By: Geren (Senate Sponsor - Kolkhorst) H.B. No. 1925
         (In the Senate - Received from the House April 20, 2015;
  May 5, 2015, read first time and referred to Committee on
  Agriculture, Water, and Rural Affairs; May 13, 2015, reported
  adversely, with favorable Committee Substitute by the following
  vote:  Yeas 6, Nays 0; May 13, 2015, sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR H.B. No. 1925 By:  Perry
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the transfer of the Texas Farm and Ranch Lands
  Conservation Program to the Parks and Wildlife Department.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 183, Natural Resources
  Code, is transferred to Subtitle E, Title 5, Parks and Wildlife
  Code, redesignated as Chapter 84, Parks and Wildlife Code, and
  amended to read as follows:
  CHAPTER 84 [SUBCHAPTER B]. TEXAS FARM AND RANCH LANDS CONSERVATION
  PROGRAM
         Sec. 84.001  [183.051]. PURPOSE. The purpose of the program
  established under this chapter [subchapter] is to enable and
  facilitate the purchase and donation of agricultural conservation
  easements.
         Sec. 84.002  [183.052]. DEFINITIONS. In this chapter
  [subchapter]:
               (1)  "Agricultural conservation easement" means a
  conservation easement in qualified land that is designed to
  accomplish one or more of the following additional purposes:
                     (A)  conserving water quality or quantity;
                     (B)  conserving native wildlife species through
  protection of their habitat;
                     (C)  conserving rare or sensitive plant species;
  or
                     (D)  conserving large tracts of qualified
  open-space land that are threatened with fragmentation or
  development.
               (2)  "Conservation easement" has the meaning assigned
  by Section 183.001, Natural Resources Code  ["Commissioner" means
  the commissioner of the General Land Office].
               (3)  "Council" means the Texas Farm and Ranch Lands
  Conservation Council established under Section 84.011 [183.061].
               (4)  "Fund" means the Texas farm and ranch lands
  conservation fund established under Section 84.008 [183.058].
               (5)  "Holder" has the meaning assigned by Section
  183.001, Natural Resources Code ["Land office" means the General
  Land Office].
               (6)  "Program" means the Texas farm and ranch lands
  conservation program established under this chapter [subchapter].
               (7)  "Purchase of agricultural conservation easement"
  means the purchase from a willing seller of an agricultural
  conservation easement.
               (8)  "Qualified easement holder" means a holder that
  is:
                     (A)  a state agency, a county, or a municipality;
  or
                     (B)  an organization that is exempt from federal
  income taxation under Section 501(a), Internal Revenue Code of
  1986, as an organization described by Section 501(c)(3) of that
  code and that is organized for the purpose of preserving
  agriculture, open space, or natural resources.
               (9)  "Qualified land" means qualified open-space land,
  as that term is defined by Section 23.51, Tax Code.
         Sec. 84.003  [183.053]. PROGRAM. The Texas farm and ranch
  lands conservation program is established as a program of the
  department [land office] for the purpose of administering the
  assistance to be provided by the fund for the purchase of
  agricultural conservation easements.
         Sec. 84.004  [183.054]. TERMS OF AGRICULTURAL CONSERVATION
  EASEMENT. (a) An agricultural conservation easement under this
  chapter [subchapter] must be perpetual or for a term of 30 years.
         (b)  The owner of qualified land and a potential purchaser of
  an agricultural conservation easement should consider and
  negotiate easement terms, including the following considerations:
               (1)  whether the landowner will receive a lump sum or
  annual payments;
               (2)  whether the term of the easement shall be
  perpetual or for a term of 30 years;
               (3)  whether a term easement is renewable;
               (4)  whether the landowner retains limited development
  rights; and
               (5)  the purchase price of the easement.
         (c)  An agricultural conservation easement may not be
  assigned to or enforced by a third party without the express written
  consent of the landowner.
         Sec. 84.005  [183.055]. TERMINATION OF EASEMENT. (a) Any
  time after an agricultural conservation easement is acquired with a
  grant awarded under this chapter [subchapter], the landowner may
  request that the council terminate the easement as provided by
  Subsection (b) on the ground that the landowner is unable to meet
  the conservation goals as described by Section 84.002(1)
  [183.052(1)]. The termination request must contain a verifiable
  statement of impossibility.
         (b)  On receipt of the request for termination, the council
  shall notify the qualified easement holder and conduct an inquiry.
  Not later than the 180th day after the date the council receives the
  request, the council shall notify the parties of the decision to
  grant or deny the request for termination. Either party may appeal
  the decision in district court not later than the 45th day after the
  date of the notification.
         Sec. 84.006  [183.056]. REPURCHASE BY LANDOWNER. (a) In
  this section:
               (1)  "Agricultural value" means the price as of the
  appraisal date a buyer willing, but not obligated, to buy would pay
  for a farm or ranch unit with land comparable in quality and
  composition to the subject property, but located in the nearest
  location where profitable farming or ranching is feasible.
               (2)  "Fair market value" means the price as of the
  appraisal date that a buyer willing, but not obligated, to buy would
  pay for the land at its best and most beneficial use under any
  obtainable development zoning category.
         (b)  If a request for termination of an agricultural
  conservation easement is granted under Section 84.005 [183.055],
  the director [commissioner] shall order an appraisal of the fair
  market value and the agricultural value of the property subject to
  the easement. The landowner shall bear the cost of the appraisal.
         (c)  Not later than the 180th day after the date of the
  appraisal under Subsection (b), the landowner must pay to the
  qualified easement holder an amount equal to the difference between
  the fair market value and the agricultural value. The qualified
  easement holder shall pay to the fund any amounts received under
  this subsection, not to exceed the amount paid by the fund for
  purchase of the easement.
         (d)  Not later than the 30th day after the date of payment by
  the landowner under Subsection (c), the qualified easement holder
  shall terminate the easement.
         (e)  If the request for termination is denied or if the
  landowner fails to make the payment required by Subsection (c) in
  the time required by that subsection, the landowner may not submit
  another request for termination of the easement before the fifth
  anniversary of the date of the last request.
         Sec. 84.007  [183.057]. PROTECTED LAND; NOTICE OF TAKING.
  (a) A department or agency of this state, a county, a municipality,
  another political subdivision, or a public utility may not approve
  any program or project that requires the use or taking through
  eminent domain of private land encumbered by an agricultural
  conservation easement purchased under this chapter [subchapter]
  unless the governmental entity or public utility acting through its
  governing body or officers determines that:
               (1)  there is no feasible and prudent alternative to
  the use or taking of the land; and
               (2)  the program or project includes all reasonable
  planning to minimize harm to the land resulting from the use or
  taking.
         (b)  A determination required by Subsection (a) may be made
  only at a properly noticed public hearing.
         (c)  The governing body or officers of the governmental
  entity or public utility may consider clearly enunciated local
  preferences, and the provisions of this chapter [subchapter] do not
  constitute a mandatory prohibition against the use of the area if
  the determinations required by Subsection (a) are made.
         (d)  If, after making the determination required by
  Subsection (a), a department or agency of this state, a county, a
  municipality, another political subdivision, or a public utility
  acquires by eminent domain a fee simple interest in land encumbered
  by an agricultural conservation easement purchased under this
  chapter [subchapter]:
               (1)  the easement on the condemned property terminates;
  and
               (2)  the entity exercising the power of eminent domain
  shall:
                     (A)  pay for an appraisal of the fair market
  value, as that term is defined by Section 84.006 [183.056], of the
  property subject to condemnation;
                     (B)  pay to the qualified easement holder an
  amount equal to the amount paid by the holder for the portion of the
  easement affecting the property to be condemned;
                     (C)  pay to the landowner an amount equal to the
  fair market value of the condemned property less the amount paid to
  the qualified easement holder under Paragraph (B); and
                     (D)  pay to the landowner and the qualified
  easement holder any additional damages to their interests in the
  remaining property, as determined by the special commissioners
  under Section 21.042, Property Code.
         (e)  If, after making the determination required by
  Subsection (a), a department or agency of this state, a county, a
  municipality, another political subdivision, or a public utility
  acquires by eminent domain an interest other than a fee simple
  interest in land encumbered by an agricultural conservation
  easement purchased under this chapter [subchapter]:
               (1)  the entity exercising the power of eminent domain
  shall pay for an appraisal of the fair market value, as that term is
  defined by Section 84.006 [183.056], of the property subject to
  condemnation; and
               (2)  the special commissioners shall consider the fair
  market value as the value of the property for purposes of assessing
  damages under Section 21.042, Property Code.
         (f)  The qualified easement holder shall pay to the fund any
  amounts received under Subsections (d) and (e), not to exceed the
  amount paid by the fund for the purchase of the easement.
         Sec. 84.008  [183.058]. TEXAS FARM AND RANCH LANDS
  CONSERVATION FUND. (a) The Texas farm and ranch lands conservation
  fund is an account in the general revenue fund that may be
  appropriated only to the department [land office] to be used as
  provided by Subsection (b). The fund may not be used for grants to
  purchase or acquire any right or interest in property by eminent
  domain. The fund consists of:
               (1)  money appropriated by the legislature to the fund;
               (2)  public or private grants, gifts, donations, or
  contributions;
               (3)  funds from any other source, including proceeds
  from the sale of bonds, state or federal mitigation funds, or funds
  from any local, state, or federal program;
               (4)  proceeds of the sale of real property not required
  for the management of real property under Section 31.065(d),
  Natural Resources Code; and
               (5)  proceeds of the sale of real property under
  Section 31.066(d), Natural Resources Code.
         (b)  The fund may be used only:
               (1)  to award grants to qualified easement holders for
  the purchase of agricultural conservation easements;
               (2)  to pay transaction costs related to the purchase
  of agricultural conservation easements, which may include
  reimbursement of appraisal costs; and
               (3)  to pay associated administrative costs of the
  department [land office], not to exceed five percent of the money in
  the fund.
         Sec. 84.009  [183.059]. ADMINISTRATION OF FUND. (a) The
  council may:
               (1)  adopt rules necessary to perform program duties
  under this chapter [subchapter];
               (2)  request, accept, and use gifts, loans, donations,
  aid, appropriations, guaranties, subsidies, grants, or
  contributions of any item of value for the furtherance of any
  purposes of this chapter [subchapter];
               (3)  establish, charge, and collect fees, charges, and
  penalties in connection with the programs, services, and activities
  provided for by this chapter [subchapter];
               (4)  make, enter into, and enforce contracts and
  agreements, and take other actions as may accomplish any of the
  purposes of this chapter [subchapter];
               (5)  seek ways to coordinate and leverage public and
  private sources of funding;
               (6)  adopt best practices and enforcement standards for
  the evaluation of easements purchased through grants from the fund;
               (7)  establish a protocol for the purchase of
  agricultural conservation easements and for the distribution of
  funds to approved applicants;
               (8)  administer grants awarded to successful
  applicants;
               (9)  ensure that agricultural conservation easements
  purchased under this chapter [subchapter] are not inconsistent with
  the preservation of open space and the conservation of wildlife
  habitat or water; and
               (10)  approve the termination of easements and take any
  other action necessary to further the goals of the program.
         (b)  To receive a grant from the fund under this chapter
  [subchapter], an applicant who is qualified to be an easement
  holder under this chapter [subchapter] must submit an application
  to the council. The application must:
               (1)  set out the parties' clear conservation goals
  consistent with the program;
               (2)  include a site-specific estimate-of-value
  appraisal by a licensed appraiser qualified to determine the market
  value of the easement; and
               (3)  include a memorandum of understanding signed by
  the landowner and the applicant indicating intent to sell an
  agricultural conservation easement and containing the terms of the
  contract for the sale of the easement.
         (c)  For the purposes of determining the amount of a grant
  under this chapter [subchapter], the value of an agricultural
  conservation easement shall be determined by a site-specific
  estimate-of-value appraisal performed by a licensed, qualified
  appraiser.
         Sec. 84.010  [183.060]. CRITERIA FOR AWARDING GRANTS. The
  council shall:
               (1)  give priority to applications that protect
  agricultural lands that are susceptible to development, including
  subdivision and fragmentation; and
               (2)  adopt a scoring process to be used in evaluating
  applications that considers the following:
                     (A) [(1)]  maintenance of landscape and watershed
  integrity to conserve water and natural resources;
                     (B) [(2)     protection of highly productive
  agricultural lands;
               [(3)]  protection of habitats for native plant and
  animal species, including habitats for endangered, threatened,
  rare, or sensitive species;
                     (C) [(4)     susceptibility of the subject property
  to subdivision, fragmentation, or other development;
               [(5)]  potential for leveraging state money allocated
  to the program with additional public or private money;
                     (D) [(6)]  proximity of the subject property to
  other protected lands;
                     (E) [(7)]  the term of the proposed easement,
  whether perpetual or for a term of 30 years; and
                     (F) [(8)]  a resource management plan agreed to by
  both parties and approved by the council.
         Sec. 84.011  [183.061]. TEXAS FARM AND RANCH LANDS
  CONSERVATION COUNCIL. (a) The Texas Farm and Ranch Lands
  Conservation Council is established to advise and assist the
  director [commissioner] with administration of the program and to
  select applicants to receive grants under this chapter [subchapter]
  using the criteria adopted by the council under Section 84.010
  [183.060]. The council consists of 12 members as follows:
               (1)  six members appointed by the governor as follows:
                     (A)  two members [one member] who each operate
  [operates] a family farm or ranch in this state;
                     (B)  one member who is the designated
  representative of an agricultural banking or lending organization
  and who has significant experience lending for farms and ranches or
  lands encumbered by conservation easements;
                     (C)  two members who are the designated
  representatives of a statewide agricultural organization in
  existence in this state for not less than 10 years; and
                     (D)  one member who is a designated representative
  of a statewide nonprofit organization that represents land trusts
  operating in this state; and
                     [(E) one member from a state institution of
  higher education who has significant experience with natural
  resources issues; and]
               (2)  six [four] ex officio members as follows:
                     (A)  the executive director of the State Soil and
  Water Conservation Board [the commissioner];
                     (B)  the commissioner of agriculture or the
  commissioner's designee;
                     (C)  the chair of the Texas Water Development
  Board, or the chair's designee [presiding officer of the Parks and
  Wildlife Commission or the presiding officer's designee]; [and]
                     (D)  the state conservationist of the Natural
  Resources Conservation Service of the United States Department of
  Agriculture or a designee of that person, who serves as a nonvoting
  member;
                     (E)  the presiding officer of the commission or
  the presiding officer's designee, who must be a member of the
  commission; and
                     (F)  the executive director of the Texas A&M
  Institute of Renewable Natural Resources.
         (b)  Appointed members of the council serve staggered terms
  of six years, with two of the members' terms expiring February 1 of
  each odd-numbered year.
         (c)  Appointments to and removal from the council shall be
  made by the governor without regard to the race, color, disability,
  sex, religion, age, or national origin of the appointees.
         (d)  The presiding officer of the commission or the presiding
  officer's [commissioner or the commissioner's] designee shall serve
  as the presiding officer of the council. The presiding officer of
  the commission may appoint, at that person's discretion, the
  executive director of the department or another member of the
  commission to serve as the presiding officer of the council. The
  presiding officer of the council [and] shall designate from among
  the members of the council an assistant presiding officer of the
  council to serve in that capacity at the will of the presiding
  officer of the council [commissioner]. The council may choose from
  its appointed members other officers as the council considers
  necessary.
         (e)  A member of the council is not entitled to compensation
  for service on the council but is entitled to reimbursement of the
  necessary and reasonable travel expenses incurred by the member
  while conducting the business of the council, as provided for state
  employees by the General Appropriations Act.
         (f)  The council shall meet not less than once each year.
         (g)  A person may not be appointed as a council member if the
  person or the person's spouse:
               (1)  is employed by or participates in the management
  of a business entity or other organization receiving money under
  the program;
               (2)  owns or controls, directly or indirectly, more
  than a 10 percent interest in a business entity or other
  organization receiving money under the program; or
               (3)  uses or receives a substantial amount of tangible
  goods, services, or money under the program other than
  reimbursement authorized by law for travel expenses as described by
  Subsection (e).
         (h)  In this subsection, "Texas trade association" means a
  cooperative and voluntarily joined statewide association of
  business or professional competitors in this state designed to
  assist its members and its industry or profession in dealing with
  mutual business or professional problems and in promoting their
  common interest. A person may not be an appointed member of the
  council if:
               (1)  the person is an officer, employee, or paid
  consultant of a Texas trade association for an occupation or
  profession with an interest in land conservation that is related to
  the occupation or profession; or
               (2)  the person's spouse is an officer, manager, or paid
  consultant of a Texas trade association for an occupation or
  profession with an interest in land conservation that is related to
  that occupation or profession.
         (i)  A person may not be an appointed member of the council or
  act as the general counsel to the council if the person is required
  to register as a lobbyist under Chapter 305, Government Code,
  because of the person's activities for compensation on behalf of an
  occupation or profession with an interest in land conservation that
  is related to that occupation or profession.
         (j)  It is a ground for removal from the council if a member:
               (1)  is ineligible for membership under this section;
               (2)  cannot, because of illness or disability,
  discharge the member's duties for a substantial part of the member's
  term; or
               (3)  is absent from more than half of the regularly
  scheduled council meetings that the member is eligible to attend
  during a calendar year without an excuse approved by a majority vote
  of the council.
         (k)  The validity of an action of the council is not affected
  by the fact that it is taken when a ground for removal of a
  participating council member exists.
         (l)  If the presiding officer of the council has knowledge
  that a potential ground for removal exists, the presiding officer
  of the council shall notify the director [commissioner] and the
  governor that a potential ground for removal exists.
         (m)  The presiding officer of the council or that person's
  [the presiding officer's] designee, with the assistance of staff of
  the department [land office], shall provide to members of the
  council information regarding a member's responsibilities under
  applicable laws relating to standards of conduct for state
  officers.
         (n)  A person who is appointed to and qualifies for office as
  a member of the council may not vote, deliberate, or be counted as a
  member in attendance at a meeting of the council until the person
  completes a training program that complies with this section. The
  training program must provide the person with information
  regarding:
               (1)  the legislation that created the council;
               (2)  the program to be administered under this chapter
  [subchapter];
               (3)  the role and functions of the council;
               (4)  the rules of the council, with an emphasis on the
  rules that relate to disciplinary and investigatory authority;
               (5)  the current budget for the council;
               (6)  the results of the most recent formal audit of the
  council;
               (7)  the requirements of:
                     (A)  the open meetings law, Chapter 551,
  Government Code;
                     (B)  the public information law, Chapter 552,
  Government Code;
                     (C)  the administrative procedure law, Chapter
  2001, Government Code; and
                     (D)  other laws relating to public officials,
  including conflict-of-interest laws; and
               (8)  any applicable policies adopted by the council or
  the Texas Ethics Commission.
         (o)  A person appointed to the council is entitled to
  reimbursement, as provided by the General Appropriations Act, for
  the travel expenses incurred in attending the training program
  regardless of whether the attendance at the training program occurs
  before or after the person qualifies for office.
         Sec. 84.012  [183.062]. EFFECT ON TAX APPRAISAL. An
  agricultural conservation easement under this chapter [subchapter]
  does not affect the eligibility of the property subject to the
  easement for appraisal for ad valorem tax purposes under Subchapter
  D, Chapter 23, Tax Code.
         Sec. 84.013 [183.063]. REPORT TO TEXAS DEPARTMENT OF
  TRANSPORTATION. Not later than the 10th day after the date of a
  closing of a purchase of an easement under this chapter
  [subchapter], the department [land office] shall provide the Texas
  Department of Transportation a legal description of the property
  subject to the easement and shall include with the description the
  date the closing occurred.
         SECTION 2.  Section 31.065(d), Natural Resources Code, is
  amended to read as follows:
         (d)  If real property acquired by grant, gift, devise, or
  bequest is not held as part of the permanent school fund or
  possessed, administered, or used by a particular state agency,
  board, commission, department, or other particular state entity,
  the commissioner may manage that real property or sell or exchange
  the real property under terms and conditions the commissioner
  determines to be in the best interest of the state.  Real property
  sold under this subsection must be sold in accordance with Section
  31.158.  Proceeds of the sale that are not required for the
  management of real property under this subsection shall be
  deposited in the Texas farm and ranch lands conservation fund
  established under Chapter 84, Parks and Wildlife Code [183].  Real
  property acquired under this subsection may be dedicated by the
  commissioner to any state agency, board, commission, or department,
  a political subdivision or other governmental entity of this state,
  or the federal government, for the benefit and use of the public in
  exchange for nonmonetary consideration, if the commissioner
  determines that the exchange is in the best interest of the state.
         SECTION 3.  Section 31.066(d), Natural Resources Code, is
  amended to read as follows:
         (d)  The commissioner may sell any title or interest acquired
  by the state under this section in accordance with Section
  31.158.  Proceeds of the sale shall be deposited in the Texas farm
  and ranch lands conservation fund established under Chapter 84,
  Parks and Wildlife Code [183].
         SECTION 4.  (a)  Not later than November 1, 2015, the
  governor shall make the appointments described by Section 84.011,
  Parks and Wildlife Code, as amended by this Act.
         (b)  Not later than November 1, 2015, the General Land Office
  and the Parks and Wildlife Department shall enter into a memorandum
  of understanding relating to the transfer of the administration of
  the Texas Farm and Ranch Lands Conservation Program from the
  General Land Office to the Parks and Wildlife Department. The
  memorandum of understanding must include a timetable and specific
  steps and methods for the transfer on January 1, 2016, of all
  powers, duties, obligations, rights, contracts, leases, records,
  real or personal property, personnel, and unspent and unobligated
  appropriations and other funds relating to the administration of
  the Texas Farm and Ranch Lands Conservation Program from the
  General Land Office to the Parks and Wildlife Department.
         (c)  On January 1, 2016, the following are transferred to the
  Parks and Wildlife Department:
               (1)  all powers, duties, obligations, and liabilities
  of the General Land Office relating to the administration of the
  Texas Farm and Ranch Lands Conservation Program;
               (2)  all unobligated and unexpended funds appropriated
  to the General Land Office designated for the purpose of the
  administration of the Texas Farm and Ranch Lands Conservation
  Program;
               (3)  all equipment and property of the General Land
  Office used for the administration of the Texas Farm and Ranch Lands
  Conservation Program;
               (4)  all personnel, as described by the memorandum of
  understanding entered into under Subsection (b) of this section;
  and
               (5)  all files and other records of the General Land
  Office kept by the office regarding the Texas Farm and Ranch Lands
  Conservation Program.
         (d)  Before January 1, 2016, the General Land Office may
  agree with the Parks and Wildlife Department to transfer any
  property of the General Land Office to the Parks and Wildlife
  Department to implement the transfer required by this Act.
         (e)  In the period beginning on the effective date of this
  Act and ending on January 1, 2016, the General Land Office shall
  continue to perform functions and activities under Subchapter B,
  Chapter 183, Natural Resources Code, as if that subchapter had not
  been transferred, redesignated, and amended by this Act, and the
  former law is continued in effect for that purpose.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2015.
 
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