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A BILL TO BE ENTITLED
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AN ACT
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relating to the sale by the Brazos River Authority of certain |
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residential and commercial lots in the immediate vicinity of Possum |
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Kingdom Lake to leaseholders of those lots. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 221, Water Code, is amended by adding |
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Section 221.020 to read as follows: |
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Sec. 221.020. SALE OF LOTS SUBJECT TO RESIDENTIAL AND |
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COMMERCIAL LEASES. (a) In this section: |
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(1) "FERC Order" means the order of the Federal Energy |
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Regulatory Commission issuing a license to the authority for |
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project number 1490-003-Texas. |
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(2) "1980 FERC Order" means that modifying order |
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signed in 1980 by FERC that, among other things, removed the |
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leasehold lots from the Project Lands. |
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(2) "Lake" means Possum Kingdom Lake. |
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(3) "Project Lands" means those lands identified and |
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defined in the 1980 FERC Order and do not include the lease lots to |
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be sold to the Residential Leaseholders and Commercial |
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Leaseholders. |
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(4) "Buffer Zone" means that strip of land abutting |
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the lake as identified and defined in the 1980 FERC Order. |
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(3) "Residential Leaseholder" means a person or entity |
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who leases a lot in the immediate vicinity of the lake from the |
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authority for residential purposes. |
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(4) "Commercial Leaseholder" means a person or entity |
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who leases a lot in the immediate vicinity of the lake from the |
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authority to produce income. |
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(b) A leaseholder may purchase the lot as provided by this |
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section. |
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(c) The authority shall make available a form for an |
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application of intent to purchase the lot within ninety days of the |
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effective date of this section. Such application shall be a deemed |
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a contract subject to the provisions set out herein. A leaseholder |
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who desires to purchase a lot must submit a completed application to |
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the authority. Until September 1, 2008, the authority may only |
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accept applications from leaseholders leasing for residential |
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purposes. Until February 1, 2008, the authority shall give |
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preference in processing applications to applicants who receive an |
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ad valorem tax exemption under Section 11.13, Tax Code, for a |
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structure on the applicants' lots. After September 1, 2008, the |
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authority may accept applications from leaseholders leasing for |
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commercial purposes. The authority shall accept and process |
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applications in the order in which they are received. |
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(d) Each lot sold under this section shall be sold for no |
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less than fair market value of the interest being acquired. Within |
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30 days of receiving an application of the intent to purchase, the |
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authority shall select a disinterested appraiser certified under |
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Chapter 1103, Occupations Code, to determine the fair market value |
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of the interest being acquired and such fair market value shall be |
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as of January 1, 2007. Such appraiser shall complete the appraisal |
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within 60 days of his selection and send the completed appraisal to |
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the authority and the prospective purchaser within such 60 day |
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period. If the prospective purchaser disputes the fair market |
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value determined by such appraisal, the prospective purchaser may |
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employ another disinterested appraiser who satisfies the |
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requirements above to conduct a second appraisal which shall be |
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completed and sent to the authority within 60 days of the date the |
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prospective purchaser receives the authority's appraisal. If the |
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authority rejects the value proffered by the second appraiser, |
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within 30 days of the date the authority receives the prospective |
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purchaser's appraisal, the two appraisers shall meet and attempt to |
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reach an agreement on the fair market value of the interest being |
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acquired. If the two appraisers fail to reach agreement within 10 |
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days of the meeting, within 10 days of such impasse, the authority |
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shall request that the state comptroller of public accounts appoint |
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a disinterested third appraiser who satisfies the requirements of |
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this subsection to reconcile the two previous appraisals. The |
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determination of the value by the third appraiser may not be less |
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than the lower value or more than the higher value of the two |
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previous appraisals. The third appraiser's report must be |
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completed within 30 days of the date the dispute is submitted to him |
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and the fair market value determined by the third appraiser is final |
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and binding on all parties. Each party shall pay for his, her or its |
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respective appraisal, except that the cost of the third appraisal, |
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if necessary, shall be borne equally by the purchaser and the |
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authority. The appraisal shall not take into account the value of |
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any improvements constructed on the lot or over the water that are |
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the property of the prospective purchaser. The closing of the sale |
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shall take place within 30 days of an agreed appraisal or |
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determination of the value by the third appraiser. |
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(e) A prospective purchaser of a lot is responsible for: |
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(1) a survey of the lot dated not more than one year |
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before the effective date of this section and prepared by a licensed |
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state land surveyor or a registered professional land surveyor. |
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However, a survey dated more than one year before the effective date |
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of this section shall be deemed acceptable if accompanied by an |
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affidavit signed by the leaseholder stating facts that indicate no |
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improvements have been made to the property that would change the |
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submitted survey, and that such survey would be acceptable to a |
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title company for purposes of issuing any policy of title |
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insurance; |
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(2) All reasonable, normal, customary and documented |
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closing costs associated with the sale of the lot; and |
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(3) If applicable, reasonable and necessary costs |
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incurred and documented by the authority for FERC approval of the |
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sale of the lot to be purchased under this section. |
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(f) The lease in effect as of January 1,2007 or after shall |
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remain in effect until such transaction is completed. A lease of |
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the lot expires on the date the sale of the lot is complete. |
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(g) If an eligible leaseholder is unable or unwilling to |
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purchase the lot, the leaseholder shall submit a purchase |
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application form waiver and indicate on such form that they wish to |
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continue leasing and affirm their understanding that the obligation |
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of a prospective purchaser, transferee, heir or devisee to purchase |
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the lot through conventional financing or otherwise, must be |
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exercised upon transfer of the property to any party not subject to |
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the lease existing on the date of the purchase application form |
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waiver. Such waiver shall be memorialized in a written affirmation |
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signed by all parties to the existing lease, or any subsequent |
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lease, and appended as an amendment thereto. In the event an |
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eligible leaseholder submits a waiver under this subsection, upon |
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sale, the lease valuation date shall be January 1st of the year in |
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which the property is sold or transferred and subsection (f) above |
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shall have no applicability. |
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(h) A lot sold under this section is subject to all existing |
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restrictions, including any applicable easements, placed on the lot |
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by the Federal Energy Regulatory Commission under the FERC order, |
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if any , but does not include the terms of the existing leases |
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unless otherwise mentioned herein. |
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(i) A residential lot sold under this section may be used |
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only for a single-family residential structure and related |
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facilities and only for normal residential, noncommercial, |
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recreational use and enjoyment. |
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(j) If applicable, a commercial leaseholder that purchases |
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a lot and sublets said lot for residential use shall comply with |
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Section 94.204, Property Code. |
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(k) The sale of a lot under this section does not include any |
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shoreline buffer zone that abuts the lot and is part of the project |
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area covered by the FERC order. Subject to approval by the Federal |
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Energy Regulatory Commission, the authority shall grant a person or |
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entity who purchases a lot an exclusive easement for use of the |
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buffer zone that abuts the lot. The authority shall retain |
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ownership of the buffer zone and exercise control over the buffer |
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zone consistent with the FERC order. The easement granted to a |
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purchaser shall be limited to uses permitted under the terms of the |
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FERC order and the authority's shoreline management plan. and shall |
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be consistent with the use allowed since the implementation of the |
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Buffer Zone. |
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(l) The owner of a lot sold under this section shall pay the |
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authority any reasonable fees set by the authority for any services |
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the authority provides and the owner desires. However, the owner of |
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a lot is under no obligation to accept or pay for services from the |
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authority that are provided by another public or private entity. |
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(m) If an existing road on land owned by the authority |
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connects a county road to a lot sold under this section, the |
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authority may not deny a person access to that road. The authority |
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does not have a duty to maintain any road. |
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(n) A purchaser of a lot under this section shall comply |
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with: |
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(1) the authority's "Shoreline Management Plan and |
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Customer Guide," and any amendments to that document to the extent |
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such plan applies to the Buffer Zone and any other land retained by |
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the authority; |
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(2) the applicable rules, regulations, and orders of |
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the Federal Energy Regulatory Commission; |
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(3) the authority's "Regulations for Governance for |
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Brazos River authority Lakes and Associated Lands," as published on |
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the authority's Internet website; and |
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(4) other rules and regulations adopted by the |
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authority regarding conduct on and use of the lake or land owned by |
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the authority. |
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(o) To maintain the quality of the lake's water and of the |
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environment in the lake's vicinity, a person who purchases a lot |
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under this section agrees to: |
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(1) obtain the written consent of the authority before |
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altering the natural drainage of the terrain within the project |
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area and buffer zone; |
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(2) comply with any local, state, or federal laws |
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related to water quality or the environment, including laws |
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governing toxic wastes and hazardous substances; and |
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(3) pay the cost of obtaining any Federal Energy |
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Regulatory Commission approvals required for future improvements |
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that are the property of the purchaser and in the project area |
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covered by the FERC order; and |
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(4) connect to and use, at the lot owner's expense, any |
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wastewater treatment system that becomes available to lot owners |
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and lessees, not later than 24 months after the system becomes |
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available. |
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(p) A leaseholder who purchases a lot under this section may |
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not remove or disturb, or cause or permit to be removed or |
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disturbed, any historical, archaeological, architectural, or other |
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cultural artifact, relic, remains, or object of antiquity. If such |
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an item is discovered on the lot, the lot owner shall immediately |
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notify the authority and protect the site and the item from further |
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disturbance until the authority gives written clearance to proceed. |
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(q) A leaseholder who purchases a lot under this section |
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agrees that the water level in the lake varies and that the |
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authority is not responsible for keeping the lake full. |
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(r) The authority reserves the right to modify Morris |
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Sheppard (Possum Kingdom) Dam so that the water surface elevation |
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of the lake is raised from 1,000 feet above mean sea level to 1,015 |
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feet above mean sea level. The authority is not responsible or |
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liable for any personal injury or damage to a lot or improvements on |
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the lot caused by the resultant increase in the water level or |
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caused by natural flooding. |
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(s) The authority reserves the right of ingress and egress |
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for a person authorized by the authority, including an authority |
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agent or employee, over and across a lot purchased under this |
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section for all reasonable purposes of the authority, including the |
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construction of any roads, drainage facilities, and power, water, |
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gas, and other utility mains and lines that the authority considers |
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necessary. The authority agrees to repair, or compensate the lot |
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owner for any taking of property or damage it causes under this |
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subsection. |
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(t) The authority reserves its interest in all oil, gas, and |
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other minerals in and under the real property sold under this |
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section. |
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(u) The authority may use proceeds from the sale of a lot |
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under this section for any authority purpose. |
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(v) If a declaration of intent to purchase by a leaseholder |
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is made under this section, the purchase must be completed by |
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January 1, 2015. |
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(w) If the owner of a lot sold under this section does not |
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comply with this section, the authority may seek any available |
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legal remedy. |
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(x) The following laws do not apply to sale of a lot under |
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this section: |
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(1) Chapters 232 and 272, Local Government Code; |
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(2) Section 49.226, Water Code; and |
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(3) Section 221.013, Water Code. |
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(y) In the event of a dispute arising under this section |
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between the authority and a person who purchases a lot under this |
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section, the prevailing party shall recover court costs and any |
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reasonable attorney's fees and the authority expressly waives any |
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claim to governmental immunity if such a dispute arises. |
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(z) A provision that applies to the purchaser of a lot under |
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this section applies to any subsequent owner of the lot. |
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SECTION 2. If the provisions of this section conflict with any |
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other provisions of this code, then the provisions of this section |
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shall prevail, notwithstanding all such conflicting provisions. |
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SECTION 3. This Act takes effect immediately if it receives a vote |
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of two-thirds of all members elected to each house, as provided by |
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Section 39, Article III, Texas Constitution. If this Act does not |
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receive the vote necessary for immediate effect, this Act takes |
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effect September 1, 2007. |