended February 2, 2006

(P.L.15, No.4), is amended to read:

Section 7.  Property Acquired in Fee Simple.--If the owner of

the interests in real property to be acquired pursuant to the

provisions of this act prefers to have the Commonwealth or the

local government unit acquire the property in fee simple, the

Commonwealth or the local government unit shall be required to

acquire the property in fee simple. All real property acquired

in fee simple by the Commonwealth, through either the Department

of Conservation and Natural Resources or the Department of

Agriculture under the provisions of this act, shall be offered

for resale publicly in the manner provided by law within two

years of the date of acquisition, subject to restrictive

covenants or easements limiting the land to such open space uses

as may be specified by the designating department or agency in

accordance with section 6 hereof, and consistent with the

resource, recreation, or land use plan established in accordance

with section [4] 3 hereof. [In the case of the Commonwealth,

such] Such resales may be made without specific authority of the

General Assembly and shall be through the Department of General

Services at public sale in the manner provided by law.

Section 3.  Section 7.1(b) of the act, amended February 2,

2006 (P.L.15, No.4) and November 29, 2006 (P.L.1418, No.154), is

amended to read:

Section 7.1.  Local Taxing Options.--* * *

(b)  (1)  Any of the following categories of real property

may be exempted from further millage increases:

(i)  Real property in which the open space property interests

have been acquired by a local government unit in accordance with

this act.

(ii)  Real property that is subject to an easement acquired

in accordance with the act of June 30, 1981 (P.L.128, No.43),

known as the "Agricultural Area Security Law."

(iii)  Real property from which TDRs have been transferred

and retired by a local government unit without their development

potential having occurred on other lands.

(2)  The exemption from further millage increases authorized

by clause (1) shall become effective only if the [governing body

of each taxing district that imposes a tax on the real property

approves] the respective governing bodies of the county,

municipal corporation and school district approve the exemption

either by ordinance in the case of a county or municipal

corporation or by resolution in the case of a school

district[.], and only as long as each ordinance or resolution,

as applicable, remains in effect or is not repealed. The

ordinance or resolution shall state whether the millage freeze

is only to be applied to the general real estate millage or is

also to be applied to any other millages imposed by the taxing

district. At a minimum the millage freeze shall apply to the

taxing districts' general real estate millage.

(3)  The exemption from further millage increases for real

property as provided for in this subsection shall be authorized

only for real property qualifying for such exemption under the

provisions of section 2(b)(1) of Article VIII of the

Constitution of Pennsylvania.

(4)  If the [governing body of each taxing district so

resolves] respective governing bodies of the county, municipal

corporation and school district so resolve, the millage freeze

authorized herein shall apply to all eligible real property,

whether the real property met the criteria of this subsection

prior to or subsequent to the date of the ordinances and

resolution imposing the millage freeze. For prior acquisitions,

the date on which the millage rate shall be frozen is the date

that the last of the required ordinances or resolution becomes

effective. For subsequent acquisitions, the date on which the

millage rate shall be frozen is the date the local government

unit completes the acquisition. The governing body of each

taxing district shall give prompt notice to the appropriate tax

collection agent of the exact amount of the millage, the date it

was frozen and each parcel to which the freeze applies.

(4.1)  The millage freeze shall remain in effect if the

property is sold as long as the property continues to meet the

requirements of this subsection.

(5)  The exemptions granted under this act shall not be

considered by the State Tax Equalization Board in deriving the

market value of school district real property so as to reduce

the subsidy to that school district or to increase the subsidy

to any other school district.

(6)  Land currently enrolled in programs pursuant to the act

of December 19, 1974 (P.L.973, No.319), known as the

"Pennsylvania Farmland and Forest Land Assessment Act of 1974,"

shall not be eligible for the millage freeze. Land removed from

programs under this act shall be eligible for the tax freeze

upon their removal.

Section 4.  Section 8 of the act, amended December 18, 1996

(P.L.944, No.153), is amended to read:

Section 8.  Exercise of Eminent Domain.--(a)  Use of

condemnation or the power of eminent domain to acquire interests

in real property for the purposes of this act shall be exercised

in accordance with the provisions of the Eminent Domain Code of

the Commonwealth.

(b)  Notwithstanding the provisions of subsection (a) [or

section 5(c)], local government units other than counties or

county authorities may not exercise the power of eminent domain

in carrying out the provisions of this act.

Section 5.  This act shall take effect in 60 days.