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Amend CSSB 3 (House Committee Substitute Version) as follows:
(1) Delete beginning at line 1, page 54, through line 22,
page 56, and insert the following:
SUBCHAPTER L. SURFACE WATER FEES.
Sec. 11.601. SURCHARGE ON SURFACE WATER IMPOUNDED IN A
RESERVOIR. (a) The holder of a permit to impound surface water in a
reservoir subject to Section 16.143, Water Code shall submit to the
commission on an annual basis a surcharge fee equal to the ad
valorem tax rate of each political subdivision that assessed ad
valorem taxes on property within the reservoir site multiplied by
each acre-foot of surface water the permit authorizes be impounded.
(b) Not later than 90 days after the surcharge is submitted
under Subsection (a), the commission shall appropriate the
surcharge to the political subdivisions that assessed ad valorem
taxes on the property located within the reservoir site based upon
the proportion of the total ad valorem tax revenue collected by the
political subdivisions before the property was acquired to
construct the reservoir.
(c) The commission may assess the permit holder a fee in an
amount necessary to administer this section.
Sec. 11.602. ROYALTY FEE ON SURFACE WATER IMPOUNDED IN A
RESERVOIR. (a) The holder of a permit to impound surface water in a
reservoir subject to Section 16.143, Water Code shall submit on an
annual basis to the commission a royalty fee equal to 10% of the
total net revenue earned by the permit holder for the sale or lease
of the water authorized to be impounded under the permit.
(b) Not later than 90 days after the royalty fee is
submitted under Subsection (a), the fee shall be appropriated by
the commission to the property owners listed in Section
16.143(a)(3) based upon the number of acres the property owner had
purchased or taken for the construction of the reservoir.
(c) The commission may assess the permit holder a fee in an
amount necessary to administer this section.
SECTION 2A.02. Subchapter E, Chapter 16, Water Code is
amended by adding Sections 16.143 through 16.147 to read as
follows:
Sec. 16.143. INTENT TO CONSTRUCT A RESERVOIR. (a) No later
than two years after a proposed reservoir site is approved in the
state water plan, or designated by the legislature under Sec.
16.051(f) of this chapter, an agency, political subdivision,
person, or entity must submit to the board:
(1) a letter of intent to construct the proposed or
designated reservoir;
(2) a metes and bounds description of the area that is
included in the reservoir site;
(3) a list of all the property owners with an estate
within the area of the proposed reservoir;
(4) a drought contingency plan and water conservation
plan based on specific targets and goals using appropriate best
management practices that will be implemented by each retail public
water utility that provides potable water service to a population
of 3,300 or more that may receive water from the proposed reservoir;
and
(5) evidence of the ability to finance the purchase of
development rights from the property owners with an estate within
the area of the proposed reservoir under Section 16.144 of this
chapter.
(b) If the board does not receive the items required to be
submitted under Subsection (a) within two years of the approval of
the reservoir site in the state water plan, the board shall remove
the reservoir site from the state water plan.
(c) If the board does not receive the items required to be
submitted under Subsection (a) within two years of the designation
of the site under Sec. 16.051(f) of this chapter, the designation of
the site is repealed, and Sec. 16.051(f) of this chapter no longer
applies to the site.
(d) The board shall provide notice to each municipality and
county commissioners court within the area of the proposed
reservoir of the items submitted under Subsection (a).
(e) The board shall promulgate any rules necessary to
implement this section.
Sec. 16.144. PURCHASE OF DEVELOPMENT RIGHTS FOR RESERVOIR
SITE. (a) Within four years of submitting the items required under
Section 16.143(a), an agency, political subdivision, person, or
entity that submitted the items required under Section 16.143(a)
shall make a bona fide good faith effort to negotiate a purchase of
development rights agreement with every property owner with an
estate within the area of the proposed reservoir. Eminent domain
may not be used to purchase development rights under this section.
(b) The purchase of developments rights agreement under
Subsection (a) shall:
(1) allow the property owner to continue with the
existing use of the property;
(2) allow improvements that will not change the
primary existing use of the property; and
(3) for property in agricultural use, be held and
administered by an agricultural land trust originally chartered in
the state and organized solely to protect property for agricultural
use.
(c) The agency, political subdivision, person, or entity
required to purchase development rights under this section shall
provide the agricultural land trust holding the agreement under
Subsection (b) (3) with the funds to necessary to administer the
agreement.
(d) No later than thirty days after the purchase of
development rights was to be completed under Subsection (a), the
agency, political subdivision, person, or entity that is required
to purchase development rights under Subsection (a) shall submit a
list to the board of the development rights purchased, and the
property owners that refused to sell the development rights of
their estate. If a property owner of an estate within the reservoir
site refused to sell their development rights, the agency,
political subdivision, person, or entity shall provide the board
with proof that a bona fide good faith effort was made to
voluntarily purchase the development rights.
(e) If the commissioners court in the county where the land
is located finds after conducting a hearing (that shall be held by
the commissioners court on petition of any owner of an interest in
the property filed with the commissioners court at any time after
the fourth anniversary of the date on which the filing with the
board required by Section 16.143(a) is made) at which the landowner
is entitled to appear and present evidence, that an agency,
political subdivision, person, or entity required to purchase
development rights under Subsection (a) did not make a bona fide
good faith effort to purchase the development rights of every
property owner with an estate within the area of the proposed
reservoir:
(1) the board shall remove the proposed reservoir from
the approved state water plan; and
(2) if the reservoir site was designated under Section
16.051 (f), the designation of the site is repealed, and Sec.
16.051(f) of this chapter no longer applies to the site.
(f) If the agency, political subdivision, person, or entity
that was required to purchase development rights under this section
ceases the process of constructing the reservoir, the reservoir no
longer is designated as a unique reservoir site under Section
16.144 of this chapter, or the reservoir site is removed from the
state water plan under Section 16.144 of this chapter the purchase
of development rights agreement required under this section is void
and the property owner has no obligation to comply with its
provisions.
(g) "Purchase of Development Rights Agreement" means
purchasing a nonpossessory interest of a holder in property that
imposes limitations or affirmative obligations designed to retain
its existing use.
(h) "Agricultural value" and "Fair market value" have the
same meaning under Section 183.056, Natural Resources Code. The
minimum amount that may be paid to purchase development rights
under this section is the difference between the agricultural value
and the fair market value of the property.
(i) The agency, political subdivision, person, or entity
required to purchase development rights under Subsection (a) shall
pay the reasonable attorneys and expert fees incurred by the
property owner in connection with any purchase of development
rights and any hearing required pursuant to this section.
Sec. 16.145. POWER OF EMINENT DOMAIN; LEASE-BACK OPTION.
(a) The use of eminent domain to acquire property for a reservoir
is subject to Section 21.0122, Property Code.
(b) A property owner of an estate that was acquired,
voluntarily or with eminent domain, for a reservoir shall be
offered a reasonable lease agreement that will allow the property
owner to utilize the property for its existing use until physical
construction of the reservoir commences.
Sec. 16.146. ENVIRONMENTAL MITIGATION. (a) If authorized
by the applicable regulatory authority, the agency, political
subdivision, person, or entity constructing a reservoir shall enter
into a purchase of development rights agreement instead of
acquiring or managing property for the mitigation of a past,
present, or future adverse environmental effect arising from
construction or operation of any part of the reservoir or its
related facilities.
(b) Development rights purchased on agricultural property
under this section shall be held and administered by an
agricultural land trust originally chartered in the state and
organized solely to protect property for agricultural use.
Sec. 16.147. ELIGIBILITY TO PARTICIPATE IN GOVERNMENT
PROGRAMS. Property located within the area of a reservoir site
designated under 16.051 shall be eligible for any public program
which does not change the primary existing use of the property.
State agencies and political subdivisions may not consider the
inclusion of the property within a designated unique reservoir site
when determining the property's eligibility to participate in a
public program whose term is not longer than the period before
physical construction of the reservoir will begin.
SECTION 2A.03. Chapter 21, Property Code is amended by
adding a new Section 21.0122 to read as follows:
Sec. 21.0122. CONDEMNATION TO ACQUIRE PROPERTY FOR A
RESERVOIR AND RELATED FACILITIES. (a) In addition to the contents
prescribed by Section 21.012(b), a condemnation petition filed for
the purpose of acquiring property for a reservoir, including
related facilities necessary to manage, store, divert, or transport
water impounded by the reservoir, must state that the facts to be
proven are:
(1) that each retail public water utility that
provides potable water service to a population of 3,300 or more that
may receive water from the proposed reservoir prepared a drought
contingency plan;
(2) that each retail public water utility that
provides potable water service to a population of 3,300 or more that
may receive water from the proposed reservoir developed and
implemented a water conservation plan based on specific targets and
goals using appropriate best management practices that will result
in the highest practicable levels of water conservation and
efficiency achievable in the utility's jurisdiction;
(3) that the condemnor made a bona fide good faith
effort to obtain practicable alternative water supplies to the
reservoir;
(4) that the condemnor made a bona fide good faith
effort to acquire the property by voluntary purchase or lease; and
(5) that the reservoir is included in the approved
state water plan.
(b) A court shall deny the right to condemn unless the
political subdivision proves to the court that the political
subdivision has met the requirements of Subsection (a).
SECTION 2A.04. Chapter 21, Property Code is amended by
adding Section 21.0422 to read as follows:
Sec. 21.0422. ASSESSMENT OF DAMAGES: PROPERTY CONDEMNED
FOR A RESERVOIR AND RELATED FACILITIES. (a) In a condemnation
proceeding initiated to acquire property under Section 21.0122, the
special commissioners or court shall admit and consider evidence
relating to each injury and loss, if any, to the property owner that
a reasonably prudent person would consider in a negotiated
transaction that is not subject to this chapter.
(b) If the property to be condemned under Section 21.0122 is
agricultural property subject to a purchase of development rights
agreement acquired under Section 16.145, Water Code, the minimum
damages awarded shall be the difference between the agricultural
value and fair market of the property when the petition to condemn
the property was submitted to the court.
SECTION 2A.05. Chapter 21, Property Code is amended by
adding Section 21.0471 to read as follows:
Sec. 21.0471. ASSESSMENT OF FEES: CONDEMNATION OF PROPERTY
FOR A RESERVOIR. If a court hearing a suit under Section 21.0122
finds that the damages awarded by the special commissioners or the
court exceeds the damages a condemnor offered to the property owner
before the proceeding began, the court shall order the condemnor to
pay any reasonable attorney and expert fees incurred by the owner.