PRINTER'S NO. 2012
No. 1629 Session of 1994
INTRODUCED BY WENGER, MADIGAN, HELFRICK, AFFLERBACH, ROBBINS,
SHUMAKER, BRIGHTBILL, O'PAKE AND MOWERY, MARCH 22, 1994
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, MARCH 22, 1994
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," defining
3 "eligible counties"; and further providing for the purchase
4 of agricultural conservation easements.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 3 of the act of June 30, 1981 (P.L.128,
8 No.43), known as the Agricultural Area Security Law, is amended
9 by adding a definition to read:
10 Section 3. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section, unless the
13 context clearly indicates otherwise:
14 * * *
15 "Eligible counties." Counties whose easement purchase
16 programs have been approved by the State Agricultural Land
17 Preservation Board. For the purpose of annual allocations, an
18 eligible county must have its easement purchase program approved
1 by the State board by January 1 of the year in which the annual
2 allocation is made. Counties of the first class are not eligible
3 under any circumstances.
4 * * *
5 Section 2. Section 14.1(c), (g) and (h) of the act, amended
6 June 22, 1990 (P.L.242, No.57), April 13, 1992 (P.L.100, No.23),
7 and December 17, 1993 (P.L.522, No.75), are amended to read:
8 Section 14.1. Purchase of agricultural conservation easements.
9 * * *
10 (c) Restrictions and limitations.--An agricultural
11 conservation easement shall be subject to the following terms,
12 conditions, restrictions and limitations:
13 (1) The term of an agricultural conservation easement
14 shall be perpetual or for a term of 25 years.
15 (2) An agricultural conservation easement shall not be
16 sold, conveyed, extinguished, leased, encumbered or
17 restricted in whole or in part for a period of 25 years
18 beginning on the date of purchase of the easement.
19 (3) If the land subject to the agricultural conservation
20 easement is no longer viable agricultural land, the
21 Commonwealth, subject to the approval of the State board, and
22 the county, subject to the approval of the county board, may
23 sell, convey, extinguish, lease, encumber or restrict an
24 agricultural conservation easement to the current owner of
25 record of the farmland subject to the easement after the
26 expiration of 25 years from the date of purchase of the
27 easement for a purchase price equal to the value at the time
28 of resale determined pursuant to subsection (f) at the time
29 of conveyance. A conveyance by the Commonwealth pursuant to
30 this subsection shall not be subject to the requirements of
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1 Article XXIV-A of the act of April 9, 1929 (P.L.177, No.175),
2 known as "The Administrative Code of 1929." The purchase
3 price shall be payable to the Commonwealth and the county as
4 their respective legal interests in the agricultural
5 conservation easement appear, and a separate payment shall be
6 made to the Commonwealth and the county accordingly at the
7 time of settlement. Any payment received by the Commonwealth
8 pursuant to this provision shall be paid into the fund.
9 (4) Instruments and documents for the purchase, sale and
10 conveyance of agricultural conservation easements shall be
11 approved by the State board or the county board, as the case
12 may be, prior to execution and delivery. Proper releases from
13 mortgage holders and lienholders must be obtained and
14 executed to insure that all agricultural conservation
15 easements are purchased free and clear of all encumbrances.
16 (5) Whenever any public entity, authority or political
17 subdivision exercises the power of eminent domain and
18 condemns land subject to an agricultural conservation
19 easement, the condemnor shall provide just compensation to
20 the owner of the land in fee and to the owner of the easement
21 as follows:
22 (i) The owner of the land in fee shall be paid the
23 full value which would have been payable to the owner but
24 for the existence of an agricultural conservation
25 easement less the value of the agricultural conservation
26 easement at the time of condemnation.
27 (ii) The owner of the easement shall be paid the
28 value of the easement at the time of condemnation.
29 (6) An agricultural conservation easement shall not
30 prevent:
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1 (i) The granting of leases, assignments or other
2 conveyances or the issuing of permits, licenses or other
3 authorization for the exploration, development, storage
4 or removal of coal by underground mining methods, oil and
5 gas by the owner of the subject land or the owner of the
6 underlying coal by underground mining methods, oil and
7 gas or the owner of the rights to develop the underlying
8 coal by underground mining methods, oil and gas, or the
9 development of appurtenant facilities related to the
10 removal of coal by underground mining methods, oil or gas
11 development or activities incident to the removal or
12 development of such minerals.
13 (ii) The granting of rights-of-way by the owner of
14 the subject land in and through the land for the
15 installation of, transportation of, or use of water,
16 sewage, electric, telephone, coal by underground mining
17 methods, gas, oil or oil products lines.
18 (iii) Construction and use of structures on the
19 subject land necessary for agricultural production.
20 (iv) Construction and use of structures on the
21 subject land for the landowner's principal residence or
22 for the purpose of providing necessary housing for
23 seasonal or full-time employees: Provided, That only one
24 such structure may be constructed on no more than two
25 acres of the subject land during the term of the
26 agricultural conservation easement.
27 (v) Customary part-time or off-season minor or rural
28 enterprises and activities which are provided for in the
29 county Agricultural Conservation Easement Purchase
30 Program approved by the State board under subsection (d).
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1 (7) Nothing in this act shall prohibit a member of the
2 State board or county board or his or her family from selling
3 a conservation easement under this program, provided that all
4 decisions made regarding easement purchases be subject to the
5 provisions of section 3(j) of the act of October 4, 1978
6 (P.L.883, No.170), referred to as the Public Official and
7 Employee Ethics Law.
8 * * *
9 (g) Purchase price.--The price paid for purchase of an
10 agricultural conservation easement in perpetuity shall not
11 exceed the difference between the nonagricultural value and the
12 agricultural value determined pursuant to subsection (f) at the
13 time of purchase, unless the difference is less than the State
14 or county boards' original appraised value in which case the
15 State or county boards' original easement value may be offered.
16 However, under no circumstances shall the price paid for
17 purchase of an agricultural conservation easement in perpetuity
18 exceed $10,000 per acre and no more than $1,000,000 per easement
19 purchase of State funds. The price paid for purchase of an
20 easement for a term of 25 years shall not exceed one-tenth of
21 the difference between the nonagricultural value and the
22 agricultural value determined pursuant to subsection (f) at the
23 time of purchase. The purchase price may be paid in a lump sum,
24 in installments over a period of years, or in any other lawful
25 manner of payment. If payment is to be made in installments or
26 another deferred method, the person selling the easement may
27 receive, in addition to the selling price, interest in an amount
28 or at a rate set forth in the agreement of purchase, and final
29 payment shall be made within, and no later than, five years from
30 the date the agricultural conservation easement purchase
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1 agreement was executed.
2 (h) Allocation of State moneys.--The State board shall make
3 an annual allocation among counties, except counties of the
4 first class, for the purchase of agricultural conservation
5 easements, except for counties that do not have an easement
6 purchase program approved by the State board by January 1 of the
7 year in which the annual allocation is made.
8 (1) As used in this subsection, the following words and
9 phrases shall have the meanings given to them in this
10 paragraph unless the context clearly indicates otherwise:
11 (i) "Adjusted weighted transfer tax revenues." An
12 amount equal to the weighted transfer tax revenues of a
13 county divided by the sum of the weighted transfer tax
14 revenues of all counties except counties of the first
15 class.
16 (ii) "Annual agricultural production." The total
17 dollar volume of sales of livestock, crops and
18 agricultural products according to the most recent Annual
19 Crop and Livestock Summary published by the Pennsylvania
20 Agricultural Statistics Service.
21 (iii) "Annual easement purchase threshold." An
22 amount annually determined by the State board which
23 equals at least $10,000,000.
24 (iv) "Average realty transfer tax revenues." The
25 total annual realty transfer tax revenues collected in
26 [all counties, except counties of the first class,
27 divided by 66] those counties with an easement purchase
28 program approved by the State board by January 1 of the
29 year in which the annual allocation is made, divided by
30 the number of counties with approved easement programs by
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1 January 1.
2 (v) "Realty transfer tax revenues." The tax imposed
3 and collected under section 1102-C of the act of March 4,
4 1971 (P.L.6, No.2), known as the "Tax Reform Code of
5 1971."
6 (vi) "Weighted transfer tax revenues." An amount
7 equal to the total annual realty transfer tax revenues
8 collected in [a] an eligible county divided by the sum of
9 the total annual realty transfer tax revenues collected
10 in all eligible counties except counties of the first
11 class which does not exceed three times the average
12 realty transfer tax revenues.
13 (2) An annual allocation shall be made to each eligible
14 county, except counties of the first class, for the purchase
15 of agricultural conservation easements by the Commonwealth at
16 the beginning of the county fiscal year which equals 50% of
17 the annual easement purchase threshold multiplied by the
18 adjusted weighted transfer tax revenues of the county for the
19 preceding calendar year.
20 (3) If the aggregate annual allocation under this
21 paragraph to all eligible counties does not exceed 50% of the
22 annual easement purchase threshold, an additional annual
23 allocation from 50% of the annual easement purchase threshold
24 shall be made to a county, except a county of the first
25 class, at the beginning of the county fiscal year for the
26 joint purchase of agricultural conservation easements by the
27 Commonwealth and a county. The additional annual allocation
28 under this paragraph shall equal the sum of:
29 (i) The annual appropriation of local moneys by a
30 county for the purchase of agricultural conservation
19940S1629B2012 - 7 -
1 easements which does not exceed the average annual
2 allocation under paragraph (2) multiplied by four.
3 (ii) The annual appropriation of local moneys by a
4 county for the purchase of agricultural conservation
5 easements which does not exceed the average annual
6 allocation under paragraph (2) multiplied by four, if the
7 county has an annual agricultural production which equals
8 at least 2% of the total annual agricultural production
9 of the Commonwealth for the same year.
10 (4) If the aggregate annual allocation under paragraph
11 (3) to all eligible counties would exceed 50% of the annual
12 easement purchase threshold, paragraph (3) shall not apply,
13 and an additional annual allocation shall be made under this
14 paragraph at the beginning of the county fiscal year for the
15 joint purchase of agricultural conservation easements by the
16 Commonwealth and a county, except a county of the first
17 class. The additional annual allocation to a county under
18 this paragraph shall equal 50% of the annual easement
19 purchase threshold multiplied by a percentage equal to the
20 annual appropriation of local moneys appropriated by the
21 county for the purchase of agricultural conservation
22 easements divided by the aggregate of local moneys
23 appropriated by all eligible counties for the purchase of
24 agricultural conservation easements and in all cases shall
25 not exceed the average annual allocation under paragraph (2)
26 multiplied by four.
27 (5) An additional annual allocation shall be made to a
28 county, except a county of the first class, from the amount
29 by which 50% of the annual easement purchase threshold
30 exceeds the total allocations made under paragraph (3) or
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1 (4), as the case may be, as follows:
2 (i) An additional annual allocation shall be made
3 for the joint purchase of agricultural conservation
4 easements by the Commonwealth and a county which equals
5 six-tenths of the amount by which 50% of the annual
6 easement purchase threshold exceeds the total allocations
7 made under paragraph (3) or (4), as the case may be,
8 multiplied by a percentage equal to the annual
9 appropriation of local moneys appropriated by the county
10 for the purchase of agricultural conservation easements
11 divided by the aggregate of local moneys appropriated by
12 all eligible counties for the purchase of agricultural
13 conservation easements.
14 (ii) An additional annual allocation shall be made
15 for the purchase of agricultural conservation easements
16 by the Commonwealth which equals four-tenths of the
17 amount by which 50% of the annual easement purchase
18 threshold exceeds the total allocations made under
19 paragraph (3) or (4), as the case may be, multiplied by
20 the adjusted weighted transfer tax revenues of the county
21 for the preceding calendar year.
22 (6) The allocation of a county shall be adjusted for
23 purchases of agricultural conservation easements made with
24 moneys from the county's allocation, for all costs, except
25 administrative costs, incurred by the Commonwealth or a
26 county incident to the purchase of agricultural conservation
27 easements and for the costs of reimbursing nonprofit land
28 conservation organizations for expenses incurred in acquiring
29 and transferring agricultural conservation easements to the
30 Commonwealth or county. No purchase of an agricultural
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1 conservation easement shall be made with State moneys
2 allocated to a county unless the amount of the purchase price
3 is equal to or less than the adjusted allocation or the
4 county pays the portion of the purchase price which
5 represents the difference between the purchase price and the
6 adjusted allocation.
7 (7) The first annual allocation to a county under
8 paragraphs (3), (4) and (5)(i) shall continue for three
9 county fiscal years occurring after the effective date of
10 this act, and the second and third such annual allocations
11 shall each continue for two county fiscal years occurring
12 after the effective date of this act. Thereafter each such
13 annual allocation shall be for one county fiscal year. Such
14 annual allocations which have not been expended or encumbered
15 at the end of the period for which they were allocated shall
16 be reallocated in the subsequent county fiscal year to a
17 county which used at least 90% of the allocation made to the
18 county at the start of the period. An annual allocation shall
19 be considered to be encumbered and shall not be reallocated
20 if, by December 31 of the year in which that annual
21 allocation was made to the county, the department has
22 received an agreement executed by the landowner and the
23 county to purchase a specific agricultural conservation
24 easement as part of the county board's recommendation for
25 purchase. The reallocation to a county under this paragraph
26 shall be the total amount of the annual allocation available
27 for reallocation under this paragraph multiplied by a
28 percentage equal to the annual appropriation of local moneys
29 appropriated by the county for the purchase of agricultural
30 conservation easements at the start of the county fiscal year
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1 in which the annual allocation was made divided by the
2 aggregate of local moneys appropriated by all eligible
3 counties for the purchase of agricultural conservation
4 easements at the start of the county fiscal year in which the
5 annual allocation was made. Money reallocated to a county
6 under this paragraph shall be available for one county fiscal
7 year. Money reallocated to a county under this paragraph that
8 has not been spent or encumbered at the conclusion of one
9 county fiscal year shall be restored to the fund. Such money
10 shall be considered to be encumbered and shall not be
11 restored to the fund if, by December 31 of the year in which
12 a reallocation was made to the county, the department has
13 received an agreement executed by the landowner and the
14 county to purchase a specific agricultural conservation
15 easement as part of the county board's recommendation for
16 purchase.
17 (8) Initial allocations to counties under paragraphs (2)
18 and (5)(ii) shall continue until the end of the fourth county
19 fiscal year occurring after the effective date of this act.
20 The sum of the total annual allocations of all counties under
21 paragraphs (2) and (5)(ii) which have not been expended or
22 encumbered by the end of the fourth county fiscal year, and
23 every county fiscal year thereafter, occurring after the
24 effective date of this act shall be reallocated in the
25 subsequent county fiscal year to a county which used at least
26 90% of the allocation made to the county at the start of the
27 period. An annual allocation shall be considered to be
28 encumbered and shall not be reallocated if, by December 31 of
29 the year in which that annual allocation was made to the
30 county, the department has received an agreement executed by
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1 the landowner and the county to purchase a specific
2 agricultural conservation easement as part of the county
3 board's recommendation for purchase. For purposes of
4 determining eligibility for reallocation of funds and the
5 amounts of reallocation, funds allocated to counties will be
6 segregated and accounted for on a county fiscal year basis.
7 Fifty percent of the amount available for allocation under
8 this paragraph shall be reallocated in the manner set forth
9 in paragraph (2), and 50% of the amount available for
10 allocation under this paragraph shall be reallocated in the
11 manner set forth in paragraphs (3), (4) and (5). For purposes
12 of reallocating funds in the manner set forth in paragraph
13 (2), realty transfer tax revenues used to calculate weighted
14 transfer tax revenues shall correspond to the year for which
15 funds are being reallocated and weighted transfer tax
16 revenues shall be calculated only for counties eligible under
17 this paragraph. Money reallocated to a county under this
18 paragraph shall be available for one county fiscal year.
19 Money reallocated to a county under this paragraph that has
20 not been spent or encumbered at the conclusion of one county
21 fiscal year shall be restored to the fund. Such money shall
22 be considered to be encumbered and shall not be restored to
23 the fund if, by December 31 of the year in which a
24 reallocation was made to the county, the department has
25 received an agreement executed by the landowner and the
26 county to purchase a specific agricultural conservation
27 easement as part of the county board's recommendation for
28 purchase.
29 (9) The allocation made to a county under this
30 subsection shall be used for the purchase of agricultural
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1 conservation easements in perpetuity: Provided, That no more
2 than 30% of such allocation may be used at the option of a
3 county for the purchase of agricultural conservation
4 easements for a term of 25 years in the manner provided for
5 in this act.
6 (10) (i) Notwithstanding any other provision of this
7 subsection or any provision of regulations promulgated
8 pursuant to this act, the department shall not reallocate
9 funds which were allocated prior to January 1, 1994, if,
10 by December 31, 1993, the department has received an
11 agreement signed by the landowner and the county board to
12 purchase a specific agricultural conservation easement as
13 part of the county board's recommendation for purchase.
14 (ii) Nothing in this paragraph shall affect any
15 reallocation made prior to the effective date of this
16 paragraph.
17 Section 3. This act shall take effect in 60 days.
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