84R18674 SLB-F
By: Geren H.B. No. 1925
Substitute the following for H.B. No. 1925:
By: Larson C.S.H.B. No. 1925
A BILL TO BE ENTITLED
AN ACT
relating to the transfer of the Texas Farm and Ranch Lands
Conservation Program to the Parks and Wildlife Department.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 183, Natural Resources
Code, is transferred to Subtitle E, Title 5, Parks and Wildlife
Code, redesignated as Chapter 84, Parks and Wildlife Code, and
amended to read as follows:
CHAPTER 84 [SUBCHAPTER B]. TEXAS FARM AND RANCH LANDS CONSERVATION
PROGRAM
Sec. 84.001 [183.051]. PURPOSE. The purpose of the program
established under this chapter [subchapter] is to enable and
facilitate the purchase and donation of agricultural conservation
easements.
Sec. 84.002 [183.052]. DEFINITIONS. In this chapter
[subchapter]:
(1) "Agricultural conservation easement" means a
conservation easement in qualified land that is designed to
accomplish one or more of the following additional purposes:
(A) conserving water quality or quantity;
(B) conserving native wildlife species through
protection of their habitat;
(C) conserving rare or sensitive plant species;
or
(D) conserving large tracts of qualified
open-space land that are threatened with fragmentation or
development.
(2) "Conservation easement" has the meaning assigned
by Section 183.001, Natural Resources Code ["Commissioner" means
the commissioner of the General Land Office].
(3) "Council" means the Texas Farm and Ranch Lands
Conservation Council established under Section 84.011 [183.061].
(4) "Fund" means the Texas farm and ranch lands
conservation fund established under Section 84.008 [183.058].
(5) "Holder" has the meaning assigned by Section
183.001, Natural Resources Code ["Land office" means the General
Land Office].
(6) "Program" means the Texas farm and ranch lands
conservation program established under this chapter [subchapter].
(7) "Purchase of agricultural conservation easement"
means the purchase from a willing seller of an agricultural
conservation easement.
(8) "Qualified easement holder" means a holder that
is:
(A) a state agency, a county, or a municipality;
or
(B) an organization that is exempt from federal
income taxation under Section 501(a), Internal Revenue Code of
1986, as an organization described by Section 501(c)(3) of that
code and that is organized for the purpose of preserving
agriculture, open space, or natural resources.
(9) "Qualified land" means qualified open-space land,
as that term is defined by Section 23.51, Tax Code.
Sec. 84.003 [183.053]. PROGRAM. The Texas farm and ranch
lands conservation program is established as a program of the
department [land office] for the purpose of administering the
assistance to be provided by the fund for the purchase of
agricultural conservation easements.
Sec. 84.004 [183.054]. TERMS OF AGRICULTURAL CONSERVATION
EASEMENT. (a) An agricultural conservation easement under this
chapter [subchapter] must be perpetual or for a term of 30 years.
(b) The owner of qualified land and a potential purchaser of
an agricultural conservation easement should consider and
negotiate easement terms, including the following considerations:
(1) whether the landowner will receive a lump sum or
annual payments;
(2) whether the term of the easement shall be
perpetual or for a term of 30 years;
(3) whether a term easement is renewable;
(4) whether the landowner retains limited development
rights; and
(5) the purchase price of the easement.
(c) An agricultural conservation easement may not be
assigned to or enforced by a third party without the express written
consent of the landowner.
Sec. 84.005 [183.055]. TERMINATION OF EASEMENT. (a) Any
time after an agricultural conservation easement is acquired with a
grant awarded under this chapter [subchapter], the landowner may
request that the council terminate the easement as provided by
Subsection (b) on the ground that the landowner is unable to meet
the conservation goals as described by Section 84.002(1)
[183.052(1)]. The termination request must contain a verifiable
statement of impossibility.
(b) On receipt of the request for termination, the council
shall notify the qualified easement holder and conduct an inquiry.
Not later than the 180th day after the date the council receives the
request, the council shall notify the parties of the decision to
grant or deny the request for termination. Either party may appeal
the decision in district court not later than the 45th day after the
date of the notification.
Sec. 84.006 [183.056]. REPURCHASE BY LANDOWNER. (a) In
this section:
(1) "Agricultural value" means the price as of the
appraisal date a buyer willing, but not obligated, to buy would pay
for a farm or ranch unit with land comparable in quality and
composition to the subject property, but located in the nearest
location where profitable farming or ranching is feasible.
(2) "Fair market value" means the price as of the
appraisal date that a buyer willing, but not obligated, to buy would
pay for the land at its best and most beneficial use under any
obtainable development zoning category.
(b) If a request for termination of an agricultural
conservation easement is granted under Section 84.005 [183.055],
the director [commissioner] shall order an appraisal of the fair
market value and the agricultural value of the property subject to
the easement. The landowner shall bear the cost of the appraisal.
(c) Not later than the 180th day after the date of the
appraisal under Subsection (b), the landowner must pay to the
qualified easement holder an amount equal to the difference between
the fair market value and the agricultural value. The qualified
easement holder shall pay to the fund any amounts received under
this subsection, not to exceed the amount paid by the fund for
purchase of the easement.
(d) Not later than the 30th day after the date of payment by
the landowner under Subsection (c), the qualified easement holder
shall terminate the easement.
(e) If the request for termination is denied or if the
landowner fails to make the payment required by Subsection (c) in
the time required by that subsection, the landowner may not submit
another request for termination of the easement before the fifth
anniversary of the date of the last request.
Sec. 84.007 [183.057]. PROTECTED LAND; NOTICE OF TAKING.
(a) A department or agency of this state, a county, a municipality,
another political subdivision, or a public utility may not approve
any program or project that requires the use or taking through
eminent domain of private land encumbered by an agricultural
conservation easement purchased under this chapter [subchapter]
unless the governmental entity or public utility acting through its
governing body or officers determines that:
(1) there is no feasible and prudent alternative to
the use or taking of the land; and
(2) the program or project includes all reasonable
planning to minimize harm to the land resulting from the use or
taking.
(b) A determination required by Subsection (a) may be made
only at a properly noticed public hearing.
(c) The governing body or officers of the governmental
entity or public utility may consider clearly enunciated local
preferences, and the provisions of this chapter [subchapter] do not
constitute a mandatory prohibition against the use of the area if
the determinations required by Subsection (a) are made.
(d) If, after making the determination required by
Subsection (a), a department or agency of this state, a county, a
municipality, another political subdivision, or a public utility
acquires by eminent domain a fee simple interest in land encumbered
by an agricultural conservation easement purchased under this
chapter [subchapter]:
(1) the easement on the condemned property terminates;
and
(2) the entity exercising the power of eminent domain
shall:
(A) pay for an appraisal of the fair market
value, as that term is defined by Section 84.006 [183.056], of the
property subject to condemnation;
(B) pay to the qualified easement holder an
amount equal to the amount paid by the holder for the portion of the
easement affecting the property to be condemned;
(C) pay to the landowner an amount equal to the
fair market value of the condemned property less the amount paid to
the qualified easement holder under Paragraph (B); and
(D) pay to the landowner and the qualified
easement holder any additional damages to their interests in the
remaining property, as determined by the special commissioners
under Section 21.042, Property Code.
(e) If, after making the determination required by
Subsection (a), a department or agency of this state, a county, a
municipality, another political subdivision, or a public utility
acquires by eminent domain an interest other than a fee simple
interest in land encumbered by an agricultural conservation
easement purchased under this chapter [subchapter]:
(1) the entity exercising the power of eminent domain
shall pay for an appraisal of the fair market value, as that term is
defined by Section 84.006 [183.056], of the property subject to
condemnation; and
(2) the special commissioners shall consider the fair
market value as the value of the property for purposes of assessing
damages under Section 21.042, Property Code.
(f) The qualified easement holder shall pay to the fund any
amounts received under Subsections (d) and (e), not to exceed the
amount paid by the fund for the purchase of the easement.
Sec. 84.008 [183.058]. TEXAS FARM AND RANCH LANDS
CONSERVATION FUND. (a) The Texas farm and ranch lands conservation
fund is an account in the general revenue fund that may be
appropriated only to the department [land office] to be used as
provided by Subsection (b). The fund may not be used for grants to
purchase or acquire any right or interest in property by eminent
domain. The fund consists of:
(1) money appropriated by the legislature to the fund;
(2) public or private grants, gifts, donations, or
contributions;
(3) funds from any other source, including proceeds
from the sale of bonds, state or federal mitigation funds, or funds
from any local, state, or federal program;
(4) proceeds of the sale of real property not required
for the management of real property under Section 31.065(d),
Natural Resources Code; and
(5) proceeds of the sale of real property under
Section 31.066(d), Natural Resources Code.
(b) The fund may be used only:
(1) to award grants to qualified easement holders for
the purchase of agricultural conservation easements;
(2) to pay transaction costs related to the purchase
of agricultural conservation easements, which may include
reimbursement of appraisal costs; and
(3) to pay associated administrative costs of the
department [land office], not to exceed five percent of the money in
the fund.
Sec. 84.009 [183.059]. ADMINISTRATION OF FUND. (a) The
council may:
(1) adopt rules necessary to perform program duties
under this chapter [subchapter];
(2) request, accept, and use gifts, loans, donations,
aid, appropriations, guaranties, subsidies, grants, or
contributions of any item of value for the furtherance of any
purposes of this chapter [subchapter];
(3) establish, charge, and collect fees, charges, and
penalties in connection with the programs, services, and activities
provided for by this chapter [subchapter];
(4) make, enter into, and enforce contracts and
agreements, and take other actions as may accomplish any of the
purposes of this chapter [subchapter];
(5) seek ways to coordinate and leverage public and
private sources of funding;
(6) adopt best practices and enforcement standards for
the evaluation of easements purchased through grants from the fund;
(7) establish a protocol for the purchase of
agricultural conservation easements and for the distribution of
funds to approved applicants;
(8) administer grants awarded to successful
applicants;
(9) ensure that agricultural conservation easements
purchased under this chapter [subchapter] are not inconsistent with
the preservation of open space and the conservation of wildlife
habitat or water; and
(10) approve the termination of easements and take any
other action necessary to further the goals of the program.
(b) To receive a grant from the fund under this chapter
[subchapter], an applicant who is qualified to be an easement
holder under this chapter [subchapter] must submit an application
to the council. The application must:
(1) set out the parties' clear conservation goals
consistent with the program;
(2) include a site-specific estimate-of-value
appraisal by a licensed appraiser qualified to determine the market
value of the easement; and
(3) include a memorandum of understanding signed by
the landowner and the applicant indicating intent to sell an
agricultural conservation easement and containing the terms of the
contract for the sale of the easement.
(c) For the purposes of determining the amount of a grant
under this chapter [subchapter], the value of an agricultural
conservation easement shall be determined by a site-specific
estimate-of-value appraisal performed by a licensed, qualified
appraiser.
Sec. 84.010 [183.060]. CRITERIA FOR AWARDING GRANTS. The
council shall:
(1) give priority to applications that protect highly
productive agricultural lands that are susceptible to development,
including subdivision and fragmentation; and
(2) adopt a scoring process to be used in evaluating
applications that considers the following:
(A) [(1)] maintenance of landscape and watershed
integrity to conserve water and natural resources;
(B) [(2) protection of highly productive
agricultural lands;
[(3)] protection of habitats for native plant and
animal species, including habitats for endangered, threatened,
rare, or sensitive species;
(C) [(4) susceptibility of the subject property
to subdivision, fragmentation, or other development;
[(5)] potential for leveraging state money allocated
to the program with additional public or private money;
(D) [(6)] proximity of the subject property to
other protected lands;
(E) [(7)] the term of the proposed easement,
whether perpetual or for a term of 30 years; and
(F) [(8)] a resource management plan agreed to by
both parties and approved by the council.
Sec. 84.011 [183.061]. TEXAS FARM AND RANCH LANDS
CONSERVATION COUNCIL. (a) The Texas Farm and Ranch Lands
Conservation Council is established to advise and assist the
director [commissioner] with administration of the program and to
select applicants to receive grants under this chapter [subchapter]
using the criteria adopted by the council under Section 84.010
[183.060]. The council consists of 12 members as follows:
(1) six members appointed by the governor as follows:
(A) two members [one member] who each operate
[operates] a family farm or ranch in this state;
(B) one member who is the designated
representative of an agricultural banking or lending organization
and who has significant experience lending for farms and ranches or
lands encumbered by conservation easements;
(C) two members who are the designated
representatives of a statewide agricultural organization in
existence in this state for not less than 10 years; and
(D) one member who is a designated representative
of a statewide nonprofit organization that represents land trusts
operating in this state; and
[(E) one member from a state institution of
higher education who has significant experience with natural
resources issues; and]
(2) six [four] ex officio members as follows:
(A) the executive director of the State Soil and
Water Conservation Board [the commissioner];
(B) the commissioner of agriculture or the
commissioner's designee;
(C) the chair of the Texas Water Development
Board, or the chair's designee [presiding officer of the Parks and
Wildlife Commission or the presiding officer's designee]; [and]
(D) the state conservationist of the Natural
Resources Conservation Service of the United States Department of
Agriculture or a designee of that person, who serves as a nonvoting
member;
(E) the presiding officer of the commission or
the presiding officer's designee, who must be a member of the
commission; and
(F) the executive director of the Texas A&M
Institute of Renewable Natural Resources.
(b) Appointed members of the council serve staggered terms
of six years, with two of the members' terms expiring February 1 of
each odd-numbered year.
(c) Appointments to and removal from the council shall be
made by the governor without regard to the race, color, disability,
sex, religion, age, or national origin of the appointees.
(d) The presiding officer of the commission or the presiding
officer's [commissioner or the commissioner's] designee shall serve
as the presiding officer of the council unless, at the presiding
officer of the commission's discretion, the executive director of
the department shall serve as the presiding officer of the council.
The presiding officer of the council [and] shall designate from
among the members of the council an assistant presiding officer of
the council to serve in that capacity at the will of the presiding
officer of the council [commissioner]. The council may choose from
its appointed members other officers as the council considers
necessary.
(e) A member of the council is not entitled to compensation
for service on the council but is entitled to reimbursement of the
necessary and reasonable travel expenses incurred by the member
while conducting the business of the council, as provided for state
employees by the General Appropriations Act.
(f) The council shall meet not less than once each year.
(g) A person may not be appointed as a council member if the
person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization receiving money under
the program;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving money under the program; or
(3) uses or receives a substantial amount of tangible
goods, services, or money under the program other than
reimbursement authorized by law for travel expenses as described by
Subsection (e).
(h) In this subsection, "Texas trade association" means a
cooperative and voluntarily joined statewide association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest. A person may not be an appointed member of the
council if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association for an occupation or
profession with an interest in land conservation that is related to
the occupation or profession; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association for an occupation or
profession with an interest in land conservation that is related to
that occupation or profession.
(i) A person may not be an appointed member of the council or
act as the general counsel to the council if the person is required
to register as a lobbyist under Chapter 305, Government Code,
because of the person's activities for compensation on behalf of an
occupation or profession with an interest in land conservation that
is related to that occupation or profession.
(j) It is a ground for removal from the council if a member:
(1) is ineligible for membership under this section;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled council meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the council.
(k) The validity of an action of the council is not affected
by the fact that it is taken when a ground for removal of a
participating council member exists.
(l) If the presiding officer of the council has knowledge
that a potential ground for removal exists, the presiding officer
of the council shall notify the director [commissioner] and the
governor that a potential ground for removal exists.
(m) The presiding officer of the council or that person's
[the presiding officer's] designee, with the assistance of staff of
the department [land office], shall provide to members of the
council information regarding a member's responsibilities under
applicable laws relating to standards of conduct for state
officers.
(n) A person who is appointed to and qualifies for office as
a member of the council may not vote, deliberate, or be counted as a
member in attendance at a meeting of the council until the person
completes a training program that complies with this section. The
training program must provide the person with information
regarding:
(1) the legislation that created the council;
(2) the program to be administered under this chapter
[subchapter];
(3) the role and functions of the council;
(4) the rules of the council, with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the council;
(6) the results of the most recent formal audit of the
council;
(7) the requirements of:
(A) the open meetings law, Chapter 551,
Government Code;
(B) the public information law, Chapter 552,
Government Code;
(C) the administrative procedure law, Chapter
2001, Government Code; and
(D) other laws relating to public officials,
including conflict-of-interest laws; and
(8) any applicable policies adopted by the council or
the Texas Ethics Commission.
(o) A person appointed to the council is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the training program occurs
before or after the person qualifies for office.
Sec. 84.012 [183.062]. EFFECT ON TAX APPRAISAL. An
agricultural conservation easement under this chapter [subchapter]
does not affect the eligibility of the property subject to the
easement for appraisal for ad valorem tax purposes under Subchapter
D, Chapter 23, Tax Code.
Sec. 84.013 [183.063]. REPORT TO TEXAS DEPARTMENT OF
TRANSPORTATION. Not later than the 10th day after the date of a
closing of a purchase of an easement under this chapter
[subchapter], the department [land office] shall provide the Texas
Department of Transportation a legal description of the property
subject to the easement and shall include with the description the
date the closing occurred.
SECTION 2. Section 31.065(d), Natural Resources Code, is
amended to read as follows:
(d) If real property acquired by grant, gift, devise, or
bequest is not held as part of the permanent school fund or
possessed, administered, or used by a particular state agency,
board, commission, department, or other particular state entity,
the commissioner may manage that real property or sell or exchange
the real property under terms and conditions the commissioner
determines to be in the best interest of the state. Real property
sold under this subsection must be sold in accordance with Section
31.158. Proceeds of the sale that are not required for the
management of real property under this subsection shall be
deposited in the Texas farm and ranch lands conservation fund
established under Chapter 84, Parks and Wildlife Code [183]. Real
property acquired under this subsection may be dedicated by the
commissioner to any state agency, board, commission, or department,
a political subdivision or other governmental entity of this state,
or the federal government, for the benefit and use of the public in
exchange for nonmonetary consideration, if the commissioner
determines that the exchange is in the best interest of the state.
SECTION 3. Section 31.066(d), Natural Resources Code, is
amended to read as follows:
(d) The commissioner may sell any title or interest acquired
by the state under this section in accordance with Section
31.158. Proceeds of the sale shall be deposited in the Texas farm
and ranch lands conservation fund established under Chapter 84,
Parks and Wildlife Code [183].
SECTION 4. (a) Not later than January 1, 2016, the governor
shall make the appointments described by Section 84.011, Parks and
Wildlife Code, as amended by this Act.
(b) Not later than January 1, 2016, the General Land Office
and the Parks and Wildlife Department shall enter into a memorandum
of understanding relating to the transfer of the administration of
the Texas Farm and Ranch Lands Conservation Program from the
General Land Office to the Parks and Wildlife Department. The
memorandum of understanding must include a timetable and specific
steps and methods for the transfer on September 1, 2016, of all
powers, duties, obligations, rights, contracts, leases, records,
real or personal property, personnel, and unspent and unobligated
appropriations and other funds relating to the administration of
the Texas Farm and Ranch Lands Conservation Program from the
General Land Office to the Parks and Wildlife Department.
(c) On September 1, 2016, the following are transferred to
the Department of Parks and Wildlife:
(1) all powers, duties, obligations, and liabilities
of the General Land Office relating to the administration of the
Texas Farm and Ranch Lands Conservation Program;
(2) all unobligated and unexpended funds appropriated
to the General Land Office designated for the purpose of the
administration of the Texas Farm and Ranch Lands Conservation
Program;
(3) all equipment and property of the General Land
Office used for the administration of the Texas Farm and Ranch Lands
Conservation Program;
(4) all personnel, as described by the memorandum of
understanding entered into under Subsection (b) of this section;
and
(5) all files and other records of the General Land
Office kept by the office regarding the Texas Farm and Ranch Lands
Conservation Program.
(d) Before September 1, 2016, the General Land Office may
agree with the Parks and Wildlife Department to transfer any
property of the General Land Office to the Parks and Wildlife
Department to implement the transfer required by this Act.
(e) In the period beginning on the effective date of this
Act and ending on September 1, 2016, the General Land Office shall
continue to perform functions and activities under Subchapter B,
Chapter 183, Natural Resources Code, as if that subchapter had not
been transferred, redesignated, and amended by this Act, and the
former law is continued in effect for that purpose.
SECTION 5. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2015.