SB 339 — An Act amending the act of June 30, 1981 (P.L.128, No.43), known as the Agricultural Area Security Law, further providing for purchase of agricultural conservation easements and for Agricultural Conservation Easement Purchase Fund.

PRINTER'S NO.   276

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                            SENATE BILL
                            No. 339
                                                Session of
                                                  2025

     INTRODUCED BY MASTRIANO, PENNYCUICK, GEBHARD, STEFANO AND
        J. WARD, FEBRUARY 26, 2025

     REFERRED TO AGRICULTURE AND RURAL AFFAIRS, FEBRUARY 26, 2025


                                      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 purchase of agricultural conservation easements
 4      and for Agricultural Conservation Easement Purchase Fund.
 5      The General Assembly of the Commonwealth of Pennsylvania
 6   hereby enacts as follows:
 7      Section 1.     Section 14.1(d)(1)(v) of the act of June 30, 1981
 8   (P.L.128, No.43), known as the Agricultural Area Security Law,
 9   is amended and subsection (i) is amended by adding a paragraph
10   to read:
11   Section 14.1.     Purchase of agricultural conservation easements.
12      * * *
13      (d)     Program approval.--
14            (1)   The standards, criteria and requirements established
15      by the State board for State board approval of county
16      programs for purchasing agricultural conservation easements
17      shall include, but not be limited to, the extent to which the
18      county programs consider and address the following:
19                  * * *
 1             (v)   (I)    Provisions requiring a farmland tract to be
 2             contiguous acreage of at least [50] 25 acres in size
 3             unless the tract is at least ten acres in size and is
 4             either utilized for a crop unique to the area or is
 5             contiguous to property which has a perpetual
 6             conservation easement in place held by a "qualified
 7             organization" as defined in [section 170(h)(3) of the
 8             Internal Revenue Code of 1986 (Public Law 99-514, 26
 9             U.S.C. § 170(h)(3))] 26 U.S.C. § 170(h)(3) (relating
10             to charitable, etc., contributions and gifts).
11                   (II)   A county may require a farmland tract to be
12             contiguous acreage of at least 35 acres in size
13             unless the tract [is at least ten acres in size and]
14             is [either] utilized for a crop unique to the area,
15             adjacent to the preserved land or is contiguous to a
16             property which has a perpetual conservation easement
17             in place held by a "qualified conservation
18             organization" as defined in [section 170(h)(3) of the
19             Internal Revenue Code of 1986] 26 U.S.C. § 170(h)(3).
20             If a county implements the provisions of this
21             subclause, State funds used for the purchase of an
22             agricultural conservation easement less than 50 acres
23             in size may include costs incidental to the purchase
24             and shall not exceed 50% of the purchase price per
25             acre, unless it is at least ten acres in size and is
26             either utilized for a crop unique to the area or is
27             contiguous to a property which has a perpetual
28             conservation easement in place held by a "qualified
29             conservation organization" as defined in [section
30             170(h)(3) of the Internal Revenue Code of 1986] 26

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 1                U.S.C. § 170(h)(3). A county program shall require a
 2                minimum weighted value of 20% for prioritizing
 3                applications for agricultural conservation easement
 4                purchase when implementing the provisions of
 5                paragraph (ii.1).
 6          * * *
 7    (i)   Subdivision of land after easement purchase.--
 8          * * *
 9          (3)   (i)     Notwithstanding the provisions of paragraph (1)
10          and subsection (d)(1)(v), a county program shall provide
11          for land subject to an agricultural conservation easement
12          to be subdivided under the following conditions:
13                       (A)   The tract to be created by subdivision is
14                less than ten acres.
15                       (B)   The tract created under clause (A) is
16                conveyed or transferred to the owner of a contiguous
17                tract of land subject to an agricultural conservation
18                easement under this act.
19                       (C)   Deeds of merger are prepared and filed with
20                the recorder of deeds as follows:
21                             (I)    To add the tract created under clause
22                       (A) as a fee simple interest to the parcel of the
23                       new owner.
24                             (II)   To add the tract created under clause
25                       (A) to the deed of easement of the new owner.
26                       (D)   The tract remaining after subdivision under
27                clause (A) meets the provisions of paragraph (1) and
28                subsection (d)(1)(v).
29                (ii)    A subdivision under this paragraph shall not be
30          subject to a roll-back tax under the "Pennsylvania

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 1            Farmland and Forest Land Assessment Act of 1974."
 2      * * *
 3      Section 2.   Section 14.2 of the act is amended by adding a
 4   subsection to read:
 5   Section 14.2.   Agricultural Conservation Easement Purchase Fund.
 6      * * *
 7      (c)   Realty transfer tax funding.--Ten percent of the tax
 8   collected by the Commonwealth under section 1102-C of the act of
 9   March 4, 1971 (P.L.6, No.2), known as the "Tax Reform Code of
10   1971," shall be deposited into the fund for the purchase of
11   agricultural conservation easements under section 14.1.
12      Section 3.   This act shall take effect in 30 days.




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