By Lewis                                              H.B. No. 1492
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to actions affecting Permanent School Fund Land, relating
    1-3  to acquisition of real property abutting tidally influenced waters
    1-4  of the state, relating to the sale of state land acquired through
    1-5  tax foreclosure, and relating to the sale or lease of permanent
    1-6  school fund lands.
    1-7        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-8        SECTION 1.  Section 5.115, Chapter 5, Water Code, is hereby
    1-9  amended to read as follows:
   1-10        Section 5.115.  Notice of Application.  (a)  At the time an
   1-11  application for a permit or license under this code is filed with
   1-12  the executive director and is administratively complete, the
   1-13  commission shall give notice of the application to any person who
   1-14  may be affected by the granting of the permit or license.
   1-15        (b)  At the time an application for any formal action by the
   1-16  commission which will affect lands dedicated to the permanent
   1-17  school fund is filed with the executive director or the commission
   1-18  and is administratively complete, the commission shall give notice
   1-19  to the School Land Board.  Notice of the proposed action to the
   1-20  board shall be delivered by certified mail return, receipt
   1-21  requested, addressed to the Deputy Commissioner of the Asset
   1-22  Management Division of the General Land Office.  Delivery shall not
   1-23  be deemed complete until the return receipt is signed by the Deputy
    2-1  Commissioner of the Asset Management Division of the General Land
    2-2  Office and returned to the commission.
    2-3        (c) <(b)>  The commission shall adopt rules for the notice
    2-4  required by this section.
    2-5        (d) <(c)>  The notice must state:
    2-6              (1)  the identifying number given the application by
    2-7  the commission;
    2-8              (2)  the type of permit or license sought under the
    2-9  application;
   2-10              (3)  the name and address of the applicant;
   2-11              (4)  the date on which the application was submitted;
   2-12  and
   2-13              (5)  a brief summary of the information included in the
   2-14  permit application.
   2-15        (e)  The notice to the School Land Board under this Section
   2-16  shall additionally:
   2-17              (1)  state the location of the permanent school fund
   2-18  land to be affected; and
   2-19              (2)  describe any foreseeable impact or effect of the
   2-20  commission's action on permanent school fund land.
   2-21        (f)  Any formal action or ruling by the commission on an
   2-22  application affecting permanent school fund land without the notice
   2-23  required by this section is voidable by the School Land Board as to
   2-24  all affected permanent school fund lands.
   2-25        SECTION 2.  Section 43.022(c), Texas Local Government Code,
    3-1  is hereby amended to read as follows:
    3-2        Section 43.022(c).
    3-3        (c)  Public notice of the election must be given in the
    3-4  manner provided for other municipal elections.  Notice of the
    3-5  election and the intent of the municipality to annex any state
    3-6  lands belonging to the permanent school fund shall be given to the
    3-7  School Land Board by certified mail, return receipt requested,
    3-8  addressed to the Deputy Commissioner of the Asset Management
    3-9  Division of the General Land Office at least 30 days before the
   3-10  specified election date.  Delivery shall not be deemed complete
   3-11  until the return receipt is signed by the Deputy Commissioner of
   3-12  the Asset Management Division of the General Land Office and
   3-13  returned to the municipality.  Any annexation without notice
   3-14  required by this section which affects state land dedicated to the
   3-15  permanent school fund shall not be effective as to the permanent
   3-16  school fund lands sought to be annexed.
   3-17        SECTION 3.  Section 11.001, Chapter 11, Natural Resources
   3-18  Code is hereby amended to read as follows:
   3-19        Sec. 11.001.  Definitions.  In this chapter:
   3-20              (1)  "state" means the State of Texas.
   3-21              (2)  "land office" means the General Land Office.
   3-22              (3)  "commissioner" means the Commissioner of the
   3-23  General Land Office.
   3-24              (4)  "board" means the School Land Board.
   3-25              (5)  "agency" means any department, board, bureau,
    4-1  commission, office, authority, council, institution, county,
    4-2  municipality, district, or other political subdivision of the
    4-3  state.
    4-4              (6)  "action" means the formal adoption of an agency
    4-5  policy, the final adoption of an agency administrative rule, the
    4-6  issuance of findings of fact and/or law, the issuance of an
    4-7  administrative order in an administrative hearing, or the adoption
    4-8  of a local ordinance or resolution.
    4-9              (7)  "initiation" means the commencement of the first
   4-10  phase of public consideration of a formal policy, rule, or
   4-11  ordinance, or a hearing undertaken by the agency which is intended
   4-12  to result in final adoption of agency action.
   4-13        SECTION 4.  Subchapter D, Chapter 11, Natural Resources Code,
   4-14  is hereby amended by adding Section 11.082 to read as follows:
   4-15        Sec. 11.082.  Notice to School Land Board.  (a)  A state
   4-16  agency may not formally take any action that may affect state land
   4-17  dedicated to the permanent school fund without giving notice of
   4-18  such action to the board.  Notice of the proposed action to the
   4-19  board shall be delivered by certified mail, return receipt
   4-20  requested, addressed to the Deputy Commissioner of the Asset
   4-21  Management Division of the General Land Office on or before the
   4-22  state agency's formal initiation of the action.  Delivery shall not
   4-23  be deemed complete until the return receipt is signed by the Deputy
   4-24  Commissioner of the Asset Management Division of the General Land
   4-25  Office and returned to the agency.  The notice shall:
    5-1              (1)  describe the proposed action;
    5-2              (2)  state the location of the permanent school fund
    5-3  land to be affected; and
    5-4              (3)  describe any foreseeable impact or effect of the
    5-5  state agency's action on permanent school fund land.
    5-6        (b)  Any action taken by a state agency without notice
    5-7  required by Section 11.082(a) which affects state land dedicated to
    5-8  the permanent school fund shall not be effective as to permanent
    5-9  school fund land.
   5-10        SECTION 5.  Section 32.112(a) and (b), Natural Resources
   5-11  Code, is hereby amended to read as follows:
   5-12        (a)  <The board may sell by sealed bid all real property
   5-13  placed in the name of the state as a result of any tax foreclosure
   5-14  sale.  The sealed bid sales shall be conducted in the same manner
   5-15  as sealed bid sales for public school land.>  All real property or
   5-16  any interest therein placed in the name of the state as a result of
   5-17  any tax foreclosure sale may be sold or leased by the board in the
   5-18  same manner as provided for sales and/or leases of land in Chapter
   5-19  51 of this Code.
   5-20        (b)  The board may retain from the proceeds of a sale or
   5-21  lease conducted under <this> section (a) the cost of conducting the
   5-22  <sale> transaction, 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 6.  Subchapter D, Chapter 33, Natural Resources Code,
    6-2  is hereby amended by adding Section 33.135 to read as follows:
    6-3        Section 33.135.  Notice to Purchaser or Grantee of Coastal
    6-4  Area Property.  (a)  Any person who sells, transfers, or conveys an
    6-5  interest other than a mineral, leasehold, or security interest in
    6-6  real property adjoining and abutting the tidally influenced waters
    6-7  of the state, shall include as a part of any written executory
    6-8  contract for the sale, transfer, or conveyance a statement and
    6-9  notice of the following information:
   6-10              (1)  The real property described in and subject to this
   6-11  contract adjoins and shares a common boundary with the tidally
   6-12  influenced submerged lands of the state.
   6-13              (2)  The boundary line between the property described
   6-14  in and subject to this contract and the submerged lands of the
   6-15  state is legally defined and declared to be the line of mean
   6-16  high-tide or the line of mean higher-high-tide, as determined by
   6-17  the date of the original grant from the sovereignty.
   6-18              (3)  The applicable tide line is a dynamic boundary
   6-19  line, subject to change by natural forces.  Changes in this
   6-20  boundary line cannot legally result from artificial or man-made
   6-21  causes.
   6-22              (4)  Seller, transferor, or grantor has no knowledge of
   6-23  any prior artificial or man-made alteration of the applicable tide
   6-24  line as it relates to the property described in and subject to this
   6-25  contract.
    7-1              (5)  The owner of the uplands property adjoining the
    7-2  submerged lands may gain, or lose, portions of the uplands tract
    7-3  because of natural changes in the applicable tide line, such as
    7-4  accretion or erosion.
    7-5              (6)  State law prohibits the use, encumbrance,
    7-6  construction, or placing of any structure in, on, or over state
    7-7  owned submerged lands below the applicable tide line, without
    7-8  proper permission.
    7-9              (7)  Information regarding the location of the
   7-10  applicable tide line as to the property described in and subject to
   7-11  this contract may be obtained from the surveying division of the
   7-12  General Land Office.
   7-13              (8)  Permission to use any part of the submerged lands
   7-14  adjacent to the land described in and subject to this contract may
   7-15  be obtained only from the General Land Office.
   7-16              (9)  The purchaser or grantee is hereby advised to seek
   7-17  the advice of an attorney or other qualified person as to the legal
   7-18  nature and effect of the facts set forth in this notice on the
   7-19  property described in and subject to this contract.
   7-20        (b)  If property is sold, transferred, or conveyed without an
   7-21  executory contract for conveyance, a written statement containing
   7-22  notice of the information set forth in subsection (a), (1)-(9),
   7-23  inclusive, must be delivered to the grantee for execution and
   7-24  acknowledgement of receipt prior to the recording of any
   7-25  conveyance.
    8-1        (c)  Failure to include the prescribed information in the
    8-2  written executory contract, or to give written notice thereof for
    8-3  execution and acknowledgement by grantee in the absence of a
    8-4  written executory contract, shall:
    8-5              (1)  constitute a legal right in the purchaser to
    8-6  terminate such contract or to renounce a sale, transfer, or
    8-7  conveyance;
    8-8              (2)  require that any earnest money, down payment, or
    8-9  deposit paid by grantee be forthwith returned to grantee; together
   8-10  with a cancellation of any promissory note and security instrument
   8-11  given in consideration for the sale, conveyance, or transfer; and
   8-12              (3)  constitute a deceptive act under Section 17.46,
   8-13  Business and Commerce Code.
   8-14        (d)  Nothing contained in this section, nor the action of any
   8-15  party subject hereto, shall diminish or modify the beach access and
   8-16  use rights of the public as acquired by statute or under common
   8-17  law.
   8-18        SECTION 7.  Section 51.052, Natural Resources Code, is hereby
   8-19  amended to read as follows:
   8-20        Section 51.052.  Conditions for Sale of Land.
   8-21        (a)  Land sold under the provisions of this subchapter shall
   8-22  be sold without condition of settlement and residence.
   8-23        (b)  A purchaser of land under this subchapter may make a
   8-24  down payment of an amount determined by the board and the board may
   8-25  set the terms and conditions of the sale, including the interest
    9-1  rate.  On full payment and satisfaction of other conditions, the
    9-2  purchaser is entitled to a patent for the land.  This subsection
    9-3  does not prevent the board from requiring a tract of land to be
    9-4  purchased for cash.
    9-5        (c)  Repealed by Acts 1987, 70th Leg., ch. 208, Sec. 14, eff.
    9-6  Aug. 31, 1987.
    9-7        (d)  Before the land under this subchapter is sold, the
    9-8  appraisers for the land office must appraise the land at its market
    9-9  value and file a copy of the appraisal with the commissioner.  No
   9-10  land covered by this subchapter may be sold for less than the
   9-11  market value that appears in the appraisal made under this
   9-12  subsection.
   9-13        (e)  The owner of land that surrounds land in a tract of
   9-14  <320> 700 acres or less shall have a preference right to purchase
   9-15  the tract before the land is made available for sale to any other
   9-16  person, provided the person having the preference right pays not
   9-17  less than the market value for the land as determined by the board.
   9-18        (f)  If the surrounding land is owned by more than one
   9-19  person, the owners of land with a common boundary with a tract of
   9-20  <320> 700 acres or less that is for sale shall have a preference
   9-21  right to purchase the tract before it is made available to any
   9-22  other person, provided the person with the preference right pays
   9-23  not less than the market value of the land as determined by the
   9-24  board and the board finds use of the preference to be in the best
   9-25  interest of the state.  The board shall adopt rules to implement
   10-1  this preference right.
   10-2        (g)  If land is located within the boundaries of or adjacent
   10-3  to any state park, refuge, natural area, or historical site subject
   10-4  to the management and control of the Parks and Wildlife Department,
   10-5  the department has a preference right to purchase the land before
   10-6  it is made available for sale to any other person.  A sale to the
   10-7  department under this section may not be for less than the fair
   10-8  market value of the land, as determined by the board.
   10-9        (h)  The board may sell or exchange any interest in the
  10-10  surface estate of public school land directly to any state agency,
  10-11  board, commission, or political subdivision or other governmental
  10-12  entity of this state without the necessity of a sealed bid sale.
  10-13  All sales or exchanges made pursuant to this subsection shall be
  10-14  for not less than fair market value as determined by the board and
  10-15  under such other terms and conditions the board determines to be in
  10-16  the best interest of the state.
  10-17        (i)  If no bids meeting minimum requirements are received, as
  10-18  to a tract of land offered at a sealed bid sale under the
  10-19  provisions of Section 32.101, et seq., of this code, the asset
  10-20  management division of the general land office may solicit
  10-21  proposals or negotiate a sale, exchange, or lease of the property
  10-22  to any person or entity, provided that the sales price may not be
  10-23  less than the appraised value of the land as determined by the
  10-24  asset management division.  The board must approve any negotiated
  10-25  sale, trade, or lease of any land under this section.
   11-1        SECTION 8.  Section 51.291, Natural Resources Code, is hereby
   11-2  amended to read as follows:
   11-3        Section 51.291.  Grants of Easements.  The commissioner may
   11-4  execute grants of easements for rights-of-way across, through, and
   11-5  under unsold public school land, the portion of the Gulf of Mexico
   11-6  within the jurisdiction of the state, the riverbeds and beds of
   11-7  navigable streams of the public domain, and all islands, saltwater
   11-8  lakes, bays, inlets, marshes, and reefs owned by the state within
   11-9  tidewater limits for:
  11-10              (1)  telephone, telegraph, electric transmission, and
  11-11  powerlines;
  11-12              (2)  oil pipelines, including pipelines connecting the
  11-13  onshore storage facilities with the offshore facilities of a
  11-14  deepwater port, as defined by the federal Deepwater Port Act of
  11-15  1974 (33 U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur
  11-16  pipelines, and other electric lines and pipelines of any nature;
  11-17              (3)  irrigation canals, laterals, and water pipelines;
  11-18              (4)  roads; and
  11-19              (5)  any other purpose the commissioner considers to be
  11-20  in the best interest of the state.
  11-21        SECTION 9.  Chapters 11, 32, 33 and 51, Natural Resources
  11-22  Code, are hereby re-enacted subject to the preceding amendments
  11-23  thereto.
  11-24        SECTION 10.  EMERGENCY.  The importance of this legislation
  11-25  and the crowded condition of the calendars in both houses create an
   12-1  emergency and an imperative public necessity that the
   12-2  constitutional rule requiring bills to be read on three several
   12-3  days in each house be suspended, and this rule is hereby suspended.