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        PRIOR PRINTER'S NOS. 867, 879                  PRINTER'S NO. 975

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 723 Session of 2005


        INTRODUCED BY WENGER, WAUGH, VANCE, ERICKSON, MUSTO, RAFFERTY,
           GREENLEAF, EARLL, BROWNE, O'PAKE, LEMMOND, PILEGGI, PICCOLA,
           ORIE, ROBBINS, FERLO, WONDERLING AND ARMSTRONG, JUNE 3, 2005

        SENATOR THOMPSON, APPROPRIATIONS, RE-REPORTED AS AMENDED,
           JUNE 20, 2005

                                     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 statement of legislative findings; providing     <--
     4     for the definition of "authorized entity"; and further
     5     providing, FOR DEFINITIONS, for purchase of agricultural       <--
     6     conservation easements and for legislative report.

     7     The General Assembly of the Commonwealth of Pennsylvania
     8  hereby enacts as follows:
     9     Section 1.  Section 2 of the act of June 30, 1981 (P.L.128,
    10  No.43), known as the Agricultural Area Security Law, is amended
    11  by adding a paragraph to read:
    12  Section 2.  Statement of legislative findings.
    13     It is the declared policy of the Commonwealth to conserve and
    14  protect and to encourage the development and improvement of its
    15  agricultural lands for the production of food and other
    16  agricultural products. It is also the declared policy of the
    17  Commonwealth to conserve and protect agricultural lands as
    18  valued natural and ecological resources which provide needed


     1  open spaces for clean air, as well as for aesthetic purposes.
     2  Article VIII, section 2 of the Constitution of Pennsylvania
     3  provides that the General Assembly may, by law, establish
     4  standards and qualifications for agricultural reserves.
     5  Agriculture in many parts of the Commonwealth is under urban
     6  pressure from expanding metropolitan areas. This urban pressure
     7  takes the form of scattered development in wide belts around
     8  urban areas, and brings conflicting land uses into
     9  juxtaposition, creates high costs for public services, and
    10  stimulates land speculation. When this scattered development
    11  extends into good farm areas, ordinances inhibiting farming tend
    12  to follow, farm taxes rise, and hopes for speculative gains
    13  discourage investments in farm improvements. Many of the
    14  agricultural lands in the Commonwealth are in jeopardy of being
    15  lost for any agricultural purposes. Certain of these lands
    16  constitute unique and irreplaceable land resources of Statewide
    17  importance. It is the purpose of this act to provide means by
    18  which agricultural land may be protected and enhanced as a
    19  viable segment of the Commonwealth's economy and as an economic
    20  and environmental resource of major importance.
    21     It is further the purpose of this act to:
    22         * * *
    23         (6)  Encourage financial partnerships between State and
    24     local governments with nonprofit entities in order to
    25     increase the funds available for agricultural conservation
    26     easement purchases.
    27     Section 2.  Section 3 of the act is amended by adding a
    28  definition to read:
    29  Section 3.  Definitions.
    30     The following words and phrases when used in this act shall
    20050S0723B0975                  - 2 -     

     1  have the meanings given to them in this section, unless the
     2  context clearly indicates otherwise:
     3     * * *
     4     "Eligible nonprofit entity."  An entity that provides an
     5  eligible county adequate proof of the following:
     6         (1)  That the entity is tax exempt under section
     7     501(c)(3) of the Internal Revenue Code of 1986 (Public Law
     8     99-514, 26 U.S.C. § 501(c)(3)).
     9         (2)  That the entity has as a primary purpose the
    10     preservation of agricultural land.
    11         (3)  That the entity's principal registered business
    12     address is located either within the eligible county or is
    13     located in a county that adjoins the eligible county.
    14         (4)  That the entity has acquired, whether through
    15     purchase, donation or other transfer, at least one
    16     agricultural conservation easement within the eligible county
    17     in the preceding or current calendar year.
    18     * * *
    19     Section 3.  Section 14.1(a)(3)(vi) and (viii), (b)(2)(i)(B)
    20  and (C), (xi) and (xii) and (b.1) introductory paragraph of the
    21  act, amended or added December 21, 1998 (P.L.1056, No.138) and
    22  May 30, 2001 (P.L.103, No.14), are amended, subsection (b)(2)(i)
    23  is amended by adding a clause and the section is amended by
    24  adding a subsection to read:
    25  Section 14.1.  Purchase of agricultural conservation easements.
    26     (a)  State Agricultural Land Preservation Board.--The
    27  Department of Agriculture and the State Agricultural Land
    28  Preservation Board shall administer pursuant to this section a
    29  program for the purchase of agricultural conservation easements
    30  by the Commonwealth.
    20050S0723B0975                  - 3 -     

     1         * * *
     2         (3)  It shall be the duty and responsibility of the State
     3     board to exercise the following powers:
     4             * * *
     5             (vi)  To purchase agricultural conservation easements
     6         jointly with a county, or or jointly with a county and a
     7         local government unit, or jointly with a county and an
     8         eligible nonprofit entity, or jointly with a county, a
     9         local government unit and an eligible nonprofit entity,
    10         if recommended by a county and approved by the State
    11         board as provided in subparagraph (iii).
    12             * * *
    13             (viii)  To establish and maintain a central
    14         repository of records which shall contain records of
    15         county programs for purchasing agricultural conservation
    16         easements, records of agricultural conservation easements
    17         purchased by local government units, by local government
    18         units and counties [and], by local government units and
    19         the Commonwealth, by eligible nonprofit entities in
    20         accordance with subsection (b.2), and records of
    21         agricultural conservation easements purchased by the
    22         Commonwealth. All records indicating the purchase of
    23         agricultural conservation easements shall refer to and
    24         describe the farm land subject to the agricultural
    25         conservation easement.
    26             * * *
    27     (b)  County programs.--After the establishment of an
    28  agricultural security area by the governing body, the county
    29  governing body may authorize a program to be administered by the
    30  county board for purchasing agricultural conservation easements
    20050S0723B0975                  - 4 -     

     1  from landowners whose land is either within an agricultural
     2  security area or in compliance with the criteria set forth in
     3  paragraph (2)(i).
     4         * * *
     5         (2)  It shall be the duty and responsibility of the
     6     county board to exercise the following powers:
     7                 (i)  * * *
     8                 (A.1)  To opt to include in such rules and
     9             regulations, standards and procedures to permit
    10             participation with eligible nonprofit entities in the
    11             purchase of agricultural conservation easements as
    12             described in subsection (b.2).
    13                 (B)  To include in such rules and regulations,
    14             standards and procedures for the selection or
    15             purchase of agricultural conservation easements by
    16             the county solely [or jointly with either the
    17             Commonwealth or a local government unit, or both], or
    18             jointly with the Commonwealth, a local government
    19             unit, an eligible nonprofit entity, or any
    20             combination of these, on that portion of a parcel
    21             which is not within an agricultural security area if
    22             all of the following criteria are complied with:
    23                     (I)  The land is part of a parcel of farm
    24                 land which is bisected by the dividing line
    25                 between two local government units.
    26                     (II)  The majority of the farm's viable
    27                 agricultural land is located within an existing
    28                 agricultural security area. Upon purchase of an
    29                 easement covering the portion of the parcel which
    30                 is not located within an agricultural security
    20050S0723B0975                  - 5 -     

     1                 area, that portion of the parcel shall
     2                 immediately become part of the previously
     3                 established agricultural security area which
     4                 contains a majority of the farm's viable
     5                 agricultural land. The governing body which
     6                 created the agricultural security area which
     7                 contains a majority of the farm's viable
     8                 agricultural land shall be responsible for the
     9                 recording, filing and notification outlined in
    10                 section 8(d) and (g) concerning land added to the
    11                 agricultural security area pursuant to this
    12                 clause.
    13                 (C)  To include in such rules and regulations,
    14             standards and procedures for the selection or
    15             purchase of agricultural conservation easements by
    16             the county solely or jointly with either the
    17             Commonwealth or a local government unit, or both, on
    18             that portion of a parcel located in an adjoining
    19             county if all of the following criteria are complied
    20             with:
    21                     (I)  The land is part of a parcel of farm
    22                 land which is bisected by the dividing line
    23                 between the purchasing county and the adjoining
    24                 county.
    25                     (II)  Either a mansion house is located on
    26                 that portion of the parcel which is within the
    27                 purchasing county or the dividing line between
    28                 the counties bisects the mansion house and the
    29                 owner of the parcel has chosen the purchasing
    30                 county as the situs of assessment for tax
    20050S0723B0975                  - 6 -     

     1                 purposes or, if there is no mansion house on the
     2                 parcel, the majority of the farm's viable
     3                 agricultural land is located in the purchasing
     4                 county.
     5                     (III)  The portion of the parcel located in
     6                 the purchasing county is within an agricultural
     7                 security area. Upon purchase of an easement by
     8                 the purchasing county covering that portion of
     9                 the parcel located in the adjoining county, the
    10                 portion of the parcel located in the adjoining
    11                 county shall immediately become part of the
    12                 agricultural security area previously established
    13                 in the purchasing county. The governing body
    14                 which created the agricultural security area in
    15                 the purchasing county shall be responsible for
    16                 the recording, filing and notification outlined
    17                 in section 8(d) and (g) concerning land added to
    18                 the agricultural security area pursuant to this
    19                 clause.
    20             * * *
    21             (xi)  To recommend to the State board the purchase of
    22         agricultural conservation easements by the Commonwealth
    23         and the county jointly[.], or jointly with the
    24         Commonwealth, the county and a local government unit, or
    25         jointly with the Commonwealth, the county and an eligible
    26         nonprofit entity, or jointly with the Commonwealth, the
    27         county, a local government unit and an eligible nonprofit
    28         entity.
    29             (xii)  To purchase agricultural conservation
    30         easements jointly with the Commonwealth[.], or jointly
    20050S0723B0975                  - 7 -     

     1         with the Commonwealth, the county and a local government
     2         unit, or jointly with the Commonwealth, the county and an
     3         eligible nonprofit entity, or jointly with the
     4         Commonwealth, the county, a local government unit and an
     5         eligible nonprofit entity.
     6             * * *
     7     (b.1)  Local government unit participation.--Any local
     8  government unit that has created an agricultural security area
     9  may participate along with an eligible county and the
    10  Commonwealth, and an eligible nonprofit entity, in the
    11  preservation of farmland through the purchase of agricultural
    12  conservation easements.
    13         * * *
    14     (b.2)  Eligible nonprofit entity participation.--To the
    15  extent provided for in clause (A.1), an eligible nonprofit
    16  entity may participate along with an eligible county, the
    17  Commonwealth and a local government unit eligible to participate
    18  under subsection (b.1), in the preservation of farmland through
    19  the purchase of agricultural conservation easements.
    20         (1)  The eligible nonprofit entity may purchase an
    21     agricultural conservation easement if all of the following
    22     apply:
    23             (i)  The agricultural conservation easement is a
    24         joint purchase with the county, and may include the
    25         Commonwealth or a local government unit, or both.
    26             (ii)  The deed of agricultural conservation easement
    27         is as prescribed by the State board for agricultural
    28         conservation easements purchased by the Commonwealth.
    29         (2)  The county board shall be responsible to record
    30     agricultural conservation easements where an eligible
    20050S0723B0975                  - 8 -     

     1     nonprofit entity is a party to the purchase of the easement.
     2     The easement shall be recorded by the county board in the
     3     office of the recorder of deeds of the county wherein the
     4     agricultural conservation easements are located. The county
     5     board shall submit to the State board a certified copy of
     6     agricultural conservation easements within 30 days after
     7     recording. The county board shall attach to all certified
     8     copies of the agricultural conservation easements submitted
     9     to the State board a description of the farmland subject to
    10     the agricultural conservation easements.
    11     Section 4.  Section 14.4(7) of the act, added December 14,
    12  1988 (P.L.1202, No.149), is amended to read:
    13  Section 14.4.  Legislative report.
    14     The State board shall submit to the General Assembly an
    15  annual report no later than May 1. The report shall include, but
    16  not be limited to, the following information:
    17         * * *
    18         (7)  The number and value of agricultural conservation
    19     easements purchased jointly by the Commonwealth and the
    20     counties, including the number and value of purchases made
    21     during the preceding calendar and the preceding fiscal year
    22     of the Commonwealth, and the extent of local government unit
    23     or eligible nonprofit entity participation in the
    24     transaction.
    25         * * *
    26     Section 5.  The amendment or addition of the following
    27  provisions shall apply to an agricultural conservation easement
    28  jointly recorded with a recorder of deeds of this Commonwealth
    29  by an authorized entity "ELIGIBLE NONPROFIT ENTITY," AS DEFINED   <--
    30  IN SECTION 3 OF THE ACT, and a county or with the Commonwealth
    20050S0723B0975                  - 9 -     

     1  prior to or on or after the effective date of this section:
     2         (1)  The addition of section 2(6) of the act.
     3         (2)  The addition of the definition of "authorized         <--
     4     "ELIGIBLE NONPROFIT entity" in section 3 of the act.           <--
     5         (3)  The amendment of section 14.1(a)(3)(vi) and (viii),
     6     (b)(2)(i)(B) and (C) and (xi) of the act.
     7         (4)  The amendment of section 14.4(7) of the act.
     8     Section 6.  This act shall take effect immediately.















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