Texas 2013 - 83rd Regular

Texas House Bill HB3047 Compare Versions

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1	1	83R9488 AED-F
2	2	By: Darby H.B. No. 3047
3	3	Substitute the following for H.B. No. 3047:
4	4	By: Clardy C.S.H.B. No. 3047
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the powers and duties of the board of regents of the
10	10	Texas Tech University System.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. The heading to Subchapter A, Chapter 109,
13	13	Education Code, is amended to read as follows:
14	14	SUBCHAPTER A. GENERAL AND ADMINISTRATIVE PROVISIONS
15	15	SECTION 2. Section 109.001, Education Code, is amended by
16	16	adding Subsection (d) to read as follows:
17	17	(d) The board may accept, retain in depositories of its
18	18	choosing, and administer, on terms and conditions acceptable to the
19	19	board, gifts, grants, or donations of any kind, from any source, for
20	20	use by the system or any of the component institutions of the
21	21	system.
22	22	SECTION 3. Sections 109.21, 109.22, and 109.23, Education
23	23	Code, are transferred to Subchapter A, Chapter 109, Education Code,
24	24	redesignated as Sections 109.002, 109.003, and 109.004, Education
25	25	Code, and amended to read as follows:
26	26	Sec. 109.002 [109.21]. BOARD OF REGENTS. The government,
27	27	control, and direction of the policies of the university system and
28	28	the component institutions are vested in a board of nine regents,
29	29	who shall be appointed by the governor with the advice and consent
30	30	of the senate.
31	31	Sec. 109.003 [109.22]. BOARD MEMBERS: TERMS, VACANCIES.
32	32	Members of the board will [Except for the initial appointees,
33	33	members] hold office for staggered [of] terms of six years, with the
34	34	terms of three members expiring on January 31 of odd-numbered
35	35	years. [In making the initial appointments, the governor shall
36	36	designate three for terms expiring in 1971, three for terms
37	37	expiring in 1973, and three for terms expiring in 1975.] Any
38	38	vacancy shall be filled for the unexpired portion of the term by
39	39	appointment by the governor with the advice and consent of the
40	40	senate.
41	41	Sec. 109.004 [109.23]. CHIEF EXECUTIVE OFFICER:
42	42	SELECTION, DUTIES. The board shall appoint [provide] a chief
43	43	executive officer, who shall devote the officer's [his] attention
44	44	to the executive management of the university system and who shall
45	45	be directly accountable to the board for the conduct of the
46	46	university system. The board, when required by law to be the
47	47	governing body of any other state educational institution or
48	48	facility, shall also direct the chief executive officer to be
49	49	directly responsible for the executive management of that other
50	50	institution or facility.
51	51	SECTION 4. The heading to Subchapter B, Chapter 109,
52	52	Education Code, is amended to read as follows:
53	53	SUBCHAPTER B. POWERS AND DUTIES [ADMINISTRATIVE PROVISIONS]
54	54	SECTION 5. Sections 109.41, 109.42, 109.48, and 109.54,
55	55	Education Code, are transferred to Subchapter B, Chapter 109,
56	56	Education Code, redesignated as Sections 109.051, 109.052,
57	57	109.053, and 109.054, Education Code, and amended to read as
58	58	follows:
59	59	Sec. 109.051 [109.41]. EMINENT DOMAIN. The board of
60	60	regents has the power of eminent domain to acquire land and
61	61	improvements needed to carry out the purposes of the university
62	62	system and the component institutions.
63	63	Sec. 109.052 [109.42]. RESIDENCES FOR CHANCELLOR AND
64	64	PRESIDENTS [RESIDENCE FOR PRESIDENT]. The board may purchase a
65	65	house or may purchase land and construct a house suitable for the
66	66	residence of the chancellor of the university system or a president
67	67	of a component [the] university.
68	68	Sec. 109.053 [109.48]. UTILITIES EASEMENTS. On terms,
69	69	conditions, stipulations, and compensation as determined by the
70	70	board, the board may convey, dedicate, or use any other appropriate
71	71	method of conveyance to grant, convey, or dedicate rights, title,
72	72	rights-of-way, or easements involving or in connection with the
73	73	furnishing or providing of electricity, water, sewage disposal,
74	74	natural gas, telephone, telegraph, or other utility service on,
75	75	over, or through the campuses [campus] of the Texas Tech University
76	76	System and the component institutions [in Lubbock County]. The
77	77	chairman of the board may execute and deliver conveyances or
78	78	dedications on behalf of the university system and the component
79	79	institutions [Texas Tech University].
80	80	Sec. 109.054 [109.54]. MANAGEMENT OF LANDS. The board has
81	81	the sole and exclusive management and control of lands set aside and
82	82	appropriated to or acquired by the institutions under its
83	83	governance. The board may lease, sell, exchange, acquire, dispose
84	84	of, and otherwise manage, control, and use the lands in any manner
85	85	and at prices and under terms and conditions the board deems best
86	86	for the interest of the institutions. However, the board may not
87	87	sell any of the original main campus of Texas Tech University
88	88	located in Lubbock, Lubbock County, unless the sale is approved by
89	89	act of the legislature. No grazing lease shall be made for a period
90	90	of more than five years.
91	91	SECTION 6. The heading to Subchapter C, Chapter 109,
92	92	Education Code, is amended to read as follows:
93	93	SUBCHAPTER C. TEXAS TECH UNIVERSITY [POWERS AND DUTIES]
94	94	SECTION 7. Section 109.01, Education Code, is transferred
95	95	to Subchapter C, Chapter 109, Education Code, and redesignated as
96	96	Section 109.101, Education Code, to read as follows:
97	97	Sec. 109.101 [109.01]. TEXAS TECH UNIVERSITY. Texas Tech
98	98	University is a coeducational institution of higher education
99	99	located in the city of Lubbock.
100	100	SECTION 8. Sections 109.43, 109.45, and 109.52, Education
101	101	Code, are redesignated as Sections 109.102, 109.103, and 109.104,
102	102	Education Code, and amended to read as follows:
103	103	Sec. 109.102 [109.43]. DORMITORIES: RULES AND
104	104	REGULATIONS. The board may adopt rules and regulations it deems
105	105	advisable requiring any class or classes of students to reside in
106	106	university dormitories or other buildings.
107	107	Sec. 109.103 [109.45]. [CITY] MUSEUM. (a) The board may
108	108	establish [rent, lease, or convey, for a sum of money to be
109	109	determined by the board, a part of the campus, not to exceed four
110	110	acres, to the city of Lubbock for the sole purpose of building, with
111	111	bonds or current city taxes, and maintaining with city tax money,] a
112	112	history, science, and art museum.
113	113	(b) The board may provide [rent or lease] a building or any
114	114	part of a building [on the parcel of land to the city of Lubbock] for
115	115	the sole purpose of maintaining a history, science, and art museum
116	116	[for a sum of money to be determined by the board].
117	117	[(c) The board may dedicate for public use a street or
118	118	streets leading to and connecting the parcel of land and building
119	119	and to provide ingress and egress to and from a public highway and
120	120	to and from adjacent parking lots.
121	121	[(d) The board, at its discretion, may contract with the
122	122	city of Lubbock for the staffing, operation, and maintenance of a
123	123	history and art museum with funds provided by the city of Lubbock.
124	124	[(e) The board may enter into contracts and agreements which
125	125	are necessary and proper for carrying out the provisions of this
126	126	section, provided that no expenditure of money by the board shall be
127	127	made except as may be appropriated by the legislature.]
128	128	Sec. 109.104 [109.52]. DONATIONS, GIFTS, GRANTS, AND
129	129	ENDOWMENTS. The board may accept donations, gifts, grants, and
130	130	endowments for Texas Tech University to be held for the benefit of
131	131	the institution [in trust] and administered by the board.
132	132	SECTION 9. Subchapter D, Chapter 109, Education Code, is
133	133	amended to read as follows:
134	134	SUBCHAPTER D. MINERAL DEVELOPMENT IN UNIVERSITY LAND
135	135	Sec. 109.151 [109.61]. MINERAL LEASES; DISPOSITION OF
136	136	PROCEEDS. (a) The board may lease for oil, gas, sulphur, or other
137	137	mineral development to the highest bidder at public auction all or
138	138	part of the lands under the exclusive control of the board owned by
139	139	the State of Texas and acquired for the use of Texas Tech University
140	140	and its divisions.
141	141	(b) Any money received by virtue of this section shall be
142	142	deposited in a special fund managed by the board to be known as the
143	143	Texas Tech University special mineral fund. Money in the fund is
144	144	considered to be institutional funds, as defined by Section 51.009,
145	145	of the university and is to be used exclusively for the university
146	146	[and its branches and divisions]. All deposits in and investments
147	147	of the fund shall be made in accordance with Section 51.0031.
148	148	Section 34.017, Natural Resources Code, does not apply to the fund.
149	149	Sec. 109.152 [109.62]. MAJORITY OF BOARD TO ACT. A
150	150	majority of the board has power to act in all cases under this
151	151	subchapter except as otherwise provided in this subchapter.
152	152	Sec. 109.153 [109.63]. SUBDIVISION OF LAND; TITLES. (a)
153	153	The board may have the lands surveyed or subdivided into tracts,
154	154	lots, or blocks which, in its [their] judgment, will be most
155	155	conducive and convenient to an advantageous sale or lease of oil,
156	156	gas, sulphur, or other minerals in and under and that may be
157	157	produced from the lands; and the board may make maps and plats
158	158	which it deems necessary to carry out the purposes of this
159	159	subchapter.
160	160	(b) The board may obtain authentic abstracts of title to the
161	161	lands from time to time as it deems necessary and may take necessary
162	162	steps to perfect a merchantable title to the lands.
163	163	Sec. 109.154 [109.64]. SALE OF LEASES; ADVERTISEMENTS;
164	164	PAYMENTS. (a) Whenever in the opinion of the board there is a
165	165	demand for the purchase of oil, gas, sulphur, or other mineral
166	166	leases on any tract or part of any tract of land which can be [will]
167	167	reasonably expected to result in [insure] an advantageous sale, the
168	168	board shall place the oil, gas, sulphur, or other mineral leases on
169	169	the land on the market in a tract or tracts, or any part of a tract,
170	170	which the board may designate.
171	171	(b) The board shall have advertised a brief description of
172	172	the land from which the oil, gas, sulphur, or other minerals is
173	173	proposed to be leased. The advertisement shall be made by
174	174	publishing [inserting] in two or more papers of general circulation
175	175	in this state, and in addition, the board may, in its discretion,
176	176	cause the advertisement to be placed in an oil and gas journal
177	177	published in and out of the state. The board may also mail copies of
178	178	the proposals to the county judge of the county where the lands are
179	179	located and to other persons the board believes would be
180	180	interested. The board may specify that publication of the offer by
181	181	electronic means, including an Internet posting, satisfies the
182	182	requirement for publication of the advertisement in at least two
183	183	papers of general circulation in this state.
184	184	(c) The board may sell the lease or leases to the highest
185	185	bidder at public auction [at the university in Lubbock at any hour
186	186	between 10 a. m. and 5 p. m].
187	187	(d) The highest bidder shall pay to the board on the day of
188	188	the sale 25 percent of the bonus bid, and the balance of the bid
189	189	shall be paid within 24 hours after the bidder is notified that the
190	190	bid has been accepted. Payments shall be made in cash, certified
191	191	check, [or] cashier's check, or electronic payment, as the board
192	192	directs. The failure of the bidder to pay the balance of the amount
193	193	bid will forfeit to the board the 25 percent of the bonus bid paid.
194	194	Sec. 109.155 [109.65]. SEPARATE BIDS; MINIMUM ROYALTY;
195	195	DELAY RENTAL. (a) A separate bid shall be made for each tract or
196	196	subdivision of a tract.
197	197	(b) No bid shall be accepted which offers a royalty of less
198	198	than one-eighth of the gross production of oil, gas, sulphur, and
199	199	other minerals in the land bid upon. The board may increase [, and]
200	200	this minimum royalty [may be increased] at the discretion of the
201	201	board.
202	202	(c) Every bid shall carry the obligation to pay an amount
203	203	not less than $5 [$1] per acre for delay in drilling or development.
204	204	The amount shall be fixed by the board in advance of the
205	205	advertisement. The delay rental [amount fixed] shall be paid every
206	206	year for five years unless in the meantime production in paying
207	207	quantities is had upon the land or the land is released by the
208	208	lessee.
209	209	Sec. 109.156 [109.66]. REJECTION OF BIDS; WITHDRAWAL OF
210	210	LAND. The board may reject any and all bids and may withdraw any
211	211	land advertised for lease.
212	212	Sec. 109.157 [109.67]. ACCEPTANCE; CONDITIONS AND
213	213	PROVISIONS OF LEASE. (a) If, in the opinion of the board, [any one
214	214	of] the highest bidder [bidders] has offered a reasonable and
215	215	proper price for any tract, which is not less than the price set by
216	216	the board, the lands advertised may be leased for oil, gas, sulphur,
217	217	and other mineral purposes under the terms of this section and
218	218	subject to regulations prescribed by the board which are not
219	219	inconsistent with the provisions of this section. In the event no
220	220	bid is accepted by the board at public auction, any subsequent
221	221	procedure for the sale of the leases shall be in the manner
222	222	prescribed in the preceding sections.
223	223	(b) No lease shall be made by the board which will permit the
224	224	drilling or mining for oil, gas, sulphur, or other minerals within
225	225	500 [300] feet of any building or structure on the land without the
226	226	consent of the board. In making any lease on any experimental
227	227	station or farm, the lease shall provide that the operations for
228	228	oil, gas, and other minerals shall not in any way interfere with use
229	229	of the land for university purposes and shall not cause the
230	230	abandonment of the property or its use for experimental farm
231	231	purposes. The lease shall also provide that the lessee operating
232	232	the property shall drill and carry on the lessee's [his] operations
233	233	in such a way as not to interfere with uses [cause the abandonment]
234	234	of the property for university purposes, and the leased property
235	235	shall be subject to the use by the state for all university
236	236	purposes[, and the board shall continue to operate the university].
237	237	Sec. 109.158 [109.68]. ACCEPTANCE AND FILING OF BIDS;
238	238	[YEARLY PAYMENTS;] TERMINATION OF LEASE. (a) If the board
239	239	determines that a satisfactory bid has been received for the oil,
240	240	gas, sulphur, or other mineral lands, it shall accept the bid and
241	241	reject all others and shall file the accepted bid in the general
242	242	land office.
243	243	(b) [Whenever the royalties shall amount to as much as the
244	244	yearly payments fixed by the board, the yearly payments may be
245	245	discontinued.
246	246	[(c)] If before the expiration of five years oil, gas,
247	247	sulphur, or other minerals have not been produced in paying
248	248	quantities, the lease shall terminate unless extended as provided
249	249	in Sections 109.160 [109.70] and 109.161 [109.71 of this code].
250	250	Sec. 109.159 [109.69]. AWARD AND FILING OF LEASE. If the
251	251	board determines that a satisfactory bid has been received for the
252	252	oil, gas, sulphur, or other minerals, it shall make an award to the
253	253	bidder offering the highest price, and a lease shall be filed in the
254	254	general land office.
255	255	Sec. 109.160 [109.70]. EXPLORATORY TERM OF LEASE;
256	256	EXTENSION; OTHER PROVISIONS. (a) The exploratory term of a lease
257	257	as determined by the board prior to the promulgation of the
258	258	advertisement shall not exceed five years, and each lease shall
259	259	provide that the lease will terminate at the expiration of its
260	260	exploratory term unless by unanimous vote of the board the lease is
261	261	extended for a period not to exceed [of] three years.
262	262	(b) [The lease may be extended if the board finds that there
263	263	is a likelihood of oil, gas, sulphur, or other minerals being
264	264	discovered by the lessees, and that the lessees have proceeded with
265	265	diligence to protect the interest of the state.] If oil, gas,
266	266	sulphur, or other minerals are being produced in paying quantities
267	267	from the premises, the lease shall continue in force and effect as
268	268	long as the oil, gas, sulphur, or other minerals are being so
269	269	produced. No extension may be made by the board until the last 30
270	270	days of the original term of the lease.
271	271	(c) The lease shall include additional provisions and
272	272	regulations prescribed by the board to preserve the interest of the
273	273	state, not inconsistent with the provisions of this subchapter.
274	274	Sec. 109.161 [109.71]. EXTENSION OF LEASES. When in the
275	275	discretion of the board it is deemed for the best interest of the
276	276	state to extend a lease issued by the board, the board may by
277	277	unanimous vote extend the lease for a period not to exceed three
278	278	years, on the condition that the lessee shall continue to pay yearly
279	279	rental as provided in the lease and shall comply with any additional
280	280	terms [which] the board requires [may see fit and proper to demand].
281	281	The board may extend the lease and execute an extension agreement.
282	282	Sec. 109.162 [109.72]. CONTROL OF DRILLING AND PRODUCTION.
283	283	The drilling for and the production of oil, gas, and other minerals
284	284	from the lands shall be governed and controlled by the Railroad
285	285	Commission of Texas and other applicable regulatory bodies which
286	286	govern and control other fields in this state.
287	287	Sec. 109.163 [109.73]. DRILLING OPERATIONS: SUSPENSION OF
288	288	RENT; CONTINUANCE OF LEASE; DUTY TO PREVENT DRAINAGE. (a) If
289	289	during the term of a lease issued under the provisions of this
290	290	subchapter the lessee is engaged in actual drilling operations for
291	291	the discovery of oil, gas, sulphur, or other minerals, no rentals
292	292	shall be payable as to the tract on which the operations are being
293	293	conducted as long as the operations are proceeding in a good and
294	294	workmanlike manner in a good faith attempt to produce oil, gas,
295	295	sulphur, or other minerals from the well [faith].
296	296	(b) In the event oil, gas, sulphur, or other minerals are
297	297	discovered in paying quantities on any tract of land covered by a
298	298	lease, then the lease as to that tract shall remain in force as long
299	299	as oil, gas, sulphur, or other minerals are produced in paying
300	300	quantities from the tract.
301	301	(c) In the event of the discovery of oil, gas, sulphur, or
302	302	other minerals on any tract covered by a lease or on any land
303	303	adjoining the tract, the lessee shall conduct such operations as
304	304	may be necessary to prevent drainage from the tract covered by the
305	305	lease to properly develop the same to the extent that a reasonably
306	306	prudent individual [man] would do under the same and similar
307	307	circumstances.
308	308	Sec. 109.164 [109.74]. TITLE TO RIGHTS PURCHASED;
309	309	ASSIGNMENT; RELINQUISHMENT. (a) Title to all rights purchased may
310	310	be held by the lessee [owners] as long as the area produces oil,
311	311	gas, sulphur, or other minerals in paying quantities.
312	312	(b) All rights purchased may be assigned. All assignments
313	313	shall be filed in the general land office as prescribed by rule,
314	314	accompanied by 10 cents per acre for each acre assigned and the
315	315	filing fee as prescribed by rule. An assignment shall not be
316	316	effective unless filed as required by rule.
317	317	(c) All rights to all or any part of a leased tract may be
318	318	released to the state at any time by recording a release instrument
319	319	in the county or counties in which the tract is located. Releases
320	320	shall also be filed with the chairman of the board and the general
321	321	land office, accompanied by the filing fee prescribed by rule. A
322	322	release shall not relieve the lessee [owner] of any obligations or
323	323	liabilities incurred prior to the release.
324	324	(d) The board shall authorize any required infrastructure,
325	325	including [the laying of pipeline and telephone line and] the
326	326	opening of roads deemed reasonably necessary in carrying out the
327	327	purposes of this subchapter.
328	328	Sec. 109.165 [109.75]. PAYMENT OF ROYALTIES; RECORDS;
329	329	REPORT OF RECEIPTS. (a) If oil, gas, or other minerals are
330	330	developed on any of the lands leased by the board, the royalty as
331	331	stipulated in the sale shall be paid to the general land office in
332	332	Austin on or before the last day of each month for the preceding
333	333	month during the life of the rights purchased. The royalty payments
334	334	shall be set aside as specified in Section 109.151 [109.61] and used
335	335	as provided in that section.
336	336	(b) The royalty paid to the general land office shall be
337	337	accompanied by the sworn statement of the lessee [owner], manager,
338	338	or other authorized agent showing the gross amount of oil, gas,
339	339	sulphur, or other minerals produced and sold off the premises and
340	340	the market value of the minerals, together with a copy of all daily
341	341	gauges, or vats, tanks, gas meter readings, pipeline receipts, gas
342	342	line receipts, and other checks and memoranda of the amounts
343	343	produced and put into pipelines, vats, tanks, or pool and gas lines
344	344	or gas storage. The books and accounts, receipts and discharges of
345	345	all wells, tanks, vats, pools, meters, and pipelines, and all
346	346	contracts and other records pertaining to the production,
347	347	transportation, sale, and marketing of the oil, gas, sulphur, or
348	348	other minerals shall at all times be subject to inspection and
349	349	examination by any member of the board or any duly authorized
350	350	representative of the board.
351	351	(c) The commissioner of the general land office shall tender
352	352	to the board on or before the 10th day of each month a report of all
353	353	receipts that are collected from the lease or sale of oil, gas,
354	354	sulphur, or other minerals and that are deposited in the special
355	355	fund as provided by Section 109.151 [109.61] during the preceding
356	356	month.
357	357	Sec. 109.166 [109.76]. PROTECTION FROM DRAINAGE;
358	358	FORFEITURE OF RIGHTS. (a) In every case where the area in which
359	359	oil, gas, sulphur, or other minerals sold is contiguous or adjacent
360	360	to lands which are not lands belonging to and held by the
361	361	university, the acceptance of the bid and the sale made thereby
362	362	shall constitute an obligation of the lessee [owner] to adequately
363	363	protect the land leased from drainage from the adjacent lands to the
364	364	extent that a reasonably prudent operator would do under the same
365	365	and similar circumstances.
366	366	(b) In cases where the area in which the oil, gas, sulphur,
367	367	or other minerals sold is contiguous to other lands belonging to and
368	368	held by the university which have been leased or sold at a lesser
369	369	royalty, the lessee [owner] shall protect the land from drainage
370	370	from the lands leased or sold for a lesser royalty.
371	371	(c) On failure to protect the land from drainage as provided
372	372	in this section, the sale and all rights acquired may be forfeited
373	373	by the board in the manner provided in Section 109.167 [109.77 of
374	374	this code] for forfeitures.
375	375	Sec. 109.167 [109.77]. FORFEITURE AND OTHER REMEDIES;
376	376	LIENS. (a) Leases granted under the provisions of this chapter are
377	377	subject to forfeiture by the board by an order entered in the
378	378	minutes of the board reciting the acts or omissions constituting a
379	379	default and declaring a forfeiture.
380	380	(b) Any of the following acts or omissions constitutes a
381	381	default:
382	382	(1) the failure or refusal by the lessee [owner] of the
383	383	rights acquired under this chapter to make a payment of a sum due,
384	384	either as rental or royalty on production, within 30 days after the
385	385	payment becomes due;
386	386	(2) the making of a false return or false report
387	387	concerning production, royalty, drilling, or mining by the lessee
388	388	[owner] or the lessee's [his] authorized agent;
389	389	(3) the failure or refusal of the lessee [owner] or the
390	390	lessee's [his] agent to drill an offset well or wells in good faith,
391	391	as required by the lease;
392	392	(4) the refusal of the lessee [owner] or the lessee's
393	393	[his] agent to allow the proper authorities access to the records
394	394	and other data pertaining to the operations authorized in this
395	395	subchapter;
396	396	(5) the failure or refusal of the lessee [owner] or the
397	397	lessee's [his] authorized agent to give correct information to the
398	398	proper authorities, or to furnish the log of any well within 30 days
399	399	after production is found in paying quantities; or
400	400	(6) the violation by the lessee [owner] of any
401	401	material term of the lease.
402	402	(c) The board may, if it so desires, have suit for
403	403	forfeiture instituted through the attorney general.
404	404	(d) On proper showing by the forfeiting lessee [owner]
405	405	within 30 days after the declaration of forfeiture, the lease may be
406	406	reinstated at the discretion of the board and upon terms prescribed
407	407	by the board.
408	408	(e) In case of violation by the lessee [owner] of the lease
409	409	contract, the remedy of forfeiture shall not be the exclusive
410	410	remedy, and the state may institute suit for damages or specific
411	411	performance or both.
412	412	(f) The state shall have a first lien on oil, gas, sulphur,
413	413	or other minerals produced or that may be produced in the leased
414	414	area, and on all rigs, tanks, vats, pipelines, telephone lines, and
415	415	machinery and appliances used in the production and handling of
416	416	oil, gas, sulphur, or other minerals produced, to secure the amount
417	417	due from the lessee [owner of the lease].
418	418	Sec. 109.168 [109.78]. FILING OF DOCUMENTS AND PAYMENT OF
419	419	ROYALTIES, FEES, AND RENTALS. (a) All surveys, files, copies of
420	420	sale and lease contracts, and other records pertaining to the sales
421	421	and leases authorized in this subchapter shall be filed in the
422	422	general land office and shall constitute archives.
423	423	(b) Payment of all royalties, lease fees, rentals for delay
424	424	in drilling or mining, filing fees for assignments and
425	425	relinquishments, and all other payments shall be made to the
426	426	commissioner of the general land office at Austin. The
427	427	commissioner shall transmit all payments received to the board for
428	428	deposit to the credit of the Texas Tech University special mineral
429	429	fund as provided by Section 109.151 [109.61].
430	430	Sec. 109.169 [109.79]. FORMS, REGULATIONS, RULES, AND
431	431	CONTRACTS. The board shall adopt proper forms, regulations, rules,
432	432	and contracts which, in its judgment, will protect the income from
433	433	lands leased pursuant to this subchapter.
434	434	Sec. 109.170 [109.80]. MANAGEMENT OF SURFACE AND MINERAL
435	435	ESTATES. (a) The board may lease for oil, gas, sulphur, ore,
436	436	water, and other mineral development all land under its exclusive
437	437	control for the use of the university. The board may make and enter
438	438	into pooling agreements, division orders, or other contracts
439	439	necessary in the management and development of its land.
440	440	(b) All leases, pooling agreements, division orders, or
441	441	other contracts entered into by the board shall be on terms that the
442	442	board considers in the best interest of the university. The board
443	443	may not sell a lease for less than the royalty and rental terms
444	444	demanded at that time by the General Land Office in connection with
445	445	the sale of oil, gas, and other mineral leases of the public lands
446	446	of this state.
447	447	(c) All money received under the leases and contracts
448	448	executed for the management and development of the land, except
449	449	revenue pledged to the payment of revenue bonds or notes, shall be
450	450	deposited to the credit of a special fund created by the board. The
451	451	board shall designate a depository for the special fund and protect
452	452	the money deposited in it by the pledging of assets of the
453	453	depository in the same manner as is required for the protection of
454	454	public funds. Money deposited in the special fund may be used by
455	455	the board for the administration of the university, for payment of
456	456	principal of and interest on revenue bonds or notes issued by the
457	457	board, and for any other purpose that in the judgment of the board
458	458	may be for the good of the university.
459	459	SECTION 10. Sections 110.01, 110.02, and 110.11, Education
460	460	Code, are amended to read as follows:
461	461	Sec. 110.01. SEPARATE INSTITUTION. Texas Tech University
462	462	Health Sciences Center is a separate institution and not a
463	463	department, school, or branch of Texas Tech University but is under
464	464	the direction, management, and control of the Texas Tech University
465	465	System Board of Regents. The center is composed of a medical school
466	466	and other components assigned by law or by the coordinating board.
467	467	Sec. 110.02. CONCURRENT AND SEPARATE POWERS. The board of
468	468	regents has the same powers of governance, control, jurisdiction,
469	469	and management [direction, management, and control] over the Health
470	470	Sciences Center as it exercises [they exercise] over Texas Tech
471	471	University System and its components. However, the board shall act
472	472	separately and independently on all matters affecting the Health
473	473	Sciences Center as a separate institution.
474	474	Sec. 110.11. MEDICAL SCHOOL ADMISSION POLICIES. The board
475	475	of regents [Board of Regents] shall promulgate appropriate rules
476	476	and regulations pertaining to the admission of students to the
477	477	medical school [which will provide for admission of those students
478	478	to its entering class each year who are equally or as well qualified
479	479	as all other students and who have entered a contract with or
480	480	received a commitment for a stipend, grant, loan or scholarship
481	481	from the State Rural Medical Education Board. The State Rural
482	482	Medical Education Board may contract with medical students
483	483	providing for such students to engage in a general or family
484	484	practice of medicine for not less than four years after licensing
485	485	and a period of medical residency, as determined by the rules and
486	486	regulations established by the State Rural Medical Education Board,
487	487	in cities of Texas which have a population of less than 5,000 or in
488	488	rural areas, as that term may be defined by the State Rural Medical
489	489	Education Board, and said Board is hereby given the authority to
490	490	define and from time to time redefine the term rural area, at the
491	491	time the medical practice is commenced. This contract shall
492	492	provide for a monthly stipend of at least $100 to be granted by the
493	493	State Rural Medical Education Board to each person under contract
494	494	with the State while enrolled as a medical school student].
495	495	SECTION 11. The following provisions of the Education Code
496	496	are repealed:
497	497	(1) Section 109.44;
498	498	(2) Section 109.46;
499	499	(3) Section 109.47;
500	500	(4) Section 109.49;
501	501	(5) Section 110.04; and
502	502	(6) Section 110.14.
503	503	SECTION 12. This Act takes effect immediately if it
504	504	receives a vote of two-thirds of all the members elected to each
505	505	house, as provided by Section 39, Article III, Texas Constitution.
506	506	If this Act does not receive the vote necessary for immediate
507	507	effect, this Act takes effect September 1, 2013.