Texas 2013 - 83rd Regular

Texas Senate Bill SB917 Compare Versions

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1	1	By: Estes S.B. No. 917
2	2	(In the Senate - Filed February 27, 2013; March 5, 2013,
3	3	read first time and referred to Committee on Agriculture, Rural
4	4	Affairs, and Homeland Security; March 13, 2013, reported favorably
5	5	by the following vote: Yeas 5, Nays 0; March 13, 2013, sent to
6	6	printer.)
7	7
8	8
9	9	A BILL TO BE ENTITLED
10	10	AN ACT
11	11	relating to the sale by the Brazos River Authority of certain
12	12	property at Possum Kingdom Lake.
13	13	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
14	14	SECTION 1. Chapter 8502, Special District Local Laws Code,
15	15	is amended by adding Section 8502.0133 to read as follows:
16	16	Sec. 8502.0133. SALE OF AUTHORITY PROPERTY ON AND
17	17	ASSOCIATED WITH COSTELLO ISLAND. (a) In this section:
18	18	(1) "Boat landing" means a 0.841 acre tract of land,
19	19	more or less, located above the 1000' contour line as defined in
20	20	Subdivision (8), described in authority records as Tract Costello
21	21	Island, situated in the A. J. Smith Survey, Abstract 393, Palo Pinto
22	22	County, Texas, and being a part of a tract of land purchased by the
23	23	Brazos River Conservation and Reclamation District from Mrs. Hugh
24	24	C. Thomas, as recorded in Volume 182, Page 142, Deed Records of Palo
25	25	Pinto County. The boat landing is located wholly within the FERC
26	26	Project Area.
27	27	(2) "Date of decommissioning" means the effective date
28	28	of the surrender of the FERC License for the Morris Sheppard Dam
29	29	Project No. 1490-052 under the Order Accepting the Surrender of the
30	30	License (issued December 23, 2011), 137 FERC 62,252.
31	31	(3) "Costello Island" means a 260 acre tract of land,
32	32	more or less, located above the 1000' contour line as defined in
33	33	Subdivision (8), described in authority records as Tract Costello
34	34	Island, situated in the J.W. Bunton Survey, Abstract 52, Palo Pinto
35	35	County, Texas, and being a part of that parcel that is located
36	36	wholly within the boundary of the lake, and being a part of a tract
37	37	of land acquired by the Brazos River Conservation and Reclamation
38	38	District from E.P. Costello by Court Judgment dated July 21, 1943.
39	39	The portions of Costello Island owned by the authority are located
40	40	wholly within the FERC Project Area.
41	41	(4) "Costello Island Property" means Costello Island
42	42	and the boat landing, but does not include any portion of Costello
43	43	Island owned in fee simple by a person other than the authority.
44	44	(5) "Fair market value" means the price that the
45	45	Costello Island Property would bring in an arms-length transaction
46	46	when offered for sale by one who wishes, but is not obliged, to sell
47	47	and when bought by one who is under no necessity of buying it. This
48	48	value shall be determined as if the Costello Island Property were
49	49	not subject to the FERC License, were not located within the FERC
50	50	Project Area, were not subject to any lease agreement, were
51	51	available for immediate possession and use, and could be used for
52	52	any reasonable purpose, subject only to the restrictions in
53	53	Subsection (e).
54	54	(6) "FERC License" means the order of the Federal
55	55	Energy Regulatory Commission issuing a license to the authority for
56	56	project number 1490-003-Texas on September 8, 1989, as such license
57	57	has been renewed, extended, or amended and may be further renewed,
58	58	extended, or amended at any time and from time to time, and also
59	59	including the amendment to the original FERC License, which
60	60	amendment was issued on May 15, 1980, to the extent incorporated or
61	61	referenced in the FERC License.
62	62	(7) "FERC Project Area" means that portion of
63	63	authority land that is subject to the FERC License before the date
64	64	of decommissioning, as the land is identified and defined in the
65	65	FERC License, as may be amended at any time and from time to time,
66	66	and which FERC Project Area may move or change over time due to
67	67	natural forces.
68	68	(8) "Lake" means Possum Kingdom Lake located in Young,
69	69	Palo Pinto, Stephens, and Jack Counties. The boundary of the lake
70	70	is defined by the 1000' contour line, as that contour may meander
71	71	and change over time with natural forces, including erosion and
72	72	accretion. The "1000' contour line" means the line running along
73	73	the periphery of the lake if the surface of the lake is at an
74	74	elevation of 1000 feet above mean sea level, as measured from the
75	75	top of the spillway crest gates of the Morris Sheppard Dam, as such
76	76	line may move and shift from time to time due to natural forces.
77	77	(9) "Offeree" means the individuals or corporation,
78	78	other than the authority, owning a portion of Costello Island in fee
79	79	simple.
80	80	(b) After the date of decommissioning, the authority shall
81	81	offer for sale to the offeree the Costello Island Property. The
82	82	sale shall be:
83	83	(1) for not less than the fair market value as
84	84	determined under Subsection (c); and
85	85	(2) contingent upon the termination of any leases
86	86	encumbering all or any portion of the Costello Island Property at
87	87	the time of sale.
88	88	(c)(1) The fair market value of the Costello Island Property
89	89	shall be determined as described in this subsection.
90	90	(2) Not later than 45 days after the date the authority
91	91	receives the offeree's completed application of intent to purchase
92	92	and an acceptable survey as provided by Subsection (d)(1), the
93	93	authority shall provide the offeree with an appraisal of the fair
94	94	market value of the Costello Island Property. The authority may use
95	95	an existing appraisal if it is dated not more than one year before
96	96	the date the authority receives the application of intent to
97	97	purchase. The authority's appraiser must be certified under
98	98	Chapter 1103, Occupations Code. Not later than the 15th day after
99	99	the date the offeree receives the first appraisal, the offeree
100	100	shall notify the authority in writing as to whether the offeree
101	101	agrees with or disputes the fair market value provided in the first
102	102	appraisal. If the offeree does not dispute the fair market value as
103	103	determined by the first appraisal before the expiration of the
104	104	15-day period, the first appraisal is final and binding on all
105	105	parties and establishes the fair market value for the Costello
106	106	Island Property.
107	107	(3) If the offeree disputes the fair market value
108	108	determined by the first appraisal, the offeree may withdraw its
109	109	application to purchase the Costello Island Property or may employ
110	110	a disinterested appraiser certified under Chapter 1103,
111	111	Occupations Code, to conduct a second appraisal of the fair market
112	112	value of the Costello Island Property. The second appraisal must be
113	113	completed and sent to the authority not later than the 45th day
114	114	after the date the offeree notifies the authority that the offeree
115	115	disputes the first appraisal. If the authority does not receive the
116	116	second appraisal before the expiration of the 45-day period, the
117	117	offeree's application of intent to purchase will be deemed
118	118	withdrawn.
119	119	(4) Not later than the 15th day after the date of
120	120	receiving the second appraisal, the authority shall notify the
121	121	offeree in writing as to whether the authority agrees with or
122	122	disputes the fair market value determined by the second appraisal.
123	123	If the authority does not dispute the fair market value as
124	124	determined by the second appraisal before the expiration of the
125	125	15-day period, the second appraisal is final and binding on all
126	126	parties and establishes the purchase price for the Costello Island
127	127	Property. If the authority timely disputes the fair market value
128	128	determined by the second appraisal, the two appraisers, or their
129	129	designated agents, shall meet and attempt to reach an agreement on
130	130	the fair market value of the Costello Island Property. The meeting
131	131	shall occur not later than the 30th day after the date the authority
132	132	notifies the offeree that the authority disputes the second
133	133	appraisal.
134	134	(5) If the two appraisers reach an agreement on the
135	135	fair market value, they shall issue a report, not later than the
136	136	20th day after the date of their meeting, relating the agreed fair
137	137	market value to the authority and to the offeree, and this agreed
138	138	fair market value shall be final and binding on all parties and
139	139	establishes the purchase price. If the two appraisers fail to reach
140	140	an agreement on or before the 20th day after the date of the
141	141	meeting, then, not later than the 30th day after the date of the
142	142	meeting, the two appraisers shall appoint a disinterested third
143	143	appraiser certified under Chapter 1103, Occupations Code, to
144	144	reconcile the two previous appraisals in a third appraisal. The
145	145	third appraisal must be completed on or before the 30th day after
146	146	the date of the third appraiser's appointment, and the fair market
147	147	value determined by the third appraisal is final and binding on all
148	148	parties and establishes the purchase price; provided, however, that
149	149	the final purchase price may not be more than the fair market value
150	150	determined by the first appraisal or less than the fair market value
151	151	determined by the second appraisal.
152	152	(6) The appraisal costs shall be paid by the person who
153	153	requests the appraisal, except that the offeree and the authority
154	154	shall each pay one-half of the cost of the third appraisal if a
155	155	third appraisal is necessary. If the offeree fails to pay its share
156	156	of the third appraisal, the offeree's application of intent to
157	157	purchase will be deemed withdrawn.
158	158	(7) The timelines for the appraisal process under this
159	159	subsection may be extended upon joint agreement of the authority
160	160	and the offeree.
161	161	(d) To purchase the Costello Island Property, the offeree
162	162	must:
163	163	(1) provide to the authority a survey of the Costello
164	164	Island Property that is:
165	165	(A) prepared by a licensed state land surveyor or
166	166	a registered professional land surveyor;
167	167	(B) dated not earlier than one year before the
168	168	effective date of the Act enacting this section; and
169	169	(C) acceptable to the authority and any title
170	170	company providing title insurance for the offeree; and
171	171	(2) pay all closing costs associated with the sale of
172	172	the property.
173	173	(e) For any property sold under this section:
174	174	(1) the authority shall provide a special warranty
175	175	deed that encompasses and includes all interests in the Costello
176	176	Island Property held by the authority, subject only to:
177	177	(A) the restrictions, covenants, and
178	178	prohibitions contained in the deed of conveyance under which the
179	179	authority originally acquired title to the property, including
180	180	without limitation any releases of the authority for the
181	181	inundation, overflowing, or flooding of the lake;
182	182	(B) the restrictions, covenants, and
183	183	prohibitions described in Section 8502.020(d);
184	184	(C) all encumbrances and other matters filed of
185	185	record in the public records of the county in which the property is
186	186	located;
187	187	(D) any other matters or conditions that are
188	188	apparent on the ground or that would be reasonably disclosed or
189	189	discovered by an inspection of the property; and
190	190	(E) any other rules, regulations, or policies of
191	191	the authority in effect as of January 1, 2013, prohibiting or
192	192	limiting commercial, private, or other on-water facilities for new
193	193	development, and as such rules, regulations, or policies may be
194	194	amended, modified, or discontinued from time to time; and
195	195	(2) the offeree shall release and agree to hold the
196	196	authority harmless from, and the authority may not be held liable
197	197	for, damages, claims, costs, injuries, or any other harm to any
198	198	offeree or any other person or the Costello Island Property, or to
199	199	any improvements on the property, caused by or arising from any
200	200	temporary flooding of any portion of the Costello Island Property.
201	201	(f) Any sale of the Costello Island Property under this
202	202	section must allow the authority the right to enter onto the
203	203	Costello Island Property and the lake and other bodies of water, if
204	204	any, located within the Costello Island Property with essential
205	205	equipment for all purposes reasonably necessary for the authority
206	206	to fulfill its obligations as a river authority and any obligations
207	207	set forth in the FERC License, state water rights, or other
208	208	governmental regulations, or for any purpose that the authority
209	209	considers necessary for public safety, health, and welfare. Any
210	210	exercise by the authority of rights described by this subsection
211	211	may be conducted only after written notice is given to the offeree
212	212	at least 48 hours in advance of entry onto the property, except in
213	213	the event of an emergency, in which case advance notice is not
214	214	required, but the authority shall provide written notice as soon as
215	215	practicable. The authority shall use reasonable efforts to avoid
216	216	interfering with the offeree's use of the Costello Island Property
217	217	and shall promptly repair any damage to the property caused by the
218	218	authority's entrance. Any claim to governmental immunity on behalf
219	219	of the authority is waived with respect to the recovery of any
220	220	damage caused by the authority's breach of this subsection.
221	221	(g) Chapters 232 and 272, Local Government Code, Section
222	222	49.226, Water Code, and Section 8502.013 of this code do not apply
223	223	to a sale of property under this section.
224	224	(h) The authority may use proceeds from the sale of property
225	225	under this section for any authority purpose.
226	226	(i) The authority shall reserve its interest in all oil,
227	227	gas, and other minerals in and under the property to be sold, or any
228	228	portion thereof, to the extent the authority owns an interest in
229	229	those minerals.
230	230	(j) If the conveyance described by this section is not
231	231	completed before the second anniversary of the effective date of
232	232	this Act, this section shall no longer be effective and expires on
233	233	the date of the second anniversary.
234	234	(k) To the extent of any conflict with other laws of this
235	235	state, this section prevails.
236	236	SECTION 2. This Act takes effect September 1, 2013.
237	237	* * * * *