HOUSE AMENDED
PRIOR PRINTER'S NOS. 2012, 2197, 2242 PRINTER'S NO. 2265
No. 1629 Session of 1994
INTRODUCED BY WENGER, MADIGAN, HELFRICK, AFFLERBACH, ROBBINS,
SHUMAKER, BRIGHTBILL, O'PAKE AND MOWERY, MARCH 22, 1994
AS REPORTED FROM COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
HOUSE OF REPRESENTATIVES, AS AMENDED, JUNE 15, 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
1 eligible county must have its easement purchase program approved
2 by the State board by January 1 of the year in which the annual
3 allocation is made. Counties of the first class are not eligible
4 under any circumstances.
5 * * *
6 Section 2. Section 14.1(c), (g) and (h) of the act, amended
7 June 22, 1990 (P.L.242, No.57), April 13, 1992 (P.L.100, No.23),
8 and December 17, 1993 (P.L.522, No.75), are amended to read:
9 Section 14.1. Purchase of agricultural conservation easements.
10 * * *
11 (c) Restrictions and limitations.--An agricultural
12 conservation easement shall be subject to the following terms,
13 conditions, restrictions and limitations:
14 (1) The term of an agricultural conservation easement
15 shall be perpetual or for a term of 25 years.
16 (2) An agricultural conservation easement shall not be
17 sold, conveyed, extinguished, leased, encumbered or
18 restricted in whole or in part for a period of 25 years
19 beginning on the date of purchase of the easement.
20 (3) If the land subject to the agricultural conservation
21 easement is no longer viable agricultural land, the
22 Commonwealth, subject to the approval of the State board, and
23 the county, subject to the approval of the county board, may
24 sell, convey, extinguish, lease, encumber or restrict an
25 agricultural conservation easement to the current owner of
26 record of the farmland subject to the easement after the
27 expiration of 25 years from the date of purchase of the
28 easement for a purchase price equal to the value at the time
29 of resale determined pursuant to subsection (f) at the time
30 of conveyance. A conveyance by the Commonwealth pursuant to
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1 this subsection shall not be subject to the requirements of
2 Article XXIV-A of the act of April 9, 1929 (P.L.177, No.175),
3 known as "The Administrative Code of 1929." The purchase
4 price shall be payable to the Commonwealth and the county as
5 their respective legal interests in the agricultural
6 conservation easement appear, and a separate payment shall be
7 made to the Commonwealth and the county accordingly at the
8 time of settlement. Any payment received by the Commonwealth
9 pursuant to this provision shall be paid into the fund.
10 (4) Instruments and documents for the purchase, sale and
11 conveyance of agricultural conservation easements shall be
12 approved by the State board or the county board, as the case
13 may be, prior to execution and delivery. Proper releases from
14 mortgage holders and lienholders must be obtained and
15 executed to insure that all agricultural conservation
16 easements are purchased free and clear of all encumbrances.
17 (5) Whenever any public entity, authority or political
18 subdivision exercises the power of eminent domain and
19 condemns land subject to an agricultural conservation
20 easement, the condemnor shall provide just compensation to
21 the owner of the land in fee and to the owner of the easement
22 as follows:
23 (i) The owner of the land in fee shall be paid the
24 full value which would have been payable to the owner but
25 for the existence of an agricultural conservation
26 easement less the value of the agricultural conservation
27 easement at the time of condemnation.
28 (ii) The owner of the easement shall be paid the
29 value of the easement at the time of condemnation.
30 (6) An agricultural conservation easement shall not
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1 prevent:
2 (i) The granting of leases, assignments or other
3 conveyances or the issuing of permits, licenses or other
4 authorization for the exploration, development, storage
5 or removal of coal by underground mining methods, oil and
6 gas by the owner of the subject land or the owner of the
7 underlying coal by underground mining methods, oil and
8 gas or the owner of the rights to develop the underlying
9 coal by underground mining methods, oil and gas, or the
10 development of appurtenant facilities related to the
11 removal of coal by underground mining methods, oil or gas
12 development or activities incident to the removal or
13 development of such minerals.
14 (ii) The granting of rights-of-way by the owner of
15 the subject land in and through the land for the
16 installation of, transportation of, or use of water,
17 sewage, electric, telephone, coal by underground mining
18 methods, gas, oil or oil products lines.
19 (iii) Construction and use of structures on the
20 subject land necessary for agricultural production.
21 (iv) Construction and use of structures on the
22 subject land for the landowner's principal residence or
23 for the purpose of providing necessary housing for
24 seasonal or full-time employees: Provided, That only one
25 such structure may be constructed on no more than two
26 acres of the subject land during the term of the
27 agricultural conservation easement.
28 (v) Customary part-time or off-season minor or rural
29 enterprises and activities which are provided for in the
30 county Agricultural Conservation Easement Purchase
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1 Program approved by the State board under subsection (d).
2 (7) Nothing in this act shall prohibit a member of the
3 State board or county board or his or her family from selling
4 a conservation easement under this program, provided that all
5 decisions made regarding easement purchases be subject to the
6 provisions of section 3(j) of the act of October 4, 1978
7 (P.L.883, No.170), referred to as the Public Official and
8 Employee Ethics Law.
9 * * *
10 (g) Purchase price.--The price paid for purchase of an
11 agricultural conservation easement in perpetuity shall not
12 exceed the difference between the nonagricultural value and the
13 agricultural value determined pursuant to subsection (f) at the
14 time of purchase, unless the difference is less than the State
15 or county boards' original appraised value in which case the
16 State or county boards' original easement value may be offered.
17 However, under no circumstances shall the price paid for
18 purchase of an agricultural conservation easement in perpetuity
19 exceed $10,000 per acre of State funds. The price paid for
20 purchase of an easement for a term of 25 years shall not exceed
21 one-tenth of the difference between the nonagricultural value
22 and the agricultural value determined pursuant to subsection (f)
23 at the time of purchase. The purchase price may be paid in a
24 lump sum, in installments over a period of years, or in any
25 other lawful manner of payment. If payment is to be made in
26 installments or another deferred method, the person selling the
27 easement may receive, in addition to the selling price, interest
28 in an amount or at a rate set forth in the agreement of
29 purchase, and final payment shall be made within, and no later
30 than, five years from the date the agricultural conservation
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1 easement purchase agreement was executed.
2 (h) Allocation of State moneys.--[The] By March 1 of each
3 year, the State board shall make an annual allocation among
4 eligible counties, except counties of the first class AND <--
5 COUNTIES THAT DO NOT HAVE AN EASEMENT PURCHASE PROGRAM APPROVED
6 BY THE STATE BOARD BY JANUARY 1 OF THE YEAR IN WHICH THE ANNUAL
7 ALLOCATION IS MADE, for the purchase of agricultural
8 conservation easements, and except for counties that do not have <--
9 an easement purchase program approved by the State board by
10 January 1 of the year in which the annual allocation is made.
11 (1) As used in this subsection, the following words and
12 phrases shall have the meanings given to them in this
13 paragraph unless the context clearly indicates otherwise:
14 (i) "Adjusted weighted transfer tax revenues." An
15 amount equal to the weighted transfer tax revenues of a
16 county divided by the sum of the weighted transfer tax
17 revenues of all counties except counties of the first
18 class.
19 (ii) "Annual agricultural production." The total
20 dollar volume of sales of livestock, crops and
21 agricultural products according to the most recent Annual
22 Crop and Livestock Summary published by the Pennsylvania
23 Agricultural Statistics Service.
24 (iii) "Annual easement purchase threshold." An
25 amount annually determined by the State board which
26 equals at least $10,000,000.
27 (iv) "Average realty transfer tax revenues." The
28 total annual realty transfer tax revenues collected in
29 [all counties, except counties of the first class,
30 divided by 66] those eligible counties with an easement <--
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1 purchase program approved by the State board by January 1
2 of the year in which the annual allocation is made,
3 divided by the number of eligible counties with approved
4 easement programs by January 1.
5 (v) "Realty transfer tax revenues." The tax imposed
6 and collected under section 1102-C of the act of March 4,
7 1971 (P.L.6, No.2), known as the "Tax Reform Code of
8 1971."
9 (vi) "Weighted transfer tax revenues." An amount
10 equal to the total annual realty transfer tax revenues
11 collected in [a] an eligible county divided by the sum of
12 the total annual realty transfer tax revenues collected
13 in all eligible counties except counties of the first
14 class which does not exceed three times the average
15 realty transfer tax revenues.
16 (2) An annual allocation shall be made to each eligible
17 county, except counties of the first class, for the purchase
18 of agricultural conservation easements by the Commonwealth at
19 the beginning of the county fiscal year which equals 50% of
20 the annual easement purchase threshold multiplied by the
21 adjusted weighted transfer tax revenues of the county for the
22 preceding calendar year.
23 (3) If the aggregate annual allocation under this
24 paragraph to all eligible counties does not exceed 50% of the
25 annual easement purchase threshold, an additional annual
26 allocation from 50% of the annual easement purchase threshold
27 shall be made to a county, except a county of the first
28 class, at the beginning of the county fiscal year for the
29 joint purchase of agricultural conservation easements by the
30 Commonwealth and a county. The additional annual allocation
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1 under this paragraph shall equal the sum of:
2 (i) The annual appropriation of local moneys by a
3 county for the purchase of agricultural conservation
4 easements which does not exceed the average annual
5 allocation under paragraph (2) multiplied by four.
6 (ii) The annual appropriation of local moneys by a
7 county for the purchase of agricultural conservation
8 easements which does not exceed the average annual
9 allocation under paragraph (2) multiplied by four, if the
10 county has an annual agricultural production which equals
11 at least 2% of the total annual agricultural production
12 of the Commonwealth for the same year.
13 (4) If the aggregate annual allocation under paragraph
14 (3) to all eligible counties would exceed 50% of the annual
15 easement purchase threshold, paragraph (3) shall not apply,
16 and an additional annual allocation shall be made under this
17 paragraph at the beginning of the county fiscal year for the
18 joint purchase of agricultural conservation easements by the
19 Commonwealth and a county, except a county of the first
20 class. The additional annual allocation to a county under
21 this paragraph shall equal 50% of the annual easement
22 purchase threshold multiplied by a percentage equal to the
23 annual appropriation of local moneys appropriated by the
24 county for the purchase of agricultural conservation
25 easements divided by the aggregate of local moneys
26 appropriated by all eligible counties for the purchase of
27 agricultural conservation easements and in all cases shall
28 not exceed the average annual allocation under paragraph (2)
29 multiplied by four.
30 (5) An additional annual allocation shall be made to a
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1 county, except a county of the first class, from the amount
2 by which 50% of the annual easement purchase threshold
3 exceeds the total allocations made under paragraph (3) or
4 (4), as the case may be, as follows:
5 (i) An additional annual allocation shall be made
6 for the joint purchase of agricultural conservation
7 easements by the Commonwealth and a county which equals
8 six-tenths of the amount by which 50% of the annual
9 easement purchase threshold exceeds the total allocations
10 made under paragraph (3) or (4), as the case may be,
11 multiplied by a percentage equal to the annual
12 appropriation of local moneys appropriated by the county
13 for the purchase of agricultural conservation easements
14 divided by the aggregate of local moneys appropriated by
15 all eligible counties for the purchase of agricultural
16 conservation easements.
17 (ii) An additional annual allocation shall be made
18 for the purchase of agricultural conservation easements
19 by the Commonwealth which equals four-tenths of the
20 amount by which 50% of the annual easement purchase
21 threshold exceeds the total allocations made under
22 paragraph (3) or (4), as the case may be, multiplied by
23 the adjusted weighted transfer tax revenues of the county
24 for the preceding calendar year.
25 (6) The allocation of a county shall be adjusted for
26 purchases of agricultural conservation easements made with
27 moneys from the county's allocation, for all costs, except
28 administrative costs, incurred by the Commonwealth or a
29 county incident to the purchase of agricultural conservation
30 easements and for the costs of reimbursing nonprofit land
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1 conservation organizations for expenses incurred in acquiring
2 and transferring agricultural conservation easements to the
3 Commonwealth or county. No purchase of an agricultural
4 conservation easement shall be made with State moneys
5 allocated to a county unless the amount of the purchase price
6 is equal to or less than the adjusted allocation or the
7 county pays the portion of the purchase price which
8 represents the difference between the purchase price and the
9 adjusted allocation.
10 [(7) The first annual allocation to a county under
11 paragraphs (3), (4) and (5)(i) shall continue for three
12 county fiscal years occurring after the effective date of
13 this act, and the second and third such annual allocations
14 shall each continue for two county fiscal years occurring
15 after the effective date of this act. Thereafter each such
16 annual allocation shall be for one county fiscal year. Such
17 annual allocations which have not been expended or encumbered
18 at the end of the period for which they were allocated shall
19 be reallocated in the subsequent county fiscal year to a
20 county which used at least 90% of the allocation made to the
21 county at the start of the period. An annual allocation shall
22 be considered to be encumbered and shall not be reallocated
23 if, by December 31 of the year in which that annual
24 allocation 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. The reallocation to a county under this paragraph
29 shall be the total amount of the annual allocation available
30 for reallocation under this paragraph multiplied by a
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1 percentage equal to the annual appropriation of local moneys
2 appropriated by the county for the purchase of agricultural
3 conservation easements at the start of the county fiscal year
4 in which the annual allocation was made divided by the
5 aggregate of local moneys appropriated by all eligible
6 counties for the purchase of agricultural conservation
7 easements at the start of the county fiscal year in which the
8 annual allocation was made. Money reallocated to a county
9 under this paragraph shall be available for one county fiscal
10 year. Money reallocated to a county under this paragraph that
11 has not been spent or encumbered at the conclusion of one
12 county fiscal year shall be restored to the fund. Such money
13 shall be considered to be encumbered and shall not be
14 restored to the fund if, by December 31 of the year in which
15 a reallocation was made to the county, the department has
16 received an agreement executed by the landowner and the
17 county to purchase a specific agricultural conservation
18 easement as part of the county board's recommendation for
19 purchase.
20 (8) Initial allocations to counties under paragraphs (2)
21 and (5)(ii) shall continue until the end of the fourth county
22 fiscal year occurring after the effective date of this act.
23 The sum of the total annual allocations of all counties under
24 paragraphs (2) and (5)(ii) which have not been expended or
25 encumbered by the end of the fourth county fiscal year, and
26 every county fiscal year thereafter, occurring after the
27 effective date of this act shall be reallocated in the
28 subsequent county fiscal year to a county which used at least
29 90% of the allocation made to the county at the start of the
30 period. An annual allocation shall be considered to be
19940S1629B2265 - 11 -
1 encumbered and shall not be reallocated if, by December 31 of
2 the year in which that annual allocation was made to the
3 county, the department has received an agreement executed by
4 the landowner and the county to purchase a specific
5 agricultural conservation easement as part of the county
6 board's recommendation for purchase. For purposes of
7 determining eligibility for reallocation of funds and the
8 amounts of reallocation, funds allocated to counties will be
9 segregated and accounted for on a county fiscal year basis.
10 Fifty percent of the amount available for allocation under
11 this paragraph shall be reallocated in the manner set forth
12 in paragraph (2), and 50% of the amount available for
13 allocation under this paragraph shall be reallocated in the
14 manner set forth in paragraphs (3), (4) and (5). For purposes
15 of reallocating funds in the manner set forth in paragraph
16 (2), realty transfer tax revenues used to calculate weighted
17 transfer tax revenues shall correspond to the year for which
18 funds are being reallocated and weighted transfer tax
19 revenues shall be calculated only for counties eligible under
20 this paragraph. Money reallocated to a county under this
21 paragraph shall be available for one county fiscal year.
22 Money reallocated to a county under this paragraph that has
23 not been spent or encumbered at the conclusion of one county
24 fiscal year shall be restored to the fund. Such money shall
25 be considered to be encumbered and shall not be restored to
26 the fund if, by December 31 of the year in which a
27 reallocation was made to the county, the department has
28 received an agreement executed by the landowner and the
29 county to purchase a specific agricultural conservation
30 easement as part of the county board's recommendation for
19940S1629B2265 - 12 -
1 purchase.]
2 (7.1) The total annual allocation made to an eligible
3 county at the beginning BY MARCH 1 of the county's fiscal <--
4 year for the purchase of agricultural conservation easements
5 may be spent over a period of two consecutive county fiscal
6 years. Money allocated to a county under this subsection
7 which has not been expended or encumbered by such county at
8 the conclusion of the second county fiscal year shall be
9 restored to the fund. Such money shall not be restored to the
10 fund if, by December 31 of the second fiscal year, the
11 department has received an agreement executed by the
12 landowner and the county to purchase a specific agricultural
13 conservation easement as part of the county board's
14 recommendation for purchase.
15 (9) The allocation made to a county under this
16 subsection shall be used for the purchase of agricultural
17 conservation easements in perpetuity: Provided, That no more
18 than 30% of such allocation may be used at the option of a
19 county for the purchase of agricultural conservation
20 easements for a term of 25 years in the manner provided for
21 in this act.
22 (10) (i) Notwithstanding any other provision of this
23 subsection or any provision of regulations promulgated
24 pursuant to this act, the department shall not reallocate
25 funds which were allocated prior to January 1, 1994, if,
26 by December 31, 1993, the department has received an
27 agreement signed by the landowner and the county board to
28 purchase a specific agricultural conservation easement as
29 part of the county board's recommendation for purchase.
30 (ii) Nothing in this paragraph shall affect any
19940S1629B2265 - 13 -
1 reallocation made prior to the effective date of this
2 paragraph.
3 Section 3. The amendment of section 14.1(c)(6)(iv) shall be
4 retroactive to June 30, 1981.
5 Section 4. This act shall take effect in 60 days.
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