PRINTER'S NO. 2265
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1689
Session of
2017
INTRODUCED BY CUTLER, GREINER, BERNSTINE, GODSHALL, MILLARD,
O'NEILL, ZIMMERMAN, A. HARRIS, HICKERNELL, FEE, M. QUINN,
JOZWIAK, RYAN, MENTZER, CHARLTON, ELLIS, GILLEN, CORBIN,
VITALI, TOEPEL, COMITTA, ROE, STURLA, HARPER AND B. MILLER,
JULY 27, 2017
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
JULY 27, 2017
AN ACT
Amending the act of June 30, 1981 (P.L.128, No.43), entitled "An
act authorizing the creation of agricultural areas," further
providing for purchase of agricultural conservation
easements, for Agricultural Conservation Easement Purchase
Fund and for Land Trust Reimbursement Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Sections 14.1(b.2)(1) and 14.2(a)(3) of the act
of June 30, 1981 (P.L.128, No.43), known as the Agricultural
Area Security Law, are amended to read:
Section 14.1. Purchase of agricultural conservation easements.
* * *
(b.2) Eligible nonprofit entity participation.--An eligible
nonprofit entity may participate, along with an eligible county,
the Commonwealth and a local government unit eligible to
participate under subsection (b.1), in the preservation of
farmland through the purchase of agricultural conservation
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easements.
(1) The eligible nonprofit entity may purchase an
agricultural conservation easement if all of the following
apply:
(i) The agricultural conservation easement is a
joint purchase with the county and may include the
Commonwealth or a local government unit, or both.
(ii) The deed of agricultural conservation easement
is as prescribed by the State board for agricultural
conservation easements purchased by the Commonwealth.
(iii) The eligible nonprofit entity does not seek
reimbursement for the purchase of the agricultural
conservation easement under section 14.6(b).
* * *
Section 14.2. Agricultural Conservation Easement Purchase Fund.
(a) Purpose of fund.--
* * *
(3) Each fiscal year, [up to $200,000] $2,500,000 of the
money in the fund [may] shall be used for the purpose of
[reimbursement allocation] reimbursing eligible nonprofit
entities for the purchase of agricultural conservation
easements under section 14.6(b)[.] and $500,000 of the money
in the fund shall be used for the purpose of reimbursing
eligible nonprofit entities for transaction expenses under
section 14.6(c) relating to the purchase of agricultural
conservation easements under section 14.6(b). Up to 10% of
[these] the funds allocated for transaction expenses relating
to the purchase of agricultural conservation easements may be
used for administrative expenses of the department incurred
under section 14.6(b) and (c).
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* * *
Section 2. Section 14.6(b), (c), (d) and (e) of the act are
amended and the section is amended by adding subsections to
read:
Section 14.6. Land Trust Reimbursement Program.
* * *
(b) Reimbursement.--The State board [may] shall allocate
funds to reimburse land trusts for the purchase of agricultural
conservation easements and for transaction expenses incurred in
acquiring agricultural conservation easements in this
Commonwealth.
(c) Eligible transaction expenses.--Eligible expenses
include:
(1) Appraisals.
(2) Legal services.
(3) Title searches.
(4) Document preparation.
(5) Title insurance.
(6) Closing fees.
(7) Survey costs.
(c.1) Eligible purchase expenses.--Eligible agricultural
conservation easement purchase expenses under this section shall
include payments by a land trust to acquire an agricultural
conservation easement.
(d) Limitations.--
(1) Reimbursement for the purchase of agricultural
conservation easements shall [be limited to $5,000 per
easement] not exceed $2,500 per acre or 50% of the appraised
per-acre value, whichever is less.
(2) The term of an agricultural conservation easement
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shall be perpetual.
(3) A land trust must provide matching funds equal to
the amount of the reimbursement for the purchase of an
agricultural conservation easement.
(4) Reimbursement shall not be provided to a land trust
for the expense of an agricultural conservation easement
purchased jointly with the county under section 14.1(b.2)(1).
(5) Reimbursement of transaction expenses shall be
limited to $10,000 per agricultural conservation easement.
(e) Eligibility.--To be eligible under this subsection, a
land trust shall be an eligible nonprofit entity and shall:
(1) register with the State board;
(2) coordinate agricultural conservation easement
purchase activities with the eligible county in which the
activity occurs or coordinate such activities with the State
board, if the activity does not occur within an eligible
county; and
(3) submit an application to the State board, with the
statement of costs [incidental to] of the acquisition and
transaction expenses, the deed of easement and any other
documentation required by the State board, within 60 days of
closing on the easement.
(f) Transfer to county.--The following apply:
(1) If a land trust ceases to exist, an agricultural
conservation easement purchased by the land trust which was
reimbursed for purchase costs under this section shall be
transferred to the eligible county where the agricultural
conservation easement was recorded.
(2) If an agricultural conservation easement under
paragraph (1) is recorded in a county that is not an eligible
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county, the agricultural conservation easement shall be
transferred to the State board.
Section 3. This act shall take effect in 60 days.
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