By:  Jackson                                                      S.B. No. 1273
	(In the Senate - Filed March 9, 2005; March 21, 2005, read 
first time and referred to Subcommittee on Agriculture and Coastal 
Resources; April 7, 2005, reported adversely, with favorable 
Committee Substitute to Committee on Natural Resources; 
April 18, 2005, reported adversely, with favorable Committee 
Substitute from Committee on Natural Resources by the following 
vote:  Yeas 9, Nays 0; April 18, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1273                                   By:  Jackson

A BILL TO BE ENTITLED
AN ACT
relating to the establishment of the Texas Farmland and Ranchland 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 to read as follows:
CHAPTER 59A. TEXAS FARMLAND AND RANCHLAND CONSERVATION PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 59A.001. DEFINITIONS. In this chapter: (1) "Agricultural conservation easement" means a conservation easement as that term is defined by Section 183.001, Natural Resources Code, except that an agricultural conservation easement established under this chapter for the specific purpose of conserving qualified land may be in perpetuity or for a term of 30 years. (2) "Council" means the 13-member Texas Farmland and Ranchland Conservation Council. (3) "Fund" means the Texas farmland and ranchland conservation fund. (4) "Holder" has the meaning assigned by Section 183.001, Natural Resources Code. (5) "Program" means the Texas Farmland and Ranchland Conservation Program. (6) "Qualified land" means qualified open-space land as that term is defined by Section 23.51, Tax Code. (7) "Qualified landowner" means a person that owns qualified land. Sec. 59A.002. EASEMENT TERMS; PURPOSES. (a) An agricultural conservation easement under this chapter must be voluntarily agreed to by the qualified landowner and may not be assigned to or enforced by a third party, except the council, without the express written consent of the qualified landowner. (b) An agricultural conservation easement under this chapter must accomplish the purpose of conservation of natural resources on qualified land and at least one of the following additional purposes: (1) the conservation of water quality or quantity; (2) the conservation of native wildlife species through the protection of their habitat; (3) the conservation of rare or sensitive plant species; or (4) the conservation of tracts of qualified land that are threatened with fragmentation or development. (c) The instrument granting an agricultural conservation easement purchased with funds provided under this chapter must include a provision that gives the council the right to enforce the terms of the easement. (d) An agricultural conservation easement purchased with funds provided under this chapter may provide for collateral, guaranties, insurance, surety bonds, or other enhancements in a form and amount sufficient to repay all grant funds provided by the council if the terms of the agricultural conservation easement are breached. The council shall determine whether the form and amount of any enhancement provided under this subsection is sufficient. Sec. 59A.003. VENUE. A suit filed by or on behalf of the council under this chapter may be brought in Travis County.
[Sections 59A.004-59A.050 reserved for expansion]
SUBCHAPTER B. OPERATION OF COUNCIL
Sec. 59A.051. TEXAS FARMLAND AND RANCHLAND CONSERVATION COUNCIL. (a) The council is composed of: (1) three members who are actively engaged in the production of agriculture in the state; (2) one landowning member who is the designated representative of a statewide nonprofit conservation organization that is exempt from taxation under Section 501(c)(3), Internal Revenue Code of 1986, and that has been in existence in this state for at least 10 years; (3) one member who is the designated representative of an agricultural banking or lending organization; (4) one nonvoting member who is the director of the Real Estate Center of Texas A&M University or the director's designee; (5) two members who are the designated representatives of statewide agricultural organizations that have been in existence in this state for at least 10 years; (6) one member who has significant experience with water policy and water management issues; (7) one member who is a member in good standing of the State Bar of Texas and who has significant experience in the practice of real estate law; (8) the commissioner or the commissioner's designee; (9) one nonvoting member who is the state conservationist of the United States Department of Agriculture's Natural Resources Conservation Service or that person's designee; and (10) the chairman of the Parks and Wildlife Commission or that person's designee. (b) Members are appointed by the governor, except for the commissioner, the state conservationist, the director of the Real Estate Center of Texas A&M University, and the chairman of the Parks and Wildlife Commission. (c) 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. (d) Appointments to the council shall be made without regard to the race, color, disability, sex, religion, age, or national origin of the appointees. (e) A council member is not entitled to compensation for serving on the council and is not entitled to reimbursement for expenses incurred in performing the official duties of office. Sec. 59A.052. OFFICERS. (a) The governor shall designate a member of the council as the chair of the council to serve in that capacity at the pleasure of the governor. The council shall elect a vice-chairman biennially from its members and shall elect a secretary, a treasurer, and other officers it considers necessary. (b) The chair shall preside at meetings of the council and perform other duties prescribed by the council. (c) The vice-chair shall perform the duties of the chair when the chair is not present or is incapacitated or unable to perform the duties of the chair. (d) The secretary is the custodian of the minutes, books, records, and seal of the council and shall perform other duties as prescribed by the council. (e) The treasurer shall perform duties as prescribed by the council. The offices of secretary and treasurer may be held by the same individual. (f) The council may appoint one or more individuals who are not council members to perform any duty of the secretary or the treasurer. Sec. 59A.053. MEETINGS; ADMINISTRATIVE PROCEDURE. (a) The council shall hold regular and special meetings at times specified by the chair. (b) A majority of the voting membership of the council constitutes a quorum. The council shall act by adopting resolutions. The affirmative vote of a majority of the voting members present is necessary to adopt a resolution. (c) 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. (d) The council is subject to Chapters 551 and 2001, Government Code. Sec. 59A.054. ADMINISTRATION. (a) The commissioner, with the assistance of the council, shall administer the program. If funds are available, the council shall reimburse the department for expenses incurred by the department as required by the business of the council with approval from the council. (b) The commissioner may, with the approval of the council, appoint, employ, contract with, and provide for the compensation of employees, consultants, and other persons to administer the program. Sec. 59A.055. FISCAL ACCOUNTING OF ADMINISTRATION. (a) Funds acquired under this chapter may be used to pay the reasonable cost of administering this chapter. This section is not applicable unless the council receives funds necessary to operate the program as provided by Section 59A.151(c). (b) Not later than August 1 of each year, the department shall file with the council the proposed annual budget for the program for the succeeding fiscal year. The budget must set forth the general categories of expected expenditures out of revenues and income of the funds administered by the council and the amount on account of each expenditure. Not later than September 1 of each year, the council shall consider the proposed annual budget and may approve or amend it. Copies of the annual budget certified by the chair shall be promptly filed with the governor and the Legislative Budget Board. The council may adopt an amended annual budget for the current fiscal year, but the amended annual budget may not supersede a prior budget until it is filed with the governor and the Legislative Budget Board. (c) The council shall have an audit of its books and accounts for each fiscal year conducted by a certified public accountant. The cost of the audit is an expense of the council. A copy of the audit shall be filed with the governor and the Legislative Budget Board not later than January 1 of each year. (d) The council members and the department are not liable for contracts executed by the council and shall be exculpated and fully indemnified by the council except in the case of fraudulent or wilful misconduct on the part of the individual seeking exculpation or indemnification. Sec. 59A.056. COUNCIL CONFLICT 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 or a land trust; or (2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association or a land trust. (c) A person may not be an appointed council member 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. (d) A council member shall recuse himself or herself from any action taken by the council on an application involving a holder that employs the council member or for which the council member serves as an officer, director, or elected official. A holder remains eligible to use the program if a council member properly recuses himself or herself in accordance with this section. Sec. 59A.057. REMOVAL OF COUNCIL MEMBER. (a) It is a ground for removal from the council that an appointed member: (1) is ineligible for membership under Section 59A.056(c); (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) The presiding officer shall notify the governor and the attorney general if the presiding officer has knowledge that a potential ground for removal exists. Sec. 59A.058. STANDARDS OF CONDUCT. The chair or the chair's designee shall provide to members of the council, as often as necessary, information regarding their qualification for office under this chapter and their responsibilities under applicable laws relating to standards of conduct for state officers. Sec. 59A.059. SEPARATION OF RESPONSIBILITIES. The council shall develop and implement policies that clearly separate the policymaking responsibilities of the council and the management responsibilities of the commissioner and the staff of the department. Sec. 59A.060. COUNCIL MEMBER 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 program 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 program; (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. Sec. 59A.061. 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 department closed the file without taking action other than to investigate the claim. (b) The council shall provide to 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) Complaints filed under this section are confidential and excepted from disclosure under Chapter 552, Government Code.
[Sections 59A.062-59A.100 reserved for expansion]
SUBCHAPTER C. PURPOSES AND POWERS OF THE COUNCIL
Sec. 59A.101. PURPOSES OF COUNCIL. The council shall design and implement programs to provide financial incentives for the conservation of natural resources on qualified land through the use of purchased or donated agricultural conservation easements. Sec. 59A.102. POWERS OF THE COUNCIL. The council has all the powers necessary to accomplish the purposes and programs of the council, including the power: (1) to adopt and enforce bylaws, rules, and procedures and to perform all functions necessary to carry out this chapter; (2) to sue and be sued, complain, and defend in its own name; (3) to adopt and use an official seal and alter it when considered advisable; (4) to establish, charge, and collect fees, charges, and penalties in connection with the programs, services, and activities provided by the council in accordance with this chapter; (5) to make, enter into, and enforce contracts and agreements; (6) to request, accept, and use gifts, loans, donations, aid, guaranties, appropriations, allocations, subsidies, grants, or contributions of any item of value for the furtherance of any of the council's purposes; (7) to seek ways to coordinate and leverage public and private sources of funding; (8) to adopt a policy for the monitoring by holders of agricultural conservation easements purchased through grants from the fund that is consistent with the requirements of any entity that provides funds used to purchase an agricultural conservation easement; (9) to monitor holders of the agricultural conservation easements; (10) to create an advisory board for the purpose of reviewing grant applications, if necessary; (11) to establish a protocol for the purchase of agricultural conservation easements under the program; (12) to evaluate selection and eligibility of applicants based on criteria established by this chapter and administer grants awarded to successful applicants; (13) to determine which qualified landowners receive program funds; (14) to ensure that agricultural conservation easements purchased under this chapter are consistent with the continuation of agricultural activities and the preservation of open space; (15) to develop and require disclosure statements to be signed by the owner of qualified land and the holder before the sale of an agricultural conservation easement; (16) to enforce the terms of any agricultural conservation easement purchased in whole or in part with funds under this chapter; and (17) to adopt a standard agreement to be used between a holder and a qualified landowner for the purpose of creating an agricultural conservation easement on qualified land.
[Sections 59A.103-59A.150 reserved for expansion]
SUBCHAPTER D. PROGRAM; FUND
Sec. 59A.151. CREATION OF PROGRAM; PUBLIC PURPOSE. (a) The Texas Farmland and Ranchland Conservation Program is created within the department. (b) The purpose of this chapter is to provide financial incentives for the conservation of natural resources on qualified land through the use of agricultural conservation easements that are purchased from a willing qualified landowner or donated by the qualified landowner. (c) Administration of the program by the department is subject to the availability of financial resources. Sec. 59A.152. PROGRAM RULES. (a) The department shall adopt rules to establish criteria for determining which eligible projects receive program funds and to establish an application process. The rules must provide for the evaluation of project applications using the following considerations and criteria: (1) landscape and watershed integrity to conserve water and natural resources; (2) productivity of the agricultural lands; (3) habitats for native species, including habitats for important, endangered, threatened, rare, or sensitive species; (4) susceptibility of the subject property to fragmentation or 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) whether the proposed agricultural conservation easement is perpetual or for a term of years; and (8) whether the application includes a resource management plan agreed to by both parties and approved by the council. (b) The department shall adopt rules that provide that the qualified landowner and the potential purchaser of the agricultural conservation easement shall consider and negotiate the terms of the agricultural conservation easement, including: (1) whether the purchase price of the agricultural conservation easement will be paid to the qualified landowner in a lump sum or in annual or monthly payments; (2) whether the agricultural conservation easement will be perpetual or for a term of 30 years; (3) whether a term agricultural conservation easement is renewable; (4) whether the qualified landowner retains limited development rights for personal or family residences on the land; and (5) the market value of the agricultural conservation easement. (c) The department shall adopt rules to establish a procedure for the termination and repurchase of any agricultural conservation easement purchased under this chapter. (d) Anytime after the date an agricultural conservation easement is acquired with a grant awarded under this chapter, the landowner may request that the council terminate the easement on the ground that the landowner is unable to meet the conservation goals as described by this chapter on the subject land. The termination request must contain a statement of impossibility verified by the landowner, who shall deliver a copy of the request to the easement holder. On receipt of the termination request, the council shall conduct an inquiry and not later than the 180th day after receipt of 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. Sec. 59A.153. TEXAS FARMLAND AND RANCHLAND CONSERVATION FUND. (a) The Texas farmland and ranchland conservation fund is an account in the state treasury dedicated to funding the purchase of agricultural conservation easements through grants to holders under this chapter. The account shall consist of: (1) public or private grants, gifts, donations, or contributions; or (2) 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 not be used to purchase or acquire any right to property by eminent domain. (c) The fund may be used to pay transaction costs related to the purchase of agricultural conservation easements, which may include reimbursement of appraisal costs. Program funds may not be used for the monitoring of agricultural conservation easements by a holder.
[Sections 59A.154-59A.200 reserved for expansion]
SUBCHAPTER E. PROTECTION OF CONSERVED LAND
Sec. 59A.201. PROTECTED LAND; NOTICE OF TAKING. (a) Notwithstanding other law, a department or agency of this state or a county, municipality, or other political subdivision of this state may not approve a program or project that requires the use or taking of any private land encumbered by an agricultural conservation easement purchased under this chapter unless: (1) the governmental entity has made a bona fide good faith effort to examine alternatives to the use or taking of the land and has determined that no feasible alternative exists; (2) the program or project includes all reasonable planning to minimize harm to the land resulting from the use or taking; (3) the governmental entity has made a bona fide good faith effort to acquire the land by voluntary purchase or lease; and (4) the governmental entity requires the land to provide for the needs of the surrounding landowners. (b) Notwithstanding other law, a finding required by Subsection (a) may be made only at a public hearing: (1) which is conducted in accordance with Chapter 551, Government Code; and (2) for which the governmental entity has provided written notice to: (A) the council; (B) the qualified landowner; (C) all landowners whose property is contiguous to the qualified landowner's property; and (D) all landowners within reasonable geographic proximity to the agricultural conservation easement. (c) Notwithstanding other law, if land encumbered by an agricultural conservation easement purchased under this chapter is condemned, the entity that condemns the land must compensate the holder for the value of the development rights held by the holder. The compensation must equal the value of the development rights owned by the holder on the date of condemnation. Not later than the 30th day after the date the holder receives compensation under this section, the holder must pay the council an amount equal to the total compensation received by the holder multiplied by the percentage of the original purchase price for the agricultural conservation easement that was paid with program funds. (d) Any compensation paid to a holder under this section is held in trust for the benefit of the council until the holder has remitted all funds owed to the council. (e) Any compensation paid to a holder under this section is in addition to compensation that must be paid to the qualified landowner for the value of the land.
[Sections 59A.202-59A.250 reserved for expansion]
SUBCHAPTER F. EXPIRATION OF COUNCIL
Sec. 59A.251. SUNSET PROVISION. The council is subject to Chapter 325, Government Code (Texas Sunset Act). Unless continued in existence as provided by that chapter, the council is abolished and this chapter expires September 1, 2009. SECTION 2. The Department of Agriculture shall adopt rules required by Section 59A.152, Agriculture Code, as added by this Act, as soon as practicable after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2005.
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