HB 1059 — 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, for Agricultural Conservation Easement Purchase Fund and for Land Trust Reimbursement Program.

PRINTER'S NO.   1150

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1059
                                                Session of
                                                  2025

     INTRODUCED BY BRENNAN, GREINER, KENYATTA, KHAN, GUENST, BURGOS,
        SANCHEZ, PASHINSKI, HILL-EVANS AND CEPEDA-FREYTIZ,
        MARCH 26, 2025

     REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
        MARCH 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
 4      easements, for Agricultural Conservation Easement Purchase
 5      Fund and for Land Trust Reimbursement Program.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    Sections 14.1(b.2)(1) and 14.2(a)(2) and (3) of
 9   the act of June 30, 1981 (P.L.128, No.43), known as the
10   Agricultural Area Security Law, are amended to read:
11   Section 14.1.    Purchase of agricultural conservation easements.
12      * * *
13      (b.2)     Eligible nonprofit entity participation.--An eligible
14   nonprofit entity may participate, along with an eligible county,
15   the Commonwealth and a local government unit eligible to
16   participate under subsection (b.1), in the preservation of
17   farmland through the purchase of agricultural conservation
18   easements.
 1            (1)   The eligible nonprofit entity may purchase an
 2      agricultural conservation easement if all of the following
 3      apply:
 4                  (i)    The agricultural conservation easement is a
 5            joint purchase with the county and may include the
 6            Commonwealth or a local government unit, or both.
 7                  (ii)    The deed of agricultural conservation easement
 8            is as prescribed by the State board for agricultural
 9            conservation easements purchased by the Commonwealth.
10                  (iii)    The eligible nonprofit entity does not seek
11            reimbursement for the purchase of the agricultural
12            conservation easement under section 14.6(b).
13            * * *
14   Section 14.2.        Agricultural Conservation Easement Purchase Fund.
15      (a)   Purpose of fund.--
16            * * *
17            (2)   Except as set forth in paragraph 3, the moneys
18      appropriated to the fund shall be utilized in accordance with
19      the expenditures and distribution authorized, required or
20      otherwise provided in the program for purchase of
21      agricultural conservation easements contained in section
22      14.1, and for the purpose of paying all costs, except
23      administrative costs, incurred by the Commonwealth or a
24      county incident to the purchase of agricultural conservation
25      easements.[, and for the purpose of reimbursing nonprofit
26      land conservation organizations for expenses incurred in
27      acquiring and transferring agricultural conservation
28      easements to the Commonwealth or a county.
29            (3)   Each fiscal year, up to $200,000 of the money in the
30      fund may be used for the purpose of reimbursement allocation

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 1      under section 14.6(b). Up to 10% of these funds may be used
 2      for administrative expenses of the department incurred under
 3      section 14.6(b).]
 4            (3)   By March 1 of each year, the State board shall make
 5      the following annual allocations from the fund:
 6                  (i)    The greater amount of $1,000,000 or 80% of the
 7            amount restored to the fund under section 14.1(h)(8.2)
 8            for the purpose of reimbursing eligible nonprofit
 9            entities for the purchase of agricultural conservation
10            easements under section 14.6(b). The amount allocated
11            under this subparagraph shall not exceed 10% of the total
12            annual allocation made under section 14.1(h).
13                  (ii)    The amount of $200,000 plus 20% of the amount
14            restored to the fund under section 14.1(h)(8.2) for the
15            purpose of reimbursing eligible nonprofit entities for
16            transaction expenses under section 14.6(c) relating to
17            the purchase of agricultural conservation easements under
18            section 14.6(b). Up to $20,000 of the amount allocated
19            under this subparagraph for transaction expenses relating
20            to the purchase of agricultural conservation easements
21            may be used for administrative expenses incurred by the
22            department under section 14.6(b) and (c).
23      * * *
24      Section 2.        Section 14.6(b), (c), (d) and (e) of the act are
25   amended and the section is amended by adding subsections to
26   read:
27   Section 14.6.        Land Trust Reimbursement Program.
28      * * *
29      (b)   Reimbursement.--[The State board may] In accordance with
30   section 14.2(a)(3), the State board shall allocate funds to

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 1   reimburse land trusts for the purchase of agricultural
 2   conservation easements and for transaction expenses incurred in
 3   acquiring agricultural conservation easements in this
 4   Commonwealth. Money allocated under this subsection which has
 5   not been expended by December 31 of the year in which the money
 6   was allocated shall lapse back to the fund.
 7      (c)   Eligible transaction expenses.--Eligible transaction
 8   expenses include:
 9            (1)   Appraisals.
10            (2)   Legal services.
11            (3)   Title searches.
12            (4)   Document preparation.
13            (5)   Title insurance.
14            (6)   Closing fees.
15            (7)   Survey costs.
16      (c.1)   Eligible purchase expenses.--Eligible agricultural
17   conservation easement purchase expenses under this section shall
18   include payments by a land trust to acquire an agricultural
19   conservation easement.
20      (d)   Limitations.--
21            (1)   Reimbursement [shall be limited to $5,000 per
22      easement.] for the purchase of an agricultural conservation
23      easement shall not exceed $2,500 per acre or 50% of the
24      appraised per-acre value, whichever is less.
25            (2)   The term of an agricultural conservation easement
26      shall be perpetual.
27            (3)   An agricultural conservation easement shall:
28                  (i)    consist of at least 10 acres;
29                  (ii)    contain the greater of 50% or 10 acres of
30            harvested cropland, pasture or grazing land; and

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 1                  (iii)   comply with the provisions of 7 Pa. Code §
 2            138e.16(a)(1) and (3) (relating to minimum criteria for
 3            applications).
 4            (4)   A land trust must provide matching funds equal to
 5      the amount of the reimbursement for the purchase of an
 6      agricultural conservation easement. Up to 50% of the donated
 7      value of the agricultural conservation easement may be used
 8      to satisfy the provisions of this paragraph.
 9            (5)   Reimbursement shall not be provided to a land trust
10      for the expense of an agricultural conservation easement
11      purchased jointly with the county under section 14.1(b.2)(1).
12            (6)   Reimbursement of transaction expenses shall be
13      limited to $10,000 per agricultural conservation easement.
14      (e)   Eligibility.--To be eligible under this subsection, a
15   land trust shall be an eligible nonprofit entity and shall:
16            (1)   register with the State board;
17            (2)   coordinate agricultural conservation easement
18      purchase activities with the eligible county in which the
19      activity occurs or coordinate such activities with the State
20      board, if the activity does not occur within an eligible
21      county; and
22            (3)   submit an application to the State board, with the
23      statement of costs [incidental to] of the acquisition and
24      transaction expenses, the deed of easement and any other
25      documentation required by the State board, within 60 days of
26      closing on the easement.
27      (f)   Transfer to county.--
28            (1)   If a land trust ceases to exist, an agricultural
29      conservation easement purchased by the land trust which was
30      reimbursed for purchase costs under this section shall be

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1     transferred to the eligible county where the agricultural
2     conservation easement was recorded or to another eligible
3     nonprofit entity.
4         (2)   (Reserved).
5     Section 3.    This act shall take effect in 60 days.




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