PRINTER'S NO. 1604

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1320 Session of 1995


        INTRODUCED BY HECKLER, GERLACH, HELFRICK, AFFLERBACH, ULIANA,
           HART AND SCHWARTZ, NOVEMBER 29, 1995

        REFERRED TO LOCAL GOVERNMENT, NOVEMBER 29, 1995

                                     AN ACT

     1  Amending the act of January 19, 1968 (1967 P.L.992, No.442)
     2     entitled "An act authorizing the Commonwealth of Pennsylvania
     3     and the counties thereof to preserve, acquire or hold land
     4     for open space uses," expanding its scope to include all
     5     local government units throughout this Commonwealth; adding
     6     definitions for "local government unit," "planning
     7     commission" and "transferable development rights"; providing
     8     for local option and for transferable development rights; and
     9     further providing for planning requirements, for limitations
    10     on exercise of powers, for acquisitions of real property
    11     interests, for public hearings, for property acquired in fee
    12     simple, for assessment of property, for termination or other
    13     disposition of open space property interests, and for utility
    14     rights-of-way and underground gas storage areas.

    15     The General Assembly of the Commonwealth of Pennsylvania
    16  hereby enacts as follows:
    17     Section 1.  The title of the act of January 19, 1968 (1967
    18  P.L.992, No.442), entitled "An act authorizing the Commonwealth
    19  of Pennsylvania and the counties thereof to preserve, acquire or
    20  hold land for open space uses" is amended to read:
    21                               AN ACT
    22  Authorizing the Commonwealth of Pennsylvania and the [counties]
    23     local government units thereof to preserve, acquire or hold


     1     land for open space uses.
     2     Section 2.  Section 1 of the act is amended to read:
     3     Section 1.  Statement of Legislative Intent.--It is the
     4  purpose of this act to clarify and broaden the existing methods
     5  by which the Commonwealth may preserve land in or acquire land
     6  for open space uses. The Legislature finds that it is important
     7  to preserve open space [in and near urban areas] and to meet
     8  needs for recreation, amenity, and conservation of natural
     9  resources, including farm land, forests, and a pure and adequate
    10  water supply. The acquisition and resale of property interests
    11  authorized by this act are hereby declared to be for the public
    12  benefit, for the advancement of the public health, safety,
    13  morals and general welfare of the citizens of the Commonwealth,
    14  and for the promotion of sound land development by preserving
    15  suitable open space and concentrating more dense development in
    16  nearby areas.
    17     Section 3.  Section 2(5) of the act is amended and the
    18  section is amended by adding clauses to read:
    19     Section 2.  Definitions.--For the purpose of this act the
    20  following definitions shall apply:
    21     * * *
    22     (5)  ["County."  A county, or a county authority having among
    23  the purposes for which it was created the achievement of one or
    24  more of the open space benefits set forth in this section.]
    25     "Local government unit."  A county, city, borough,
    26  incorporated town, township, school district, any other unit of
    27  local government with a similar general or limited purpose as
    28  the specified units, or a unit which has been created by joint
    29  action of two or more local government units or which shall be
    30  authorized to be created by the General Assembly.
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     1     (6)  "Planning commission."  A local board, commission or
     2  agency which has been designated by the governing body of a
     3  local government unit to establish and foster a comprehensive
     4  plan for land management and development with the local
     5  government unit.
     6     (7)  "Transferable development right," or "TDR."  The
     7  attachment of development rights to specified lands which are
     8  desired by a local government unit to be kept undeveloped;
     9  provided, however, that the agreement contains a clause which
    10  permits those rights to be transferred from those lands so that
    11  the development potential which they represent may occur on
    12  other lands where more intensive development is deemed to be
    13  appropriate.
    14     Section 4.  Sections 3, 4, 5, 6, 7 of the act are amended to
    15  read:
    16     Section 3.  Planning Requirements.--The Department of
    17  [Forests and Waters] Conservation and Natural Resources and the
    18  Department of Agriculture shall not acquire any interest in real
    19  property under the provisions of this act, unless said real
    20  property has been designated for open space uses in a resource,
    21  recreation, or land use plan submitted to and approved by the
    22  State Planning Board. [A county shall not acquire any interest
    23  in real property under the provisions of this act unless said
    24  real property has been designated for open space uses in a
    25  resource, recreation or land use plan approved by the County
    26  Planning Commission.] No interest in real property shall be
    27  acquired under the provisions of this act by a county or, where
    28  the local government unit in which the real property is located
    29  has no planning commission, by any other local government unit,
    30  unless the real property has been designated for open space uses
    19950S1320B1604                  - 3 -

     1  in a resource, recreation or land use plan approved by the
     2  county planning commission and adopted by the governing body of
     3  that local government unit. In all other cases where an
     4  acquisition of an interest in real property is to be made by a
     5  local government unit in accordance with this act, the real
     6  property shall have been designated for open space uses in a
     7  resource, recreation or land use plan approved by the planning
     8  commission of the local government unit in which the real estate
     9  is located and adopted by the governing body of that local
    10  government unit.
    11     Section 4.  Applicability.--The Commonwealth of Pennsylvania,
    12  through the Department of [Forests and Waters] Conservation and
    13  Natural Resources or the Department of Agriculture, may exercise
    14  the powers granted by this act only with the consent of the
    15  county commissioners of the county in which the real property is
    16  situated. All [counties] local government units may exercise the
    17  powers granted by this act, without limitation as to area.
    18     Section 5.  Acquisition of Interests in Real Property.--(a)
    19  The Commonwealth of Pennsylvania, through the Department of
    20  [Forests and Waters] Conservation and Natural Resources, may
    21  acquire any interest in real property by purchase, contract,
    22  condemnation, gift, devise or otherwise, for any of the
    23  following purposes:
    24     (1)  To protect and conserve water resources and watersheds;
    25     (2)  To protect and conserve forests and land being used to
    26  produce timber crops;
    27     (3)  To protect an existing or planned park, forest, wildlife
    28  preserve, nature reserve or other recreation or conservation
    29  site by controlling the use of contiguous or nearby lands in
    30  order to protect the scenic, aesthetic or watershed values of
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     1  the site;
     2     (4)  To protect and conserve natural or scenic resources,
     3  including but not limited to soils, beaches, streams, flood
     4  plains or marshes;
     5     (5)  To protect scenic areas for public visual enjoyment from
     6  public rights of way;
     7     (6)  To preserve sites of historic, geologic or botanic
     8  interest;
     9     (7)  To promote sound, cohesive, and efficient land
    10  development by preserving open spaces between communities;
    11     (8)  To limit the use of the real property so as to achieve
    12  open space benefits by reselling real property acquired in fee
    13  simple, subject to restrictive covenants or easements limiting
    14  the use thereof for the purposes specified in clauses (1)
    15  through (7) hereof.
    16     (b)  The Commonwealth of Pennsylvania, through the Department
    17  of Agriculture, may acquire any interest in real property by
    18  purchase, contract, gift, or devise for any of the following
    19  purposes:
    20     (1)  To protect and conserve farmland;
    21     (2)  To protect and conserve water resources and watersheds;
    22     (3)  To limit the use of real property so as to achieve open
    23  space benefits by reselling real property acquired in fee
    24  simple, subject to restrictive covenants or easements limiting
    25  the use thereof for the purposes specified in clauses (1) and
    26  (2) hereof.
    27     (c)  [Counties] A local government unit may acquire any
    28  interest in real property situate within its boundaries by
    29  purchase, contract, condemnation, gift, devise or otherwise, for
    30  any of the purposes set forth in clauses (a) (1) through (a) (8)
    19950S1320B1604                  - 5 -

     1  of this section, and may acquire any interest in real property
     2  situate within its boundaries by purchase, contract, gift or
     3  devise, for any of the purposes set forth in clause (b) (1) of
     4  this section.
     5     Section 6.  Public Hearing.--Interests in real property to be
     6  acquired pursuant to the provisions of this act shall be
     7  designated by the Department of [Forests and Waters]
     8  Conservation and Natural Resources, the Department of
     9  Agriculture or [the county] a local government unit, whichever
    10  is acquiring them. After such designation, the said interests
    11  shall not be acquired until a public hearing is held and after
    12  notice to all owners of said interests in real property and to
    13  [the municipalities in which county said interests in real
    14  property are located, in each county where the land is situate]
    15  any local government unit, at which hearing the department or
    16  [county] local government unit concerned shall set forth the
    17  interests to be taken and their proposed open space benefits. At
    18  the public hearing persons and municipalities affected by the
    19  proposed acquisition of interests in real property shall have an
    20  opportunity to present relevant evidence.
    21     Section 7.  Property Acquired in Fee Simple.--If the owner of
    22  the interests in real property to be acquired pursuant to the
    23  provisions of this act prefers to have the Commonwealth or the
    24  [county] local government unit acquire the property in fee
    25  simple, the Commonwealth or the [county] local government unit
    26  shall be required to acquire the property in fee simple. All
    27  real property acquired in fee simple by the Commonwealth,
    28  through either the Department of [Forests and Waters]
    29  Conservation and Natural Resources or the Department of
    30  Agriculture, or by a [county] local government unit, under the
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     1  provisions of this act, shall be offered for resale publicly in
     2  the manner provided by law within two years of the date of
     3  acquisition, subject to restrictive covenants or easements
     4  limiting the land to such open space uses as may be specified by
     5  the designating department or agency in accordance with section
     6  6 hereof, and consistent with the resource, recreation, or land
     7  use plan established in accordance with section 4 hereof. In the
     8  case of the Commonwealth, such resales may be made without
     9  specific authority of the General Assembly and shall be through
    10  the Department of [Property and Supplies] General Services at
    11  public sale in the manner provided by law.
    12     Section 5.  The act is amended by adding a section to read:
    13     Section 7.1  Local Option.--(a)  Before acquiring farmland
    14  preservation and conservation easements, a local government
    15  unit, by ordinance or resolution, shall develop procedures for
    16  the review of such easements offered to the local government
    17  unit, the rating of desirability and the price the local
    18  government unit will pay per acre of such easement.
    19     (b)  A local government unit may authorize the establishment
    20  of a program to purchase farmland preservation and conservation
    21  easements on an installment or other deferred basis. The
    22  obligation of the local government unit to make payments on an
    23  installment or other deferred basis shall not be subject to the
    24  requirements of subsection (b) or (c) of section 602 of the act
    25  of July 12, 1972 (P.L.781, No.185), known as the "Local
    26  Government Unit Debt Act." A landowner who enters into an
    27  installment agreement with a local government unit shall
    28  receive, in addition to the selling price, interest in an amount
    29  or at a rate set forth in the purchase agreement. Final payment
    30  shall be made within, and no later than, thirty years from the
    19950S1320B1604                  - 7 -

     1  date the farmland preservation and conservation easement
     2  purchase agreement was fully executed.
     3     (c)  A local government unit, excluding school districts, may
     4  by ordinance or resolution levy, in addition to the statutory
     5  rate limits on real estate taxes set forth in the municipal code
     6  of that local government unit a tax not exceeding four mills. In
     7  the alternative, the local government unit may levy, in addition
     8  to the earned income tax rate limit set forth in the act of
     9  December 31, 1965 (P.L.1257, No.511), known as "The Local Tax
    10  Enabling Act," a tax of two-tenths of one percent on earned
    11  income. Revenue from the levy shall be used only to retire the
    12  indebtedness incurred in purchasing farmland preservation and
    13  conservation easements pursuant to the "Local Government Unit
    14  Debt Act" or in making other acquisitions prescribed under
    15  section 5(c) insofar as that prescription relates to clause
    16  (b)(1) of section 5. The levy may not be imposed until the local
    17  government unit first obtains the assent of fifty-one percent of
    18  the electors in that local government unit voting on the new tax
    19  levy. The assent shall be expressed at an election to be held at
    20  the place and time of any general, municipal, special or primary
    21  election. At such election, the electors shall cast their votes
    22  upon ballots prepared in the manner prescribed by the act of
    23  June 3, 1937 (P.L.1333, No.320), known as the "Pennsylvania
    24  Election Code."
    25     (d)  Before a school district may acquire an interest in real
    26  estate as prescribed under section 5(c) insofar as that
    27  prescription relates to clause (b)(1) of section 5, it must
    28  first obtain the assent of fifty-one percent of the electors in
    29  the district. The assent shall be expressed at an election to be
    30  held at the place and time of any general, municipal, special or
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     1  primary election. At such election, the electors shall cast
     2  their votes upon ballots prepared in the manner prescribed by
     3  the "Pennsylvania Election Code."
     4     (e)  When a local government unit acquires an interest in
     5  real property as authorized by this section, it shall establish
     6  and maintain a respository of records of the interests in real
     7  property which have been or are acquired by the local government
     8  unit and which are located within the local government unit. The
     9  local government unit shall also record each interest in real
    10  property acquired by the local government unit in the office of
    11  the recorder of deeds of the county wherein the real property is
    12  located.
    13     (f)  A local government unit acquiring interests in real
    14  property shall submit to the school district within which the
    15  real property is located a copy of each farmland preservation
    16  and conservation easement recording certified by the county
    17  recorder of deeds.
    18     (g)  When a school district acquires an interest in real
    19  property as set forth in clauses (a)(1) through (a)(8) or (b)(1)
    20  of this section, it shall be required to first obtain the
    21  approval of the governing body of the local government unit
    22  wherein the real property is located, as provided for in section
    23  3 of this act.
    24     (h)  The board of directors of a school district may, by
    25  resolution, exempt all real property which is subject to a
    26  farmland protection and conservation easement which has been
    27  acquired by a local government unit under this act or which is
    28  subject to a similar easement acquired under the act of June 30,
    29  1981 (P.L.128, No.43), known as the "Agricultural Area Security
    30  Law," from further millage increases imposed on real property
    19950S1320B1604                  - 9 -

     1  due to budget increases. If the board so resolves, it shall
     2  state in its resolution its intent to establish the millage
     3  freeze, authorized herein, for all real property subject to such
     4  easements, whether the local government unit acquired such
     5  interests in real property prior to or subsequent to the date of
     6  its resolution. For prior acquisitions, the date the millage
     7  rate shall be frozen is the date of the resolution. For
     8  subsequent acquisitions, the date the millage rate shall be
     9  frozen is the date the local government unit completes the
    10  acquisition. The school district shall give prompt notice to the
    11  appropriate tax collection agent of the exact amount of the
    12  millage, the date it was frozen, and the parcel to which the
    13  freeze applies. The exemptions granted under this act shall not
    14  be considered by the State Tax Equalization Board to derive the
    15  market value of school district real property as to reduce the
    16  subsidy to that school district or to increase the subsidy to
    17  any other school district.
    18     (i)  Definition.--The term "farmland protection and
    19  conservation easement" as used in this section means an interest
    20  in land acquired in accordance with clause (c) of this section
    21  for the purpose set forth in clause (b)(1) of this section,
    22  which is less than a fee simple and which imposes limitations on
    23  or affirmative obligations with regard to the use of the real
    24  property so as to achieve the open space benefit of protecting
    25  and conserving farmland.
    26     Section 6.  Section 8 of the act is amended to read:
    27     Section 8.  Exercise of Eminent Domain.--(a)  Use of the
    28  power of eminent domain to acquire interests in real property
    29  for the purposes of this act shall be exercised in accordance
    30  with the provisions of the Eminent Domain Code of the
    19950S1320B1604                 - 10 -

     1  Commonwealth.
     2     (b)  Notwithstanding the provisions of subsection (a), local
     3  government units may not exercise the power of eminent domain in
     4  carrying out the provisions of this act.
     5     Section 7.  Sections 9 and 10 of the act are amended to read:
     6     Section 9.  Assessment.--Any open space property interest
     7  acquired by the Commonwealth or a [county] local government unit
     8  under this act is held for public purposes, and shall be exempt
     9  from taxation. The assessment of private interests in land
    10  subject to open space property interests under this act shall
    11  reflect any change in market value of the property which may
    12  result from the acquisition of open space property interests by
    13  the Commonwealth or a [county] local government unit.
    14     Section 10.  Termination or Disposition of Open Space
    15  Property Interests.--If the Commonwealth, through either the
    16  Department of [Forests and Waters] Conservation and Natural
    17  Resources or the Department of Agriculture with the approval of
    18  the State Planning Board, or a [county] local government unit
    19  with the approval of its [County Planning Commission] planning
    20  commission, determines that it is essential for the orderly
    21  development of an area to terminate or sell open space property
    22  interests acquired under this act other than property held in
    23  fee simple, the Commonwealth or the [county] local government
    24  unit shall offer to transfer to the original property owner from
    25  whom said property interests other than fee simple were
    26  acquired, or his estate if the original property owner, or his
    27  estate, is the current property owner, said property interests
    28  at a price which shall be equal to the price paid by the
    29  Commonwealth or the [county] local government unit to the
    30  original property owner for said interests; and, if said offer
    19950S1320B1604                 - 11 -

     1  is not accepted within ninety days, the Commonwealth or the
     2  [county] local government unit  shall then sell the open space
     3  property interests at public sale in the manner provided by law.
     4  In the case of the Commonwealth, such transfer or sale may be
     5  made without specific authority of the General Assembly, and
     6  shall be through the Department of [Property and Supplies]
     7  General Services at public sale in the manner provided by law.
     8     Section 8.  The act is amended by adding a section to read:
     9     Section 10.1  Transfer Development Rights.--If a TDR is
    10  acquired under this act by a local government unit, it may be
    11  disposed of in any manner approved by the planning commission
    12  and adopted by the governing body of that local government unit.
    13     Section 9.  Section 11 of the act is amended to read:
    14     Section 11.  Utility Rights of Way; Underground Gas
    15  Storage.--The ownership by the Commonwealth or a [county] local
    16  government unit of an open space property interest shall not
    17  preclude the acquisition, by lease, purchase, or eminent domain,
    18  and use of rights of way or underground gas storage rights in
    19  such property by a public utility or other body entitled to
    20  exercise the power of eminent domain, if in the case of an
    21  acquisition by a body other than a public utility the State
    22  Planning Board, or, in the case of ownership by a [county, the
    23  County Planning Commission] local government unit, its planning
    24  commission, after notice to the Department of [Forests and
    25  Waters] Environmental Protection or the Department of
    26  Agriculture as the case may be, after public hearing, shall
    27  approve such acquisition, or in the case of acquisition by a
    28  public utility if the Pennsylvania Public Utility Commission,
    29  after notice to the Department of [Forests and Waters]
    30  Environmental Protection, the Department of Agriculture, or the
    19950S1320B1604                 - 12 -

     1  [county] local government unit, as the case may be, and after
     2  public hearing, shall find that such acquisition and use are
     3  necessary or proper for the service, accommodation, convenience
     4  or safety of the public.
     5     Section 10.  This act shall take effect in 60 days.

















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