HOUSE AMENDED
        PRIOR PRINTER'S NOS. 161, 258                 PRINTER'S NO. 1362

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 156 Session of 1987


        INTRODUCED BY WENGER, HELFRICK, STAPLETON, MADIGAN, JUBELIRER,
           ARMSTRONG, SHAFFER, WILT, GREENWOOD, CORMAN, BRIGHTBILL,
           ANDREZESKI, O'PAKE, SALVATORE AND RHOADES, JANUARY 20, 1987

        AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
           HOUSE OF REPRESENTATIVES, AS AMENDED, SEPTEMBER 28, 1987

                                     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 agricultural areas, public hearings, evaluation
     4     criteria, decisions and reviews of proposed areas, appeals,
     5     limitation on local agencies, policy of Commonwealth
     6     agencies, limitations on exercise of eminent domain and
     7     purchases of development easements in agricultural areas;
     8     making an appropriation; and making editorial changes.
     9  AMENDING THE ACT OF JULY 13, 1987 (P.L.299, NO.54), ENTITLED "AN  <--
    10     ACT AUTHORIZING THE INCURRING OF INDEBTEDNESS, WITH APPROVAL
    11     OF THE ELECTORS, OF $100,000,000 FOR THE PURCHASE OF
    12     AGRICULTURAL CONSERVATION EASEMENTS FOR THE PRESERVATION OF
    13     AGRICULTURAL LAND," FURTHER PROVIDING FOR THE APPROVAL OF THE
    14     ELECTORS.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  Sections 2, 3, 5, 6, 7, 8, 9, 11, 13, and 14 of    <--
    18  the act of June 30, 1981 (P.L.128, No.43), known as the
    19  Agricultural Area Security Law, are amended to read:
    20  Section 2.  Statement of legislative findings.
    21     It is the declared policy of the Commonwealth to conserve and
    22  protect and to encourage the development and improvement of its


     1  agricultural lands for the production of food and other
     2  agricultural products. It is also the declared policy of the
     3  Commonwealth to conserve and protect agricultural lands as
     4  valued natural and ecological resources which provide needed
     5  open spaces for clean air, as well as for aesthetic purposes.
     6  Article VIII, section 2 of the Constitution of Pennsylvania
     7  provides that the General Assembly may, by law, establish
     8  standards and qualifications for agricultural reserves.
     9  Agriculture in many parts of the Commonwealth is under urban
    10  pressure from expanding metropolitan areas. This urban pressure
    11  takes the form of scattered development in wide belts around
    12  urban areas, and brings conflicting land uses into
    13  juxtaposition, creates high costs for public services, and
    14  stimulates land speculation. When this scattered development
    15  extends into good farm areas, ordinances inhibiting farming tend
    16  to follow, farm taxes rise, and hopes for speculative gains
    17  discourage investments in farm improvements. Many of the
    18  agricultural lands in the Commonwealth are in jeopardy of being
    19  lost for any agricultural purposes. Certain of these lands
    20  constitute unique and irreplaceable land resources of Statewide
    21  importance. It is the purpose of this act to provide [a] means
    22  by which agricultural land may be protected and enhanced as a
    23  viable segment of the Commonwealth's economy and as an economic
    24  and environmental resource of major importance.
    25     It is further the purpose of this act to:
    26         (1)  Encourage landowners to make a long-term commitment
    27     to agriculture by offering them financial incentives and
    28     security of land use.
    29         (2)  Protect farming operations in agricultural areas
    30     from incompatible nonfarm land uses that may render farming
    19870S0156B1362                  - 2 -

     1     impracticable.
     2         (3)  Assure permanent conservation of productive
     3     agricultural lands in order to protect the agricultural
     4     economy of this Commonwealth.
     5         (4)  Provide compensation to landowners in exchange for
     6     their relinquishment of the right to develop their private
     7     property.
     8         (5)  Leverage State agricultural easement purchase funds
     9     and protect the investment of taxpayers in agricultural
    10     conservation easements.
    11  Section 3.  Definitions.
    12     The following words and phrases when used in this act shall
    13  have the meanings given to them in this section, unless the
    14  context clearly indicates otherwise:
    15     "Advisory committee."  An Agricultural Area Advisory
    16  Committee.
    17     "Agricultural area."  A unit of 500 or more acres of land
    18  used for the agricultural production of crops, livestock and
    19  livestock products under the ownership of one or more persons.
    20     "Agricultural conservation easement."  An interest in land,
    21  less than fee simple, which interest represents the right to
    22  prevent the development or improvement of the land for any
    23  purpose other than agricultural production. The easement may be
    24  granted by the owner of the fee simple to any third party or to
    25  the Commonwealth, to a county governing body or to a unit of
    26  local government. It may be granted for a term of years or in
    27  perpetuity, as the equivalent of covenants running with the
    28  land.
    29     "Agricultural production."  The production for commercial
    30  purposes of crops, livestock and livestock products, but not
    19870S0156B1362                  - 3 -

     1  land or portions thereof used for processing or retail
     2  merchandising of such crops, livestock or livestock products.
     3     "Board" or "State board."  The Agricultural [Lands
     4  Condemnation Approval] Conservation Board.
     5     "County governing body."  The county board of commissioners
     6  or other designated council of representatives under home rule
     7  charters.
     8     "Crops, livestock and livestock products."  Include but are
     9  not limited to:
    10         (1)  Field crops, including corn, wheat, oats, rye,
    11     barley, hay, potatoes and dry beans.
    12         (2)  Fruits, including apples, peaches, grapes, cherries
    13     and berries.
    14         (3)  Vegetables, including tomatoes, snap beans, cabbage,
    15     carrots, beets, onions and mushrooms.
    16         (4)  Horticultural specialties, including nursery stock
    17     ornamental shrubs, ornamental trees and flowers.
    18         (5)  Livestock and livestock products, including cattle,
    19     sheep, hogs, goats, horses, poultry, furbearing animals,
    20     milk, eggs and furs.
    21         (6)  Timber, wood and other wood products derived from
    22     trees.
    23         (7)  Aquatic plants and animals and their byproducts.
    24     ["Development easement."  An interest in land, less than fee
    25  simple title, which interest represents the inchoate right to
    26  develop such lands for residential, commercial, recreational or
    27  industrial uses. This right shall become absolute when the owner
    28  of a development easement either owns the land to which the
    29  easement belongs or has a written agreement with the owner of
    30  the land to use the development easement on the land: Provided,
    19870S0156B1362                  - 4 -

     1  however, That the use of the development easement is in
     2  compliance with all local zoning ordinances.]
     3     "Governing body."  The governing body of a local government
     4  unit.
     5     "Local government unit."  Any city, borough, township or
     6  town.
     7     "Normal farming operations."  The customary and generally
     8  accepted activities, practices, and procedures that farmers
     9  adopt, use, or engage in year after year in the production and
    10  preparation for market of [poultry] crops, livestock, and
    11  [their] livestock products and in the production and harvesting
    12  of agricultural, agronomic, horticultural, silvicultural, and
    13  [aquicultural] aquacultural crops and commodities.
    14     "Planning commission."  A local government planning
    15  commission or agency, or if the county planning commission, then
    16  that entity which has been designated by the county
    17  commissioners to establish and foster a comprehensive plan for
    18  land management and development within the county, or if a local
    19  planning commission, then that entity which has been designated
    20  by the local government unit governing body to establish and
    21  foster a comprehensive plan for land management and development
    22  within the local government unit which is compatible with the
    23  county comprehensive plan.
    24     "Viable agricultural land."  Land suitable for agricultural
    25  production and which will continue to be economically feasible
    26  for such use if real estate taxes, farm use restrictions, and
    27  speculative activities are limited to levels approximating those
    28  in commercial agricultural areas not influenced by the proximity
    29  of urban and related nonagricultural development.
    30  Section 5.  Agricultural areas.
    19870S0156B1362                  - 5 -

     1     (a)  Proposals for creation.--Any owner or owners of land may
     2  submit a proposal to the governing body for the creation of an
     3  agricultural area within such local government unit, provided
     4  that such owner or owners own at least 500 acres of viable
     5  agricultural land proposed to be included in the area. The
     6  proposed area may also consist of two or more noncontiguous
     7  parcels or areas[: Provided, however, That the], providing that:
     8         (1)  The governing body may limit the minimum acreage
     9     requirements in noncontiguous parcels in an agricultural
    10     area[: And, provided further, That no minimum].
    11         (2)  Minimum acreage [requirement] requirements shall be
    12     [more than 50] ten acres or less.
    13     (a.1)  Submitting the proposal.--Such proposal for creation
    14  of an agricultural area shall be submitted in such manner and
    15  form as may be prescribed by the governing body of the local
    16  government unit wherein the proposed area is situated and shall
    17  include a description of the proposed area, including the
    18  boundaries thereof. [If the proposed area is situated in more
    19  than one local government unit, the proposal shall be submitted
    20  to the governing bodies of all local government units affected.]
    21     (a.2)  Proposals for agricultural areas in more than one
    22  local government unit.--If the land included in a proposal for
    23  an agricultural area is situated in more than one local
    24  government unit, the proposal shall be submitted to, and
    25  approval of the proposal shall be sought from, the governing
    26  body of each such local government unit affected. A rejection by
    27  a governing body shall exclude that portion of the proposal
    28  which is situated within the local government unit. However,
    29  such rejection shall not preclude the approval of the remaining
    30  portion of the proposal as an agricultural area by the governing
    19870S0156B1362                  - 6 -

     1  body of the other affected local government units, provided that
     2  the total acreage approved is at least 500 acres and that such
     3  approved portion meets all other requirements imposed under this
     4  act for agricultural areas.
     5     (b)  Notice.--Upon the receipt of such a proposal, the
     6  governing body shall thereupon provide notice of such proposal
     7  by publishing a notice in a newspaper having general circulation
     8  within the proposed area and by posting such notice in five
     9  conspicuous places within, adjacent or near to the proposed
    10  area. If the governing body fails to provide the required notice
    11  within 15 days of receiving a proposal, a person who is
    12  adversely affected by this inaction may bring an action in
    13  mandamus to compel compliance. The notice shall contain the
    14  following information:
    15         (1)  A statement that a proposal for an agricultural area
    16     has been filed with the governing body pursuant to this act.
    17         (2)  A statement that the proposal will be on file open
    18     to public inspection in the office of the local government
    19     unit.
    20         (3)  A statement that any [municipality whose territory
    21     encompasses] local government unit encompassing or adjacent
    22     to the proposed area, or any landowner who owns the land
    23     proposed to be included within the proposed area, or any
    24     landowner with lands adjacent or near to the proposed area
    25     who wishes such lands to be included or not included therein,
    26     may propose modifications of the proposed area in such form
    27     and manner as may be prescribed by the governing body. The
    28     statement shall indicate that objections to the proposal and
    29     proposed modifications to the proposal must be filed with the
    30     governing body and the planning commission within 15 days of
    19870S0156B1362                  - 7 -

     1     the date of publication of the notice.
     2         [(4)  A statement that any proposed modification must be
     3     filed with the governing body and the planning commission
     4     within 30 days after the publication of such notice.
     5         (5)] (4)  A statement that at the termination of the 30-
     6     day period, the proposal and proposed modifications will be
     7     submitted to the planning commission and the advisory
     8     committee, and that thereafter a public hearing will be held
     9     on the proposal, proposed modifications and recommendations
    10     of the planning commission and advisory committee.
    11     (c)  Modification proposals.--The governing body shall
    12  receive any proposals for modifications of such proposal which
    13  may be submitted by such landowners or [municipalities within 30
    14  days after the publication of such notice] local government
    15  units up to seven days prior to advertisement of public hearing
    16  as provided in section 6(a).
    17     (d)  Report by planning commission.--The governing body
    18  shall, upon the termination of such 30-day period, refer such
    19  proposal and proposed modifications to the planning commission[,
    20  which shall, within 45 days,]. The planning commission shall
    21  have up to 45 days to review the proposal and proposed
    22  modifications and report to the governing body the potential
    23  effect of such proposal and proposed modifications upon the
    24  local government's planning policies and objectives. The failure
    25  of the planning commission to submit a report within 45 days
    26  shall not prohibit the governing body from conducting further
    27  proceedings or from further exercising its authority pursuant to
    28  this act.
    29     (e)  Referral to advisory committee.--The governing body
    30  shall also, upon the termination of such 30-day period, refer
    19870S0156B1362                  - 8 -

     1  such proposal and proposed modifications to the Agricultural
     2  Area Advisory Committee[, which shall, within 45 days]. The
     3  committee shall have up to 45 days to review the proposal and
     4  proposed modifications and report to the governing body its
     5  recommendations concerning the proposal and proposed
     6  modifications. The failure of the advisory committee to submit a
     7  report within 45 days shall not prohibit the governing body from
     8  conducting further proceedings or from further exercising its
     9  authority pursuant to this act.
    10  Section 6.  Public hearings.
    11     (a)  Hearings.--The governing body[,] shall hold a public
    12  hearing relative to the proposed agricultural area upon receipt
    13  of the reports from the advisory committee and the planning
    14  commission[, hold a public hearing relative to the proposed
    15  agricultural area] or upon expiration of the 45-day period as
    16  provided in section 5.
    17     (b)  Place of hearing.--The hearing shall be held at a place
    18  within the proposed area or otherwise readily accessible to the
    19  proposed area, such as a municipal building.
    20     (c)  Notice of hearing.--[A] Pursuant to the act of July 3,
    21  1986 (P.L.388, No.84), known as the "Sunshine Act," a hearing
    22  notice shall be published in a newspaper having a general
    23  circulation within the proposed area [and]. In addition, notice
    24  shall be given in writing [to those municipalities whose
    25  territory encompasses the proposed area and any proposed
    26  modifications and] to those landowners who proposed
    27  modifications pursuant to section 5(c)[, and] or whose land is
    28  included in proposed modifications, and to all landowners within
    29  the proposed agricultural area. Notice also shall be given by
    30  posting such notice in five conspicuous places within, adjacent
    19870S0156B1362                  - 9 -

     1  or near to the proposed area. Such notice shall contain the
     2  following information:
     3         (1)  A statement of the time, date and place of the
     4     public hearing.
     5         (2)  A description of the proposed area, any proposed
     6     additions or deletions and any recommendations of the
     7     planning commission or advisory committee.
     8         (3)  A statement that the public hearing will be held
     9     concerning:
    10             (i)  The original proposal.
    11             (ii)  Any written amendments proposed during the [30-
    12         day] review period.
    13             (iii)  Any recommendations proposed by the
    14         Agricultural Area Advisory Committee and the planning
    15         commission.
    16  Section 7.  Evaluation criteria.
    17     (a)  Factors to be considered.--The following factors shall
    18  be considered by the planning commission, advisory committee,
    19  and at any public hearing:
    20         (1)  [The viability of active farming within the proposed
    21     area and in areas near or adjacent thereto.
    22         (2)  The presence of any viable farm lands within the
    23     proposed area and adjacent thereto that are not now in active
    24     farming.
    25         (3)  The nature and extent of land uses other than active
    26     farming within the proposed area and near or adjacent
    27     thereto.
    28         (4)  Local government unit developmental patterns and
    29     needs.
    30         (5)  The local government unit's comprehensive plan.
    19870S0156B1362                 - 10 -

     1         (6)  Any other matter which may be relevant.
     2     (b)  Other factors.--In judging viability the following
     3  factors shall be considered:
     4         (1)  Soil.
     5         (2)  Climate.
     6         (3)  Topography.
     7         (4)  Markets for farm products.
     8         (5)  The extent and nature of farm improvements.
     9         (6)  The present status of farming.
    10         (7)  Anticipated trends in agricultural economic
    11     conditions and technology.
    12         (8)  Any other natural or economic factors as may be
    13     relevant.
    14     (c)]  Land proposed for inclusion in an agricultural area
    15     shall have soils which are conducive to agriculture. This
    16     factor will have been satisfied without further consideration
    17     if at least 50% in the aggregate of the land to be included
    18     in an agricultural area falls into one of the following
    19     categories: land whose soils are classified in Soil
    20     Conservation Service Capability Classes I through IV,
    21     excepting IV(e); land which falls within the Soil
    22     Conservation Service classification of "unique farm land"; or
    23     land whose soils do not meet Capability Classes I through IV
    24     but which is currently in active farm use and is being
    25     maintained in accordance with the soil erosion and
    26     sedimentation plan applicable to such land.
    27         (2)  Land proposed for inclusion in an agricultural
    28     security area shall be compatible with local government unit
    29     comprehensive plans and with county comprehensive plans. Any
    30     zoning shall permit agricultural use but need not exclude
    19870S0156B1362                 - 11 -

     1     other uses.
     2         (3)  The land proposed for inclusion in the agricultural
     3     area, and any additions which are proposed subsequently,
     4     shall be viable agricultural land.
     5         (4)  Additional factors to be considered are the extent
     6     and nature of farm improvements, anticipated trends in
     7     agricultural economic and technological conditions and any
     8     other matter which may be relevant.
     9     (b)  Resource materials.--In considering the viability
    10  factors as set forth in this section, various resource materials
    11  shall be used, including, but not limited to, the following:
    12         (1)  Soil surveys of the Pennsylvania State University.
    13         (2)  Soil surveys and other information provided by the
    14     National Cooperative Soil Survey.
    15         (3)  Soil survey maps prepared by the United States Soil
    16     Conservation Service.
    17         (4)  The United States census of agricultural categories
    18     of land use classes.
    19         (5)  [Agricultural viability maps prepared by the
    20     Department of Agriculture.
    21         (6)]  Any other relevant published data, maps, charts, or
    22     results of soil or land use surveys made by any county, State
    23     or Federal agency.
    24  Section 8.  Decision on proposed area.
    25     (a)  Action by governing body.--The governing body, [after
    26  receiving the reports of the planning commission and the
    27  advisory committee, and after such public hearing] upon
    28  completion of the procedures and considerations prescribed in
    29  sections 5, 6 and 7, may adopt the proposal or any modification
    30  of the proposal [they deem] the governing body deems
    19870S0156B1362                 - 12 -

     1  appropriate, including the inclusion, to the extent feasible, of
     2  adjacent viable farm lands, and, the exclusion, to the extent
     3  feasible, of nonviable farm land and nonfarm land. The existence
     4  of utility facilities on the proposed area shall not prevent the
     5  [designation of the area as "agricultural"] adoption of such
     6  area as an agricultural area nor shall the rights of utilities
     7  with respect to the existing facilities be disturbed or affected
     8  by such [designation] adoption. The governing body shall act to
     9  adopt or reject the proposal, or any modification [of it], no
    10  later than 180 days from the date the proposal was originally
    11  submitted. Failure by the governing body to act within this 180-
    12  day period shall be deemed adoption of the proposal without
    13  modification.
    14     (b)  Effective date of creation of area.--[The proposed] An
    15  agricultural area[,] shall become effective upon the adoption of
    16  [same] the proposal or its modification by the governing body or
    17  upon expiration of the 180-day period as provided in subsection
    18  (a). If the proposal has included land situated in more than one
    19  local government unit, the agricultural area shall become
    20  effective upon adoption by the local government unit or units of
    21  such portion of the proposal or proposed modifications as will
    22  meet the minimum acreage and other requirements of an
    23  agricultural area provided in this act. Subsequent adoption of
    24  the remaining portion shall immediately effectuate such portion
    25  as an agricultural area.
    26     (c)  Filing of area description.--[Upon] Within ten days of
    27  the creation of an agricultural area, a description thereof
    28  shall be filed by the governing body with the recorder of deeds,
    29  who shall record the filing, and with the planning [commission]
    30  commissions of the county and of the local government unit.
    19870S0156B1362                 - 13 -

     1  Filing shall be done in a manner which is sufficient to give
     2  notice to all persons who have, may acquire or may seek to
     3  acquire an interest in land in or adjacent to the created
     4  agricultural area. Upon the failure of the governing body or
     5  recorder of deeds to file or record the created agricultural
     6  area in accordance with the time or manner requirements
     7  prescribed in this subsection, any person adversely affected may
     8  file a petition with the court of common pleas to compel
     9  immediate compliance with the provisions of this subsection.
    10     (d)  Participation.--Participation in the agricultural area
    11  shall be available at its creation on a voluntary basis to
    12  landowners within the jurisdiction of the governing body
    13  including those not among the original petitioners [on a
    14  voluntary basis]. The addition or deletion of land in the
    15  agricultural area shall only occur after seven years or whenever
    16  the agricultural area is subject to review by the [local]
    17  governing body.
    18  Section 9.  Review of area.
    19     (a)  Review by governing body.--The governing body shall
    20  review any area created under [this] section 8 seven years after
    21  the date of its creation and every seven years thereafter. In
    22  conducting such review, the governing body shall ask for the
    23  recommendations of the planning commission, the county planning
    24  commission and the advisory committee, and shall, at least 120
    25  days prior to the end of the seventh year and not more than 180
    26  days prior to such date, hold a public hearing at a place within
    27  the area or otherwise readily accessible to the area [upon
    28  notice]. Notice of the public hearing shall be published before
    29  the hearing in a newspaper having a general circulation within
    30  the area [by posting]. In addition, notice shall be posted
    19870S0156B1362                 - 14 -

     1  before the hearing in five conspicuous places within, adjacent
     2  or near the area and [by] individual notice, in writing, shall
     3  be given to those [municipalities whose territories encompass
     4  the area and the person] persons owning land within the area.
     5  The governing body, after [receiving the reports of] allowing
     6  the planning commission, the county planning commission and the
     7  advisory committee sufficient time to submit recommendations,
     8  and after the public hearing, may terminate the area at the end
     9  of such seven-year period [by filing a notice of termination
    10  with the recorder of deeds and with the planning commission] or
    11  it may modify the area in the same manner as is provided in this
    12  act for the creation of agricultural areas. Within ten days of
    13  its action of termination or modification, the governing body
    14  shall file a notice of termination or modification with the
    15  recorder of deeds, who shall record such notice in such manner
    16  and place as has been provided in the original recording of the
    17  agricultural area. The governing body shall also file a notice
    18  of termination or modification with the planning commissions of
    19  the county and of the local government unit. If the governing
    20  body does not act, or if a modification of an area is rejected,
    21  the area shall [continue as originally constituted] be deemed to
    22  be adopted without modification for another seven years.
    23     (b)  [Landowner withdrawal] Changes in participation.--
    24  Landowners who wish their land to be withdrawn or included in
    25  the agricultural area shall notify the local governing unit of
    26  their intent [at least 120 days before the end of the seventh
    27  year.] in writing at least 180 days before the end of the
    28  seventh year.
    29     (c)  Interim review.--If, within the seven-year period, 10%
    30  of the land within the agricultural area is diverted to
    19870S0156B1362                 - 15 -

     1  residential or nonagricultural commercial development, the
     2  governing body may review the diversion and may request, in
     3  writing, that the local and county planning commissions and the
     4  agricultural advisory committee study its review and make
     5  recommendations within 30 days of the written request. The
     6  governing body shall thereupon conduct a public hearing, after
     7  providing the same notice as that which is required under
     8  section 6(c). The hearing shall be held no sooner than 45 days
     9  after the governing body has submitted written requests for
    10  review and recommendation to the planning commissions and
    11  advisory committee. The governing body then may terminate or
    12  modify the agricultural area.
    13  Section 11.  Limitation on local regulations.
    14     (a)  General rule.--Every municipality or political
    15  subdivision [creating] within which an agricultural area is
    16  created shall encourage the continuity, development and
    17  viability of agriculture within such an area by not enacting
    18  local laws or ordinances [within such an area in a manner] which
    19  would unreasonably restrict farm structures or farm practices
    20  within the area in contravention of the purposes of this act
    21  unless such restrictions or regulations bear a direct
    22  relationship to the public health or safety.
    23     (b)  Public nuisance.--Any municipal or political subdivision
    24  law or ordinance defining or prohibiting a public nuisance shall
    25  exclude from the definition of such nuisance any agricultural
    26  activity or operation conducted using normal farming operations
    27  within an agricultural area as permitted by this act if such
    28  agricultural activity or operation does not bear a direct
    29  relationship to the public health and safety.
    30  Section 13.  Limitation on [exercise of eminent domain] certain
    19870S0156B1362                 - 16 -

     1                 governmental actions.
     2     (a)  Approval required for condemnation and for certain other
     3  actions by an agency of the Commonwealth.--No agency of the
     4  Commonwealth having or exercising powers of eminent domain shall
     5  condemn for any purpose any land within any agricultural area
     6  which land is being used for productive agricultural purposes
     7  (not including the growing of timber) unless prior approval has
     8  been obtained in accordance with the criteria and procedures
     9  established in this section from the Agricultural Lands
    10  Condemnation Approval Board as established in section 306 of the
    11  act of April 9, 1929 (P.L.177, No.175), known as "The
    12  Administrative Code of 1929." The condemnation approval
    13  specified by this subsection shall not be required for an
    14  underground public utility facility or for any facility of an
    15  electric cooperative corporation or for any public utility
    16  facility the necessity for and the propriety and environmental
    17  effects of which has been reviewed and ratified or approved by
    18  the Pennsylvania Public Utility Commission or the Federal Energy
    19  Regulatory Commission. In addition, all State-funded development
    20  projects which might affect land in established agricultural
    21  areas shall be reviewed by the appropriate local advisory
    22  committee and by the Agricultural Lands Condemnation Approval
    23  Board. Each reviewing body may suggest any modification to the
    24  State-funded development projects which ensures the integrity of
    25  the agricultural areas against nonfarm encroachment.
    26     (b)  Approval required for condemnation by a political
    27  subdivision, authority, public utility or other body.--No
    28  political subdivision, authority, public utility or other body
    29  having or exercising powers of eminent domain shall condemn any
    30  land within any agricultural area for any purpose, unless prior
    19870S0156B1362                 - 17 -

     1  approval has been obtained from Agricultural Lands Condemnation
     2  Approval Board and from each of the following bodies: the
     3  governing bodies of the [municipalities] local government units
     4  encompassing the agricultural area, the county [commissioners]
     5  governing body, and the Agricultural Area Advisory Committee.
     6  Review by the [board] Agricultural Lands Condemnation Approval
     7  Board and the other indicated bodies shall be in accordance with
     8  the criteria and procedures established in this section. The
     9  condemnation approvals specified by this subsection shall not be
    10  required for an underground public utility facility or for any
    11  facility of an electric cooperative corporation or for any
    12  public utility facility the necessity for and the propriety and
    13  environmental effects of which has been reviewed and ratified or
    14  approved by the Pennsylvania Public Utility Commission or the
    15  Federal Energy Regulatory Commission, regardless of whether the
    16  right to establish and maintain such underground or other public
    17  utility facility is obtained by condemnation, or by agreement
    18  with the owner.
    19     (c)  Notice.--Any condemnor wishing to condemn property the
    20  approval for which is required under this section shall at least
    21  30 days prior to taking such action notify each of the foregoing
    22  bodies that such action is contemplated, and no such
    23  condemnation shall be effective until 60 days following the
    24  receipt of such notice.
    25     (d)  Review by Agricultural Lands Condemnation Approval Board
    26  and other bodies.--
    27         (1)  Upon receipt of such notice the [board provided for
    28     in subsection (a)] Agricultural Lands Condemnation Approval
    29     Board or the bodies provided for in subsection (b) jointly or
    30     separately shall review the proposed condemnation in
    19870S0156B1362                 - 18 -

     1     accordance with the applicable criteria established in
     2     paragraph (2).
     3         (2)  (i)  In the case of condemnation for highway
     4         purposes (but not including activities relating to
     5         existing highways such as, but not limited to, widening
     6         roadways, the elimination of curves or reconstruction,
     7         for which no approval is required) and in the case of
     8         condemnation for the disposal of solid or liquid waste
     9         material, the [board] Agricultural Lands Condemnation
    10         Approval Board or other appropriate reviewing body shall
    11         approve the proposed condemnation only if it determines
    12         there is no reasonable and prudent alternative to the
    13         utilization of the land within the agricultural area for
    14         the project.
    15             (ii)  In all other cases not otherwise specifically
    16         provided for, the [board] Agricultural Lands Condemnation
    17         Approval Board or other appropriate reviewing body shall
    18         approve the proposed condemnation only if it determines
    19         that:
    20                 (A)  the proposed condemnation would not have an
    21             unreasonably adverse affect upon the preservation and
    22             enhancement of agriculture or municipal resources
    23             within the area or upon the environmental and
    24             comprehensive plans of the county, municipality and
    25             the Commonwealth, or upon the goals, resource plans,
    26             policies or objectives thereof; or
    27                 (B)  there is no reasonable and prudent
    28             alternative to the utilization of the lands within
    29             the agricultural area for the project.
    30     (e)  Public hearings.--Within such 60-day period the
    19870S0156B1362                 - 19 -

     1  Agricultural Lands Condemnation Board and other indicated
     2  bodies, as appropriate, shall hold a public hearing concerning
     3  the proposed condemnation at a place within or otherwise readily
     4  accessible to the area. Timely notice of such hearing shall be
     5  placed in a newspaper having a general circulation within the
     6  area and a written notice shall be posted at five conspicuous
     7  places within or adjacent to the area. Individual written notice
     8  shall also be given to all [municipalities] local government
     9  units encompassing all or part of the area, to the proposed
    10  condemnor, and to the owners of the land proposed to be
    11  condemned.
    12     (f)  Findings and decisions.--The Agricultural Lands
    13  Condemnation Approval Board and other indicated bodies, as
    14  appropriate, shall render findings and decisions on or before
    15  the expiration of such 60-day period and likewise within such
    16  period shall report the same to the proposed condemnor, the
    17  [municipalities] local government units affected and any party
    18  who [shall file] files an appearance at such hearing. If the
    19  [board] Agricultural Lands Condemnation Board or any other
    20  indicated body fails to act within the 60-day period, the
    21  condemnation shall be deemed approved.
    22     (g)  Injunctions.--The Agricultural Lands Condemnation
    23  Approval Board may request the Attorney General or the bodies
    24  may request their solicitor to bring an action to enjoin any
    25  such condemnor from violating any of the provisions of this
    26  section.
    27     (h)  Emergencies excepted.--This section shall not apply to
    28  any emergency project which is immediately necessary for the
    29  protection of life or property.
    30  Section 14.  [Purchase of development easement in agricultural
    19870S0156B1362                 - 20 -

     1                 areas.
     2     (a)  Program to purchase easements.--After the establishment
     3  of an agricultural area by the governing body, the county
     4  governing body may authorize a program to purchase the
     5  development easements for land within an agricultural area. The
     6  program shall be administered by the county planning commission
     7  and a farmer member from each Agricultural Area Advisory
     8  Committee within the county.
     9     (b)  Funds for purchases.--The county governing body may use
    10  moneys from its general fund and/or incur debt to make available
    11  moneys to purchase the development easements in agricultural
    12  areas. The incurring of debt by the county governing body shall
    13  be consistent with all present laws and procedures imposed on
    14  counties for such action.
    15     (c)  Offers.--Agents, employees or officials of the county
    16  planning commission shall be responsible to make such offers and
    17  to enter into such negotiations as are necessary with any owner
    18  of lands in an agricultural area, in order to purchase any
    19  development easements. Nothing in this act shall be construed as
    20  to require any owner of land in an agricultural area to sell or
    21  transfer any development easements thereto. An owner may reject
    22  any offer by any official of the county planning commission to
    23  purchase any development easements. The price for the purchase
    24  of development easements shall be mutually agreed to by the
    25  owner of the land affected and the county governing body. All
    26  such contracts for purchase shall be in writing.
    27     (d)  Sale of land.--A county governing body may sell any of
    28  its acquired development easements as those easements are
    29  defined under this act: Provided, That the local governing body,
    30  which has jurisdiction over the effected land, approves the sale
    19870S0156B1362                 - 21 -

     1  by a majority vote of its members: And, further provided, That
     2  the present owner of the land affected has refused to purchase
     3  such development easement.]
     4  Purchase of agricultural conservation easements.
     5     (a)  Agricultural Conservation Board.--There is established
     6  in the Department of Agriculture of the Commonwealth the
     7  Agricultural Conservation Board. The board shall have authority
     8  to administer a program for purchasing agricultural conservation
     9  easements from landowners whose land is within agricultural
    10  areas.
    11         (1)  The board shall consist of 17 members, of which the
    12     composition and terms shall be in accordance with the
    13     following:
    14             (i)  There shall be nine ex officio members of the
    15         board: the Secretary of Agriculture, who shall serve as
    16         the board's chairman; the Secretary of Community Affairs;
    17         the Secretary of Environmental Resources; the Chairman
    18         and the Minority Chairman of the House Agriculture and
    19         Rural Affairs Committee, or their designees; the Chairman
    20         and the Minority Chairman of the Senate Agriculture and
    21         Rural Affairs Committee, or their designees; the Dean of
    22         the College of Agriculture of the Pennsylvania State
    23         University and the Chairman of the State Planning Board.
    24             (ii)  One member each shall be appointed by the
    25         Speaker of the House, the House Minority Leader, the
    26         President pro tempore of the Senate and the Senate
    27         Minority Leader, who shall, at the time of appointment,
    28         be an owner and operator of at least one commercial farm
    29         in this Commonwealth. The term of the initial appointee
    30         of the President pro tempore shall be four years, the
    19870S0156B1362                 - 22 -

     1         term of the initial appointee of the Speaker of the House
     2         of Representatives shall be three years, the term of the
     3         initial appointee of the Senate Minority Leader shall be
     4         two years and the term of the initial appointee of the
     5         House Minority Leader shall be one year. Thereafter, the
     6         terms of those appointed herein shall be four years,
     7         except that the term of a person appointed to replace
     8         another member whose term has not expired shall be only
     9         the unexpired portion of that term. Members may be
    10         reappointed to successive years.
    11             (iii)  Four members shall be appointed by the
    12         Governor. One member shall be a current member of the
    13         governing body of a county, one shall be a current member
    14         of the governing body of the local governing unit, one
    15         shall be a person who is recognized as having significant
    16         knowledge in agricultural fiscal and financial matters
    17         and one shall be a residential building contractor.
    18         Initially, one member shall be appointed for a term of
    19         one year, one member shall be appointed for a term of two
    20         years and two members shall be appointed for a term of
    21         three years, and thereafter, the terms of all members
    22         appointed herein shall be three years, except that the
    23         term for a person appointed to replace another member
    24         whose term has not expired shall be only the unexpired
    25         portion of that term. Members may be reappointed to
    26         successive terms.
    27             (iv)  Nine members shall constitute a quorum for
    28         purposes of conducting meetings and official actions
    29         pursuant to authority given to the board under this act.
    30         (2)  The board shall have the following powers:
    19870S0156B1362                 - 23 -

     1             (i)  To adopt rules and regulations for the
     2         administration of the Statewide program for purchasing
     3         agricultural conservation easements.
     4             (ii)  To certify programs adopted by county governing
     5         bodies for purchasing agricultural conservation
     6         easements, in accordance with the criteria set forth in
     7         subsection (b), and to withdraw certification, after
     8         affording the county governing body notice and an
     9         opportunity for a hearing, if such county programs fail
    10         to meet the criteria.
    11             (iii)  To distribute State funds among counties for
    12         the purchase of agricultural conservation easements, in
    13         accordance with the criteria set forth in subsection (d).
    14             (iv)  To use the appropriated funds to hire staff to
    15         administer the program on a day-to-day basis.
    16             (v)  To maintain a central repository of records of
    17         county programs for purchasing agricultural conservation
    18         easements and of farm lands subject to these easements.
    19             (vi)  To exercise other discretionary powers as may
    20         be necessary and appropriate to carry out the functions
    21         of the Statewide program for purchasing agricultural
    22         conservation easements.
    23     (b)  County programs.--After the establishment of an
    24  agricultural area by the governing body, the county governing
    25  body may authorize a program for purchasing agricultural
    26  conservation easements from landowners whose land is within an
    27  agricultural area. The program shall be administered by a county
    28  agricultural conservation board.
    29         (1)  The county agricultural conservation board shall be
    30     composed of five, seven or nine members appointed by the
    19870S0156B1362                 - 24 -

     1     county governing body, with the exception of the chairman who
     2     shall be appointed by the chairman of the county governing
     3     body. Its members shall be appointed from among the following
     4     groups: the number of farmers shall constitute one less than
     5     a majority of the board, one member shall be a current member
     6     of the governing body of a township or borough located within
     7     the county, and the other members shall be selected at the
     8     pleasure of the county governing body. The term of all
     9     members shall be three years, except for the chairman, who
    10     shall be appointed annually.
    11         (2)  The county board shall have the following powers:
    12             (i)  To adopt rules and regulations for administering
    13         a countywide program for purchasing agricultural
    14         conservation easements in accordance with the provisions
    15         of this act. This includes, but is not limited to, rules
    16         and regulations for the submission of applications by
    17         landowners, for appraisal of property in accordance with
    18         standards and procedures adopted by the board and for
    19         selection of parcels of farm land on which agricultural
    20         conservation easements are to be purchased.
    21             (ii)  To purchase agricultural conservation easements
    22         on farm lands within agricultural areas. If State funds
    23         are used for this purpose, the county program must be
    24         certified by the board.
    25             (iii)  To use moneys approved by the county governing
    26         body from the county general fund to hire staff and
    27         administer the program.
    28             (iv)  To use moneys distributed by the board and to
    29         use moneys approved by the county governing body from the
    30         county general fund or moneys resulting from the
    19870S0156B1362                 - 25 -

     1         incurrence of debt approved by the county governing body
     2         for the purchase of agricultural conservation easements.
     3         A county may not incur a greater debt than the lesser of
     4         $100,000 or an amount equal to 20% of the total aggregate
     5         moneys appropriated from the county general fund for
     6         purchase of agricultural conservation easements.
     7             (v)  To maintain a repository of records of land on
     8         which agricultural conservation easements have been
     9         purchased.
    10             (vi)  To exercise other discretionary powers which
    11         are delegated by the county governing body or which are
    12         necessary and appropriate to further the countywide
    13         program for purchasing agricultural conservation
    14         easements.
    15         (3)  If a county wishes to use State funds for purchasing
    16     agricultural conservation easements, the countywide program
    17     for such purchases shall be certified by the board and must
    18     continually maintain qualification for certification by
    19     meeting the following criteria:
    20             (i)  Agricultural conservation easements shall only
    21         be purchased in perpetuity or for a term of not less than
    22         25 years.
    23             (ii)  A county shall not sell, convey, extinguish,
    24         lease, encumber or perform any other act which may
    25         restrict or lessen the rights acquired by the county
    26         resulting from a purchase of an agricultural conservation
    27         easement for a period of at least 25 years from the date
    28         of easement purchase. Thereafter, a county may only do so
    29         upon approval by the board, after offering convincing
    30         evidence to the board that the land subject to the
    19870S0156B1362                 - 26 -

     1         easement is no longer viable for agricultural production.
     2             (iii)  The price paid for purchase of a perpetual
     3         easement shall not be greater than the current fair
     4         market value of the easement as determined by appraisal
     5         in accordance with the standards and procedures adopted
     6         by the board.
     7             (iv)  The price paid for purchase of an easement for
     8         a term of years shall not be greater than one-tenth of
     9         the fair market value of a perpetual easement purchase.
    10             (v)  The content of instruments to be executed
    11         pursuant to county purchases of easements shall be
    12         approved by the board in consultation with the Attorney
    13         General.
    14             (vi)  In determining priorities for the purchase of
    15         agricultural conservation easements from landowners, the
    16         county board shall use objective standards and fair
    17         procedures, which shall include, but not be limited to,
    18         the following:
    19                 (A)  Consideration of the quality of the farm
    20             lands, including soil classifications and
    21             productivity.
    22                 (B)  Consideration of the likelihood that, unless
    23             an agricultural conservation easement is purchased,
    24             the farm lands would be converted to nonagricultural
    25             use. Farm lands most likely to be converted will tend
    26             to have priority over farm lands that are less likely
    27             to be converted. For purposes of considering the
    28             likelihood of conversion, the existence of a zoning
    29             classification of the land shall not be relevant, but
    30             the market for nonfarm use or development of farm
    19870S0156B1362                 - 27 -

     1             lands shall be relevant.
     2                 (C)  The economic circumstances of individual
     3             farm-land owners, but only if the landowner has made
     4             an application for an emergency purchase of an
     5             agricultural conservation easement under this
     6             section. In other cases, economic and other
     7             circumstances of the landowner shall not be
     8             considered.
     9             (vii)  The county board shall set aside a minimum of
    10         5% and a maximum of 10% of the total moneys received from
    11         State and county sources during each funding cycle
    12         provided in subsection (d) of this section. Such funds
    13         set aside shall be utilized for emergency purchases of
    14         agricultural conservation easements. Where the amount set
    15         aside for emergency purchases during a funding cycle
    16         exceeds the amount expended for such purchases, the
    17         county board may utilize such excess in the next funding
    18         cycle for nonemergency, as well as emergency,
    19         agricultural easement purchases. In determining whether
    20         an easement purchase is an emergency purchase and
    21         determining priorities for emergency purchases, the
    22         county board shall conform to the following:
    23                 (A)  Emergency applications or offers to sell
    24             agricultural conservation easements may be accepted
    25             by the county only if the land is owned by an estate
    26             under settlement; if the landowner or other farm
    27             operator has become incapacitated so that he is
    28             unable to continue an active role in managing the
    29             operation; if the landowner has entered into a
    30             contract for the sale of the land to a private,
    19870S0156B1362                 - 28 -

     1             nonprofit land conservation organization whose
     2             purpose is to keep farm lands in agricultural use; or
     3             if the landowner can demonstrate serious financial
     4             hardship that is likely to cause the farming
     5             operation on the land to cease.
     6                 (B)  Consideration of emergency applications or
     7             offers by the county board shall be accomplished as
     8             soon as possible after an application or offer is
     9             received, so that emergency purchases of easements
    10             may be expedited and need not await consideration of
    11             other applications and offers.
    12         (4)  Any county program for the purchase of agricultural
    13     conservation easements or their functional equivalent, which
    14     was authorized by the county governing body and has resulted
    15     in the actual purchase of such easements prior to the
    16     effective date of this act, shall be certified by the board
    17     under subsection (a)(2)(ii), provided that it satisfies the
    18     criteria of paragraph(3). In addition to the powers
    19     enumerated in paragraph (2), such counties shall have the
    20     authority to use State funds to purchase agricultural
    21     conservation easements on agricultural lands designated for
    22     open space use under section 3 of the act of January 19, 1968
    23     (1967 P.L.992, No.442), entitled "An act authorizing the
    24     Commonwealth of Pennsylvania and the counties thereof to
    25     preserve, acquire or hold land for open space uses," prior to
    26     the effective date of this act, if such agricultural lands
    27     satisfy the criteria of section 7(a) of this act.
    28     (c)  Payment of easement purchases.--The agreed-upon purchase
    29  price for agricultural conservation easements may be paid by a
    30  lump sum of cash, installments over a period of years, or by any
    19870S0156B1362                 - 29 -

     1  other lawful method of payment. However, the county board shall
     2  prescribe the method or methods of payment prior to
     3  certification by the board. Where payment is to be made in
     4  installments or another deferred method, the person selling the
     5  easement may receive, in addition to the selling price, interest
     6  or other compensation relating to the deferral of payment at an
     7  amount or rate agreed to. Final payment shall not be later than
     8  five years from the date the easement purchase agreement was
     9  executed.
    10     (d)  Distribution of State funds.--The board shall adopt
    11  rules and regulations for the distribution of State funds that
    12  are appropriated by the General Assembly for the Statewide
    13  purchase of agricultural conservation easements, in accordance
    14  with the following criteria:
    15         (1)  The total amount of State funds made available for
    16     the fiscal year shall be divided in half by the board, with
    17     50% being disbursed to counties for use during an initial
    18     funding cycle of six months, and 50% being disbursed to
    19     counties for use during a subsequent funding cycle of six
    20     months. Disbursements shall only be made to counties whose
    21     programs for purchasing agricultural easements have been
    22     certified by the board. Amounts not expended by the counties
    23     during the initial funding cycle of the State fiscal year may
    24     be retained by the counties for expenditure during the
    25     subsequent funding cycle. However, with the exception of
    26     moneys set aside for emergency purchase of agricultural
    27     easements as provided in subsection (b), any annual funds not
    28     expended by the counties at the end of the State fiscal year
    29     in which they were made available shall be returned to the
    30     board. The board shall deposit them in an account for
    19870S0156B1362                 - 30 -

     1     disbursement during the subsequent State fiscal year as part
     2     of the total amount of funds available.
     3         (2)  In each semiannual funding cycle, the board shall
     4     disburse the funds to counties in accordance with the
     5     following formula:
     6             (i)  Fifty percent of the funds available during the
     7         funding cycle shall be distributed among all counties,
     8         except counties of the first class, in proportion to the
     9         percentage that the total annual realty transfer tax
    10         revenues collected in a county during the preceding State
    11         fiscal year bear to the total annual realty transfer tax
    12         revenues collected Statewide, with the exception of
    13         revenues of counties of the first class, during the
    14         fiscal year. In calculating the percentage of each
    15         county's annual realty transfer tax revenue, the amount
    16         of the revenue collected in a county in excess of the
    17         average amount of the revenues collected in all counties,
    18         except in counties of the first class, shall not be
    19         considered. There shall be no requirement that the
    20         counties contribute county or other local funds toward
    21         part of the purchase price of the easements.
    22             (ii)  Fifty percent of the funds available during the
    23         funding cycle shall be distributed only among those
    24         counties that have certified to the board an amount of
    25         county or local funds that have been made available for
    26         matching the State purchase funds made available under
    27         this subsection. Counties whose annual agricultural
    28         production, measured by the dollar volume of sales of
    29         agricultural products in the county according to the
    30         latest Census of Agriculture, equals or exceeds 2% of the
    19870S0156B1362                 - 31 -

     1         total annual agricultural production in this Commonwealth
     2         during the same year shall be required to make available
     3         $1 for every $8 the Commonwealth contributes under this
     4         subsection for the purpose of easement purchases. Other
     5         counties eligible under this section shall be required to
     6         make available $1 for every $4 the Commonwealth
     7         contributes. The State funds available under this
     8         subsection shall be distributed among eligible counties
     9         in amounts equal to the funds made available by each
    10         county, multiplied by eight or four, as appropriate. If
    11         the total State funds available under this subsection
    12         during the funding cycle are not sufficient to match the
    13         total available county funds during that cycle, then the
    14         State funds shall be distributed pro rata among eligible
    15         counties in proportion to the percentage that the funds
    16         made available by each county, multiplied by eight or
    17         four, as appropriate, bears to the total that all
    18         eligible counties would be entitled to by applying this
    19         formula.
    20     Section 2.  The act is amended by adding a section to read:
    21  Section 14.1.  Agricultural Conservation Easement Purchase Fund.
    22     There is hereby created a restricted account known as the
    23  Agricultural Conservation Easement Purchase Fund. The moneys
    24  appropriated in this restricted account shall be utilized in
    25  accordance with the expenditures and distribution authorized,
    26  required or otherwise provided in the program for purchase of
    27  agricultural conservation easements contained in section 14.
    28     Section 3.  The sum of $25,000,000 is hereby appropriated to
    29  the Agricultural Conservation Easement Purchase Fund to carry
    30  out the purposes of this act. This shall be a continuing
    19870S0156B1362                 - 32 -

     1  appropriation.
     2     Section 4.  This act shall take effect in 60 days.
     3     SECTION 1.  SECTIONS 1 AND 2 OF THE ACT OF JULY 13, 1987       <--
     4  (P.L.299, NO.54), ENTITLED "AN ACT AUTHORIZING THE INCURRING OF
     5  INDEBTEDNESS, WITH APPROVAL OF THE ELECTORS, OF $100,000,000 FOR
     6  THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS FOR THE
     7  PRESERVATION OF AGRICULTURAL LAND," ARE AMENDED TO READ:
     8  SECTION 1.  QUESTION.
     9     THE QUESTION OF INCURRING INDEBTEDNESS OF $100,000,000 [FOR
    10  LOANS] FOR THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS
    11  FOR THE PRESERVATION OF AGRICULTURAL LAND SHALL BE SUBMITTED TO
    12  THE ELECTORS AT THE NEXT PRIMARY, MUNICIPAL OR GENERAL ELECTION
    13  FOLLOWING ENACTMENT OF THIS ACT.
    14  SECTION 2.  CERTIFICATION.
    15     THE SECRETARY OF THE COMMONWEALTH SHALL CERTIFY THE FORM OF
    16  THE QUESTION UNDER SECTION [1] 3 TO THE COUNTY BOARDS OF
    17  ELECTIONS.
    18     SECTION 2.  THIS ACT SHALL BE RETROACTIVE TO JULY 13, 1987.
    19     SECTION 3.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.








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