By Leedom                                              S.B. No. 646
          Substitute the following for S.B. No. 646:
          By Earley                                          C.S.S.B. No. 646
                                 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, to funds
    1-7  associated with permanent school fund lands, to unauthorized
    1-8  structures on state-owned land, and to liens for penalty and
    1-9  removal costs.
   1-10        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Section 5.115, Water Code, is amended to read as
   1-12  follows:
   1-13        Sec. 5.115.  Notice of Application.  (a)  At the time an
   1-14  application for a permit or license under this code is filed with
   1-15  the executive director and is administratively complete, the
   1-16  commission shall give notice of the application to any person who
   1-17  may be affected by the granting of the permit or license.
   1-18        (b)  At the time an application for any formal action by the
   1-19  commission  that will affect lands dedicated to the permanent
   1-20  school fund is filed with the executive director or the commission
   1-21  and is administratively complete, the commission shall give notice
   1-22  of the application to the School Land Board.  Notice shall be
   1-23  delivered by certified mail,   return receipt requested, addressed
   1-24  to the deputy commissioner of the asset management division of the
    2-1  General Land Office.
    2-2        (c)  The commission shall adopt rules for the notice required
    2-3  by this section.
    2-4        (d) <(c)>  The notice must state:
    2-5              (1)  the identifying number given the application by
    2-6  the commission;
    2-7              (2)  the type of permit or license sought under the
    2-8  application;
    2-9              (3)  the name and address of the applicant;
   2-10              (4)  the date on which the application was submitted;
   2-11  and
   2-12              (5)  a brief summary of the information included in the
   2-13  permit application.
   2-14        (e)  The notice to the School Land Board under this section
   2-15  shall additionally:
   2-16              (1)  state the location of the permanent school fund
   2-17  land to be affected; and
   2-18              (2)  describe any foreseeable impact or effect of the
   2-19  commission's action on the permanent school fund land.
   2-20        (f)  A formal action or ruling by the commission on an
   2-21  application affecting permanent school fund land that is made
   2-22  without the notice required by this section is voidable by the
   2-23  School Land Board as to any permanent school fund lands by the
   2-24  action or ruling.
   2-25        SECTION 2.  Subchapter D, Chapter 11, Natural Resources Code,
   2-26  is amended by adding Section 11.082 to read as follows:
   2-27        Sec. 11.082.  NOTICE TO SCHOOL LAND BOARD.  (a)  A state
    3-1  agency or political subdivision may not formally take any action
    3-2  that may affect state land dedicated to the permanent school fund
    3-3  without first giving notice of the action to the board.  Notice of
    3-4  the proposed action shall be delivered by certified mail, return
    3-5  receipt requested, addressed to the deputy commissioner of the
    3-6  asset management division of the General Land Office on or before
    3-7  the state agency's or political subdivision's formal initiation of
    3-8  the action.
    3-9        (b)  The notice must:
   3-10              (1)  describe the proposed action;
   3-11              (2)  state the location of the permanent school fund
   3-12  land to be affected; and
   3-13              (3)  describe any foreseeable impact or effect of the
   3-14  state agency's or political subdivision's action on the permanent
   3-15  school fund land.
   3-16        (c)  An action taken by a state agency or political
   3-17  subdivision without the notice required by Subsection (a) of this
   3-18  section that affects state land dedicated to the permanent school
   3-19  fund is not effective as to permanent school fund land affected by
   3-20  the action.
   3-21        (d)  In this section:
   3-22              (1)  "Action" means:
   3-23                    (A)  formal adoption of an agency or political
   3-24  subdivision policy;
   3-25                    (B)  final adoption of an administrative rule;
   3-26                    (C)  issuance of findings of fact or law;
   3-27                    (D)  issuance of an administrative order in an
    4-1  administrative hearing; or
    4-2                    (E)  adoption of a local ordinance or resolution.
    4-3              (2)  "Board" means the School Land Board.
    4-4              (3)  "Initiation" means the commencement of the first
    4-5  phase of public consideration of a formal policy, rule, or
    4-6  ordinance, or a hearing undertaken by a state agency or political
    4-7  subdivision that is intended to result in final adoption of a
    4-8  formal policy, rule, or ordinance.
    4-9              (4)  "Political subdivision" means a county, public
   4-10  school district, or special-purpose district or authority.
   4-11              (5)  "State agency" means:
   4-12                    (A)  a department, commission, board, office,
   4-13  bureau, council, or other agency in the executive branch of state
   4-14  government other than the Texas Department of Transportation and
   4-15  the Railroad Commission of Texas; or
   4-16                    (B)  a university system or an institution of
   4-17  higher education as defined in Section 61.003, Education Code.
   4-18        SECTION 3.  Section 32.112, Natural Resources Code, is
   4-19  amended to read as follows:
   4-20        Sec. 32.112.  SALE OF TAX FORECLOSURE PROPERTY.  (a)  All
   4-21  real property or any interest in real property placed in the name
   4-22  of the state as a result of a tax foreclosure sale may be sold or
   4-23  leased by the board in the same manner as provided for the sale or
   4-24  lease of land under Chapter 51 of this code <The board may sell by
   4-25  sealed bid all real property placed in the name of the state as a
   4-26  result of any tax foreclosure sale.   The sealed bid sales shall be
   4-27  conducted in the same manner as sealed bid sales for public school
    5-1  land>.
    5-2        (b)  The board may retain from the proceeds of a sale or
    5-3  lease conducted under this section the cost of conducting the
    5-4  transaction <sale>, including advertising, appraisal, and
    5-5  administrative costs.  The balance of the proceeds shall be
    5-6  deposited in the State Treasury to the credit of the Texas capital
    5-7  trust fund.
    5-8        SECTION 4.  Section 33.015, Natural Resources Code, is
    5-9  amended    to read as follows:
   5-10        Sec. 33.015.  SPECIAL ACCOUNT <FUND>. (a)   A dedicated
   5-11  account <special fund> is created, and money received by the board
   5-12  for the grant of permits under this chapter shall be deposited in
   5-13  the State Treasury to the credit of this dedicated account <special
   5-14  fund>.
   5-15        (b)  Sections 403.094(h) and 403.095(b), Government Code, do
   5-16  not apply to the dedicated account created under this section.
   5-17        SECTION 5.  Section 33.131, Natural Resources Code, is
   5-18  amended to read as follows:
   5-19        Sec. 33.131.  STRUCTURES AS PROPERTY OF THE STATE.  A
   5-20  structure presently existing or to be constructed in the future for
   5-21  which a permit is required under Section 33.119 of this code
   5-22  <subchapter> is the property of the state.  Any construction,
   5-23  maintenance, or use of the structure other than as provided in this
   5-24  subchapter is declared to be a nuisance per se and is expressly
   5-25  prohibited.
   5-26        SECTION 6.  Subchapter D, Chapter 33, Natural Resources Code,
   5-27  is amended by adding Section 33.135 to read as follows:
    6-1        Sec. 33.135.  NOTICE TO PURCHASER OR GRANTEE OF COASTAL AREA
    6-2  PROPERTY.  (a)  A person who sells, transfers, or conveys an
    6-3  interest other than a mineral, leasehold, or security interest in
    6-4  real property adjoining and abutting the tidily influenced waters
    6-5  of the state must include the following notice as a part of a
    6-6  written executory contract for the sale, transfer, or conveyance:
    6-7                "NOTICE REGARDING COASTAL AREA PROPERTY
    6-8              "(1)  The real property described in and subject to
    6-9  this contract adjoins and shares a common boundary with the tidily
   6-10  influenced submerged lands of the state.  The boundary is subject
   6-11  to change and can be determined accurately only by a survey on the
   6-12  ground made by a licensed state land surveyor in accordance with
   6-13  the original grant from the sovereign.  The owner of the property
   6-14  described  in this contract may gain or lose portions of the tract
   6-15  because of changes in the boundary.
   6-16              "(2)  The seller, transferor, or grantor has no
   6-17  knowledge of any prior fill as it relates to the property described
   6-18  in and subject to this contract.
   6-19              "(3)  State law prohibits the use, encumbrance,
   6-20  construction, or placing of any structure in, on, or over
   6-21  state-owned submerged lands below the applicable tide line, without
   6-22  proper permission.
   6-23              "(4)  The purchaser or grantee is hereby advised to
   6-24  seek the advice of an attorney or other qualified person as to the
   6-25  legal nature and effect of the facts set forth in this notice on
   6-26  the property described in and subject to this contract.
   6-27  Information regarding the location of the applicable tide line as
    7-1  to the property described in and subject to this contract may be
    7-2  obtained from the surveying division of the General Land Office in
    7-3  Austin."
    7-4        (b)  If property described under Subsection (a) of this
    7-5  section is sold, transferred, or conveyed without an executory
    7-6  contract for conveyance, a written statement containing the notice
    7-7  prescribed by that subsection must be delivered to the grantee for
    7-8  execution and acknowledgment of receipt before the conveyance is
    7-9  recorded.
   7-10        (c)  Failure to include the prescribed notice in the written
   7-11  executory contract or to deliver a written statement of the notice
   7-12  for execution and acknowledgement by the grantee in the absence of
   7-13  a written executory contract:
   7-14              (1)  constitutes a legal right in the purchaser to
   7-15  terminate the contract or to renounce a sale, transfer, or
   7-16  conveyance;
   7-17              (2)  requires that any consideration, down payment, or
   7-18  deposit paid by the grantee be returned to the grantee, together
   7-19  with a cancellation of any  promissory note or security instrument
   7-20  given in consideration for the sale, conveyance, or transfer; and
   7-21              (3)  constitutes a deceptive act under Section 17.46,
   7-22  Business & Commerce Code.
   7-23        (d)  This section or the action of any party subject to this
   7-24  section does not diminish or modify the beach access and use rights
   7-25  of the public as acquired by statute or under common law.
   7-26        SECTION 7.  Section 42.903, Local Government Code, is amended
   7-27  by adding subsection (f) to read as follows:
    8-1        (f)  If a majority of a tract of land is located in the
    8-2  extraterritorial jurisdiction of a municipality that has adopted an
    8-3  ordinance or resolution under subsection (b) the property owner may
    8-4  petition the municipality to include the entire tract within its
    8-5  extraterritorial jurisdiction.  Upon presentation of the petition,
    8-6  the governing body may adopt an ordinance or resolution to include
    8-7  the tract within its extraterritorial jurisdiction.  The property
    8-8  owner shall give notice of the petition to the School Land Board if
    8-9  any portion of the tract is dedicated to the permanent school fund.
   8-10        SECTION 8.  Section 51.052, Natural Resources Code, is
   8-11  amended by amending Subsections (e) and (f) and adding Subsection
   8-12  (i) to read as follows:
   8-13        (e)  The owner of land that surrounds land in a tract of 700
   8-14  <320> acres or less shall have a preference right to purchase the
   8-15  tract before the land is made available for sale to any other
   8-16  person, provided the person having the preference right pays not
   8-17  less than the market value for the land as determined by the board.
   8-18        (f)  If the surrounding land is owned by more than one
   8-19  person, the owners of land with a common boundary with a tract of
   8-20  700 <320> acres or less that is for sale shall have a preference
   8-21  right to purchase the tract before it is made available to any
   8-22  other person, provided the person with the preference right pays
   8-23  not less than the market value of the land as determined by the
   8-24  board and the board finds use of the preference to be in the best
   8-25  interest of the state.  The board shall adopt rules to implement
   8-26  this preference right.
   8-27        (i)  If no bid meeting minimum requirements is received for a
    9-1  tract of land offered at a sealed bid sale under Subchapter D of
    9-2  Chapter 32 of this code, the asset management division of the land
    9-3  office may solicit proposals or negotiate a sale, exchange, or
    9-4  lease of the property to any person.  The sale price may not be
    9-5  less than the appraised value of the land as determined by the
    9-6  asset management division of the land office.  The board must
    9-7  approve any negotiated sale, exchange, or lease of any land under
    9-8  this section.
    9-9        SECTION 9.  Section 51.291, Natural Resources Code, is
   9-10  amended to read as follows:
   9-11        Sec. 51.291.  GRANTS OF EASEMENTS.  (a) Except as provided by
   9-12  Subsection (b) of this section, the <The> commissioner may execute
   9-13  grants of easements for rights-of-way across, through, and under
   9-14  unsold public school land, the portion of the Gulf of Mexico within
   9-15  the jurisdiction of the state, the state-owned riverbeds and beds
   9-16  of navigable streams in the public domain, and all islands,
   9-17  saltwater lakes, bays, inlets, marshes, and reefs owned by the
   9-18  state within tidewater limits for:
   9-19              (1)  telephone, telegraph, electric transmission, and
   9-20  powerlines;
   9-21              (2)  oil pipelines, including pipelines connecting the
   9-22  onshore storage facilities with the offshore facilities of a
   9-23  deepwater port, as defined by the federal Deepwater Port Act of
   9-24  1974 (33 U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur
   9-25  pipelines, and other electric lines and pipelines of any nature;
   9-26              (3)  irrigation canals, laterals, and water pipelines;
   9-27              (4)  roads; and
   10-1              (5)  any other purpose the commissioner considers to be
   10-2  in the best interest of the state.
   10-3        (b)  Consent to conduct an activity that would disturb or
   10-4  remove marl, sand, gravel, shell, or mudshell on or near the
   10-5  surface of a state-owned riverbed or the bed of a navigable stream
   10-6  in the public domain may be granted only under Chapter 86, Parks
   10-7  and Wildlife Code.
   10-8        (c)  Money received by the land office for the grants of
   10-9  easements through and under the state-owned riverbeds and beds of
  10-10  navigable streams in the public domain shall be deposited in a
  10-11  special fund account in the state treasury to be used for the
  10-12  removal or improvement of unauthorized structures on permanent
  10-13  school fund land.  This fund does not impose a duty or obligation
  10-14  on the state to accept ownership of, remove, or improve
  10-15  unauthorized structures on permanent school fund land.
  10-16        SECTION 10.  Section 51.302, Natural Resources Code, is
  10-17  amended to read as follows:
  10-18        Sec. 51.302.  PROHIBITION AND PENALTY.  (a)  No person may
  10-19  construct or maintain any facility or structure on land <of the
  10-20  facilities listed in Sections 51.291 through 51.293 of this code or
  10-21  any other facility on or across any section or part of section of
  10-22  land of the character enumerated in Sections 51.291 through 51.293
  10-23  of this code and> owned by the state, nor may any person who has
  10-24  not acquired a proper easement, lease, permit, or other instrument
  10-25  from the state as required by this chapter or Chapter 33 of this
  10-26  code <provided in this subchapter> and who owns or possesses a <any
  10-27  of the facilities listed in Sections 51.291 through 51.293 of this
   11-1  code or any other> facility or structure that is now located on or
   11-2  across <any section or part of a section of plan of the character
   11-3  enumerated in Sections 51.291 through 51.293 of this code and owned
   11-4  by the> state land continue in possession of the land unless he
   11-5  obtains from the commissioner, the board, or the board of regents
   11-6  an easement, lease, permit, <a grant of a right of way easement> or
   11-7  other instrument required by this chapter or Chapter 33 of this
   11-8  code <easement> for the land on which the facility or structure is
   11-9  to be constructed or is located.
  11-10        (b)  A person who constructs, maintains, owns, or possesses a
  11-11  facility or structure on state land without a proper easement or
  11-12  lease from the state under this chapter or under Chapter 33 <or 51>
  11-13  of this code is liable for a penalty of not less than $50 or more
  11-14  than $1,000 a day for each day that a violation occurs.  The
  11-15  penalty shall be recovered by the commissioner under Section
  11-16  51.3021 of this code or in a civil action by the attorney general.
  11-17        (c)  A person who owns, maintains, or possesses an
  11-18  unauthorized <abandoned> facility or structure is, for purposes of
  11-19  this section, the person who last owned, maintained, or possessed
  11-20  the facility or structure <immediately before abandonment>.
  11-21        (d)  The commissioner or attorney general may also recover
  11-22  from a person who constructs, maintains, owns, or possesses a
  11-23  facility or structure on state land without the proper easement the
  11-24  costs to the state of removing that facility or structure under
  11-25  Section 51.3021 of this code.
  11-26        (e)  Penalties and costs recovered under this section shall
  11-27  be deposited in the special fund established under Sections 52.297
   12-1  and 53.155 of this code.
   12-2        (f)  This section is cumulative of all other applicable
   12-3  penalties or enforcement provisions of this code.
   12-4        (g)  In lieu of seeking administrative penalties or removal
   12-5  of a facility or structure under Section 51.3021 of this code, the
   12-6  commissioner may elect to accept ownership of the facility or
   12-7  structure as a fixture and may exercise the state's rights as owner
   12-8  of the facility or structure by filing notice of ownership in the
   12-9  real property records of the county in which the facility or
  12-10  structure is located.  For facilities or structures located on
  12-11  coastal public land, notice of ownership shall be filed in the
  12-12  county adjacent to the property on which the facility or structure
  12-13  is located.  A state agency fund or trust fund is not liable for
  12-14  the condition of any facility or structure as a result of acquiring
  12-15  an interest in the facility or structure under this section.
  12-16        SECTION 11.  Subsections (b), (g), and (h), Section 51.3021,
  12-17  Natural Resources Code, are amended to read as follows:
  12-18        (b)  Before the commissioner may remove a facility or
  12-19  structure under this section or impose a penalty under Section
  12-20  51.302 of this code, the commissioner must give written notice to a
  12-21  person who is constructing, maintains, owns, or possesses the
  12-22  facility or structure.  The notice must state:
  12-23              (1)  the specific facility or structure that is without
  12-24  proper easement or lease or that threatens public health, safety,
  12-25  or welfare;
  12-26              (2)  that the person who is constructing, maintains,
  12-27  owns, or possesses the facility or structure shall remove the
   13-1  facility or structure:
   13-2                    (A)  not later than the 30th day after the date
   13-3  on which the notice is served, if the facility or structure is on
   13-4  state land without a proper lease or easement; or
   13-5                    (B)  within a reasonable time specified by the
   13-6  commissioner if the facility or structure is an imminent and
   13-7  unreasonable threat to public health, safety, or welfare;
   13-8              (3)  that failure to remove the facility or structure
   13-9  may result in liability for a penalty under Section 351.302(b) of
  13-10  this code in an amount specified, removal by the commissioner and
  13-11  liability for the costs of removal, attachment of a lien to the
  13-12  adjacent littoral property to secure payment of the penalty and
  13-13  costs of removal, or any combination of those remedies <both>; and
  13-14              (4)  that the person who is constructing, maintains,
  13-15  owns, or possesses the facility or structure may submit, not later
  13-16  than the 30th day after the date on which the notice is served,
  13-17  written request for a hearing.
  13-18        (g)  The commissioner may contract for the removal and
  13-19  disposal of a facility or structure under this section and may pay
  13-20  the costs of removal from the special fund established under
  13-21  Sections 52.297 and 53.155 of this code or from funds appropriated
  13-22  by the legislature.
  13-23        (h)  If the person who is constructing, maintains, owns, or
  13-24  possesses the facility or structure does not pay assessed
  13-25  penalties, removal costs, and other assessed fees and expenses not
  13-26  later than the 60th day after the entry of the final order
  13-27  assessing the penalties, costs, fees, and expenses, the
   14-1  commissioner may:
   14-2              (1)  sell salvageable parts or attachments of the
   14-3  facility or structure to offset those costs;
   14-4              (2)  record a lien, in the total amount of the
   14-5  penalties, costs, and other fees and expenses assessed, against the
   14-6  adjacent littoral property;
   14-7              (3)  request the attorney general to institute civil
   14-8  proceedings to collect the penalties, costs of removal, and other
   14-9  fees and expenses remaining unpaid; or
  14-10              (4)  use any combination of the remedies prescribed by
  14-11  this subsection, or other remedies authorized by law, to collect
  14-12  the unpaid penalties, costs of removal, and other fees and expenses
  14-13  assessed on account of the unauthorized facility or structure on
  14-14  state land and its removal by the commissioner.
  14-15        (i) <(h)>  The decision to remove a facility or structure
  14-16  under this section is discretionary with the commissioner.  This
  14-17  section does not impose a duty on the state to remove a facility or
  14-18  structure or to remedy or warn of a hazardous condition on state
  14-19  land.
  14-20        SECTION 12.  Section 51.401, Natural Resources Code, is
  14-21  amended by adding Subsection (e) to read as follows:
  14-22        (e)  Sections 403.094 and 903.095, Government Code, do not
  14-23  apply to a fund account created under this section.
  14-24        SECTION 13.  (a)  The change in law made by Section 5.115,
  14-25  Water Code, as amended by this Act, applies only to an application
  14-26  filed with the Texas Water Commission or its successor on or after
  14-27  the effective date of this Act.
   15-1        (b)  The change in law made by Section 43.0525, Local
   15-2  Government Code, as added by this Act, applies only to an
   15-3  annexation the proceedings for which are initiated on or after the
   15-4  effective date of this Act.  The owner of a tract of land in which
   15-5  part but not a majority of the tract is located in the
   15-6  extraterritorial jurisdiction of a municipality that has adopted an
   15-7  ordinance or resolution under subsection (i) of 42.903(b) of the
   15-8  Local Government Code, may petition the municipality to be included
   15-9  in its extraterritorial jurisdiction if the tract is landlocked and
  15-10  borders on property owned by the permanent school fund.  Upon
  15-11  presentation of the petition, the governing body may adopt an
  15-12  ordinance or resolution to include the tract within its
  15-13  extraterritorial jurisdiction.  This subsection expires December
  15-14  31, 1993.
  15-15        (c)  The change in law made by Section 11.082, Natural
  15-16  Resources Code, as added by this Act, applies to an action, as
  15-17  defined by that section, that is pending before a state agency or
  15-18  political subdivision, as defined by that section, on the effective
  15-19  date of this Act.
  15-20        (d)  The change in law made by Section 33.135, Natural
  15-21  Resources Code, as added by this Act, applies only to a transfer
  15-22  that occurs on or after the effective date of this Act.
  15-23        SECTION 14.  The importance of this legislation and the
  15-24  crowded condition of the calendars in both houses create an
  15-25  emergency and an imperative public necessity that the
  15-26  constitutional rule requiring bills to be read on three several
  15-27  days in each house be suspended, and this rule is hereby suspended.