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Amend CSSB 3 as follows:
(1) ADD a new SECTION to read as follows:
SECTION ____. Chapter 221, Water Code, is amended by adding
Section 221.020 to read as follows:
Sec. 221.020. SALE OF LOTS SUBJECT TO RESIDENTIAL AND
COMMERCIAL LEASES. (a) The legislature finds that to insure the
authority has sufficient capital to manage and preserve its water
resources, the authority should sell certain lands that are not
used to develop and manage the water resources of the authority. In
this section:
(1) "1980 FERC Order Amending License" means the
modifying order issued by the Federal Energy Regulatory Commission
in 1980 that removed from the project land the lots that were leased
by the authority to residential and commercial leaseholders.
(2) "Buffer zone" means the strip of land abutting the
lake as identified and defined in the FERC order.
(3) "Commercial leaseholder" means a person who, on or
before the effective date of the Act enacting this section, leases a
lot in the immediate vicinity of the lake from the authority to
sublet for predominantly residential purposes, including a lot:
(A) subject to a lease that commenced on or before
January 1, 1983;
(B) located on an island surrounded by water; and
(C) on which residential and other improvements
have been constructed.
(4) "FERC order" means the order of the Federal Energy
Regulatory Commission issuing a license to the authority for
project number 1490-003-Texas.
(5) "Lake" means Possum Kingdom Lake.
(6) "Project land" means the land identified and
defined by the FERC order. Except as provided by this section,
project land does not include the lots offered for sale under this
section to residential and commercial leaseholders.
(7) "Residential leaseholder" means a person who, on or
before the effective date of the Act enacting this section, leases a
lot in the immediate vicinity of the lake from the authority for
residential purposes. The term does not include a person who
temporarily leases project land.
(b) A leaseholder may purchase the leased lot as provided by
this section.
(c) Not later than the 90th day after the effective date of
the Act enacting this section, the authority shall provide to
residential and commercial leaseholders a form for an application
of intent to purchase the lot subject to the leaseholder's lease. A
leaseholder who desires to purchase a lot must submit to the
authority a completed application that includes the appraisal
required under Subsection (d) and the survey required under
Subsection (e). Until February 1, 2008, the authority shall give
preference in processing applications to any applicant who receives
an ad valorem tax exemption under Section 11.13, Tax Code, for a
structure on the applicant's lot. The authority shall accept and
process applications in the order in which they are received.
(d) Before September 1, 2017, a lot sold under this section
must be sold for not less than the fair market value of the
unencumbered fee simple estate with an offset of 10 percent for the
value of the leasehold interest. On or after September 1, 2017, a
lot sold under this section must be sold for not less than the fair
market value of the unencumbered fee simple estate. The purchaser
shall select a disinterested appraiser certified under Chapter
1103, Occupations Code, to determine the fair market value as of
January 1 of the year in which the application of intent to purchase
is submitted to the authority. The appraiser shall complete the
appraisal and send the completed appraisal to the prospective
purchaser not later than the 60th day after the date of the
appraiser's selection. If an appraisal is disputed, the General
Land Office shall review the appraisal for compliance with the most
recently published Uniform Standards of Professional Appraisal
Practice and for mathematical accuracy. If the authority disputes
the fair market value determined by the appraisal, the authority
may employ another disinterested appraiser who satisfies the
requirements of this subsection to conduct a second appraisal. The
second appraisal must be completed and sent to the authority and to
the prospective purchaser not later than the 60th day after the date
the authority rejects the initial appraisal. If the purchaser
rejects the value determined by the second appraiser, the two
appraisers shall meet and attempt to reach an agreement on the fair
market value not later than the 30th day after the date the
purchaser receives the authority's appraisal. If the two appraisers
fail to reach agreement on or before the 10th day after the date of
the meeting, not later than the 20th day after the date of the
meeting the authority shall request that the comptroller appoint a
disinterested third appraiser who satisfies the requirements of
this subsection to reconcile the two previous appraisals. The third
appraiser's report must be completed on or before the 30th day after
the date of the third appraiser's appointment, and the fair market
value determined by the third appraiser is final and binding on all
parties. The appraisal costs must be paid by the person who requests
the appraisal, except that the purchaser and the authority shall
each pay one-half of the cost of the third appraisal if a third
appraisal is necessary. An appraisal may not include consideration
of a freeze or other suspension of lease rate increases for the
homestead of a person who is 65 years of age or older and may not
take into account the value of any improvements constructed on the
lot or over the water that are the property of the prospective
purchaser. If the closing of the sale of the lot does not occur on or
before the 60th day after the date on which the fair market value is
agreed to or is determined by the third appraiser, the application
of intent to purchase is terminated.
(e) A prospective purchaser of a lot is responsible for:
(1) a survey of the lot that:
(A) is prepared by a licensed state land surveyor
or a registered professional land surveyor;
(B) is dated not earlier than the date one year
before the effective date of the Act enacting this section, except
that a survey dated before that date is considered acceptable if
accompanied by an affidavit signed by the leaseholder stating facts
that indicate that:
(i) improvements have not been made to the
property that would change the submitted survey; and
(ii) the survey would be acceptable to a
title company for purposes of issuing a policy of title insurance;
and
(C) includes a depiction of the lot that shows the
1,000-foot contour line, project land as it crosses the property,
property boundaries, structures on the property, and any roads that
cross the property;
(2) all reasonable, normal, customary, and documented
closing costs associated with the sale of the lot; and
(3) if applicable, reasonable and necessary costs
incurred and documented by the authority for Federal Energy
Regulatory Commission approval of the sale of the lot to be
purchased under this section.
(f) A lease in effect on the date an application of intent to
purchase a lot is submitted under Section (c) remains in effect
until the sale of the lot is completed or terminated. A lease of the
lot expires on the date the sale of the lot is completed.
(g) If a leaseholder decides not to purchase the lot, the
leaseholder shall submit a purchase application form waiver and
indicate on the form that the leaseholder wishes to continue
leasing the lot and to affirm the understanding that the right of a
prospective purchaser, transferee, heir, or devisee to purchase the
lot must be exercised on transfer of the property to any party not
subject to the lease existing on the date of the purchase
application form waiver. If the leaseholder of record is a
partnership, family trust, or other legal entity other than an
individual, the right to purchase a lot must be exercised on a
change in the majority ownership of the entity. The waiver shall be
memorialized in a written affirmation signed by all parties to the
existing lease, or any subsequent lease, and appended as an
amendment to the lease. If a leaseholder submits a waiver under this
subsection, on the sale of the lot, the fair market value of the lot
must be determined as of January 1 of the year in which the property
is sold or transferred.
(h) A lot sold under this section is subject to all existing
restrictions, including any applicable easements, placed on the lot
by the Federal Energy Regulatory Commission under the FERC order,
if any, but does not include the terms of the existing lease except
as provided by this section.
(i) A residential lot sold under this section may be used only
for a single-family residential structure and related facilities
and only for normal residential, noncommercial, recreational use
and enjoyment.
(j) If applicable, a commercial leaseholder that purchases a
lot and sublets the lot for residential use shall comply with
Section 94.204, Property Code. A lot subject to a commercial lease
that is purchased under this section must continue to be used for
the purpose in effect at the time of the purchase unless the lot is
subdivided for single-family residential use.
(k) The sale of a lot under this section does not include any
buffer zone that abuts the lot and is part of the project land.
Subject to approval by the Federal Energy Regulatory Commission,
the authority shall grant a person who purchases a lot an easement
for use of the buffer zone that abuts the lot. The authority shall
retain ownership of the buffer zone and exercise control over the
buffer zone consistent with the FERC order. An easement granted to a
purchaser must be limited to uses permitted under the terms of the
FERC order and the authority's shoreline management plan and must
be consistent with the use allowed since the implementation of the
buffer zone.
(1) Except as provided by this subsection, the owner of a lot
sold under this section shall pay the authority any reasonable fees
set by the authority for any services the authority provides. The
board shall set the fees annually when it adopts the operating
budget for the authority. The owner of a lot is not obligated to
accept or pay for services from the authority that are provided by
another public or private entity.
(m) If an existing road on land owned by the authority
connects a county road to a lot sold under this section, the
authority may not deny a person access to that road. The authority
does not have a duty to maintain any road.
(n) A purchaser of a lot under this section shall comply with:
(1) the authority's "Shoreline Management Plan and
Customer Guide," and any amendments to that document to the extent
the plan applies to the buffer zone and any other land retained by
the authority;
(2) the applicable rules, regulations, and orders of
the Federal Energy Regulatory Commission;
(3) the authority's "Regulations for Governance for
Brazos River Authority Lakes and Associated Land," as published on
the authority's Internet website; and
(4) other rules and regulations adopted by the
authority regarding conduct on and use of the lake or land owned by
the authority.
(o) To maintain the quality of the lake's water and of the
environment in the lake's vicinity, a person who purchases a lot
under this section agrees to:
(1) obtain the written consent of the authority before
altering the natural drainage of the terrain within the project
land or buffer zone;
(2) comply with any local, state, or federal laws
related to water quality or the environment, including laws
governing toxic wastes and hazardous substances;
(3) pay the cost of obtaining any Federal Energy
Regulatory Commission approvals required for improvements not
present on the lot on the date sold that are the property of the
purchaser and on project land; and
(4) connect to and use, at the lot owner's expense, any
wastewater treatment system that becomes available to lot owners
and lessees, not later than 24 months after the system becomes
available.
(p) A leaseholder who purchases a lot under this section may
not remove or disturb, or cause or permit to be removed or
disturbed, any historical, archaeological, architectural, or other
cultural artifact, relic, remains, or object of antiquity. If such
an item is discovered on the lot, the lot owner shall immediately
notify the authority and protect the site and the item from further
disturbance until the authority gives written clearance to proceed.
(q) A leaseholder who purchases a lot under this section
agrees that the water level in the lake varies and that the
authority is not responsible for keeping the lake full.
(r) The authority reserves the right to modify Morris
Sheppard (Possum Kingdom) Dam so that the water surface elevation
of the lake is raised from 1,000 feet above mean sea level to 1,015
feet above mean sea level. The authority is not responsible or
liable for any personal injury or damage to a lot or improvements on
the lot caused by the resultant increase in the water level or
caused by natural flooding.
(s) The authority reserves the right of ingress and egress
for a person authorized by the authority, including an authority
agent or employee, over and across a lot purchased under this
section for all reasonable purposes of the authority, including the
construction of any roads, drainage facilities, and power, water,
gas, and other utility mains and lines that the authority considers
necessary. The authority agrees to repair, or compensate the lot
owner for, any damage it causes under this subsection and to
compensate the lot owner for any property it takes under this
subsection.
(t) The authority reserves its interest in all oil, gas, and
other minerals in and under the real property sold under this
section.
(u) The authority shall use a portion of the proceeds from the
sale of a lot under this section to bring to fruition plans for the
development and operation of a public use campground, including
sites to accomodate large recreational vehicles, within a park in
close proximity to the east side of the lake. The park must preserve
the area's natural landscape, be named in honor of John Graves, and
serve as a gateway to the John Graves Scenic Riverway section of the
Brazos River downstream from the lake. The remainder of the
proceeds may be used for any authority purpose.
(v) If the owner of a lot sold under this section does not
comply with this section, the authority may seek any available
legal remedy.
(w) The following laws do not apply to the sale of a lot under
this section:
(1) Chapters 232 and 272, Local Government Code;
(2) Section 49.226, Water Code; and
(3) Section 221.013, Water Code.
(x) In the event of a dispute arising under this section
between the authority and a person who purchases a lot under this
section, the prevailing party is entitled to recover court costs
and any reasonable attorney's fees.
(y) A provision that applies to the purchaser of a lot under
this section applies to any subsequent owner of the lot.
SECTION ____. Section 221.020, Water Code, as added by this
Act, prevails to the extent that it conflicts with any other state
law.