South Carolina General Assembly
112th Session, 1997-1998

Bill 4692


Indicates Matter Stricken
Indicates New Matter


                    Current Status

Bill Number:                    4692
Type of Legislation:            General Bill GB
Introducing Body:               House
Introduced Date:                19980225
Primary Sponsor:                Sharpe
All Sponsors:                   Sharpe, Davenport, Limehouse and
                                Leach 
Drafted Document Number:        kgh\15458ac.98
Companion Bill Number:          1050
Residing Body:                  House
Current Committee:              Agriculture, Natural Resources
                                & Environmental Affairs Com 20
                                HANR
Subject:                        Farm and Forest Land Protection
                                Act, Agriculture, Forestry,
                                Conservation

History

Body    Date      Action Description                       Com     Leg Involved
______  ________  _______________________________________  _______ ____________

House   19980225  Introduced, read first time,             20 HANR
                  referred to Committee


View additional legislative information at the LPITS web site.


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND TITLE 46, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO AGRICULTURE, BY ADDING CHAPTER 53 SO AS TO ENACT THE "FARM AND FOREST LANDS PROTECTION ACT" WHICH ESTABLISHES STATE AND COUNTY PRIORITY AGRICULTURAL LAND BOARDS, WHICH PROVIDES FOR THEIR POWERS AND DUTIES, WHICH ESTABLISHES CRITERIA AND PROCEDURES FOR CREATING PRIORITY AGRICULTURAL LAND AREAS AND FOR THE PURCHASE OF AGRICULTURAL CONSERVATION EASEMENTS FOR LAND WITHIN THE PRIORITY AREA, WHICH CREATES THE PRIORITY AGRICULTURAL LAND TRUST FUND TO DISBURSE FUNDS FOR THE PURCHASE OF CONSERVATION EASEMENTS, WHICH REQUIRES THE PERIODIC REVIEW OF ALL PRIORITY AGRICULTURAL LAND AREAS, AND WHICH RESTRICTS SOME LOCAL GOVERNMENT ACTIONS WITH REGARD TO PRIORITY AREAS.

Whereas, it is declared the policy of the State to provide a voluntary program to protect agricultural and forest lands and to encourage the improvement of these lands for the production of food and other agricultural and forest products; and

Whereas, it is the policy of the State that agricultural and forest lands are valued natural and ecological resources which provide needed open space for wildlife habitat, clean air, clean water, groundwater recharge, and protection of cultural resources; and

Whereas, agricultural and forest lands in many parts of the State are under urban pressure from expanding metropolitan areas; and

Whereas, this urban pressure takes the form of scattered development in wide belts around urban areas, and brings conflicting land uses into juxtaposition, creates high costs for public services, and stimulates land speculation; and

Whereas, this scattered development extends into agricultural and forest lands, ordinances inhibiting agricultural production tend to follow, farm taxes rise, and hopes for speculative gains discourage investments in farm improvements; and

Whereas, many of the agricultural and forest lands in the State are in jeopardy of being lost for these purposes; and

Whereas, these agricultural and forest lands constitute unique and irreplaceable land resources of statewide importance. Now, therefore,

Be it enacted by the General Assembly of the State of South Carolina:

SECTION 1. Title 46 of the 1976 Code is amended by adding:

"CHAPTER 53

Farm and Forest Lands Protection Act

Section 46-53-10. This chapter must be known and may be cited as the 'Farm and Forest Lands Protection Act.'

Section 46-53-20. It is the purpose of this chapter to:

(1) provide a means by which agricultural and forest lands may be protected and enhanced as a viable segment of the state's economy and as an economic and environmental resource of major importance;

(2) encourage landowners to make a voluntary long-term commitment to agriculture and forestry by offering landowners financial incentives and security of land use;

(3) protect agricultural and forestry operations in priority agricultural land areas from incompatible nonagricultural and nonforestry land uses that may render agriculture and forestry operations nonviable;

(4) assure permanent protection of productive agricultural and forest lands in order to protect the agricultural and forestry economy of this State;

(5) provide compensation to landowners in exchange for their relinquishment of the right to develop their private property; and

(6) leverage state, federal, local, and private agricultural easement purchase funds and protect the investment of taxpayers in agricultural conservation easements.

Section 46-53-30. As used in this chapter:

(1) 'Active farmer' means a landowner or operator of land who manages the daily production of agricultural or forest crops. The land that the agricultural and forest crops are being grown upon must be under a conservation plan.

(2) 'Agricultural conservation easement' means an interest in land, less than fee simple, which interest represents the right to restrict or prevent the development or improvement of the land for any purpose other than agricultural production. The easement may be granted by the owner of the fee simple to any third party or to the State, to a county council, or to a unit of local government. It must be granted in perpetuity, except as provided for in Section 46-53-110(B)(2), as the equivalent of covenants running with the land. The exercise or failure to exercise any right granted by the easement shall not be deemed to be management or control of activities at the site for purposes of enforcement of the Federal Comprehensive Environmental Response Compensation Liability Act of 1980.

(3) 'Agricultural and forest crops' includes, but is not limited to:

(a) food, feed, forage, fiber, and oil seeds, field crops, fruit crops, and vegetable crops;

(b) agronomy, horticulture, mariculture, aquaculture, viticulture, and floriculture;

(c) livestock, poultry, and livestock and poultry products;

(d) specialties of beekeeping; and

(e) timber, wood, and other wood products derived from trees.

(4) 'Agricultural production' means the production of agricultural and forest crops for gain or profit through normal farming operations.

(5) 'Conservation district' means a soil and water conservation district as established in Section 48-9-30(1).

(6) 'Conservation plan' means a plan prepared and approved by the Natural Resources Conservation Service of the United States Department of Agriculture (USDA) implemented by the landowner, describing best land management practices including an installation schedule and maintenance program, which when completely implemented, will improve and maintain soil, water, and related plant and animal resources of the land. A forest land conservation plan may be prepared by a registered forester and approved by the South Carolina Forestry Commission or the USDA.

(7) 'County board' means a County Priority Agricultural Land Board.

(8) 'Department' means the South Carolina Department of Natural Resources.

(9) 'Director' means the Director of the South Carolina Department of Natural Resources.

(10) 'Eligible county' means a county whose purchase of agricultural conservation easement program has been approved by the State Priority Agricultural Land Board. For the purpose of annual allocations, an eligible county must have its agricultural conservation easement purchase program approved by the State Priority Agricultural Land Board at the time of allocation.

(11) 'Fallow' means inactive, barren, or unproductive but capable of being productive, agricultural and forest land.

(12) 'Farmland value' means the price as of the valuation date for property used only for agricultural production which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.

(13) 'Fiscal year' means fiscal year of the State.

(14) 'Forest farmer' means a landowner or operator of land actively involved in the production of forest crops including, but not limited to, timber, wood, and other wood products derived from trees.

(15) 'Fund' means the Priority Agricultural Land Trust Fund of South Carolina established by this chapter.

(16) 'Governing body' means the elected governing body of a local government unit.

(17) 'Immediate family member' means a brother, sister, son, daughter, stepson, stepdaughter, grandson, granddaughter, father, or mother of the landowner.

(18) 'Joint ownership' means joint tenancy in an agricultural conservation easement purchase as the interests of the parties appear.

(19) 'Landowner' means the record owner of the land, the authorized contract purchaser of the land, or the record owner of the development easement other than a county acquired pursuant this chapter.

(20) 'Market value' means the price as of the valuation date for the highest and best use of the property which a willing and informed seller who is not obligated to sell would accept for the property and which a willing and informed buyer who is not obligated to buy would pay for the property.

(21) 'Normal farming operation' means the customary and generally accepted practices and procedures farmers adopt, use, or engage in including, but not limited to, when planting, cultivating, producing, harvesting, processing, packaging, storing, marketing for wholesale or retail distribution of their production, and managing waste. This includes on-site facilities needed to carry out these practices including, but not limited to, greenhouses, nurseries, barns, packing sheds, farm labor housing, stables, maintenance buildings, crop market facilities, and other building structures used in implementing best management practices of irrigation, air, water, and waste.

(22) 'Planning commission' means a municipal planning commission, a county planning commission, a joint city-county planning commission, or a consolidated government planning commission.

(23) 'Priority agricultural land area' means a unit of land used for agricultural production under the ownership of one or more persons and designated as such by the procedures set forth in this chapter.

(24) 'State board' means the State Priority Agricultural Land Board.

(25) 'Viable agricultural land' means land suitable for agricultural production which will continue to be economically feasible for such use if real estate taxes, farm use restrictions, and speculative activities are limited to levels approximately those in commercial agricultural areas not influenced by the proximity of urban and related nonagricultural development.

Section 46-53-40. (A) The Department of Natural Resources and the State Priority Agricultural Land Board shall administer pursuant to this section a program for the purchase of agricultural conservation easements. The department is responsible for the administration of this program.

(B) There is established within the department as a departmental board the State Priority Agricultural Land Board. The state board shall consist of the following:

(1) five voting ex-officio members: the director or his designee, who shall serve as the board chairman; the Commissioner of Agriculture, or his designee; the Secretary of Commerce, or his designee; the Vice President of Natural Resources and Research at Clemson University or his designee; and the State Forester or his designee.

(2) five members appointed by the Governor, with the advice and consent of the Senate, on the recommendation of the board of the department. One member must be a current member of a county council who shall serve as voting ex-officio member; one member must be a person who is recognized as having significant knowledge in agricultural production fiscal and financial matters; one member must be a real estate agent licensed by the State of South Carolina; two must be conservation district commissioners who shall serve as voting ex-officio members. Initially, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and one member must be appointed for a term of two years. Thereafter, the terms of all members is for four years. The term of a person appointed to replace another member whose term has not expired is only the unexpired portion of that term. Members may be reappointed to successive terms;

(3) six members appointed by the Governor, with the advice and consent of the Senate, on the recommendation of the board of the department. These members must be active farmers, each representing a different Congressional District, each residing within the State, and one must be a forest farmer. Of the initial appointees, two members must be appointed for a term of four years, two members must be appointed for a term of three years, and the other members must be appointed for a term of two years. Thereafter, the terms of all appointees is for four years. An appointment made to fill an unexpired term is only for the duration of the unexpired term. Members may be reappointed to successive terms. Half of all members shall constitute a quorum for purposes of conducting meetings and official actions pursuant to authority given to the state board under this act.

It is not a conflict of interest for a voting ex-officio member to vote on matters pertaining to the county from which that member comes to the board.

(C) The state board shall:

(1) promulgate regulations pursuant to this chapter;

(2) adopt rules of procedure and bylaws governing the operations of the state board and the conduct of its meetings;

(3) allocate fund monies among eligible counties for the purchase of agricultural conservation easements, in accordance with provisions of subsection 46-53-110(F);

(4) establish and publish the standards, criteria, and requirements for the allocation of fund monies pursuant to subsection 46-53-110(F);

(5) establish and maintain a central repository of records which shall contain records of county programs for purchasing agricultural conservation easements and records of agricultural conservation easements purchased by counties;

(6) establish and publish the standards, criteria, and requirements necessary for state board approval of county programs for purchasing agricultural conservation easements;

(7) review, certify, and approve, or disapprove county programs for purchasing agricultural conservation easements;

(8) determine the maximum amount for its share for the purchase of an agricultural conservation easement;

(9) review and approve or disapprove for recertification each county program for the purchase of agricultural conservation easements;

(10) establish and publish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign priority to those applications to be submitted for consideration of federal funding;

(11) authorize the development of a publication defining all technical elements necessary for a complete application for purchase of an agricultural conservation easement. This publication shall include model formats of the specific components of applications. Publications must be distributed to every county with an approved program for purchasing agricultural conservation easements and must be available to all others upon request; and

(12) exercise other discretionary powers as may be necessary and appropriate for the exercise and performance of its duties, powers, and responsibilities under this chapter.

(D) The state board is authorized to take the actions necessary to qualify for federal guarantees and interest rate assistance for agricultural easement purchase loans under Chapter 2 of the Food Agriculture, Conservation, and Trade Act of 1990 or subsequent acts.

Section 46-53-50. (A) Each County Priority Agricultural Land Board must be composed of nine or eleven members appointed by the county council. County board members shall be appointed as follows: the number of active farmers shall constitute at least one less than a majority of the board, one of whom must be active in the production of forest crops; one member must be a current conservation district commissioner of the county and shall serve in a voting ex-officio capacity; one member must be a current member of the governing body of a town located within the county and shall serve in a voting ex-officio capacity; one member must be a real estate agent licensed by the State of South Carolina; and the other members must be appointed at the pleasure of the county council. The county board shall elect annually one member of the county board to serve as chairman of the board. The county board membership of the member of the governing body of a town located within the county is deemed vacant upon vacancy in, or the expiration of the term of, the town office to which the member was elected. The term of the initial farmer appointees is for three years; the initial term of the current member of the governing body of a town is for two years; and the initial term of all other members is for one year. Thereafter, the term of all members is for three years.

Members shall serve without salary, but the county council may entitle each member to reimbursement for his actual and necessary expenses incurred in the performance of his official duties. A county board shall advise the county council and work with the county planning commission, if one exists, in relation to the proposed establishment, modification, and termination of a priority agricultural land area. In particular, the board shall render expert advice relating to the desirability of such action, including advice as to the nature of agricultural production within the proposed area and the relation of agricultural production in the area to the county as a whole.

(B) Each county board shall:

(1) adopt rules of procedure and bylaws governing the operation of the county board and the conduct of its meetings;

(2) adopt rules and regulations for the administration of a county program for the purchase of agricultural conservation easements in accordance with the provisions of this chapter;

(3) propose a priority agricultural land area;

(4) adopt rules and regulations establishing the standards and procedures for purchase of agricultural conservation easements within a priority agricultural land area including, but not limited to, rules and regulations governing the submission of applications by landowners, establishing standards and procedures for the valuation of property eligible for purchase as an agricultural conservation easement, and establishing standards and procedures for the selection or purchase of agricultural conservation easements;

(5) execute agreements to purchase agricultural conservation easements in the name of the county;

(6) purchase in the name of the county agricultural conservation easements within a priority agricultural land area;

(7) use monies appropriated by the county council from the county general fund to hire staff and administer the county program;

(8) use monies appropriated by the county council from the county general fund or the proceeds of indebtedness incurred by the county and approved by the county council for the purchase of agricultural conservation easements within a priority agricultural land area;

(9) purchase agricultural conservation easements separately or in combination with any funding source or sources, including federal, state, local, and private funds;

(10) establish and maintain a repository of records of agricultural and forest lands which are subject to agricultural conservation easements purchased by the county and which are located within the county;

(11) record agricultural conservation easements purchased by the county in the office of the recorder of deeds of the county wherein the agricultural conservation easements are located;

(12) submit to the state board for review the initial county program and any proposed revisions to approved county programs for purchasing agricultural conservation easements;

(13) establish criteria to be used in prioritizing applications for the purchase of agricultural conservation easements and assign to the applications to be submitted for consideration for federal funding; and

(14) conduct educational activities as are necessary; however, an educational workshop open to the public must be conducted prior to the establishment of a priority agriculture land area.

(C) The county board shall submit to the state board an annual report which includes:

(1) location of a priority agricultural land area and agricultural conservation easements in the county;

(2) number of acres throughout the county which are located within a priority agricultural land area;

(3) number of acres throughout the county which are subject to agricultural conservation easements;

(4) number of agricultural conservation easements in the county;

(5) number of acres included within each agricultural conservation easement throughout the county;

(6) number and value of agricultural conservation easements purchased by the county, including the number and value of purchases made during the preceding fiscal year of the State;

(7) dollar value of the annual appropriation made by the county for the purchase of agricultural conservation easements;

(8) quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;

(9) nature, scope, and extent of development activity within the area where agricultural conservation easements have been purchased;

(10) nature and extent of conservation practices and best management practices including, but not limited to, soil erosion, sedimentation control, and nutrient management practices, which are practiced on agricultural and forest lands subject to agricultural conservation easements; and

(11) total number of recommendations filed by the county for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.

Section 46-53-60. (A)(1) A landowner, planning commission, county board, or municipal governing body may submit a request to the county council for the creation of a priority agricultural land area within the county. The request must be in the format and manner prescribed by the county.

(2) When a request has been submitted for the creation of a priority agricultural land area, the county council shall forward the request to the county board or establish a county board pursuant to Section 46-53-50 if one has not already been established.

(3) The county board is responsible for providing notice and conducting a public hearing on proposed priority agricultural land areas and submitting a proposal for the creation of a priority agricultural land area to county council in the manner and form as may be prescribed by the county council including wherein the proposed area is situated and a description of the proposed area, including the boundaries of the area. The county board shall coordinate with the county planning commission, if one exists, with any request, modification, or proposal to create a priority agricultural land area.

(4) If the land included in a proposal for a priority agricultural land area is situated in more than one local government unit, the proposal must be submitted and approval of the proposal must be sought from the county council of each local government unit affected. The governing bodies may cooperate in the review of a proposed priority agricultural land area and may provide joint public notices and a joint public hearing on the priority agricultural land area. A rejection by a county council shall exclude that portion of the proposal which is situated within the local government unit. However, the rejection does not preclude the approval of the remaining portion of the proposal as a priority agricultural land area by the county council of the other affected local government units, if the approved portion meets all other requirements imposed under this chapter for a priority agricultural land area.

(B) Notice of the completed proposal must be provided by the county board by publishing a notice in a newspaper having general circulation within the proposed priority agricultural land area and by posting the notice in five conspicuous places within, adjacent to, or near the proposed area.

The notice shall contain a:

(1) statement that a request for a priority agricultural land area has been filed with the county council pursuant to this chapter;

(2) statement that the proposal for the priority agricultural land area will be on file open to public inspection in the office of the local government unit;

(3) statement that any local government unit encompassing or adjacent to the proposed area, or any landowner who owns the land proposed to be included within the proposed area or any landowner with lands adjacent or near to the proposed area who wishes these lands to be included or not included may propose modifications of the proposed area in the form and manner as may be prescribed by the county council;

(4) statement that the request and proposed modifications will be submitted to the county planning commission and the county board, and that after they are submitted, a public hearing will be held on the request, proposed modifications, and recommendations of the county planning commission and county board; and

(5) map identifying the proposed priority agricultural land area.

(C) The county board shall receive any requests for modifications of the priority agricultural land area proposal which may be submitted by a planning commission, conservation district, county board, landowner, or local governing body.

(D)(1) For a county with a county planning commission:

(a) The county board shall refer requests and proposed modifications to the county planning commission.

(b) The county planning commission, together with the county board, shall review the request and proposed modifications, and the county planning commission shall report to the county council the potential effect of the request and proposed modifications upon the county's planning policies and objectives, including the request's compliance with the county's comprehensive plan.

(2) For a county without a county planning commission, the county board shall review the request and the proposed modifications and report to the county council its recommendations concerning the request and proposed modifications.

Section 46-53-70. (A) The standards, criteria, and requirements established by the state board for state board approval of county programs for purchase of agricultural conservation easements shall include, but are not limited to, the extent to which the county considers and addresses the following when establishing a priority agricultural land area:

(1) landowner support for designation or inclusion;

(2) percentage of soils that are suitable for agricultural production;

(3) percentage of soils classified as prime, unique, or of statewide importance;

(4) amount of pressure to convert land to nonagricultural production purposes;

(5) sufficient size to ensure viability of agricultural production;

(6) existing agricultural production infrastructure investments;

(7) compatibility with comprehensive and zoning plans; and

(8) other relative, economic, or unique factors.

(B) These resource materials must be used in evaluating a priority agricultural land area:

(1) USDA Natural Resources Conservation Service soil surveys and soil information; and

(2) Other published data, charts, and relevant information recognized by the department and the USDA Natural Resources Conservation Service.

Section 46-53-80. Upon submission of the report from the county planning commission or, if a county planning commission does not exist, then by the county board, the county board shall hold a public hearing relative to the proposed priority agricultural land area. The county board shall publish a notice of intent to create a priority agricultural land area as specified in Section 46-53-60(B).

Section 46-53-90. (A) The county council, upon completion of the procedures and considerations prescribed in Sections 46-53-60, 46-53-70, and 46-53-80, may adopt the proposal or any modification of the proposal the county council deems appropriate, including the inclusion, to the extent feasible, of adjacent viable agricultural and forest lands and the exclusion, to the extent feasible, of nonviable agricultural and forest land and nonagricultural and forest land. The existence of utility facilities on the proposed area does not prevent the adoption of the area as a priority agricultural land area and the rights of utilities with respect to the existing facilities must not be disturbed or affected by the adoption. The county council shall act to adopt or reject the proposal or any modification.

(B) Within ten days of the county council's decision to reject or modify the proposal, the county council shall submit to the county board a written decision stating why the proposal was not adopted or was modified. The written decision shall include a finding of fact, review of the evaluation criteria prescribed in Section 46-53-70, and a discussion of reasons for rejection or modification of the proposal.

(C) A priority agricultural land area becomes effective upon the adoption of the proposal or its modification by the county council. If the proposal has included land situated in more than one local government unit, the priority agricultural land area becomes effective upon adoption by the local government unit or units of that portion of the proposal or proposed modifications as will meet the requirements of a priority agricultural land area provided in this chapter. Subsequent adoption of the remaining portion shall immediately effectuate the portion as a priority agricultural land area.

(D) After the creation of a priority agricultural land area, a description and map of the area must be on file and maintained by the county board and must be made available to the public.

(E) The addition of land to a priority agricultural land area may occur at any time during the period provided for in Section 46-53-60.

Section 46-53-100. Any party in interest aggrieved by a decision or action of the county council relating to the creation, composition, modification, rejection, or termination of a priority agricultural land area may take an appeal to the court of common pleas in the manner provided by law within thirty days after the decision or action.

Section 46-53-110. (A) After the establishment of a priority agricultural land area by the county council, the same county council shall authorize the county board to administer landowners' applications for the purchase of agricultural conservation easements from landowners whose land is within the priority agricultural land area.

(B) To qualify under this chapter, an agricultural conservation easement is subject to these terms, conditions, restrictions, and limitations:

(1) The term of an agricultural conservation easement is perpetual except as provided for in item (2).

(2) Unless authorized in accordance with item (5), an agricultural conservation easement may not be extinguished, leased, encumbered, or restricted in whole or in part for a period of thirty years beginning on the date of purchase of the easement.

(3) Unless authorized in accordance with item (B)(5), if the land subject to the agricultural conservation easement is no longer viable agricultural land, the county, subject to the approval of the county board and the county council, and if state funds were used to purchase the agricultural conservation easement, the State with the approval of the State board may sell, convey, extinguish, lease, encumber, or restrict an agricultural conservation easement to the current owner of record of the farmland subject to the easement after the expiration of thirty years from the date of purchase of the easement for a purchase price equal to the value at the time of resale determined pursuant to subsection (D) at the time of conveyance. The purchase price must be payable to the county. Any payment received by the county pursuant to this item must be paid into a county account that may be used only for the purpose of purchasing agricultural conservation easements.

(4) Instruments and documents for the purchase, sale, and conveyance of agricultural conservation easements must be approved by the county board prior to execution and delivery. Proper releases from mortgage holders and lienholders must be obtained and executed to ensure that all agricultural conservation easements are purchased free and clear of all encumbrances.

(5) Whenever a public entity, authority, or political subdivision exercises the power of eminent domain and condemns land subject to an agricultural conservation easement, the condemner shall provide just compensation to the owner of the land in fee and to the owner of the easement as follows:

(a) The owner of the land in fee must be paid the full value which would have been payable to the owner but for the existence of an agricultural conservation easement less the value of the agricultural conservation easement at the time of condemnation.

(b) The owner of the easement must be paid the value of the easement at the time of condemnation.

(6) An agricultural conservation easement does not prevent:

(a) The granting of rights-of-way by the owner of the subject land in and through the land for the installation of, transportation of, or use of water, sewage, electric, telephone, telecommunications, gas, oil, or oil products lines.

(b) Construction and use of structures on the subject land necessary for agricultural production.

(c) Construction and use of structures on the subject land for the landowner's principal residence or for the purpose of providing necessary housing for seasonal or full-time employees.

(d) Customary part-time or off-season minor or rural enterprises and activities which are provided for in the county Priority Agricultural Land program approved by the state board pursuant to Section 46-53-40.

(7) Land subject to an agricultural conservation easement may not be subdivided for any purpose which may harm the viability of the agricultural or forest land for agricultural production. Land may be subdivided prior to the granting of an agricultural conservation easement if subdividing will not harm the viability for agricultural production of the land subject to the easement.

(8) Nothing in this chapter prohibits a member of the state board or county board or his or her family from selling an agricultural conservation easement under this program if all decisions made regarding easement purchases are subject to Title 8, Chapter 13.

(9) Land subject to an agricultural conservation easement must be covered by a conservation plan approved by the Conservation District.

(C) The standards, criteria, and requirements established by the state board for state board approval of county programs for purchasing agricultural conservation easements shall include, but are not limited to, the extent to which the county considers:

(1) quality of the agricultural and forest lands subject to the proposed easements, including soils classified as prime, unique, or of statewide importance;

(2) likelihood that the agricultural and forest lands would be converted to nonagricultural production use unless subject to an agricultural conservation easement; areas in the county devoted primarily to agricultural production where development is occurring or is likely to occur in the next twenty years should be identified. For purposes of considering the likelihood of conversion, the existence of a zoning classification of the land is not relevant, but the market for nonagricultural production and forest use or development of agricultural and forest lands is relevant;

(3) sufficient size to ensure viability of agricultural production or to preserve sensitive environmental areas;

(4) proximity of the agricultural and forest lands subject to proposed easements to other agricultural and forest lands in the county which are subject to agricultural conservation easements;

(5) the stewardship of the land and use of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management;

(6) ancillary benefits including, but not limited to, enhancement of wildlife habitat, air and water quality, groundwater recharge, preservation of historic or other cultural features and preservation of scenic qualities; and

(7) fair, equitable, objective and nondiscriminatory procedures for determining purchase priorities.

(D) The county board may select from these methods of valuation:

(1) Value may be determined by a numerical point system established by the county board. If the seller disagrees with the county board valuation, the seller has the right to obtain an independent state-certified general real estate appraiser. If the landowner obtains an independent appraiser, the value must be calculated according to the average between the county board's numerical point system and the landowner's appraisal. The landowner's independent appraiser shall establish market value and farm land value in accordance with this chapter.

(2) Value may be established by an appraisal process where the county board shall retain the county assessor to determine market value and farmland value. If the seller disagrees with the appraisal made by the county assessor, the seller has the right to select and retain a separate independent state-certified general real estate appraiser within thirty days of receipt of the appraisal of the county assessor to determine market value and farmland value. The county board shall establish the agricultural value and the nonagricultural value of the property subject to the agricultural conservation easement. The state board may provide for a periodic review by a state-certified general real estate appraiser of appraisals submitted by counties in order to assure that the appraisals were performed in accordance with the standards of appraisal practice.

(a) The agricultural value shall equal the sum of:

(i) the farmland value determined by the seller's appraiser; and

(ii) one-half of the difference between the farmland value determined by the county assessor and the farmland value determined by the seller's appraiser if the farmland value determined by the county assessor exceeds the farmland value determined by the seller's appraiser.

(b) The nonagricultural value shall equal the sum of:

(i) the market value determined by the county assessor; and

(ii) one-half of the difference between the market value determined by the seller's appraiser and the market value determined by the county assessor if the market value determined by the seller's appraiser exceeds the market value determined by the county assessor.

(3) The entire acreage of the agricultural and forest land must be included in the determination of the value of an agricultural conservation easement less the value of any acreage which was subdivided prior to the granting of the easement. The county assessor or the seller's appraiser shall take into account the potential increase in the value of the subdivided acreage because of the placement of the easement on the remaining agricultural and forest land.

(E) The price paid for purchase of an agricultural conservation easement in perpetuity may not exceed the difference between the nonagricultural value and the agricultural value determined pursuant to subsection (D) of this section at the time of purchase, unless the difference is less than the county board's original appraised value in which case the county board's original easement value may be offered. The purchase price may be paid in a lump sum, in installments over a period of years, or in any other lawful manner of payment. If payment is to be made in installments or another deferred method, the person selling the easement may receive, in addition to the selling price, interest in an amount or at a rate set forth in the agreement of purchase, and final payment of all money must be made within, and no later than, five years from the date the agricultural conservation easement purchase agreement was fully executed. The county may provide for payments on an installment or other deferred basis and for interest payments by investing its allocation of state money for purchases approved under subsection (F) of this section in securities deposited into an irrevocable escrow account or in another manner provided by law.

(F)(1) The State shall disburse thirty-three percent of the total amount of state funds evenly among those counties which have eligible programs. If these funds are not expended by a county within one year of their disbursal, the county must remit the remainder of its allocation to the state board which shall disburse it to the remaining eligible counties on a competitive basis using guidelines established by the state board.

(2) The remaining sixty-seven percent of the total amount of state funds must be disbursed among eligible counties on a competitive basis using guidelines established by the state board.

Section 46-53-120. (A) The Priority Agricultural Land Trust Fund of South Carolina is created for the purpose of receiving gifts, grants, contributions, and other proceeds for the purchase of conservation easements in the State. The State Priority Agricultural Land Board is vested with full authority over the administration of the funds deposited in the fund. The State Treasurer is the custodian of the fund and shall invest its assets in an interest-bearing account pursuant to South Carolina law.

(B) The Priority Agricultural Land Trust Fund may receive appropriations of state general funds, federal funds, donations, gifts, bond issue receipts, securities, and other monetary instruments of value.

(C) The income received and accruing from the fund must be spent only on the purchase of agricultural conservation easements.

(D) The proceeds from this fund may be carried forward from year to year and do not revert to the general fund of the State.

Section 46-53-130. In conjunction with the county board and the county planning commission, if one exists, the county council shall review the status of any priority agricultural land area created under Section 46-53-90 in accordance with the time frame for the program review section in the South Carolina Local Government Comprehensive Planning Enabling Act of 1994 for the purchase of continuing, modifying, or terminating the priority agricultural area.

Section 46-53-140. (A) A municipality or political subdivision within which a priority agricultural land area is created shall encourage the continuity, development, and viability of agricultural production within the priority agricultural land area by not enacting local laws or ordinances which would unreasonably restrict agricultural production within the priority agricultural land area in contravention of the purposes of this chapter unless the restrictions or regulations bear a direct relationship to the public health or safety.

(B) A municipal or political subdivision law or ordinance defining or prohibiting a public nuisance shall exclude from the definition of a nuisance any agricultural production activity within a priority agricultural land area as permitted by this chapter if the agricultural activity or operation does not bear a direct relationship to the public health and safety.

Section 46-53-150. All state agencies shall encourage the maintenance of viable agricultural production in a priority agricultural land area.

Section 46-53-160. No political subdivision, authority, public utility, or other body having or exercising powers of eminent domain shall condemn any land within any priority agricultural land area for any purpose without prior consultation with the county board of the county in which the condemnation is to take place.

Section 46-53-170. The State and political subdivisions of the State may appropriate and expend tax revenues for the public purposes provided by this chapter and, consistent with the requirements of Article X, Sections 13 and 14 of the Constitution of this State, may incur bonded indebtedness for the public purposes of this chapter.

Section 46-53-180. The state board shall submit to the General Assembly an annual report based on each county program. The report shall include, but is not limited to, the:

(1) location of priority agricultural land areas and agricultural conservation easements in the State;

(2) number of acres throughout the State which are located within priority agricultural land areas;

(3) number of acres throughout the State which are subject to agricultural conservation easements;

(4) number of agricultural conservation easements in the State.

(5) number and value of agricultural conservation easements purchased by the counties including the number and value of purchases made during the preceding fiscal year of the State;

(6) identity of counties participating in the state program for purchasing agricultural conservation easements;

(7) dollar value of the annual appropriation made by counties for the purchase of agricultural conservation easements;

(8) quality of the agricultural and forest lands subject to agricultural conservation easement, including the soil classifications and productivity of the agricultural and forest lands;

(9) nature, scope, and extent of development activity within the area where agricultural conservation easements have been purchased;

(10) nature and extent of conservation practices and best land management practices including, but not limited to, soil erosion and sedimentation control and nutrient management practices, which are practiced on farmlands subject to agricultural conservation easements; and

(11) total number of recommendations filed by counties for purchase of agricultural conservation easements and the number approved and disapproved and the reasons for disapproval.

Section 46-53-190. The department shall promulgate regulations necessary to promote the efficient, uniform, and statewide administration of this chapter."

SECTION 2. This act takes effect July 1, 1998.

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