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A BILL TO BE ENTITLED
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AN ACT
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relating to the construction and operation of reservoirs, including |
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the assessment of a fee on the sale or lease of water impounded in a |
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reservoir to compensate the owners of property in the reservoir |
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site and the protection of the rights of owners or former owners of |
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property in a reservoir site. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 11, Water Code, is amended by adding |
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Subchapter L to read as follows: |
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SUBCHAPTER L. ROYALTY FEE ON SALE OR LEASE OF IMPOUNDED SURFACE |
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WATER |
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Sec. 11.601. ACQUISITION OF PROPERTY IN RESERVOIR SITE IN |
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EXCHANGE FOR ROYALTY FEE. The holder of a permit to impound surface |
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water in a reservoir may, with the agreement of the owner of real |
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property in the site of the reservoir, acquire the property in |
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exchange for a royalty fee as provided by this subchapter. |
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Sec. 11.602. PROVISION OF INFORMATION AND PAYMENT OF |
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ROYALTY FEE TO COMMISSION. The holder of a permit to impound |
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surface water in a reservoir annually shall: |
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(1) notify the commission of the name and address of |
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each person whose property the permit holder acquired to construct |
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the reservoir under an agreement under Section 11.601 and the |
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number of acres of real property acquired from the person under the |
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agreement; and |
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(2) pay to the commission a royalty fee in an amount |
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equal to 10 percent of the total revenue received by the permit |
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holder for the wholesale or retail sale or lease of the water |
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authorized to be impounded under the permit multiplied by a |
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fraction the numerator of which is the total number of acres of real |
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property acquired from all persons who entered into agreements |
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under Section 11.601 and the denominator of which is the total |
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number of acres of real property in the reservoir site acquired from |
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all property owners voluntarily, including under an agreement under |
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Section 11.601, or through the exercise of the power of eminent |
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domain. |
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Sec. 11.603. ALLOCATION OF ROYALTY FEE BY COMMISSION. Not |
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later than the 90th day after the date the royalty fee is submitted |
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under Section 11.602(2), the commission shall allocate the fee to |
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each person included in the notification under Section 11.602(1) in |
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the proportion that the number of acres of real property acquired |
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from the person under an agreement under Section 11.601 bears to the |
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total number of acres of real property acquired from all persons |
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under agreements under Section 11.601. |
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Sec. 11.604. ASSESSMENT OF FEE ON PERMIT HOLDER. The |
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commission may assess a holder of a permit to impound surface water |
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in a reservoir a fee in an amount necessary to administer this |
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subchapter. |
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SECTION 2. Section 16.051, Water Code, is amended by adding |
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Subsections (i) and (j) to read as follows: |
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(i) A person may not bring a cause of action under |
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Subsection (h) for a violation of Subsection (g) if the political |
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subdivision that violated that subsection acquired the fee title or |
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easement for the purpose of: |
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(1) providing retail public utility service, other |
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than water or wastewater service, to property in the reservoir |
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site; or |
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(2) allowing an owner of property in the reservoir |
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site to improve or develop the property. |
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(j) Notwithstanding Subsection (i), a political subdivision |
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affected by an action described by Subsection (i) may bring a cause |
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of action for a violation of Subsection (g) if the political |
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subdivision has complied with Section 16.143(a). |
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SECTION 3. Subchapter E, Chapter 16, Water Code, is amended |
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by adding Sections 16.143 through 16.146 to read as follows: |
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Sec. 16.143. INTENT TO CONSTRUCT RESERVOIR; ENCUMBRANCE |
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PAYMENT. (a) Before bringing a cause of action under Section |
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16.051(h), a political subdivision must: |
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(1) file with the commission a letter of intent to |
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construct a reservoir on the site affected by the violation of |
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Section 16.051(g); and |
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(2) offer to pay each owner of real property in the |
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reservoir site an encumbrance payment. |
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(b) An owner of real property to whom an encumbrance payment |
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is offered may reject the offer. |
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(c) An encumbrance payment must be paid annually to an owner |
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of real property in the reservoir site who has accepted the offer of |
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the payment until: |
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(1) the property is acquired for the reservoir; or |
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(2) the property is no longer in the reservoir site. |
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(d) An encumbrance payment must be in an amount that is not |
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less than 2.5 times the total amount of ad valorem taxes imposed in |
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the tax year that precedes the year in which the payment is made on |
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the property for which the payment is made. |
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Sec. 16.144. OPTION TO LEASE. (a) A former owner of real |
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property that was acquired, voluntarily or through the exercise of |
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the power of eminent domain, for a reservoir is entitled to lease |
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the property from the person who acquired the property under terms |
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that allow the former owner to continue to use the property for its |
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existing use until physical construction of the reservoir begins. |
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(b) A former owner of real property used for agricultural |
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purposes is entitled to lease the property for not more than the |
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property's agricultural rental value. |
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Sec. 16.145. ENVIRONMENTAL MITIGATION. (a) If a person |
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constructing a reservoir is required to mitigate the past, present, |
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or future adverse environmental effects arising from the |
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construction or operation of the reservoir or its related |
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facilities, the person shall, if authorized by the applicable |
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regulatory authority, attempt to mitigate those effects by offering |
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to contract with and pay an amount of money to an owner of real |
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property to maintain, control, hold, restore, enhance, develop, or |
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redevelop the property instead of acquiring or managing property |
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for that purpose. |
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(b) An owner of real property may reject an offer made under |
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Subsection (a). |
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Sec. 16.146. ELIGIBILITY TO PARTICIPATE IN GOVERNMENT |
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PROGRAMS. Property located in the site of a reservoir designated |
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under Section 16.051 continues to be eligible for any public |
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program for which it was eligible before the designation. A state |
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agency or political subdivision may not consider the fact that the |
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property is included in a site that has been designated as being of |
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unique value for the construction of a reservoir when determining |
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the property's eligibility to participate in a public program whose |
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term is not longer than the period before physical construction of |
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the reservoir will begin. |
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SECTION 4. 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. |