By:  Leedom                                            S.B. No. 646
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to certain transactions and other actions involving public
    1-2  lands and land abutting public land.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Section 5.115, Water Code, is amended to read as
    1-5  follows:
    1-6        Sec. 5.115.  Notice of Application. (a)  At the time an
    1-7  application for a permit or license under this code is filed with
    1-8  the executive director and is administratively complete, the
    1-9  commission shall give notice of the application to any person who
   1-10  may be affected by the granting of the permit or license.
   1-11        (b)  At the time an application for any formal action by the
   1-12  commission which will affect lands dedicated to the permanent
   1-13  school fund is filed with the executive director or the commission
   1-14  and is administratively complete, the commission shall give notice
   1-15  to the School Land Board.  Notice of the proposed action to the
   1-16  board shall be delivered by certified mail, return receipt
   1-17  requested, addressed to the Commissioner of the General Land
   1-18  Office.  Delivery shall not be deemed complete until the return
   1-19  receipt is signed by the Commissioner of the General Land Office or
   1-20  the chief clerk of that office and returned to the commission.
   1-21        (c)  The commission shall adopt rules for the notice required
   1-22  by this section.
   1-23        (d) <(c)>  The notice must state:
    2-1              (1)  the identifying number given the application by
    2-2  the commission;
    2-3              (2)  the type of permit or license sought under the
    2-4  application;
    2-5              (3)  the name and address of the applicant;
    2-6              (4)  the date on which the application was submitted;
    2-7  and
    2-8              (5)  a brief summary of the information included in the
    2-9  permit application.
   2-10        (e)  The notice to the School Land Board under this section
   2-11  shall additionally:
   2-12              (1)  state the location of the permanent school fund
   2-13  land to be affected; and
   2-14              (2)  describe any foreseeable impact or effect of the
   2-15  commission's action on permanent school fund land.
   2-16        (f)  Any formal action or ruling by the commission on an
   2-17  application affecting permanent school fund land without the notice
   2-18  required by this section is voidable by the School Land Board as to
   2-19  all affected permanent school fund lands.
   2-20        SECTION 2.  Subsection (c), Section 43.022, Local Government
   2-21  Code, is amended to read as follows:
   2-22        (c)  Public notice of the election must be given in the
   2-23  manner provided for other municipal elections.  Notice of the
   2-24  election and the intent of the municipality to annex any state
   2-25  lands belonging to the permanent school fund shall be given to the
    3-1  School Land Board by certified mail, return receipt requested,
    3-2  addressed to the Commissioner of the General Land Office at least
    3-3  30 days before the specified election date.  Delivery shall not be
    3-4  deemed complete until the return receipt is signed by the
    3-5  Commissioner of the General Land Office or chief clerk of that
    3-6  office and returned to the municipality.  Without the notice
    3-7  required by this section, any annexation which affects state land
    3-8  dedicated to the permanent school fund shall not be effective as to
    3-9  the permanent school fund lands sought to be annexed.
   3-10        SECTION 3.  Section 11.001, Natural Resources Code, is
   3-11  amended to read as follows:
   3-12        Sec. 11.001.  Definitions.  In this chapter:
   3-13              (1)  "State" means the State of Texas.
   3-14              (2)  "Land office" means the General Land Office.
   3-15              (3)  "Commissioner" means the Commissioner of the
   3-16  General Land Office.
   3-17              (4)  "Board" means the School Land Board.
   3-18              (5)  "Agency" means any department, board, bureau,
   3-19  commission, office, authority, council, institution, county,
   3-20  municipality, district, or other political subdivision of the
   3-21  state.
   3-22              (6)  "Action" means the formal adoption of an agency
   3-23  policy, the final adoption of an agency administrative rule, the
   3-24  issuance of findings of fact or law, the issuance of an
   3-25  administrative order in an administrative hearing, or the adoption
    4-1  of a local ordinance or resolution.
    4-2              (7)  "Initiation" means the commencement of the first
    4-3  phase of public consideration of a formal policy, rule, or
    4-4  ordinance or a hearing undertaken by the agency which is intended
    4-5  to result in final adoption of agency action.
    4-6        SECTION 4.  Subchapter D, Chapter 11, Natural Resources Code,
    4-7  is amended by adding Section 11.082 to read as follows:
    4-8        Sec. 11.082.  NOTICE TO SCHOOL LAND BOARD.  (a)  A state
    4-9  agency may not formally take any action that may affect state land
   4-10  dedicated to the permanent school fund without giving notice of
   4-11  such action to the board.  Notice of the proposed action to the
   4-12  board shall be delivered by certified mail, return receipt
   4-13  requested, addressed to the commissioner on or before the state
   4-14  agency's formal initiation of the action.  Delivery shall not be
   4-15  deemed complete until the return receipt is signed by the
   4-16  commissioner or chief clerk of the General Land Office and returned
   4-17  to the agency.  The notice shall:
   4-18              (1)  describe the proposed action;
   4-19              (2)  state the location of the permanent school fund
   4-20  land to be affected; and
   4-21              (3)  describe any foreseeable impact or effect of the
   4-22  state agency's action on permanent school fund land.
   4-23        (b)  Any action taken by a state agency without the notice
   4-24  required by Subsection (a) of this section which affects state land
   4-25  dedicated to the permanent school fund shall not be effective as to
    5-1  permanent school fund land.
    5-2        SECTION 5.  Section 32.112, Natural Resources Code, is
    5-3  amended to read as follows:
    5-4        Sec. 32.112.  SALE OF TAX FORECLOSURE PROPERTY.  (a)  All
    5-5  <The board may sell by sealed bid all> real property or any
    5-6  interest in real property placed in the name of the state as a
    5-7  result of any tax foreclosure sale may be sold or leased by the
    5-8  board<.  The sealed bid sales shall be conducted> in the same
    5-9  manner as <sealed bid> sales or leases of <for> public school land.
   5-10        (b)  The board may retain from the proceeds of a sale or
   5-11  lease conducted under this section the cost of conducting the
   5-12  transaction <sale>, including advertising, appraisal, and
   5-13  administrative costs.  The balance of the proceeds shall be
   5-14  deposited in the State Treasury to the credit of the Texas capital
   5-15  trust fund.
   5-16        SECTION 6.  Subchapter D, Chapter 33, Natural Resources Code,
   5-17  is amended by adding Section 33.135 to read as follows:
   5-18        Sec. 33.135.  NOTICE TO PURCHASER OR GRANTEE OF COASTAL AREA
   5-19  PROPERTY.  (a)  Any person who sells, transfers, or conveys an
   5-20  interest other than a mineral, leasehold, or security interest in
   5-21  real property adjoining and abutting the tidally influenced waters
   5-22  of the state shall include the following notice as a part of any
   5-23  written executory contract for the sale, transfer, or conveyance:
   5-24                "NOTICE REGARDING COASTAL AREA PROPERTY
   5-25              "(1)  The real property described in and subject to
    6-1  this contract adjoins and shares a common boundary with the tidally
    6-2  influenced submerged lands of the state.
    6-3              "(2)  The boundary line between the property described
    6-4  in and subject to this contract and the submerged lands of the
    6-5  state is legally defined and declared to be the line of mean high
    6-6  tide or the line of mean higher high tide, as determined by the
    6-7  date of the original grant from the sovereignty.
    6-8              "(3)  The applicable tide line is a dynamic boundary
    6-9  line, subject to change by natural forces.  Changes in this
   6-10  boundary line cannot legally result from artificial or man-made
   6-11  causes.
   6-12              "(4)  The seller, transferor, or grantor has no
   6-13  knowledge of any prior artificial or man-made alteration of the
   6-14  applicable tide line as it relates to the property described in and
   6-15  subject to this contract.
   6-16              "(5)  The owner of the uplands property adjoining the
   6-17  submerged lands may gain or lose portions of the uplands tract
   6-18  because of natural changes in the applicable tide line, such as
   6-19  accretion or erosion.
   6-20              "(6)  State law prohibits the use, encumbrance,
   6-21  construction, or placing of any structure in, on, or over
   6-22  state-owned submerged lands below the applicable tide line without
   6-23  proper permission.
   6-24              "(7)  Information regarding the location of the
   6-25  applicable tide line in relation to the property described in and
    7-1  subject to this contract may be obtained from the surveying
    7-2  division of the General Land Office.
    7-3              "(8)  Permission to use any part of the submerged lands
    7-4  adjacent to the land described in and subject to this contract may
    7-5  be obtained only from the General Land Office.
    7-6              "(9)  The purchaser or grantee is hereby advised to
    7-7  seek the advice of an attorney or other qualified person as to the
    7-8  legal nature and effect of the facts set forth in this notice on
    7-9  the property described in and subject to this contract."
   7-10        (b)  If property is sold, transferred, or conveyed without an
   7-11  executory contract for conveyance, a written statement containing
   7-12  the notice set forth in Subsection (a) of this section must be
   7-13  delivered to the grantee for execution and acknowledgement of
   7-14  receipt prior to the recording of any conveyance.
   7-15        (c)  Failure to include the prescribed notice in the written
   7-16  executory contract or to deliver a written statement containing the
   7-17  notice for execution and acknowledgement by the grantee in the
   7-18  absence of a written executory contract shall:
   7-19              (1)  create a legal right in the purchaser to terminate
   7-20  such contract or to renounce a sale, transfer, or conveyance;
   7-21              (2)  create a requirement that any earnest money, down
   7-22  payment, or deposit paid by the grantee be forthwith returned to
   7-23  the grantee together with a cancellation of any promissory note and
   7-24  security instrument given in consideration for the sale,
   7-25  conveyance, or transfer; and
    8-1              (3)  constitute a deceptive act under Section 17.46,
    8-2  Business & Commerce Code.
    8-3        (d)  Nothing contained in this section, nor the action of any
    8-4  party subject to this section, shall diminish or modify the beach
    8-5  access and use rights of the public as acquired by statute or under
    8-6  common law.
    8-7        SECTION 7.  Section 51.052, Natural Resources Code, is
    8-8  amended to read as follows:
    8-9        Sec. 51.052.  CONDITIONS FOR SALE OF LAND.  (a)  Land sold
   8-10  under the provisions of this subchapter shall be sold without
   8-11  condition of settlement and residence.
   8-12        (b)  A purchaser of land under this subchapter may make a
   8-13  down payment of an amount determined by the board and the board may
   8-14  set the terms and conditions of the sale, including the interest
   8-15  rate.  On full payment and satisfaction of other conditions, the
   8-16  purchaser is entitled to a patent for the land.  This subsection
   8-17  does not prevent the board from requiring a tract of land to be
   8-18  purchased for cash.
   8-19        (c) <(d)>  Before the land under this subchapter is sold, the
   8-20  appraisers for the land office must appraise the land at its market
   8-21  value and file a copy of the appraisal with the commissioner.  No
   8-22  land covered by this subchapter may be sold for less than the
   8-23  market value that appears in the appraisal made under this
   8-24  subsection.
   8-25        (d) <(e)>  The owner of land that surrounds land in a tract
    9-1  of 700 <320> acres or less shall have a preference right to
    9-2  purchase the tract before the land is made available for sale to
    9-3  any other person, provided the person having the preference right
    9-4  pays not less than the market value for the land as determined by
    9-5  the board.
    9-6        (e) <(f)>  If the surrounding land is owned by more than one
    9-7  person, the owners of land with a common boundary with a tract of
    9-8  700 <320> acres or less that is for sale shall have a preference
    9-9  right to purchase the tract before it is made available to any
   9-10  other person, provided the person with the preference right pays
   9-11  not less than the market value of the land as determined by the
   9-12  board and the board finds use of the preference to be in the best
   9-13  interest of the state.  The board shall adopt rules to implement
   9-14  this preference right.
   9-15        (f) <(g)>  If land is located within the boundaries of or
   9-16  adjacent to any state park, refuge, natural area, or historical
   9-17  site subject to the management and control of the Parks and
   9-18  Wildlife Department, the department has a preference right to
   9-19  purchase the land before it is made available for sale to any other
   9-20  person.  A sale to the department under this section may not be for
   9-21  less than the fair market value of the land, as determined by the
   9-22  board.
   9-23        (g) <(h)>  The board may sell or exchange any interest in the
   9-24  surface estate of public school land directly to any state agency,
   9-25  board, commission, or political subdivision or other governmental
   10-1  entity of this state without the necessity of a sealed bid sale.
   10-2  All sales or exchanges made pursuant to this subsection shall be
   10-3  for not less than fair market value as determined by the board and
   10-4  under such other terms and conditions the board determines to be in
   10-5  the best interest of the state.
   10-6        (h)  If no bids meeting minimum requirements are received for
   10-7  a tract of land offered at a sealed bid sale under the provisions
   10-8  of Chapter 32 of this code, the asset management division of the
   10-9  land office may solicit proposals or negotiate a sale, exchange, or
  10-10  lease of the property to any person or entity, provided that the
  10-11  sale price may not be less than the appraised value of the land as
  10-12  determined by the asset management division.  The board must
  10-13  approve any negotiated sale, trade, or lease of any land under this
  10-14  section.
  10-15        SECTION 8.  Subchapter D, Chapter 51, Natural Resources Code,
  10-16  is amended by adding Section 51.132 to read as follows:
  10-17        Sec. 51.132.  VENUE.  The venue for suits by or against the
  10-18  state arising from the provisions of this subchapter shall be in
  10-19  Travis County.
  10-20        SECTION 9.  Section 51.291, Natural Resources Code, is
  10-21  amended to read as follows:
  10-22        Sec. 51.291.  GRANTS OF EASEMENTS.  The commissioner may
  10-23  execute grants of easements for rights-of-way across, through, and
  10-24  under unsold public school land, the portion of the Gulf of Mexico
  10-25  within the jurisdiction of the state, the riverbeds and beds of
   11-1  navigable streams of the public domain, and all islands, saltwater
   11-2  lakes, bays, inlets, marshes, and reefs owned by the state within
   11-3  tidewater limits for:
   11-4              (1)  telephone, telegraph, electric transmission, and
   11-5  powerlines;
   11-6              (2)  oil pipelines, including pipelines connecting the
   11-7  onshore storage facilities with the offshore facilities of a
   11-8  deepwater port, as defined by the federal Deepwater Port Act of
   11-9  1974 (33 U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur
  11-10  pipelines, and other electric lines and pipelines of any nature;
  11-11              (3)  irrigation canals, laterals, and water pipelines;
  11-12              (4)  roads; and
  11-13              (5)  any other purpose the commissioner considers to be
  11-14  in the best interest of the state.
  11-15        SECTION 10.  The importance of this legislation and the
  11-16  crowded condition of the calendars in both houses create an
  11-17  emergency and an imperative public necessity that the
  11-18  constitutional rule requiring bills to be read on three several
  11-19  days in each house be suspended, and this rule is hereby suspended.