79R8133 JTS-F
By: Jackson S.B. No. 1273
Substitute the following for S.B. No. 1273:
By: Orr C.S.S.B. No. 1273
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas farm and ranch lands
conservation program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 183, Natural Resources Code, is amended
by designating Sections 183.001-183.005 as Subchapter A, Chapter
183, Natural Resources Code, and by adding a heading for that
subchapter to read as follows:
SUBCHAPTER A. CONSERVATION EASEMENTS GENERALLY
SECTION 2. Chapter 183, Natural Resources Code, is amended
by adding Subchapter B to read as follows:
SUBCHAPTER B. TEXAS FARM AND RANCH LANDS CONSERVATION PROGRAM
Sec. 183.051. PURPOSE. The purpose of the program
established under this subchapter is to enable and facilitate the
purchase and donation of agricultural conservation easements.
Sec. 183.052. DEFINITIONS. In this subchapter:
(1) "Agricultural conservation easement" means a
conservation easement in qualified land that is designed to
accomplish one or more of the following additional purposes:
(A) conserving water quality or quantity;
(B) conserving native wildlife species through
protection of their habitat;
(C) conserving rare or sensitive plant species;
or
(D) conserving large tracts of qualified
open-space land that are threatened with fragmentation or
development.
(2) "Commissioner" means the commissioner of the
General Land Office.
(3) "Council" means the Texas farm and ranch lands
conservation advisory council established under Section 183.061.
(4) "Fund" means the Texas farm and ranch lands
conservation fund established under Section 183.058.
(5) "Land office" means the General Land Office.
(6) "Program" means the Texas farm and ranch lands
conservation program established under this subchapter.
(7) "Purchase of agricultural conservation easement"
means the purchase from a willing seller of an agricultural
conservation easement.
(8) "Qualified easement holder" means a holder that
is:
(A) a state agency or a municipality; or
(B) an organization that is exempt from federal
income taxation under Section 501(a), Internal Revenue Code of
1986, as an organization described by Section 501(c)(3) of that
code and that is organized for the purpose of preserving
agriculture, open space, or natural resources.
(9) "Qualified land" means qualified open-space land,
as that term is defined by Section 23.51, Tax Code.
Sec. 183.053. PROGRAM. The Texas farm and ranch lands
conservation program is established as a program of the land office
for the purpose of administering the assistance to be provided by
the fund for the purchase of agricultural conservation easements.
Sec. 183.054. TERMS OF AGRICULTURAL CONSERVATION EASEMENT.
(a) An agricultural conservation easement under this subchapter
must be perpetual or for a term of 30 years.
(b) The owner of qualified land and a potential purchaser of
an agricultural conservation easement should consider and
negotiate easement terms, including the following considerations:
(1) whether the landowner will receive a lump sum or
annual payments;
(2) whether the term of the easement shall be
perpetual or for a term of 30 years;
(3) whether a term easement is renewable;
(4) whether the landowner retains limited development
rights; and
(5) the purchase price of the easement.
(c) An agricultural conservation easement may not be
assigned to or enforced by a third party without the express written
consent of the landowner.
Sec. 183.055. TERMINATION OF EASEMENT. (a) Any time after
an agricultural conservation easement is acquired with a grant
awarded under this subchapter, the landowner may request that the
commissioner terminate the easement as provided by Subsection (b)
on the ground that the landowner is unable to meet the conservation
goals as described by Section 183.052(1). The termination request
must contain a verifiable statement of impossibility.
(b) On receipt of the request for termination, the
commissioner shall notify the qualified easement holder and conduct
an inquiry. Not later than the 180th day after the date the
commissioner receives the request, the commissioner shall notify
the parties of the decision to grant or deny the request for
termination. Either party may appeal the decision in district
court not later than the 45th day after the date of the
notification.
Sec. 183.056. REPURCHASE BY LANDOWNER. (a) In this
section:
(1) "Agricultural value" means the price as of the
appraisal date a buyer willing, but not obligated, to buy would pay
for a farm or ranch unit with land comparable in quality and
composition to the subject property, but located in the nearest
location where profitable farming or ranching is feasible.
(2) "Fair market value" means the price as of the
appraisal date that a buyer willing, but not obligated, to buy would
pay for the land at its best and most beneficial use under any
obtainable development zoning category.
(b) If a request for termination of an agricultural
conservation easement is granted under Section 183.055, the
commissioner shall order an appraisal of the fair market value and
the agricultural value of the property subject to the easement. The
landowner shall bear the cost of the appraisal.
(c) Not later than the 180th day after the date of the
appraisal under Subsection (b), the landowner must pay to the fund
an amount equal to the difference between the fair market value and
the agricultural value.
(d) Not later than the 30th day after the date of payment
under Subsection (c), the qualified easement holder shall terminate
the easement.
(e) If the request for termination is denied or if the
landowner fails to make the payment required by Subsection (c) in
the time required by that subsection, the landowner may not submit
another request for termination of the easement before the fifth
anniversary of the date of the last request.
Sec. 183.057. PROTECTED LAND; NOTICE OF TAKING. (a) A
department or agency of this state, a county, a municipality,
another political subdivision, or a public utility may not approve
any program or project that requires the use or taking through
eminent domain of private land encumbered by an agricultural
conservation easement purchased under this subchapter unless the
governmental entity or public utility acting through its governing
body or officers determines that:
(1) there is no feasible and prudent alternative to
the use or taking of the land; and
(2) the program or project includes all reasonable
planning to minimize harm to the land resulting from the use or
taking.
(b) A determination required by Subsection (a) may be made
only at a properly noticed public hearing.
(c) The governing body or officers of the governmental
entity or public utility may consider clearly enunciated local
preferences, and the provisions of this subchapter do not
constitute a mandatory prohibition against the use of the area if
the determinations required by Subsection (a) are made.
(d) A department or agency of this state, a county, a
municipality, another political subdivision, or a public utility
exercising the power of eminent domain in accordance with the
provisions of this subchapter on land encumbered by an agricultural
conservation easement purchased under this subchapter shall:
(1) pay to the fund an amount equal to the amount
granted from the fund for the purchase of the easement; and
(2) pay to the landowner the fair market value less an
amount equal to the amount granted from the fund for the purchase of
the easement.
Sec. 183.058. TEXAS FARM AND RANCH LANDS CONSERVATION FUND.
(a) The Texas farm and ranch lands conservation fund is an account
in the general revenue fund that may be appropriated only to the
land office to be used as provided by Subsection (b). The fund may
not be used for grants to purchase or acquire any right or interest
in property by eminent domain. The fund consists of:
(1) money appropriated by the legislature to the fund;
(2) public or private grants, gifts, donations or
contributions; and
(3) funds from any other source, including proceeds
from the sale of bonds, state or federal mitigation funds, or funds
from any local, state, or federal program.
(b) The fund may be used only:
(1) to award grants to qualified easement holders for
the purchase of agricultural conservation easements;
(2) to pay transaction costs related to the purchase
of agricultural conservation easements, which may include
reimbursement of appraisal costs; and
(3) to pay associated administrative costs of the land
office, not to exceed five percent of the money in the fund.
Sec. 183.059. ADMINISTRATION OF FUND. (a) The
commissioner, in consultation with the council, may:
(1) adopt rules necessary to perform program duties
under this subchapter;
(2) request, accept, and use gifts, loans, donations,
aid, appropriations, guaranties, subsidies, grants, or
contributions of any item of value for the furtherance of any
purposes of this subchapter;
(3) establish, charge, and collect fees, charges, and
penalties in connection with the programs, services, and activities
provided for by this subchapter;
(4) make, enter into, and enforce contracts and
agreements, and take other actions as may accomplish any of the
purposes of this subchapter;
(5) seek ways to coordinate and leverage public and
private sources of funding;
(6) adopt best practices and enforcement standards for
the evaluation of easements purchased through grants from the fund;
(7) establish a protocol for the purchase of
agricultural conservation easements and for the distribution of
funds to approved applicants;
(8) evaluate selection and eligibility based on
criteria established by this subchapter and administer grants
awarded to successful applicants;
(9) ensure that agricultural conservation easements
purchased under this subchapter are not inconsistent with the
preservation of open space and the conservation of wildlife habitat
or water; and
(10) award grants and approve the termination of
easements and take any other action necessary to further the goals
of the program.
(b) To receive a grant from the fund under this subchapter,
an applicant who is qualified to be an easement holder under this
subchapter must submit an application to the commissioner. The
application must:
(1) set out the parties' clear conservation goals
consistent with the program;
(2) include a site-specific estimate-of-value
appraisal by a licensed appraiser qualified to determine the market
value of the easement;
(3) demonstrate that the applicant is able to match 50
percent of the amount of the grant being sought, considering that
the council may choose to allow a donation of part of the appraised
value of the easement to be considered as in-kind matching funds;
and
(4) include a memorandum of understanding signed by
the landowner and the applicant indicating intent to sell an
agricultural conservation easement and containing the terms of the
contract for the sale of the easement.
(c) For the purposes of determining the amount of a grant
under this subchapter, the value of an agricultural conservation
easement shall be determined by a site-specific estimate-of-value
appraisal performed by a licensed, qualified appraiser.
Sec. 183.060. CRITERIA FOR AWARDING GRANTS. The
commissioner shall adopt a scoring process that considers the
following:
(1) maintenance of landscape and watershed integrity
to conserve water and natural resources;
(2) protection of highly productive agricultural
lands;
(3) protection of habitats for native plant and animal
species, including habitats for endangered, threatened, rare, or
sensitive species;
(4) susceptibility of the subject property to
subdivision, fragmentation, or other development;
(5) potential for leveraging state money allocated to
the program with additional public or private money;
(6) proximity of the subject property to other
protected lands;
(7) the term of the proposed easement, whether
perpetual or for a term of 30 years; and
(8) a resource management plan agreed to by both
parties and approved by the commissioner.
Sec. 183.061. TEXAS FARM AND RANCH LANDS CONSERVATION
ADVISORY COUNCIL. (a) The Texas farm and ranch lands conservation
advisory council is established to advise and assist the
commissioner with administration of the program. The council
consists of:
(1) seven members appointed by the governor as
follows:
(A) one member who operates a family farm or
ranch in this state;
(B) one member who is the designated
representative of an agricultural banking or lending organization
and who has significant experience lending for farms and ranches
and lands encumbered by conservation easements;
(C) one member who is a certified real estate
appraiser in good standing and who has significant experience
appraising farms and ranches;
(D) two members who are the designated
representatives of statewide agricultural organizations in
existence in this state for not less than 10 years;
(E) one member who is a designated representative
of a statewide nonprofit organization that represents land trusts
operating in this state; and
(F) one member from a state institution of higher
education who has significant experience with natural resources
issues; and
(2) two ex-officio members as follows:
(A) the presiding officer of the Parks and
Wildlife Commission or the presiding officer's designee; and
(B) the state conservationist of the Natural
Resource Conservation Service of the United States Department of
Agriculture or a designee of that person.
(b) Appointed members of the council serve staggered terms
of six years, with two or three of the members' terms expiring
February 1 of each odd-numbered year.
(c) Appointments to and removal from the council shall be
made by the governor without regard to the race, color, disability,
sex, religion, age, or national origin of the appointees.
(d) The commissioner or the commissioner's designee shall
serve as the presiding officer of the council and shall designate an
assistant presiding officer to serve in that capacity at the will of
the commissioner. The council may choose from its members other
officers as the council considers necessary.
(e) A member of the council is not entitled to compensation
for service on the council but is entitled to reimbursement of the
necessary and reasonable travel expenses incurred by the member
while conducting the business of the council, as provided for state
employees by the General Appropriations Act.
(f) The council shall meet not less than twice each year.
(g) A person may not be appointed as a council member if the
person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization receiving money under
the program;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving money under the program; or
(3) uses or receives a substantial amount of tangible
goods, services, or money under the program other than
reimbursement authorized by law for travel expenses as described by
Subsection (e).
(h) In this subsection, "Texas trade association" means a
cooperative and voluntarily joined statewide association of
business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest. A person may not be an appointed member of the
council if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association for an occupation or
profession with an interest in land conservation that is related to
the occupation or profession; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association for an occupation or
profession with an interest in land conservation that is related to
that occupation or profession.
(i) A person may not be an appointed member of the council or
act as the general counsel to the council if the person is required
to register as a lobbyist under Chapter 305, Government Code,
because of the person's activities for compensation on behalf of an
occupation or profession with an interest in land conservation that
is related to that occupation or profession.
(j) It is a ground for removal from the council if a member:
(1) is ineligible for membership under this section;
(2) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(3) is absent from more than half of the regularly
scheduled council meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the council.
(k) The validity of an action of the council is not affected
by the fact that it is taken when a ground for removal of a
participating council member exists.
(l) If the presiding officer has knowledge that a potential
ground for removal exists, the presiding officer shall notify the
commissioner and the governor that a potential ground for removal
exists.
(m) The presiding officer or the presiding officer's
designee, with the assistance of staff of the land office, shall
provide to members of the council information regarding a member's
responsibilities under applicable laws relating to standards of
conduct for state officers.
(n) A person who is appointed to and qualifies for office as
a member of the council may not vote, deliberate, or be counted as a
member in attendance at a meeting of the council until the person
completes a training program that complies with this section. The
training program must provide the person with information
regarding:
(1) the legislation that created the council;
(2) the program to be administered under this
subchapter;
(3) the role and functions of the council;
(4) the rules of the council, with an emphasis on the
rules that relate to disciplinary and investigatory authority;
(5) the current budget for the council;
(6) the results of the most recent formal audit of the
council;
(7) the requirements of:
(A) the open meetings law, Chapter 551,
Government Code;
(B) the public information law, Chapter 552,
Government Code;
(C) the administrative procedure law, Chapter
2001, Government Code; and
(D) other laws relating to public officials,
including conflict-of-interest laws; and
(8) any applicable policies adopted by the council or
the Texas Ethics Commission.
(o) A person appointed to the council is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
Sec. 183.062. PROPOSED RULES. The council shall develop
proposed rules governing the program and shall recommend the
proposed rules to the commissioner.
Sec. 183.063. EFFECT ON TAX APPRAISAL. An agricultural
conservation easement under this subchapter does not affect the
eligibility of the property subject to the easement for appraisal
for ad valorem tax purposes under Subchapter D, Chapter 23, Tax
Code.
Sec. 183.064. REPORT TO TEXAS DEPARTMENT OF TRANSPORTATION.
The land office shall provide the Texas Department of
Transportation a legal description of each property subject to an
easement under this subchapter and shall include with the
description the date of the closing of the purchase of the easement.
SECTION 3. As soon as practicable after the effective date
of this Act, the governor shall appoint the members of the Texas
farm and ranch lands conservation advisory council, as required
under Section 183.061, Natural Resources Code, as added by this
Act. In appointing the initial members of the council under this
section, the governor shall appoint:
(1) two members for terms expiring February 1, 2007;
(2) two members for terms expiring February 1, 2009;
and
(3) three members for terms expiring February 1, 2011.
SECTION 4. This Act takes effect September 1, 2005.