THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY PETRI, CALTAGIRONE, CLYMER, D. COSTA, DeWEESE, EVERETT, GEIST, GIBBONS, GOODMAN, HENNESSEY, MAJOR, MURT, O'NEILL, RAPP, READSHAW, SCAVELLO, VULAKOVICH AND WAGNER, SEPTEMBER 14, 2011

REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY, SEPTEMBER 14, 2011  

AN ACT

Providing for the acquisition of property by local government

units to mitigate flood hazards.

TABLE OF CONTENTS

Section 1.  Short title.

Section 2.  Legislative intent.

Section 3.  Definitions.

Section 4.  Acquiring property interests to mitigate flood

hazards.

Section 5.  Public hearing.

Section 6.  Property acquired in fee simple.

Section 7.  Local taxing options.

Section 8.  Procedure for acquisitions by local government

units.

Section 9.  Borrowing and acquisitions on installment basis.

Section 10.  Exercise of eminent domain.

Section 11.  Assessment.

Section 12.  Termination or disposition of property interests.

Section 13.  Utility rights-of-way and underground gas storage.

Section 14.  Construction.

Section 30.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Short title.

This act shall be known and may be cited as the Flood Hazard

Mitigation Act.

Section 2.  Legislative intent.

The purpose of this act is to reduce future risk of flood

damages, while promoting the goals of preserving land for storm

water management, open space, recreational, wetland and related

purposes, by providing a means by which local government units

may acquire property that is either located in areas having

special flood hazards or other areas of flood risk or property

that is substantially damaged by flood.

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Flood Mitigation Assistance Program."  The Federal program

authorized by sections 1366 and 1367 of the National Flood

Insurance Act of 1968 (Public Law 90-448, 42 U.S.C. § 4104c) and

the regulations appertaining thereto.

"Hazard Mitigation Grant Program."  The Federal program under

which hazard mitigation grants are made under the provisions of

section 404 of The Robert T. Stafford Disaster Relief and

Emergency Assistance Act (Public Law 93-288, 42 U.S.C. § 5170c)

and the regulations appertaining thereto.

"Interest in real property."  Any right in real property,

improvements thereto or water, whatsoever, including, but not

limited to, a fee simple, easement, remainder, future interest,

transferable development right, lease, license, restriction or

covenant of any sort, option or contractual interest or

concerning the use of or power to transfer property.

"Local government unit."  Any of the following:

(1)  A county.

(2)  A county authority having among the purpose for

which it was created the mitigation of flood hazards.

(3)  A municipal corporation as defined in 1 Pa.C.S. §

1991 (relating to definitions) or any similar general purpose

unit of local government.

(4)  A unit created by joint action of two or more local

government units which is authorized to be created by the

General Assembly, including cooperation by two or more local

government units under 53 Pa.C.S. Ch. 23 Subch. A (relating

to intergovernmental cooperation).

"Mitigation of flood hazards."  The acquisition of interests

in property located in areas having special flood hazards or

other areas of flood risk and property substantially damaged by

flood in accordance with or supplementary to the Hazard

Mitigation Grant Program or the Flood Mitigation Assistance

Program, provided that the property so acquired is used in a

manner compatible with storm water management, open space,

recreational or wetland management practices, including parks

for outdoor recreational activities, nature reserves,

cultivation, grazing, camping, storm water management control

devices, buffer zones and other uses consistent with the use

restrictions of the Hazard Mitigation Grant Program and the

Flood Mitigation Assistance Program.

Section 4.  Acquiring property interests to mitigate flood

hazards.

(a)  Authorization.--

(1)  A local government unit may acquire, by purchase,

contract, condemnation, gift, devise or otherwise, interests

in real property for the mitigation of flood hazards.

(2)  Acquisitions of interests in real property by a

local government unit under this act are limited to interests

in real property situate within its boundaries.

(b)  Demolition and relocation.--The authority to acquire

interests in real property under this act shall include the

authority to provide for the demolition of structures on or the

relocation of structures from the property acquired.

Section 5.  Public hearing.

Interests in real property may not be acquired under this act

unless a public hearing is held, after notice both to the owners

of interests in real property to be acquired and to the local

government unit in which land is situate. At the public hearing,

the entity acquiring the property interests shall set forth the

interests to be taken and their proposed use, and persons and

municipalities affected by the acquisition shall have an

opportunity to present relevant evidence.

Section 6.  Property acquired in fee simple.

If the owner of an interest in real property to be acquired

under this act prefers to have the local government unit acquire

the property in fee simple, the local government unit shall be

required to acquire the property in fee simple.

Section 7.  Local taxing options.

(a)  General rule.--To provide revenue to make acquisitions

for the mitigation of flood hazards or retire the indebtedness

incurred in the mitigation of flood hazards, a local government

unit shall have the following local tax options:

(1)  In addition to the statutory rate limits on real

estate taxes provided for counties, a county may, by

ordinance, impose a tax on real property not exceeding the

millage authorized by referendum as required by subsection

(b).

(2)  In addition to the statutory rate limits provided

for the respective class of local government units, a local

government unit, excluding a county and county authority,

may, by ordinance, impose either a tax on real property not

exceeding the millage authorized by referendum under

subsection (b) or a tax on the earned income of the residents

of that local government unit not exceeding the rate

authorized by referendum under subsection (b).

(b)  Referendum.--

(1)  The local taxing option authorized by this section

shall not be exercised unless the governing body of the local

government unit shall, by ordinance, first provide for a

referendum on the question of the imposition of the

additional tax at a specific rate and a majority of those

voting on the referendum question vote in favor of the

imposition of the tax. The ordinance of the governing board

of the local government unit providing for a referendum on

the question shall be filed with the county board of

elections.

(2)  The referendum shall be governed by the provisions

of the act of June 3, 1937 (P.L.1333, No.320), known as the

Pennsylvania Election Code.

(3)  The election official shall cause the question to be

submitted to the electors of the local government unit at the

next primary, general or municipal election occurring not

less than the 13th Tuesday following the filing of the

ordinance with the county board of elections.

(4)  At such election, the question shall be submitted to

the voters in the same manner as other questions are

submitted under the provisions of the Pennsylvania Election

Code. The question to be placed upon the ballot shall be

framed in the following form:

Do you favor the imposition of a (describe tax in millage

or rate) by (local government unit) to be used in the

mitigation of flood hazards to (purpose)?

Section 8.  Procedure for acquisitions by local government

units.

(a)  Recordkeeping.--When a local government unit acquires an

interest in real property as authorized under this act, it shall

establish and maintain a repository of records of the interests

in real property that have been or are acquired by the local

government unit. The local government unit shall also record

each interest in real property acquired by the local government

unit in the office of the recorder of deeds for the county in

which the real property is located.

(b)  Copy to school district.--A local government unit

acquiring an interest in real property shall submit to the

school district within which the real property is located a

copy, certificated by the county recorder of deeds, of the deed

reflecting the acquisition.

Section 9.  Borrowing and acquisitions on installment basis.

(a)  Authority to incur debt.--

(1)  A local government unit that is governed by 53

Pa.C.S. Pt. VII Subpt. B (relating to indebtedness and

borrowing) may incur indebtedness under 53 Pa.C.S. Pt. VII

Subpt. B for the purposes of acquiring property interests

under the provisions of this act, and a local government unit

may authorize the establishment of a program to purchase the

property interests on an installment or other deferred basis.

(2)  The obligation of the local government unit to make

payments on an installment or other deferred basis shall not

be subject to the requirements of 53 Pa.C.S. § 8142(b) or (c)

(relating to limitations on stated maturity dates).

(b)  Interest to be paid to landowner.--A landowner who

enters into an installment agreement with a local government

unit shall receive, in addition to the selling price, interest

in an amount or at a rate stated in the purchase agreement.

Section 10.  Exercise of eminent domain.

The use of the power of eminent domain to acquire interests

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

to restrictions and limitations imposed by Federal and State

law.

Section 11.  Assessment.

Any interest in property acquired by a local government unit

under this act shall be held for public purposes and be exempt

from taxation. The assessment of private interests in land

subject to an interest in property acquired under this act shall

reflect any change in market value of the property that may

result from the acquisition of the property interest by the

local government unit.

Section 12.  Termination or disposition of property interests.

Property interests acquired under this act may be terminated

or disposed of in a manner not inconsistent with any

restrictions and limitations imposed by the Hazard Mitigation

Grant Program or the Flood Mitigation Assistance Program.

Section 13.  Utility rights-of-way and underground gas storage.

(a)  General rule.--The ownership by a local government unit

of a property interest acquired under this act shall not

preclude the acquisition, by lease, purchase or eminent domain,

and use of rights-of-way or underground gas storage rights in

such property by a public utility or other body entitled to

exercise the power of eminent domain subject to the following:

(1)  In the case of an acquisition by a public utility,

the acquisition shall occur only if the Pennsylvania Public

Utility Commission, after public hearing, finds that the

acquisition and use are necessary or proper for the service,

accommodation, convenience or safety of the public.

(2)  In the case of an acquisition by a body other than a

public utility, the acquisition shall occur only if the local

government unit, after public hearing, approves the

acquisition.

(b)  Notice of the public hearing.--

(1)  Notice of public hearing required under subsection

(a) shall include a statement of the purpose of the public

hearing and the date, time and place of the public hearing

and be given by publication one time at least 20 days prior

to the hearing in a newspaper of general circulation in the

area where the property is located. In addition, a written

notice shall be conspicuously posted at points deemed

sufficient by the body conducting the public hearing to

notify potentially interested citizens. The affected tract

shall be posted at least ten days prior to the hearing.

(2)  If a local government unit owns an interest in

property that is the subject of the hearing, and is not

itself conducting the hearing, notice shall be sent by United

States first class mail at least 20 days prior to the hearing

to the local government unit.

Section 14.  Construction.

The authority granted to the local government units under

this act shall be in addition to and not in limitation of any

other authority granted to a local government unit by any other

law and shall be construed to enlarge and not to reduce or limit

the power and authority of local government units.

Section 15.  Effective date.

This act shall take effect immediately.