PRINTER'S NO. 1954
No. 1595 Session of 1997
INTRODUCED BY HANNA, KREBS, BELARDI, HENNESSEY, SATHER, DALEY,
HALUSKA, HERMAN, TIGUE, BELFANTI, TRELLO, HERSHEY, PISTELLA,
RAMOS, STEELMAN, YOUNGBLOOD, STABACK, ROSS AND BOSCOLA,
JUNE 4, 1997
REFERRED TO COMMITTEE ON LOCAL GOVERNMENT, JUNE 4, 1997
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," enabling
3 local government units to participate in purchasing
4 agricultural conservation easements.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Section 14.1 (b), (c), (f), (g) and (j) of the
8 act of June 30, 1981 (P.L.128, No.43), known as the Agricultural
9 Area Security Law, amended November 23, 1994 (P.L.621, No.96)
10 and November 23, 1994 (P.L.648, No.100), are amended to read:
11 Section 14.1. Purchase of agricultural conservation easements.
12 * * *
13 (b) [County] Municipal programs.--After the establishment of
14 an agricultural security area by the governing body, the
15 [county] governing body may authorize a program [to be
16 administered by the county board] for purchasing agricultural
17 conservation easements from landowners whose land is within an
18 agricultural security area situate within the local government
1 unit.
2 [(1) The county board shall be composed of five, seven
3 or nine members appointed by the county governing body. The
4 chairman of the county governing body shall designate
5 annually one member of the county board to serve as chairman
6 of the county board. County board members shall be appointed
7 from among the following groups: the number of farmers shall
8 constitute one less than a majority of the board; one member
9 shall be a current member of the governing body of a township
10 or borough located within the county; one member shall be a
11 commercial, industrial or residential building contractor;
12 and the other members shall be selected at the pleasure of
13 the county governing body. The county board membership of the
14 member of the governing body of a township or borough located
15 within the county shall be deemed vacant upon vacancy in, or
16 the expiration of the term of, the township or borough office
17 to which the member was elected. The term of the initial
18 farmer appointees shall be three years, the initial term of
19 the current member of the governing body of a township or
20 borough shall be two years and the initial term of all other
21 members shall be one year. Thereafter, the term of all
22 members shall be three years.
23 (2)] (1) It shall be the duty and responsibility of the
24 [county board] governing body to exercise the following
25 powers:
26 (i) To adopt rules and regulations for the
27 administration of a [countywide] program for the purchase
28 of agricultural conservation easements within
29 agricultural security areas situate within the local
30 government unit in accordance with the provisions of this
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1 act, including, but not limited to, rules and regulations
2 governing the submission of applications by landowners,
3 establishing standards and procedures for the appraisal
4 of property eligible for purchase as an agricultural
5 conservation easement and establishing standards and
6 procedures for the selection or purchase of agricultural
7 conservation easements.
8 [(ii) To adopt rules of procedure and bylaws
9 governing the operation of the county board and the
10 conduct of its meetings.
11 (iii)] (ii) To execute agreements to purchase
12 agricultural conservation easements in the name of the
13 [county] local government unit.
14 [(iv)] (iii) To purchase in the name of the [county]
15 local government unit agricultural conservation easements
16 within agricultural security areas.
17 [(v)] (iv) To use moneys appropriated by the
18 [county] governing body from the [county] general fund of
19 the local government unit to hire staff and administer
20 the [countywide] program, if deemed necessary.
21 [(vi)] (v) To use moneys appropriated by the
22 [county] local government unit governing body from the
23 [county] general fund or the proceeds of indebtedness
24 incurred by the [county and approved by the county
25 governing body] local government unit for the purchase of
26 agricultural conservation easements within agricultural
27 security areas.
28 [(vii)] (vi) To establish and maintain a repository
29 of records of farm lands which are subject to
30 agricultural conservation easements purchased by the
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1 [county] local government unit and which are located
2 within the [county] local government unit.
3 [(viii)] (vii) To record agricultural conservation
4 easements purchased by the county in the office of the
5 recorder of deeds of the county wherein the agricultural
6 conservation easements are located and to submit to the
7 State board and county board a certified copy of
8 agricultural conservation easements within 30 days after
9 recording. The [county board] governing body shall attach
10 to all certified copies of the agricultural conservation
11 easements submitted to the State board and county board a
12 description of the farm land subject to the agricultural
13 conservation easements.
14 [(ix) To submit to the State board for review the
15 initial county program and any proposed revisions to
16 approved county programs for purchasing agricultural
17 conservation easements.
18 (x) To recommend to the State board for purchase by
19 the Commonwealth agricultural conservation easements
20 within agricultural security areas located within the
21 county.
22 (xi) To recommend to the State board the purchase of
23 agricultural conservation easements by the Commonwealth
24 and the county jointly.
25 (xii)] (viii) To purchase agricultural conservation
26 easements jointly with the [Commonwealth] county.
27 [(xiii)] (ix) To exercise other powers which are
28 necessary and appropriate for the exercise and
29 performance of its duties, powers and responsibilities
30 under this act.
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1 [(xiv) To submit to the State board applications for
2 agricultural conservation easements in accordance with
3 the guidebook authorized under subsection (a)(3)(xv).
4 (3)] (2) The [county] governing body may incur debt
5 pursuant to the act of July 12, 1972 (P.L.781, No.185), known
6 as the "Local Government Unit Debt Act," for the purchase of
7 agricultural conservation easements.
8 [(4) County programs for the purchase of agricultural
9 conservation easements originally approved by the State board
10 on or before December 31, 1994, shall be reviewed by the
11 State board and approved or disapproved for recertification
12 by December 31, 1996, and every seventh year thereafter.
13 County programs for the purchase of agricultural conservation
14 easements originally approved by the State board after
15 December 31, 1994, shall be reviewed by the State board and
16 approved or disapproved for recertification by December 31 of
17 the seventh year after the date of original approval and
18 every seventh year thereafter. On or before December 31,
19 1995, and the end of such other seven-year periods
20 thereafter, the county board shall submit to the State board
21 any proposed revisions to the county program for the purchase
22 of agricultural conservation easements. County programs
23 subject to State board review and recertification under this
24 paragraph shall be approved or disapproved in accordance with
25 the requirements of subsection (d), provided that the State
26 board shall give priority to determining that county programs
27 are in compliance with applicable provisions of law,
28 regulations and guidelines. After December 31, 1996, and the
29 end of such other seven-year periods, the State board shall
30 not approve a county board's recommendation to purchase until
19970H1595B1954 - 5 -
1 the county program has been approved for recertification,
2 provided that the State board may postpone the deadline for
3 recertification of any county's program by up to 12 months
4 and, during such period of postponement, may approve a county
5 board's recommendation to purchase.
6 (5)] (3) The governing body [of the county] may
7 authorize the establishment of a program for the purchase of
8 agricultural conservation easements on an installment or
9 other deferred basis. The obligation of the [county] local
10 government unit to make payment on an installment or other
11 deferred basis shall not be subject to the requirements of
12 section 602(b) or (c) of the "Local Government Unit Debt
13 Act."
14 (c) Restrictions and limitations.--An agricultural
15 conservation easement shall be subject to the following terms,
16 conditions, restrictions and limitations:
17 (1) The term of an agricultural conservation easement
18 shall be perpetual.
19 (2) Unless otherwise authorized in accordance with
20 subsection (i), an agricultural conservation easement shall
21 not be sold, conveyed, extinguished, leased, encumbered or
22 restricted in whole or in part for a period of 25 years
23 beginning on the date of purchase of the easement.
24 (3) Unless otherwise authorized in accordance with
25 subsection (i), if the land subject to the agricultural
26 conservation easement is no longer viable agricultural land,
27 the Commonwealth, subject to the approval of the State board,
28 and the county, subject to the approval of the county board
29 or the governing body of a local government unit, may sell,
30 convey, extinguish, lease, encumber or restrict an
19970H1595B1954 - 6 -
1 agricultural conservation easement to the current owner of
2 record of the farmland subject to the easement after the
3 expiration of 25 years from the date of purchase of the
4 easement for a purchase price equal to the value at the time
5 of resale determined pursuant to subsection (f) at the time
6 of conveyance. A conveyance by the Commonwealth pursuant to
7 this subsection shall not be subject to the requirements of
8 Article XXIV-A of the act of April 9, 1929 (P.L.177, No.175),
9 known as "The Administrative Code of 1929." The purchase
10 price shall be payable to the Commonwealth and the county as
11 their respective legal interests in the agricultural
12 conservation easement appear, and a separate payment shall be
13 made to the Commonwealth and the county accordingly at the
14 time of settlement. Any payment received by the Commonwealth
15 pursuant to this provision shall be paid into the fund.
16 (4) Instruments and documents for the purchase, sale and
17 conveyance of agricultural conservation easements shall be
18 approved by the State board [or], the county board or the
19 governing body, as the case may be, prior to execution and
20 delivery. Proper releases from mortgage holders and
21 lienholders must be obtained and executed to insure that all
22 agricultural conservation easements are purchased free and
23 clear of all encumbrances.
24 (5) Whenever any public entity, authority or political
25 subdivision exercises the power of eminent domain and
26 condemns land subject to an agricultural conservation
27 easement, the condemnor shall provide just compensation to
28 the owner of the land in fee and to the owner of the easement
29 as follows:
30 (i) The owner of the land in fee shall be paid the
19970H1595B1954 - 7 -
1 full value which would have been payable to the owner but
2 for the existence of an agricultural conservation
3 easement less the value of the agricultural conservation
4 easement at the time of condemnation.
5 (ii) The owner of the easement shall be paid the
6 value of the easement at the time of condemnation.
7 (6) An agricultural conservation easement shall not
8 prevent:
9 (i) The granting of leases, assignments or other
10 conveyances or the issuing of permits, licenses or other
11 authorization for the exploration, development, storage
12 or removal of coal by underground mining methods, oil and
13 gas by the owner of the subject land or the owner of the
14 underlying coal by underground mining methods, oil and
15 gas or the owner of the rights to develop the underlying
16 coal by underground mining methods, oil and gas, or the
17 development of appurtenant facilities related to the
18 removal of coal by underground mining methods, oil or gas
19 development or activities incident to the removal or
20 development of such minerals.
21 (ii) The granting of rights-of-way by the owner of
22 the subject land in and through the land for the
23 installation of, transportation of, or use of water,
24 sewage, electric, telephone, coal by underground mining
25 methods, gas, oil or oil products lines.
26 (iii) Construction and use of structures on the
27 subject land necessary for agricultural production.
28 (iv) Construction and use of structures on the
29 subject land for the landowner's principal residence or
30 for the purpose of providing necessary housing for
19970H1595B1954 - 8 -
1 seasonal or full-time employees: Provided, That only one
2 such structure may be constructed on no more than two
3 acres of the subject land during the term of the
4 agricultural conservation easement.
5 (v) Customary part-time or off-season minor or rural
6 enterprises and activities which are provided for in the
7 county Agricultural Conservation Easement Purchase
8 Program approved by the State board under subsection (d).
9 (7) Land subject to an agricultural conservation
10 easement shall not be subdivided for any purpose which may
11 harm the economic viability of the farmland for agricultural
12 production. Land may be subdivided prior to the granting of
13 an agricultural conservation easement, provided that
14 subdividing will not harm the economic viability for
15 agricultural production of the land subject to the easement.
16 (8) Nothing in this act shall prohibit a member of the
17 State board or county board or governing body or his or her
18 family from selling a conservation easement under this
19 program, provided that all decisions made regarding easement
20 purchases be subject to the provisions of section 3(j) of the
21 act of October 4, 1978 (P.L.883, No.170), referred to as the
22 Public Official and Employee Ethics Law.
23 * * *
24 (f) Valuation.--The State board or the county board or the
25 governing body where a purchase is to be made by a local
26 government unit, as the case may be, shall select and retain an
27 independent State-certified general real estate appraiser to
28 determine market value and farmland value. If the seller
29 disagrees with the appraisal made by the State or county board's
30 or local government unit's appraiser, the seller shall have the
19970H1595B1954 - 9 -
1 right to select and retain a separate independent State-
2 certified general real estate appraiser within 30 days of
3 receipt of the appraisal of the State or county board's or local
4 government unit's appraiser to determine market value and
5 farmland value. The State board or the county board or the local
6 government unit shall establish the agricultural value and the
7 nonagricultural value of the property subject to the
8 agricultural conservation easement. The State board may provide
9 for a periodic review by a State-certified general real estate
10 appraiser of appraisals submitted by counties in order to assure
11 that the appraisals were performed in accordance with the
12 standards of appraisal practice.
13 (1) The agricultural value shall equal the sum of:
14 (i) the farmland value determined by the seller's
15 appraiser; and
16 (ii) one-half of the difference between the farmland
17 value determined by the State or county board's or local
18 government unit's appraiser and the farmland value
19 determined by the seller's appraiser if the farmland
20 value determined by the State or county board's or local
21 government unit's appraiser exceeds the farmland value
22 determined by the seller's appraiser.
23 (2) The nonagricultural value shall equal the sum of:
24 (i) the market value determined by the State or
25 county board's or local government unit's appraiser; and
26 (ii) one-half of the difference between the market
27 value determined by the seller's appraiser and the market
28 value determined by the State or county board's
29 appraiser, if the market value determined by the seller's
30 appraiser exceeds the market value determined by the
19970H1595B1954 - 10 -
1 State or county board's or local government unit's
2 appraiser.
3 (3) The entire acreage of the farmland shall be included
4 in the determination of the value of an agricultural
5 conservation easement, less the value of any acreage which
6 was subdivided prior to the granting of such easement. The
7 appraiser shall take into account the potential increase in
8 the value of the subdivided acreage because of the placement
9 of the easement on the remaining farmland.
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'] board's or local government unit's original
16 appraised value in which case the State or county [boards']
17 board's or local government unit's original easement value may
18 be offered. The price paid for purchase of an easement for a
19 term of 25 years shall not exceed one-tenth of the difference
20 between the nonagricultural value and the agricultural value
21 determined pursuant to subsection (f) at the time of purchase.
22 The purchase price may be paid in a lump sum, in installments
23 over a period of years, or in any other lawful manner of
24 payment. If payment is to be made in installments or another
25 deferred method, the person selling the easement may receive, in
26 addition to the selling price, interest in an amount or at a
27 rate set forth in the agreement of purchase, and final payment
28 of all State money shall be made within, and no later than, five
29 years from the date the agricultural conservation easement
30 purchase agreement was fully executed. The county may provide
19970H1595B1954 - 11 -
1 for payments on an installment or other deferred basis and for
2 interest payments by investing its allocation of State money for
3 purchases approved by the State board under subsection (h)(11)
4 in securities deposited into an irrevocable escrow account or in
5 another manner provided by law.
6 * * *
7 (j) Change of ownership.--
8 (1) Whenever interest in land subject to an agricultural
9 conservation easement is conveyed or transferred to another
10 person, the deed conveying or transferring such land shall
11 recite in verbatim the language of the easement as set forth
12 in the deed executed in connection with the purchase of the
13 agricultural conservation easement.
14 (2) The person conveying or transferring land subject to
15 an agricultural conservation easement shall within 30 days of
16 change in ownership notify the county board or the governing
17 body and the department of the name and address of the person
18 to whom the subject land was conveyed or transferred and the
19 price per acre or portion thereof received by the landowner
20 from such person.
21 (3) Notwithstanding any other provisions of law to the
22 contrary, the restrictions set forth in a deed executed in
23 connection with the purchase of an agricultural conservation
24 easement shall be binding on any person to whom subsequent
25 ownership of the land subject to the easement is conveyed or
26 transferred.
27 * * *
28 Section 2. This act shall take effect in 60 days.
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