CPC C.S.H.B. 2610 75(R)BILL ANALYSIS LAND & RESOURCE MANAGEMENT C.S.H.B. 2610 By: Pitts 4-30-97 Committee Report (Substituted) BACKGROUND The Texas National Research Laboratory Commission (TNRLC) was created by the Legislature in 1985 to make the State's proposal for award of the U.S. Department of Energy's Superconducting Super Collider project (SSC). After the SSC was awarded to Texas, the TNRLC began acquiring surface and subsurface acreage for construction and maintenance of the SSC tunnel and related facilities. Ultimately, the TNRLC acquired over 10,000 acres in Ellis County. Subsequently, the United States government terminated the SSC project. The TNRLC will cease to exist on or before September 1, 1997. The 74th Legislature directed the General Land Office (GLO) to develop and implement a plan for the disposition of all land and buildings associated with the SSC. The GLO has begun the disposition of those assets, by interim lease or by sale, but has encountered several practical issues in its disposition efforts. These issues concern roads on the TNRLC's property, ownership of subsurface estates (particularly where the overlying surface estate remains in private ownership), and the ability of original surface owners to reacquire the surface. A tract encumbered by a road for which the surface owner will have maintenance responsibility may be devalued, while a tract may be more valuable with a county-maintained road, as may adjoining tracts served by the road. Severed subsurface estates, acquired for construction of the SSC underground accelerator, have complicated the sales of privately-owned overlying surface estates. Those subsurface estates have been appraised as having no value to the State. Finally, the GLO believes that public policy would be best served by giving to those persons who were displaced by the State's acquisition of surface estates the first opportunity to acquire that surface, at fair market value, when the surface is to be sold. PURPOSE CSHB 2610 will allow issues encountered by the GLO in its efforts to dispose of the real property interests of the TNRLC associated with the SSC. RULEMAKING AUTHORITY It is the committee's opinion that this bill does expressly grant any additional rulemaking authority in Section 31.308(d), Subchapter G, Chapter 31, Natural Resources Code, and in Section 31.309(d), Subchapter G, Chapter 31, Natural Resources Code to allow the commissioner to adopt rules necessary to implement these sections. SECTION BY SECTION ANALYSIS SECTION 1. Amends Sec. 465.018, Government Code, by adding Subsection (d) as follows: (d) Provides the commission with the authority to manage, control, market, and dispose of real property and interests in real property transferred to the General Land Office. SECTION 2. Amends Subchapter G, Chapter 31, Natural Resources Code, by adding Sections 31.307 and 31.308 as follows: Sec. 31.307. DEDICATION OF ROADS. States that the commissioner may dedicate roads located on the land used as the site for the superconducting super collider research facility if the commissioner believes that the dedication will enhance the value of remaining state land. Sec. 31.308. CONVEYANCE OF SURFACE AND SUBSURFACE ESTATE. (a) Defines "subsurface estate." (b) States that the commissioner shall convey the state's interest in the subsurface estate underlying the surface estate of land used as the site for the superconducting super collider research facility if the owner of the surface estate pays a sum equal to the fair market value of the subsurface estate as determined by the commissioner. After the state conveys its interest in the subsurface estate as provided by this subsection, title to the subsurface estate is reunited with the title to the surface estate. (c) States that unless the instrument of conveyance provides otherwise, a conveyance of the surface estate of land by the state under this subchapter includes the conveyance of the subsurface estate to the extent of the state's interest in the subsurface estate. (d) States that the commissioner may adopt rules necessary to implement this section. SECTION 3. Amends Subchapter G, Chapter 31, Natural Resources, by adding Section 31.309 as follows: Sec. 31.309. PREFERENCE RIGHT TO PURCHASE CERTAIN LAND. (a) A person or the person's heirs who conveyed land to the state for the use of the superconducting super collider research facility has a preference right to purchase the same tract of land previously conveyed before the tract is offered for sale by the state to any other person. (b) A person who has a preference right under this section must pay at least the fair market value for the land as determined by the General Land Office. (c) States that this section does not apply to a subsurface estate as defined by Section 31.308. (d) States that the commissioner may adopt rules necessary to implement this section. SECTION 4. Amends Section 23.46(c), Tax Code, as follows: (c) Provides for the purpose of this subsection, the chief appraiser may not consider any period during which land is owned by the state in determining whether the land has been diverted to a non agricultural use. SECTION 5. Amends Section 23.55(a), Tax Code, as follows: (a) Provides that for the purpose of this subsection, the chief appraiser may not consider any period during which land is owned by the state in determining whether a change in the use of the land has occurred. SECTION 6. (a) States that except as provided by Subsection (b) of this section, this Act takes effect September 1, 1997. (b) States that Section 3 of this Act takes effect January 1, 1998. SECTION 7. Emergency Clause. COMPARISON OF ORIGINAL TO SUBSTITUTE CSHB 2610 amends the relating clause as follows: relating to the management, control, disposition, and status of certain state land, including land owned or used for the site of the superconducting super collider research facility. The original legislation did not contain this language. CSHB 2610 states that the commissioner shall convey the state's interest in the subsurface estate underlying the surface estate of land used as the site for the superconducting super collider research facility if the owner of the surface estate pays a sum equal to the fair market value of the subsurface estate as determined by the commissioner. The original legislation did not contain the same language in regards to the sum equal to the fair market value of the subsurface estate. CSHB 2610 states that for the purpose of this subsection, the chief appraiser may not consider any period during which land is owned by the state in determining whether the land has been diverted to a non agricultural use. The original legislation did not contain this provision. CSHB 2610 states that for the purpose of this subsection, the chief appraiser may not consider any period during which land is owned by the state in determining whether a change in the use of the land has occurred. The original legislation did not contain this provision. CSHB 2610 states that except as provided by Subsection (b) of this section, this Act takes effect September 1, 1997, and subsection (b) states that Section 3 of this Act takes effect January 1, 1998. The original legislation did not contain this provision.