By: Jackson S.B. No. 1273
A BILL TO BE ENTITLED
AN ACT
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
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. Title 4 Agriculture Code is amended by adding
Chapter 59A. Chapter 59A. TEXAS FARM AND RANCH LANDS CONSERVATION
PROGRAM. The purpose of this chapter is to provide financial
incentives for the conservation of natural resources on working
farms and ranches through the use of purchased or donated
agricultural conservation easements.
SECTION 2. Title 4 of the Agriculture Code is amended by
adding the following: Section 59A.001. DEFINITIONS.
1. "Agricultural conservation easement" means a
conservation easement as that term is defined in §183.001(1)
Natural Resources Code, except that an easement established under
this Chapter for the specific purpose of conserving qualified land
may be in perpetuity, or for a term of 30 years. An easement under
this Chapter may not be assigned to or enforced by a third party
without the express written consent of the landowner. An easement
under this Chapter must accomplish one or more of the following
additional purposes:
(a) Conserve water quality or quantity;
(b) Conserve native wildlife species through
protection of their habitat;
(c) Conserve rare or sensitive plant species;
(d) Conserve large tracts of qualified open space land
that are threatened with fragmentation or development.
2. "Council" means the 11 member Texas Farm and Ranch Lands
Conservation Council, appointed by the Governor, whose purpose is
to administer the program.
3. "Center" means the Real Estate Research Center of Texas
A&M University.
5. "Fund" means the Texas Farm and Ranch Lands Conservation
Fund, an account of the Center dedicated to funding the purchase of
agricultural conservation easements through grants to qualified
easement holders under this Chapter. The account shall consist of:
(a) Public or private grants, gifts, donations or
contributions; or
(c) Funds from any other source including but not
limited to proceeds from the sale of bonds, state or federal
mitigation funds or funds from any local, state or federal program.
6. "Program" means the Texas Farm and Ranch Lands
Conservation Program of the Center, the purpose of which is to
conserve qualified land through the purchase of agricultural
conservation easements.
7. "Purchase of Agricultural Conservation Easement" means
the purchase from a willing seller of an agricultural conservation
easement either in perpetuity or for a term of 30 years.
8. "Qualified easement holder" is defined at §183.001(2)
Natural Resources Code except that for purposes of this Chapter,
only a state agency, a municipality or a §501(c)(3) organization
that is organized for the purpose of preserving agriculture, open
space or natural resources may receive grants from the fund.
8. "Qualified land" means qualified open space land as that
term is defined at §23.51(a) Tax Code.
SECTION 3. Title 4 Agriculture Code is amended by adding the
following:
Sec. 59A.002. TEXAS FARM AND RANCH LANDS CONSERVATION
COUNCIL.
1. The Council is established within the Real Estate
Research Council and consists of:
(a) Two members who operate a family farm or ranch in
this state;
(b) One member who is the designated representative of
a statewide Section 501(c)(3) nonprofit conservation organization
that has been in existence in this state for 10 or more years;
(c) One member who is the designated representative of
an agricultural banking/lending organization;
(d) One member who is a licensed real estate appraiser
in good standing who has significant experience appraising farms
and ranches;
(e) Two members who are the designated representatives
of statewide agricultural organizations in existence in this state
for at least 10 years;
(f) One member who has significant experience with
water policy and management issues;
(g) One member who is a member in good standing with
the State Bar of Texas with significant experience in the practice
of real estate law;
(h) One member is the Agriculture Commissioner or the
Commissioner's designee;
(i) One ex-officio member is the State Conservationist
of the U.S.D.A. Natural Resource Conservation Service or that
person's designee; and
(j) One member is the Chairman of the Texas Parks and
Wildlife Commission or that person's designee.
2. The Council shall:
(a) Have the authority to adopt rules necessary to
perform its duties;
(b) Have the authority to request, accept, and use
gifts, loans, donations, aid, appropriations, guaranties,
subsidies, grants or contributions of any item of value for the
furtherance of any of its purposes;
(c) Have the authority to establish, charge, and
collect fees, charges and penalties in connection with the
programs, services and activities provided for by the chapter;
(d) Have the authority to make, enter into, and
enforce contracts, agreements, and to take other actions as may
accomplish any of its purposes;
(e) Seek ways to coordinate and leverage public and
private sources of funding;
(f) Adopt standards for the monitoring by easement
holders of agricultural conservation easements purchased through
grants from the fund;
(g) Create an advisory board for the purpose of
reviewing grant applications, if necessary;
(h) Establish a protocol for the purchase of
agricultural conservation easements and for the distribution of
funds directly to approved landowner applicants;
(i) Evaluate selection and eligibility based on
criteria established by this Chapter and administer grants awarded
to successful applicants;
(j) Ensure that agricultural conservation easements
purchased under this Chapter are not inconsistent with the
preservation of open space and the conservation of wildlife habitat
and/or water; and
(k) Be authorized to vote upon the award of grants and
the termination of easements, and any other action necessary to
further the goals of the program. Any question shall be decided by a
majority of the voting members.
Section 59A.003. TERMS; CONSIDERATION IN MAKING
APPOINTMENTS. (a) Appointed members of the council serve
staggered terms of six years, with one-third of the appointed
members' terms expiring February 1 of each odd-numbered year.
(b) Appointments to the council shall be made without regard
to the race, color, disability, sex, religion, age or national
origin of the appointees.
Section 59A.004. OFFICERS; COMPENSATION. (a) The
governor shall designate a member of the council as the presiding
officer of the council to serve in that capacity at the will of the
governor. The council may choose from its members other officers as
the council considers necessary.
(b) An appointed member of the council is not entitled to
compensation but is entitled to reimbursement of the travel
expenses incurred by the member while conducting the business of
the council, as provided by the General Appropriations Act. An ex
officio member of the council is not entitled to additional
compensation for service on the council, and service on the council
is considered a duty of the member's underlying state office or
employment for purposes of receiving reimbursement for expenses
related to service on the council.
Section 59A.005. PUBLIC MEMBERS OF COUNCIL. 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 from the
council;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization receiving money from the council; or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the council other than compensation
or reimbursement authorized by law for council membership,
attendance, or expenses.
Sec. 59A.006. CONFLICTS OF INTEREST. (a) In this section,
"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.
(b) 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.
(b) 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.
Sec. 59A.007. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the council that an appointed member:
(1) is ineligible for membership under Section 59A.005
or 59A.006;
(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.
(b) 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 council
member exists.
(c) If the presiding officer has knowledge that a potential
ground for removal exists, the presiding officer shall notify the
governor and the attorney general that a potential ground for
removal exists.
Sec. 59A.008. INFORMATION REGARDING REQUIREMENTS FOR
OFFICE. The presiding officer or the presiding officer's designee
shall provide to members of the council, as often as necessary,
information regarding a person's responsibilities under applicable
laws relating to standards of conduct for state officers.
Sec. 59A.009. TRAINING. (a) 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 that complies
with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the council;
(2) the programs;
(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 ethics policies adopted by the
council or the Texas Ethics Commission.
(d) 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. 59A.010. PUBLIC INPUT. The council shall develop and
implement policies that provide the public with a reasonable
opportunity to appear before the council and to speak on any issue
under the jurisdiction of the council.
Sec. 59A.011. COMPLAINTS. (a) The council shall maintain
a file containing each written complaint filed with the council.
The file must also include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the council;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the agency closed the file without taking action other than to
investigate the claim.
(b) The council shall provide the person filing the
complaint and to each person who is a subject of the complaint a
copy of the council's policies and procedures relating to complaint
investigation and resolution.
(c) The council, at least quarterly until final disposition
of the complaint, shall notify the person filing the complaint
SECTION 4. Title 4 Agriculture Code is added by adding the
following:
Section 59A.003. TEXAS FARM AND RANCH LANDS CONSERVATION
FUND.
1. The fund may not be used for grants to purchase or acquire
any right to property by eminent domain.
2. The fund shall be used:
(a) to award grants for the purchase of agricultural
conservation easements. The value of an agricultural conservation
easement shall be determined by a site-specific estimate-of-value
appraisal performed by a licensed, qualified appraiser;
(b) to pay transaction costs related to the purchase
of agricultural conservation easements, which may include
reimbursement of appraisal costs; and
(c) the council may not use more than five percent of
the money in the account for administrative costs.
SECTION 5. Title 4 Agriculture Code is amended by adding the
following:
Section 59A.004. APPLICATION PROCESS.
1. To receive a grant under this Chapter, an applicant who
is qualified to be an easement holder as defined by this Chapter
must submit an application to the Council. The application must:
(a) Set out the parties' clear conservation goals
consistent with the program;
(b) Include a site-specific estimate-of-value
appraisal by a licensed appraiser qualified to determine the market
value of the easement;
(c) Demonstrate that the applicant is able to match
50% of the amount of the grant being sought. 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;
(d) Include a memorandum of understanding from the
landowner and signed by the applicant indicating intent to sell a
conservation easement and the terms of the contract.
SECTION 6. Title 4 Agriculture Code is amended by adding the
following:
Section 59A.005. CRITERIA FOR AWARDING GRANTS.
1. The Council shall adopt a scoring process that considers
each of the following categories. Grants will be awarded to the
applicant that demonstrates strength in the highest number of these
categories:
(a) Landscape and watershed integrity to conserve
water and natural resources;
(b) Highly productive agricultural lands;
(c) Habitats for native species, including habitats
for important, endangered, threatened, rare or sensitive species;
(d) Susceptibility of the subject property to
fragmentation or development;
(e) Potential for leveraging state monies allocated to
the program with additional public or private monies;
(f) Proximity of the subject property to other
protected lands;
(g) Whether the proposed easement is perpetual or for
a term of years; and
(h) Whether the application includes a resource
management plan agreed to by both parties and approved by the
council.
SECTION 7. Title 4 Agriculture Code is amended by adding the
following:
Section 59A.006. TERMS OF AGRICULTURAL CONSERVATION
EASEMENT.
1. The owner of qualified land and the potential purchaser
of an agricultural conservation easement should consider and
negotiate the following easement terms, including but not limited
to the following considerations:
(a) Whether the landowner will receive a lump sum or
annual or monthly payments;
(b) Whether the term of the easement shall be
perpetual or for a term of 30 years;
(c) Whether a term easement is renewable;
(d) Whether the landowner retains limited development
rights for personal or family residences on the land; and
(e) The market value of the easement.
SECTION 8. Title 4 Agriculture Code is amended by adding the
following:
Section 59A.007. TERMINATION OF EASEMENTS.
(1.) Any time from the date an agricultural conservation
easement is acquired with a grant awarded under this Chapter, the
landowner may request the Council to terminate the easement on
grounds that the landowner is unable to meet the conservation goals
as described in this Chapter on the subject land. The termination
request must contain a statement of impossibility verified by the
owner, who shall deliver a copy of the request to the easement
holder.
(2) On receipt of the termination request, the Council shall
conduct an inquiry and within 180 days after the request shall
notify the parties of its decision to grant or deny the request for
termination. Either party has 45 days to appeal the council's
decision in district court.
SECTION 9. Title 4 Agriculture Code is amended by adding the
following:
Section 59A.008. REPURCHASE BY LANDOWNER.
1. If a request for termination is granted, the Council
shall order an appraisal of the fair market value and the
agricultural value of the subject property. The landowner shall
bear the cost of the appraisal. For purposes of this section, the
term "fair market value" means the price as of the appraisal date 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. The term "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. Within 180 days of the appraisal, the landowner must
repurchase the easement by paying to the fund, an amount
proportionally equal to the original grant amount, the current
value of the development rights.
3. If the request for termination is denied, or the owner
fails to repurchase the easement within 180 days of the appraisal,
the owner may not subsequently request termination until the
expiration of five years from the last request.
SECTION 10. Title 4 Agriculture Code is amended by adding
the following:
Section 59A.009. PROTECTED LAND; NOTICE OF TAKING.
1. No department or agency of this state, nor any county,
municipality or other political subdivision may approve any program
or project that requires the use or taking of any private land
encumbered by an agricultural conservation easement purchased
under this Chapter unless the governmental entity acting through
its duly authorized governing body or officers determines that:
(a) There is no feasible and prudent alternative to
the use or taking of such land; and
(b) The program or project includes all reasonable
planning to minimize harm to the land resulting from the use or
taking.
2. A finding required by Subdivision (1) of this section may
be made only at a properly noticed public hearing.
3. The governing body or officer shall consider clearly
enunciated local preferences, and the provisions of this Chapter do
not constitute a mandatory prohibition against the use of the area
if the findings are made that justify the approval of a program or
project.
4. Any such finding that leads to the condemnation of land
encumbered by an agricultural conservation easement purchased
under this Chapter must also include a provision that repayment to
the state must be based on the value of the united estate, in
addition to any compensation due the landowner under an eminent
domain proceeding.
5. Section 11. This Act takes effect September 1, 2005.