73R8898 MI-F
          By Lewis                                              H.B. No. 1492
          Substitute the following for H.B. No. 1492:
          By Tallas                                         C.S.H.B. No. 1492
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to notice requirements for actions affecting permanent
    1-3  school fund land and for transfers of real property abutting
    1-4  tidally influenced waters of the state, to the sale of state land
    1-5  acquired through tax foreclosure, to the sale or lease of and the
    1-6  granting of easements across permanent school fund lands, and to
    1-7  funds associated with permanent school fund lands.
    1-8        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  Section 5.115, Water Code, is amended to read as
   1-10  follows:
   1-11        Sec. 5.115.  Notice of Application.  (a)  At the time an
   1-12  application for a permit or license under this code is filed with
   1-13  the executive director and is administratively complete, the
   1-14  commission shall give notice of the application to any person who
   1-15  may be affected by the granting of the permit or license.
   1-16        (b)  At the time an application for any formal action by the
   1-17  commission that will affect lands dedicated to the permanent school
   1-18  fund is filed with the executive director or the commission and is
   1-19  administratively complete, the commission shall give notice of the
   1-20  application to the school land board.  Notice shall be delivered by
   1-21  certified mail, return receipt requested, addressed to the deputy
   1-22  commissioner of the asset management division of the General Land
   1-23  Office.
    2-1        (c)  The commission shall adopt rules for the notice required
    2-2  by this section.
    2-3        (d) <(c)>  The notice must state:
    2-4              (1)  the identifying number given the application by
    2-5  the commission;
    2-6              (2)  the type of permit or license sought under the
    2-7  application;
    2-8              (3)  the name and address of the applicant;
    2-9              (4)  the date on which the application was submitted;
   2-10  and
   2-11              (5)  a brief summary of the information included in the
   2-12  permit application.
   2-13        (e)  The notice to the school land board under this section
   2-14  shall additionally:
   2-15              (1)  state the location of the permanent school fund
   2-16  land to be affected; and
   2-17              (2)  describe any foreseeable impact or effect of the
   2-18  commission's action on the permanent school fund land.
   2-19        (f)  A formal action or ruling by the commission on an
   2-20  application affecting permanent school fund land that is made
   2-21  without the notice required by this section is voidable by the
   2-22  school land board as to any permanent school fund lands affected by
   2-23  the action or ruling.
   2-24        SECTION 2.  Subchapter C, Chapter 43, Local Government Code,
   2-25  is amended by adding Section 43.0525 to read as follows:
    3-1        Sec. 43.0525.  NOTICE OF ANNEXATION OF PERMANENT SCHOOL FUND
    3-2  LANDS.  Notice of the intent of a municipality to annex any state
    3-3  land belonging to the permanent school fund shall be given to the
    3-4  school land board by certified mail, return receipt requested,
    3-5  addressed to the deputy commissioner of the asset management
    3-6  division of the General Land Office at least 30 days before the
    3-7  date of an annexation election or the issuance of an annexation
    3-8  ordinance relating to that land.  An annexation that is made
    3-9  without the notice required by this subsection is not effective as
   3-10  to the permanent school fund land sought to be annexed.
   3-11        SECTION 3.  Subchapter D, Chapter 11, Natural Resources Code,
   3-12  is amended by adding Section 11.082 to read as follows:
   3-13        Sec. 11.082.  Notice to School Land Board.  (a)  A state
   3-14  agency or political subdivision may not formally take any action
   3-15  that may affect state land dedicated to the permanent school fund
   3-16  without first giving notice of the action to the board.  Notice of
   3-17  the proposed action shall be delivered by certified mail, return
   3-18  receipt requested, addressed to the deputy commissioner of the
   3-19  asset management division of the General Land Office on or before
   3-20  the state agency's or political subdivision's formal initiation of
   3-21  the action.
   3-22        (b)  The notice must:
   3-23              (1)  describe the proposed action;
   3-24              (2)  state the location of the permanent school fund
   3-25  land to be affected; and
    4-1              (3)  describe any foreseeable impact or effect of the
    4-2  state agency's or political subdivision's action on the permanent
    4-3  school fund land.
    4-4        (c)  An action taken by a state agency or political
    4-5  subdivision without the notice required by Subsection (a) of this
    4-6  section that affects state land dedicated to the permanent school
    4-7  fund is not effective as to permanent school fund land affected by
    4-8  the action.
    4-9        (d)  In this section:
   4-10              (1)  "Action" means:
   4-11                    (A)  formal adoption of an agency or political
   4-12  subdivision policy;
   4-13                    (B)  final adoption of an administrative rule;
   4-14                    (C)  issuance of findings of fact or law;
   4-15                    (D)  issuance of an administrative order in an
   4-16  administrative hearing; or
   4-17                    (E)  adoption of a local ordinance or resolution.
   4-18              (2)  "Board" means the school land board.
   4-19              (3)  "Initiation" means the commencement of the first
   4-20  phase of public consideration of a formal policy, rule, or
   4-21  ordinance, or a hearing undertaken by a state agency or political
   4-22  subdivision that is intended to result in final adoption of a
   4-23  formal policy, rule, or ordinance.
   4-24              (4)  "Political subdivision" means a county,
   4-25  municipality, public school district, or special-purpose district
    5-1  or authority.
    5-2              (5)  "State agency" means:
    5-3                    (A)  a department, commission, board, office,
    5-4  bureau, council, or other agency in the executive branch of state
    5-5  government other than the Texas Department of Transportation and
    5-6  the Railroad Commission of Texas; or
    5-7                    (B)  a university system or an institution of
    5-8  higher education as defined in Section 61.003, Education Code.
    5-9        SECTION 4.  Section 32.112, Natural Resources Code, is
   5-10  amended to read as follows:
   5-11        Sec. 32.112.  SALE OF TAX FORECLOSURE PROPERTY.  (a)  All
   5-12  real property or any interest in real property placed in the name
   5-13  of the state as a result of a tax foreclosure sale may be sold or
   5-14  leased by the board in the same manner as provided for the sale or
   5-15  lease of land under Chapter 51 of this code <The board may sell by
   5-16  sealed bid all real property placed in the name of the state as a
   5-17  result of any tax foreclosure sale.  The sealed bid sales shall be
   5-18  conducted in the same manner as sealed bid sales for public school
   5-19  land>.
   5-20        (b)  The board may retain from the proceeds of a sale or
   5-21  lease conducted under this section the cost of conducting the
   5-22  transaction <sale>, including advertising, appraisal, and
   5-23  administrative costs.  The balance of the proceeds shall be
   5-24  deposited in the State Treasury to the credit of the Texas capital
   5-25  trust fund.
    6-1        SECTION 5.  Section 33.015, Natural Resources Code, is
    6-2  amended to read as follows:
    6-3        Sec. 33.015.  SPECIAL FUND.  (a)  A special fund is created,
    6-4  and money received by the board for the grant of permits under this
    6-5  chapter shall be deposited in the State Treasury to the credit of
    6-6  this special fund.
    6-7        (b)  Sections 403.094 and 403.095, Government Code, do not
    6-8  apply to the fund created under this section.
    6-9        SECTION 6.  Section 33.131, Natural Resources Code, is
   6-10  amended to read as follows:
   6-11        Sec. 33.131.  Structures as Property of the State.  A
   6-12  structure presently existing or to be constructed in the future for
   6-13  which a permit is required under Section 33.119 of this code
   6-14  <subchapter> is the property of the state.  Any construction,
   6-15  maintenance, or use of the structure other than as provided in this
   6-16  subchapter is declared to be a nuisance per se and is expressly
   6-17  prohibited.
   6-18        SECTION 7.  Subchapter D, Chapter 33, Natural Resources Code,
   6-19  is amended by adding Section 33.135 to read as follows:
   6-20        Sec. 33.135.  NOTICE TO PURCHASER OR GRANTEE OF COASTAL AREA
   6-21  PROPERTY.   (a)  A person who sells, transfers, or conveys an
   6-22  interest other than a mineral, leasehold, or security interest in
   6-23  real property adjoining and abutting the tidally influenced waters
   6-24  of the state must include the following notice as a part of a
   6-25  written executory contract for the sale, transfer, or conveyance:
    7-1                "NOTICE REGARDING COASTAL AREA PROPERTY
    7-2              "(1)  The real property described in and subject to
    7-3  this contract adjoins and shares a common boundary with the tidally
    7-4  influenced submerged lands of the state.  The boundary is subject
    7-5  to change and can be determined accurately only by a survey on the
    7-6  ground made by a licensed state land surveyor in accordance with
    7-7  the original grant from the sovereign.  The owner of the property
    7-8  described in this contract may gain or lose portions of the tract
    7-9  because of changes in the boundary.
   7-10              "(2)  The seller, transferor, or grantor has no
   7-11  knowledge of any prior fill as it relates to the property described
   7-12  in and subject to this contract.
   7-13              "(3)  State law prohibits the use, encumbrance,
   7-14  construction, or placing of any structure in, on, or over
   7-15  state-owned submerged lands below the applicable tide line, without
   7-16  proper permission.
   7-17              "(4)  The purchaser or grantee is hereby advised to
   7-18  seek the advice of an attorney or other qualified person as to the
   7-19  legal nature and effect of the facts set forth in this notice on
   7-20  the property described in and subject to this contract.
   7-21  Information regarding the location of the applicable tide line as
   7-22  to the property described in and subject to this contract may be
   7-23  obtained from the surveying division of the General Land Office in
   7-24  Austin."
   7-25        (b)  If property described under Subsection (a) of this
    8-1  section is sold, transferred, or conveyed without an executory
    8-2  contract for conveyance, a written statement containing the notice
    8-3  prescribed by that subsection must be delivered to the grantee for
    8-4  execution and acknowledgement of receipt before the conveyance is
    8-5  recorded.
    8-6        (c)  Failure to include the prescribed notice in the written
    8-7  executory contract or to deliver a written statement of the notice
    8-8  for execution and acknowledgement by the grantee in the absence of
    8-9  a written executory contract:
   8-10              (1)  constitutes a legal right in the purchaser to
   8-11  terminate the contract or to renounce a sale, transfer, or
   8-12  conveyance;
   8-13              (2)  requires that any consideration, down payment, or
   8-14  deposit paid by the grantee be returned to the grantee, together
   8-15  with a cancellation of any promissory note or security instrument
   8-16  given in consideration for the sale, conveyance, or transfer; and
   8-17              (3)  constitutes a deceptive act under Section 17.46,
   8-18  Business & Commerce Code.
   8-19        (d)  This section or the action of any party subject to this
   8-20  section does not diminish or modify the beach access and use rights
   8-21  of the public as acquired by statute or under common law.
   8-22        SECTION 8.  Section 51.052, Natural Resources Code, is
   8-23  amended by amending Subsections (e) and (f) and adding Subsection
   8-24  (i) to read as follows:
   8-25        (e)  The owner of land that surrounds land in a tract of 700
    9-1  <320> acres or less shall have a preference right to purchase the
    9-2  tract before the land is made available for sale to any other
    9-3  person, provided the person having the preference right pays not
    9-4  less than the market value for the land as determined by the board.
    9-5        (f)  If the surrounding land is owned by more than one
    9-6  person, the owners of land with a common boundary with a tract of
    9-7  700 <320> acres or less that is for sale shall have a preference
    9-8  right to purchase the tract before it is made available to any
    9-9  other person, provided the person with the preference right pays
   9-10  not less than the market value of the land as determined by the
   9-11  board and the board finds use of the preference to be in the best
   9-12  interest of the state.   The board shall adopt rules to implement
   9-13  this preference right.
   9-14        (i)  If no bid meeting minimum requirements is received for a
   9-15  tract of land offered at a sealed bid sale under Subchapter D,
   9-16  Chapter 32, of this code, the asset management division of the land
   9-17  office may solicit proposals or negotiate a sale, exchange, or
   9-18  lease of the property to any person.  The sales price may not be
   9-19  less than the appraised value of the land as determined by the
   9-20  asset management division.  The board must approve any negotiated
   9-21  sale, exchange, or lease of any land under this section.
   9-22        SECTION 9.  Section 51.291, Natural Resources Code, is
   9-23  amended to read as follows:
   9-24        Sec. 51.291.  GRANTS OF EASEMENTS.  (a)  Except as provided
   9-25  by Subsection (b) of this section, the <The> commissioner may
   10-1  execute grants of easements for rights-of-way across, through, and
   10-2  under unsold public school land, the portion of the Gulf of Mexico
   10-3  within the jurisdiction of the state, the state-owned riverbeds and
   10-4  beds of navigable streams in the public domain, and all islands,
   10-5  saltwater lakes, bays, inlets, marshes, and reefs owned by the
   10-6  state within tidewater limits for:
   10-7              (1)  telephone, telegraph, electric transmission, and
   10-8  powerlines;
   10-9              (2)  oil pipelines, including pipelines connecting the
  10-10  onshore storage facilities with the offshore facilities of a
  10-11  deepwater port, as defined by the federal Deepwater Port Act of
  10-12  1974 (33 U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur
  10-13  pipelines, and other electric lines and pipelines of any nature;
  10-14              (3)  irrigation canals, laterals, and water pipelines;
  10-15              (4)  roads; and
  10-16              (5)  any other purpose the commissioner considers to be
  10-17  in the best interest of the state.
  10-18        (b)  Consent to conduct an activity that would disturb or
  10-19  remove marl, sand, gravel, shell, or mudshell on or near the
  10-20  surface of a state-owned riverbed or the bed of a navigable stream
  10-21  in the public domain may be granted only under Chapter 86, Parks
  10-22  and Wildlife Code.
  10-23        (c)  Money received by the land office for the grants of
  10-24  easements through and under the state-owned riverbeds and beds of
  10-25  navigable streams in the public domain shall be deposited in a
   11-1  special fund account in the state treasury to be used for the
   11-2  removal or improvement of unauthorized structures on permanent
   11-3  school fund land.  This fund does not impose a duty or obligation
   11-4  on the state to accept ownership of, remove, or improve
   11-5  unauthorized structures on permanent school fund land.
   11-6        SECTION 10.  Section 51.302, Natural Resources Code, is
   11-7  amended to read as follows:
   11-8        Sec. 51.302.  Prohibition and Penalty.  (a)  No person may
   11-9  construct or maintain any facility or structure on land <of the
  11-10  facilities listed in Sections 51.291 through 51.293 of this code or
  11-11  any other facility on or across any section or part of a section of
  11-12  land of the character enumerated in Sections 51.291 through 51.293
  11-13  of this code and> owned by the state, nor may any person who has
  11-14  not acquired a proper easement, lease, permit, or other instrument
  11-15  from the state as required by Chapter 33 or 51 of this code
  11-16  <provided in this subchapter> and who owns or possesses a <any of
  11-17  the facilities listed in Sections 51.291 through 51.293 of this
  11-18  code or any other> facility or structure that is now located on or
  11-19  across <any section or part of a section of land of the character
  11-20  enumerated in Sections 51.291 through 51.293 of this code and owned
  11-21  by the> state land continue in possession of the land unless he
  11-22  obtains from the commissioner, the school land board, or the board
  11-23  of regents an easement, lease, permit, <a grant of a right-of-way
  11-24  easement> or other instrument required by Chapter 33 or 51 of this
  11-25  code <easement> for the land on which the facility or structure is
   12-1  to be constructed or is located.
   12-2        (b)  A person who constructs, maintains, owns, or possesses a
   12-3  facility or structure on state land without a proper easement or
   12-4  lease from the state under Chapter 33 or 51 of this code is liable
   12-5  for a penalty of not less than $50 or more than $1,000 a day for
   12-6  each day that a violation occurs.  The penalty shall be recovered
   12-7  by the commissioner under Section 51.3021 of this code or in a
   12-8  civil action by the attorney general.
   12-9        (c)  A person who owns, maintains,  or possesses an
  12-10  unauthorized <abandoned> facility or structure is, for purposes of
  12-11  this section, the person who last owned, maintained, or possessed
  12-12  the facility or structure <immediately before abandonment>.
  12-13        (d)  The commissioner or attorney general may also recover
  12-14  from a person who constructs, maintains, owns, or possesses a
  12-15  facility or structure on state land without the proper easement the
  12-16  costs to the state of removing that facility or structure under
  12-17  Section 51.3021 of this code.
  12-18        (e)  Penalties and costs recovered under this section shall
  12-19  be deposited in the special fund established under Sections 52.297
  12-20  and 53.155 of this code.
  12-21        (f)  This section is cumulative of all other applicable
  12-22  penalties or enforcement provisions of this code.
  12-23        (g)  In lieu of seeking administrative penalties or removal
  12-24  of a facility or structure under Section 51.3021 of this code, the
  12-25  commissioner may elect to accept ownership of the facility or
   13-1  structure as a fixture and may exercise the state's rights as owner
   13-2  of the facility or structure by filing notice of ownership in the
   13-3  real property records of the county in which the facility or
   13-4  structure is located.  For facilities or structures located on
   13-5  coastal public land, notice of ownership shall be filed in the
   13-6  county adjacent to the property on which the facility or structure
   13-7  is located.  A state agency fund or trust fund is not liable for
   13-8  the condition of any facility or structure as a result of acquiring
   13-9  an interest in the facility or structure under this section.
  13-10        SECTION 11.  Sections 51.3021(b), (g), and (h), Natural
  13-11  Resources Code, are amended to read as follows:
  13-12        (b)  Before the commissioner may remove a facility or
  13-13  structure under this section or impose a penalty under Section
  13-14  51.302 of this code, the commissioner must give written notice to a
  13-15  person who is constructing, maintains, owns, or possesses the
  13-16  facility or structure.  The notice must state:
  13-17              (1)  the specific facility or structure that is without
  13-18  proper easement or lease or that threatens public health, safety,
  13-19  or welfare;
  13-20              (2)  that the person who is constructing, maintains,
  13-21  owns, or possesses the facility or structure shall remove the
  13-22  facility or structure:
  13-23                    (A)  not later than the 30th day after the date
  13-24  on which the notice is served, if the facility or structure is on
  13-25  state land without a proper lease or easement; or
   14-1                    (B)  within a reasonable time specified by the
   14-2  commissioner if the facility or structure is an imminent and
   14-3  unreasonable threat to public health, safety, or welfare;
   14-4              (3)  that failure to remove the facility or structure
   14-5  may result in liability for a penalty under Section 51.302(b) of
   14-6  this code in an amount specified, removal by the commissioner and
   14-7  liability for the costs of removal, attachment of a lien to the
   14-8  adjacent littoral property to secure payment of the penalty and
   14-9  costs of removal, or any combination of those remedies <both>; and
  14-10              (4)  that the person who is constructing, maintains,
  14-11  owns, or possesses the facility or structure may submit, not later
  14-12  than the 30th day after the date on which the notice is served,
  14-13  written request for a hearing.
  14-14        (g)  The commissioner may contract for the removal and
  14-15  disposal of a facility or structure under this section and may pay
  14-16  the costs of removal from the special fund established under
  14-17  Sections 52.297 and 53.155 of this code or from funds appropriated
  14-18  by the legislature.
  14-19        (h)  If the person who is constructing, maintains, owns, or
  14-20  possesses the facility or structure does not pay assessed
  14-21  penalties, removal costs, and other assessed fees and expenses not
  14-22  later than the 60th day after the entry of the final order
  14-23  assessing the penalties, costs, fees, and expenses, the
  14-24  commissioner may:
  14-25              (1)  sell salvageable parts or attachments of the
   15-1  facility or structure to offset those costs;
   15-2              (2)  record a lien, in the total amount of the
   15-3  penalties, costs, and other fees and expenses assessed, against the
   15-4  adjacent littoral property;
   15-5              (3)  request the attorney general to institute civil
   15-6  proceedings to collect the penalties, costs of removal, and other
   15-7  fees and expenses remaining unpaid; or
   15-8              (4)  use any combination of the remedies prescribed by
   15-9  this subsection, or other remedies authorized by law, to collect
  15-10  the unpaid penalties, costs of removal, and other fees and expenses
  15-11  assessed on account of the unauthorized facility or structure on
  15-12  state land and its removal by the commissioner.
  15-13        (i) <(h)>  The decision to remove a facility or structure
  15-14  under this section is discretionary with the commissioner.  This
  15-15  section does not impose a duty on the state to remove a facility or
  15-16  structure or to remedy or warn of a hazardous condition on state
  15-17  land.
  15-18        SECTION 12.  Section 51.401, Natural Resources Code, is
  15-19  amended by adding Subsection (e) to read as follows:
  15-20        (e)  Sections 403.094 and 403.095, Government Code, do not
  15-21  apply to a fund account created under this section.
  15-22        SECTION 13.  (a)  The change in law made by Section 5.115,
  15-23  Water Code, as amended by this Act, applies only to an application
  15-24  filed with the Texas Water Commission or its successor on or after
  15-25  the effective date of this Act.
   16-1        (b)  The change in law made by Section 43.0525, Local
   16-2  Government Code, as added by this Act, applies only to an
   16-3  annexation the proceedings for which are initiated on or after the
   16-4  effective date of this Act.
   16-5        (c)  The change in law made by Section 11.082, Natural
   16-6  Resources Code, as added by this Act, applies to an action, as
   16-7  defined by that section, that is pending before a state agency or
   16-8  political subdivision, as defined by that section, on the effective
   16-9  date of this Act.
  16-10        (d)  The change in law made by Section 33.135, Natural
  16-11  Resources Code, as added by this Act, applies only to a transfer
  16-12  that occurs on or after the effective date of this Act.
  16-13        SECTION 14.  The importance of this legislation and the
  16-14  crowded condition of the calendars in both houses create an
  16-15  emergency and an imperative public necessity that the
  16-16  constitutional rule requiring bills to be read on three several
  16-17  days in each house be suspended, and this rule is hereby suspended.