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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) "1980 FERC Order Amending License" means the |
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modifying order issued by the Federal Energy Regulatory Commission |
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in 1980 that removed from the project land the lots that were leased |
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by the authority to residential and commercial leaseholders. |
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(2) "Buffer zone" means the strip of land abutting the |
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lake as identified and defined in the FERC order. |
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(3) "Commercial leaseholder" means a person who, on or |
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before the effective date of the Act enacting this section, leases a |
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lot in the immediate vicinity of the lake from the authority to |
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sublet for predominantly residential purposes, including a lot: |
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(A) subject to a lease that commenced on or |
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before January 1, 1983; |
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(B) located on an island surrounded by water; and |
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(C) on which residential and other improvements |
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have been constructed. |
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(4) "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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(5) "Lake" means Possum Kingdom Lake. |
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(6) "Project land" means the land identified and |
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defined by the FERC order. Except as provided by this section, |
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project land does not include the lots offered for sale under this |
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section to residential and commercial leaseholders. |
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(7) "Residential leaseholder" means a person who, on |
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or before the effective date of the Act enacting this section, |
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leases a lot in the immediate vicinity of the lake from the |
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authority for residential purposes. The term does not include a |
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person who temporarily leases project land. |
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(b) A leaseholder may purchase the leased lot as provided by |
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this section. |
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(c) Not later than the 30th day after the effective date of |
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the Act enacting this section, the authority shall provide to |
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residential and commercial leaseholders a form for an application |
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of intent to purchase the lot subject to the leaseholder's lease. A |
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leaseholder who desires to purchase a lot must submit to the |
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authority a completed application that includes the appraisal |
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required under Subsection (d) and the survey required under |
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Subsection (e). Until February 1, 2008, the authority shall give |
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preference in processing applications to any applicant who receives |
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an ad valorem tax exemption under Section 11.13, Tax Code, for a |
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structure on the applicant's lot. The authority shall accept and |
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process applications in the order in which they are received. A |
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leaseholder who decides not to submit an application under this |
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subsection shall submit a purchase application form waiver as |
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provided by Subsection (g). |
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(d) A lot sold under this section must be sold for not less |
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than the fair market value of the land. The purchaser shall select |
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a disinterested appraiser certified under Chapter 1103, |
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Occupations Code, to determine the fair market value of the land as |
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of January 1 of the year in which the application of intent to |
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purchase is submitted to the authority. The appraiser shall |
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complete the appraisal and send the completed appraisal to the |
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prospective purchaser not later than the 60th day after the date of |
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the appraiser's selection. If the authority disputes the fair |
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market value determined by the appraisal, the authority may employ |
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another disinterested appraiser who satisfies the requirements of |
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this subsection to conduct a second appraisal. The second |
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appraisal must be completed and sent to the authority and to the |
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prospective purchaser not later than the 60th day after the date the |
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authority rejects the initial appraisal. If the purchaser rejects |
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the value determined by the second appraiser, the two appraisers |
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shall meet and attempt to reach an agreement on the fair market |
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value of the land not later than the 30th day after the date the |
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purchaser receives the authority's appraisal. If the two |
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appraisers fail to reach agreement on or before the 10th day after |
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the date of the meeting, not later than the 20th day after the date |
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of the meeting the authority shall request that the comptroller |
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appoint a disinterested third appraiser who satisfies the |
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requirements of this subsection to reconcile the two previous |
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appraisals. The fair market value as determined by the third |
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appraiser may not be more than 105 percent or less than 95 percent |
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of the average of the two previous appraisals. The third |
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appraiser's report must be completed on or before the 30th day after |
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the date of the third appraiser's appointment, and the fair market |
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value determined by the third appraiser is final and binding on all |
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parties. The appraisal costs must be paid by the person who |
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requests the appraisal, except that the purchaser and the authority |
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shall each pay one-half of the cost of the third appraisal if a |
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third appraisal is necessary. An appraisal may not include |
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consideration of a freeze or other suspension of lease rate |
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increases for the homestead of a person who is 65 years of age or |
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older and may not take into account the value of any improvements |
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constructed on the lot or over the water that are the property of |
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the prospective purchaser. If the closing of the sale of the lot |
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does not occur on or before the 60th day after the date on which the |
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fair market value is agreed to or is determined by the third |
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appraiser, the application of intent to purchase is terminated. |
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(e) A prospective purchaser of a lot is responsible for: |
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(1) a survey of the lot that: |
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(A) is prepared by a licensed state land surveyor |
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or a registered professional land surveyor; |
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(B) is dated not earlier than the date one year |
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before the effective date of the Act enacting this section, except |
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that a survey dated before that date is considered acceptable if |
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accompanied by an affidavit signed by the leaseholder stating facts |
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that indicate that: |
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(i) improvements have not been made to the |
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property that would change the submitted survey; and |
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(ii) the survey would be acceptable to a |
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title company for purposes of issuing a policy of title insurance; |
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and |
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(C) includes a depiction of the lot that shows |
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the 1,000-foot contour line, project land as it crosses the |
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property, property boundaries, structures on the property, and any |
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roads that cross the property; |
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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 Federal Energy |
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Regulatory Commission approval of the sale of the lot to be |
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purchased under this section. |
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(f) A lease in effect on the date an application of intent to |
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purchase a lot is submitted under Subsection (c) remains in effect |
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until the sale of the lot is completed or terminated. A lease of the |
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lot expires on the date the sale of the lot is completed. |
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(g) If a leaseholder decides not to purchase the lot, the |
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leaseholder shall submit a purchase application form waiver and |
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indicate on the form that the leaseholder wishes to continue |
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leasing the lot and to affirm the understanding that the right of a |
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prospective purchaser, transferee, heir, or devisee to purchase the |
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lot must be exercised on transfer of the property to any party not |
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subject to the lease existing on the date of the purchase |
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application form waiver. If the leaseholder of record is a |
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partnership, family trust, or other legal entity other than an |
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individual, the right to purchase a lot must be exercised on a |
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change in the majority ownership of the entity. The waiver shall be |
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memorialized in a written affirmation signed by all parties to the |
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existing lease, or any subsequent lease, and appended as an |
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amendment to the lease. If a leaseholder submits a waiver under |
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this subsection, on the sale of the lot, the fair market value of |
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the lot must be determined as of January 1 of the year in which the |
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property is sold or transferred. |
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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 lease except |
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as provided by this section. |
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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 the lot for residential use shall comply with |
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Section 94.204, Property Code. A lot subject to a commercial lease |
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that is purchased under this section must continue to be used for |
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the purpose in effect at the time of the purchase unless the lot is |
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subdivided for single-family residential use. |
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(k) The sale of a lot under this section does not include any |
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buffer zone that abuts the lot and is part of the project land. |
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Subject to approval by the Federal Energy Regulatory Commission, |
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the authority shall grant a person who purchases a lot an easement |
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for use of the buffer zone that abuts the lot. The authority shall |
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retain ownership of the buffer zone and exercise control over the |
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buffer zone consistent with the FERC order. An easement granted to |
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a purchaser must be limited to uses permitted under the terms of the |
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FERC order and the authority's shoreline management plan and must |
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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) Except as provided by this subsection, the owner of a |
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lot sold under this section shall pay the authority any reasonable |
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fees set by the authority for any services the authority provides. |
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The board shall set the fees annually when it adopts the operating |
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budget for the authority. The owner of a lot is not obligated to |
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accept or pay for services from the authority that are provided by |
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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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the 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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land or 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; |
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(3) pay the cost of obtaining any Federal Energy |
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Regulatory Commission approvals required for improvements not |
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present on the lot on the date sold that are the property of the |
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purchaser and on project land; 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 damage it causes under this subsection and to |
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compensate the lot owner for any property it takes 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 the proceeds from the sale of a lot |
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under this section for any authority purpose. |
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(v) All purchases of lots under this section must be |
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completed on or before 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 the sale of a lot |
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under 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 is entitled to recover court costs |
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and any reasonable attorney's fees. |
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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. Section 221.020, Water Code, as added by this |
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Act, prevails to the extent that it conflicts with any other state |
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law. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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