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.
	* * * * *