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.