Texas 2013 - 83rd Regular

Texas Senate Bill SB986 Compare Versions

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1	1	By: Duncan S.B. No. 986
2	2	(Darby)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the powers and duties of the board of regents of the
8	8	Texas Tech University System.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Subchapter A, Chapter 109,
11	11	Education Code, is amended to read as follows:
12	12	SUBCHAPTER A. GENERAL AND ADMINISTRATIVE PROVISIONS
13	13	SECTION 2. Section 109.001, Education Code, is amended by
14	14	adding Subsection (d) to read as follows:
15	15	(d) The board may accept, retain in depositories of its
16	16	choosing, and administer, on terms and conditions acceptable to the
17	17	board, gifts, grants, or donations of any kind, from any source, for
18	18	use by the system or any of the component institutions of the
19	19	system.
20	20	SECTION 3. Sections 109.21, 109.22, and 109.23, Education
21	21	Code, are transferred to Subchapter A, Chapter 109, Education Code,
22	22	redesignated as Sections 109.002, 109.003, and 109.004, Education
23	23	Code, and amended to read as follows:
24	24	Sec. 109.002 [109.21]. BOARD OF REGENTS. The government,
25	25	control, and direction of the policies of the university system and
26	26	the component institutions are vested in a board of nine regents,
27	27	who shall be appointed by the governor with the advice and consent
28	28	of the senate.
29	29	Sec. 109.003 [109.22]. BOARD MEMBERS: TERMS, VACANCIES.
30	30	Members of the board will [Except for the initial appointees,
31	31	members] hold office for staggered [of] terms of six years, with the
32	32	terms of three members expiring on January 31 of odd-numbered
33	33	years. [In making the initial appointments, the governor shall
34	34	designate three for terms expiring in 1971, three for terms
35	35	expiring in 1973, and three for terms expiring in 1975.] Any
36	36	vacancy shall be filled for the unexpired portion of the term by
37	37	appointment by the governor with the advice and consent of the
38	38	senate.
39	39	Sec. 109.004 [109.23]. CHIEF EXECUTIVE OFFICER:
40	40	SELECTION, DUTIES. The board shall appoint [provide] a chief
41	41	executive officer, who shall devote the officer's [his] attention
42	42	to the executive management of the university system and who shall
43	43	be directly accountable to the board for the conduct of the
44	44	university system. The board, when required by law to be the
45	45	governing body of any other state educational institution or
46	46	facility, shall also direct the chief executive officer to be
47	47	directly responsible for the executive management of that other
48	48	institution or facility.
49	49	SECTION 4. The heading to Subchapter B, Chapter 109,
50	50	Education Code, is amended to read as follows:
51	51	SUBCHAPTER B. POWERS AND DUTIES [ADMINISTRATIVE PROVISIONS]
52	52	SECTION 5. Sections 109.41, 109.42, 109.48, and 109.54,
53	53	Education Code, are transferred to Subchapter B, Chapter 109,
54	54	Education Code, redesignated as Sections 109.051, 109.052,
55	55	109.053, and 109.054, Education Code, and amended to read as
56	56	follows:
57	57	Sec. 109.051 [109.41]. EMINENT DOMAIN. The board of
58	58	regents has the power of eminent domain to acquire land and
59	59	improvements needed to carry out the purposes of the university
60	60	system and the component institutions.
61	61	Sec. 109.052 [109.42]. RESIDENCES FOR CHANCELLOR AND
62	62	PRESIDENTS [RESIDENCE FOR PRESIDENT]. The board may purchase a
63	63	house or may purchase land and construct a house suitable for the
64	64	residence of the chancellor of the university system or a president
65	65	of a component [the] university.
66	66	Sec. 109.053 [109.48]. UTILITIES EASEMENTS. On terms,
67	67	conditions, stipulations, and compensation as determined by the
68	68	board, the board may convey, dedicate, or use any other appropriate
69	69	method of conveyance to grant, convey, or dedicate rights, title,
70	70	rights-of-way, or easements involving or in connection with the
71	71	furnishing or providing of electricity, water, sewage disposal,
72	72	natural gas, telephone, telegraph, or other utility service on,
73	73	over, or through the campuses [campus] of the Texas Tech University
74	74	System and the component institutions [in Lubbock County]. The
75	75	chairman of the board may execute and deliver conveyances or
76	76	dedications on behalf of the university system and the component
77	77	institutions [Texas Tech University].
78	78	Sec. 109.054 [109.54]. MANAGEMENT OF LANDS. The board has
79	79	the sole and exclusive management and control of lands set aside and
80	80	appropriated to or acquired by the institutions under its
81	81	governance. The board may lease, sell, exchange, acquire, dispose
82	82	of, and otherwise manage, control, and use the lands in any manner
83	83	and at prices and under terms and conditions the board deems best
84	84	for the interest of the institutions. However, the board may not
85	85	sell any of the original main campus of Texas Tech University
86	86	located in Lubbock, Lubbock County, unless the sale is approved by
87	87	act of the legislature. No grazing lease shall be made for a period
88	88	of more than five years.
89	89	SECTION 6. The heading to Subchapter C, Chapter 109,
90	90	Education Code, is amended to read as follows:
91	91	SUBCHAPTER C. TEXAS TECH UNIVERSITY [POWERS AND DUTIES]
92	92	SECTION 7. Section 109.01, Education Code, is transferred
93	93	to Subchapter C, Chapter 109, Education Code, and redesignated as
94	94	Section 109.101, Education Code, to read as follows:
95	95	Sec. 109.101 [109.01]. TEXAS TECH UNIVERSITY. Texas Tech
96	96	University is a coeducational institution of higher education
97	97	located in the city of Lubbock.
98	98	SECTION 8. Sections 109.43, 109.45, and 109.52, Education
99	99	Code, are redesignated as Sections 109.102, 109.103, and 109.104,
100	100	Education Code, and amended to read as follows:
101	101	Sec. 109.102 [109.43]. DORMITORIES: RULES AND
102	102	REGULATIONS. The board may adopt rules and regulations it deems
103	103	advisable requiring any class or classes of students to reside in
104	104	university dormitories or other buildings.
105	105	Sec. 109.103 [109.45]. [CITY] MUSEUM. (a) The board may
106	106	establish [rent, lease, or convey, for a sum of money to be
107	107	determined by the board, a part of the campus, not to exceed four
108	108	acres, to the city of Lubbock for the sole purpose of building, with
109	109	bonds or current city taxes, and maintaining with city tax money,] a
110	110	history, science, and art museum.
111	111	(b) The board may provide [rent or lease] a building or any
112	112	part of a building [on the parcel of land to the city of Lubbock] for
113	113	the sole purpose of maintaining a history, science, and art museum
114	114	[for a sum of money to be determined by the board].
115	115	[(c) The board may dedicate for public use a street or
116	116	streets leading to and connecting the parcel of land and building
117	117	and to provide ingress and egress to and from a public highway and
118	118	to and from adjacent parking lots.
119	119	[(d) The board, at its discretion, may contract with the
120	120	city of Lubbock for the staffing, operation, and maintenance of a
121	121	history and art museum with funds provided by the city of Lubbock.
122	122	[(e) The board may enter into contracts and agreements which
123	123	are necessary and proper for carrying out the provisions of this
124	124	section, provided that no expenditure of money by the board shall be
125	125	made except as may be appropriated by the legislature.]
126	126	Sec. 109.104 [109.52]. DONATIONS, GIFTS, GRANTS, AND
127	127	ENDOWMENTS. The board may accept donations, gifts, grants, and
128	128	endowments for Texas Tech University to be held for the benefit of
129	129	the institution [in trust] and administered by the board.
130	130	SECTION 9. Subchapter D, Chapter 109, Education Code, is
131	131	amended to read as follows:
132	132	SUBCHAPTER D. MINERAL DEVELOPMENT IN UNIVERSITY LAND
133	133	Sec. 109.151 [109.61]. MINERAL LEASES; DISPOSITION OF
134	134	PROCEEDS. (a) The board may lease for oil, gas, sulphur, or other
135	135	mineral development to the highest bidder at public auction all or
136	136	part of the lands under the exclusive control of the board owned by
137	137	the State of Texas and acquired for the use of Texas Tech University
138	138	and its divisions.
139	139	(b) Any money received by virtue of this section shall be
140	140	deposited in a special fund managed by the board to be known as the
141	141	Texas Tech University special mineral fund. Money in the fund is
142	142	considered to be institutional funds, as defined by Section 51.009,
143	143	of the university and is to be used exclusively for the university
144	144	[and its branches and divisions]. All deposits in and investments
145	145	of the fund shall be made in accordance with Section 51.0031.
146	146	Section 34.017, Natural Resources Code, does not apply to the fund.
147	147	Sec. 109.152 [109.62]. MAJORITY OF BOARD TO ACT. A
148	148	majority of the board has power to act in all cases under this
149	149	subchapter except as otherwise provided in this subchapter.
150	150	Sec. 109.153 [109.63]. SUBDIVISION OF LAND; TITLES.
151	151	(a) The board may have the lands surveyed or subdivided into
152	152	tracts, lots, or blocks which, in its [their] judgment, will be most
153	153	conducive and convenient to an advantageous sale or lease of oil,
154	154	gas, sulphur, or other minerals in and under and that may be
155	155	produced from the lands; and the board may make maps and plats which
156	156	it deems necessary to carry out the purposes of this subchapter.
157	157	(b) The board may obtain authentic abstracts of title to the
158	158	lands from time to time as it deems necessary and may take necessary
159	159	steps to perfect a merchantable title to the lands.
160	160	Sec. 109.154 [109.64]. SALE OF LEASES; ADVERTISEMENTS;
161	161	PAYMENTS. (a) Whenever in the opinion of the board there is a
162	162	demand for the purchase of oil, gas, sulphur, or other mineral
163	163	leases on any tract or part of any tract of land which can be [will]
164	164	reasonably expected to result in [insure] an advantageous sale, the
165	165	board shall place the oil, gas, sulphur, or other mineral leases on
166	166	the land on the market in a tract or tracts, or any part of a tract,
167	167	which the board may designate.
168	168	(b) The board shall have advertised a brief description of
169	169	the land from which the oil, gas, sulphur, or other minerals is
170	170	proposed to be leased. The advertisement shall be made by
171	171	publishing [inserting] in two or more papers of general circulation
172	172	in this state, and in addition, the board may, in its discretion,
173	173	cause the advertisement to be placed in an oil and gas journal
174	174	published in and out of the state. The board may also mail copies of
175	175	the proposals to the county judge of the county where the lands are
176	176	located and to other persons the board believes would be
177	177	interested. The board may specify that publication of the offer by
178	178	electronic means, including an Internet posting, satisfies the
179	179	requirement for publication of the advertisement in at least two
180	180	papers of general circulation in this state.
181	181	(c) The board may sell the lease or leases to the highest
182	182	bidder at public auction [at the university in Lubbock at any hour
183	183	between 10 a. m. and 5 p. m].
184	184	(d) The highest bidder shall pay to the board on the day of
185	185	the sale 25 percent of the bonus bid, and the balance of the bid
186	186	shall be paid within 24 hours after the bidder is notified that the
187	187	bid has been accepted. Payments shall be made in cash, certified
188	188	check, [or] cashier's check, or electronic payment, as the board
189	189	directs. The failure of the bidder to pay the balance of the amount
190	190	bid will forfeit to the board the 25 percent of the bonus bid paid.
191	191	Sec. 109.155 [109.65]. SEPARATE BIDS; MINIMUM ROYALTY;
192	192	DELAY RENTAL. (a) A separate bid shall be made for each tract or
193	193	subdivision of a tract.
194	194	(b) No bid shall be accepted which offers a royalty of less
195	195	than one-eighth of the gross production of oil, gas, sulphur, and
196	196	other minerals in the land bid upon. The board may increase[, and]
197	197	this minimum royalty [may be increased] at the discretion of the
198	198	board.
199	199	(c) Every bid shall carry the obligation to pay an amount
200	200	not less than $5 [$1] per acre for delay in drilling or development.
201	201	The amount shall be fixed by the board in advance of the
202	202	advertisement. The delay rental [amount fixed] shall be paid every
203	203	year for five years unless in the meantime production in paying
204	204	quantities is had upon the land or the land is released by the
205	205	lessee.
206	206	Sec. 109.156 [109.66]. REJECTION OF BIDS; WITHDRAWAL OF
207	207	LAND. The board may reject any and all bids and may withdraw any
208	208	land advertised for lease.
209	209	Sec. 109.157 [109.67]. ACCEPTANCE; CONDITIONS AND
210	210	PROVISIONS OF LEASE. (a) If, in the opinion of the board, [any one
211	211	of] the highest bidder [bidders] has offered a reasonable and
212	212	proper price for any tract, which is not less than the price set by
213	213	the board, the lands advertised may be leased for oil, gas, sulphur,
214	214	and other mineral purposes under the terms of this section and
215	215	subject to regulations prescribed by the board which are not
216	216	inconsistent with the provisions of this section. In the event no
217	217	bid is accepted by the board at public auction, any subsequent
218	218	procedure for the sale of the leases shall be in the manner
219	219	prescribed in the preceding sections.
220	220	(b) No lease shall be made by the board which will permit the
221	221	drilling or mining for oil, gas, sulphur, or other minerals within
222	222	500 [300] feet of any building or structure on the land without the
223	223	consent of the board. In making any lease on any experimental
224	224	station or farm, the lease shall provide that the operations for
225	225	oil, gas, and other minerals shall not in any way interfere with use
226	226	of the land for university purposes and shall not cause the
227	227	abandonment of the property or its use for experimental farm
228	228	purposes. The lease shall also provide that the lessee operating
229	229	the property shall drill and carry on the lessee's [his] operations
230	230	in such a way as not to interfere with uses [cause the abandonment]
231	231	of the property for university purposes, and the leased property
232	232	shall be subject to the use by the state for all university
233	233	purposes[, and the board shall continue to operate the university].
234	234	Sec. 109.158 [109.68]. ACCEPTANCE AND FILING OF BIDS;
235	235	[YEARLY PAYMENTS;] TERMINATION OF LEASE. (a) If the board
236	236	determines that a satisfactory bid has been received for the oil,
237	237	gas, sulphur, or other mineral lands, it shall accept the bid and
238	238	reject all others and shall file the accepted bid in the general
239	239	land office.
240	240	(b) [Whenever the royalties shall amount to as much as the
241	241	yearly payments fixed by the board, the yearly payments may be
242	242	discontinued.
243	243	[(c)] If before the expiration of five years oil, gas,
244	244	sulphur, or other minerals have not been produced in paying
245	245	quantities, the lease shall terminate unless extended as provided
246	246	in Sections 109.160 [109.70] and 109.161 [109.71 of this code].
247	247	Sec. 109.159 [109.69]. AWARD AND FILING OF LEASE. If the
248	248	board determines that a satisfactory bid has been received for the
249	249	oil, gas, sulphur, or other minerals, it shall make an award to the
250	250	bidder offering the highest price, and a lease shall be filed in the
251	251	general land office.
252	252	Sec. 109.160 [109.70]. EXPLORATORY TERM OF LEASE;
253	253	EXTENSION; OTHER PROVISIONS. (a) The exploratory term of a lease
254	254	as determined by the board prior to the promulgation of the
255	255	advertisement shall not exceed five years, and each lease shall
256	256	provide that the lease will terminate at the expiration of its
257	257	exploratory term unless by unanimous vote of the board the lease is
258	258	extended for a period not to exceed [of] three years.
259	259	(b) [The lease may be extended if the board finds that there
260	260	is a likelihood of oil, gas, sulphur, or other minerals being
261	261	discovered by the lessees, and that the lessees have proceeded with
262	262	diligence to protect the interest of the state.] If oil, gas,
263	263	sulphur, or other minerals are being produced in paying quantities
264	264	from the premises, the lease shall continue in force and effect as
265	265	long as the oil, gas, sulphur, or other minerals are being so
266	266	produced. No extension may be made by the board until the last 30
267	267	days of the original term of the lease.
268	268	(c) The lease shall include additional provisions and
269	269	regulations prescribed by the board to preserve the interest of the
270	270	state, not inconsistent with the provisions of this subchapter.
271	271	Sec. 109.161 [109.71]. EXTENSION OF LEASES. When in the
272	272	discretion of the board it is deemed for the best interest of the
273	273	state to extend a lease issued by the board, the board may by
274	274	unanimous vote extend the lease for a period not to exceed three
275	275	years, on the condition that the lessee shall continue to pay yearly
276	276	rental as provided in the lease and shall comply with any additional
277	277	terms [which] the board requires [may see fit and proper to demand].
278	278	The board may extend the lease and execute an extension agreement.
279	279	Sec. 109.162 [109.72]. CONTROL OF DRILLING AND PRODUCTION.
280	280	The drilling for and the production of oil, gas, and other minerals
281	281	from the lands shall be governed and controlled by the Railroad
282	282	Commission of Texas and other applicable regulatory bodies which
283	283	govern and control other fields in this state.
284	284	Sec. 109.163 [109.73]. DRILLING OPERATIONS: SUSPENSION OF
285	285	RENT; CONTINUANCE OF LEASE; DUTY TO PREVENT DRAINAGE. (a) If
286	286	during the term of a lease issued under the provisions of this
287	287	subchapter the lessee is engaged in actual drilling operations for
288	288	the discovery of oil, gas, sulphur, or other minerals, no rentals
289	289	shall be payable as to the tract on which the operations are being
290	290	conducted as long as the operations are proceeding in a good and
291	291	workmanlike manner in a good faith attempt to produce oil, gas,
292	292	sulphur, or other minerals from the well [faith].
293	293	(b) In the event oil, gas, sulphur, or other minerals are
294	294	discovered in paying quantities on any tract of land covered by a
295	295	lease, then the lease as to that tract shall remain in force as long
296	296	as oil, gas, sulphur, or other minerals are produced in paying
297	297	quantities from the tract.
298	298	(c) In the event of the discovery of oil, gas, sulphur, or
299	299	other minerals on any tract covered by a lease or on any land
300	300	adjoining the tract, the lessee shall conduct such operations as
301	301	may be necessary to prevent drainage from the tract covered by the
302	302	lease to properly develop the same to the extent that a reasonably
303	303	prudent individual [man] would do under the same and similar
304	304	circumstances.
305	305	Sec. 109.164 [109.74]. TITLE TO RIGHTS PURCHASED;
306	306	ASSIGNMENT; RELINQUISHMENT. (a) Title to all rights purchased may
307	307	be held by the lessee [owners] as long as the area produces oil,
308	308	gas, sulphur, or other minerals in paying quantities.
309	309	(b) All rights purchased may be assigned. All assignments
310	310	shall be filed in the general land office as prescribed by rule,
311	311	accompanied by 10 cents per acre for each acre assigned and the
312	312	filing fee as prescribed by rule. An assignment shall not be
313	313	effective unless filed as required by rule.
314	314	(c) All rights to all or any part of a leased tract may be
315	315	released to the state at any time by recording a release instrument
316	316	in the county or counties in which the tract is located. Releases
317	317	shall also be filed with the chairman of the board and the general
318	318	land office, accompanied by the filing fee prescribed by rule. A
319	319	release shall not relieve the lessee [owner] of any obligations or
320	320	liabilities incurred prior to the release.
321	321	(d) The board shall authorize any required infrastructure,
322	322	including [the laying of pipeline and telephone line and] the
323	323	opening of roads deemed reasonably necessary in carrying out the
324	324	purposes of this subchapter.
325	325	Sec. 109.165 [109.75]. PAYMENT OF ROYALTIES; RECORDS;
326	326	REPORT OF RECEIPTS. (a) If oil, gas, or other minerals are
327	327	developed on any of the lands leased by the board, the royalty as
328	328	stipulated in the sale shall be paid to the general land office in
329	329	Austin on or before the last day of each month for the preceding
330	330	month during the life of the rights purchased. The royalty payments
331	331	shall be set aside as specified in Section 109.151 [109.61] and used
332	332	as provided in that section.
333	333	(b) The royalty paid to the general land office shall be
334	334	accompanied by the sworn statement of the lessee [owner], manager,
335	335	or other authorized agent showing the gross amount of oil, gas,
336	336	sulphur, or other minerals produced and sold off the premises and
337	337	the market value of the minerals, together with a copy of all daily
338	338	gauges, or vats, tanks, gas meter readings, pipeline receipts, gas
339	339	line receipts, and other checks and memoranda of the amounts
340	340	produced and put into pipelines, vats, tanks, or pool and gas lines
341	341	or gas storage. The books and accounts, receipts and discharges of
342	342	all wells, tanks, vats, pools, meters, and pipelines, and all
343	343	contracts and other records pertaining to the production,
344	344	transportation, sale, and marketing of the oil, gas, sulphur, or
345	345	other minerals shall at all times be subject to inspection and
346	346	examination by any member of the board or any duly authorized
347	347	representative of the board.
348	348	(c) The commissioner of the general land office shall tender
349	349	to the board on or before the 10th day of each month a report of all
350	350	receipts that are collected from the lease or sale of oil, gas,
351	351	sulphur, or other minerals and that are deposited in the special
352	352	fund as provided by Section 109.151 [109.61] during the preceding
353	353	month.
354	354	Sec. 109.166 [109.76]. PROTECTION FROM DRAINAGE;
355	355	FORFEITURE OF RIGHTS. (a) In every case where the area in which
356	356	oil, gas, sulphur, or other minerals sold is contiguous or adjacent
357	357	to lands which are not lands belonging to and held by the
358	358	university, the acceptance of the bid and the sale made thereby
359	359	shall constitute an obligation of the lessee [owner] to adequately
360	360	protect the land leased from drainage from the adjacent lands to the
361	361	extent that a reasonably prudent operator would do under the same
362	362	and similar circumstances.
363	363	(b) In cases where the area in which the oil, gas, sulphur,
364	364	or other minerals sold is contiguous to other lands belonging to and
365	365	held by the university which have been leased or sold at a lesser
366	366	royalty, the lessee [owner] shall protect the land from drainage
367	367	from the lands leased or sold for a lesser royalty.
368	368	(c) On failure to protect the land from drainage as provided
369	369	in this section, the sale and all rights acquired may be forfeited
370	370	by the board in the manner provided in Section 109.167 [109.77 of
371	371	this code] for forfeitures.
372	372	Sec. 109.167 [109.77]. FORFEITURE AND OTHER REMEDIES;
373	373	LIENS. (a) Leases granted under the provisions of this chapter
374	374	are subject to forfeiture by the board by an order entered in the
375	375	minutes of the board reciting the acts or omissions constituting a
376	376	default and declaring a forfeiture.
377	377	(b) Any of the following acts or omissions constitutes a
378	378	default:
379	379	(1) the failure or refusal by the lessee [owner] of the
380	380	rights acquired under this chapter to make a payment of a sum due,
381	381	either as rental or royalty on production, within 30 days after the
382	382	payment becomes due;
383	383	(2) the making of a false return or false report
384	384	concerning production, royalty, drilling, or mining by the lessee
385	385	[owner] or the lessee's [his] authorized agent;
386	386	(3) the failure or refusal of the lessee [owner] or the
387	387	lessee's [his] agent to drill an offset well or wells in good faith,
388	388	as required by the lease;
389	389	(4) the refusal of the lessee [owner] or the lessee's
390	390	[his] agent to allow the proper authorities access to the records
391	391	and other data pertaining to the operations authorized in this
392	392	subchapter;
393	393	(5) the failure or refusal of the lessee [owner] or the
394	394	lessee's [his] authorized agent to give correct information to the
395	395	proper authorities, or to furnish the log of any well within 30 days
396	396	after production is found in paying quantities; or
397	397	(6) the violation by the lessee [owner] of any
398	398	material term of the lease.
399	399	(c) The board may, if it so desires, have suit for
400	400	forfeiture instituted through the attorney general.
401	401	(d) On proper showing by the forfeiting lessee [owner]
402	402	within 30 days after the declaration of forfeiture, the lease may be
403	403	reinstated at the discretion of the board and upon terms prescribed
404	404	by the board.
405	405	(e) In case of violation by the lessee [owner] of the lease
406	406	contract, the remedy of forfeiture shall not be the exclusive
407	407	remedy, and the state may institute suit for damages or specific
408	408	performance or both.
409	409	(f) The state shall have a first lien on oil, gas, sulphur,
410	410	or other minerals produced or that may be produced in the leased
411	411	area, and on all rigs, tanks, vats, pipelines, telephone lines, and
412	412	machinery and appliances used in the production and handling of
413	413	oil, gas, sulphur, or other minerals produced, to secure the amount
414	414	due from the lessee [owner of the lease].
415	415	Sec. 109.168 [109.78]. FILING OF DOCUMENTS AND PAYMENT OF
416	416	ROYALTIES, FEES, AND RENTALS. (a) All surveys, files, copies of
417	417	sale and lease contracts, and other records pertaining to the sales
418	418	and leases authorized in this subchapter shall be filed in the
419	419	general land office and shall constitute archives.
420	420	(b) Payment of all royalties, lease fees, rentals for delay
421	421	in drilling or mining, filing fees for assignments and
422	422	relinquishments, and all other payments shall be made to the
423	423	commissioner of the general land office at Austin. The
424	424	commissioner shall transmit all payments received to the board for
425	425	deposit to the credit of the Texas Tech University special mineral
426	426	fund as provided by Section 109.151 [109.61].
427	427	Sec. 109.169 [109.79]. FORMS, REGULATIONS, RULES, AND
428	428	CONTRACTS. The board shall adopt proper forms, regulations, rules,
429	429	and contracts which, in its judgment, will protect the income from
430	430	lands leased pursuant to this subchapter.
431	431	Sec. 109.170 [109.80]. MANAGEMENT OF SURFACE AND MINERAL
432	432	ESTATES. (a) The board may lease for oil, gas, sulphur, ore,
433	433	water, and other mineral development all land under its exclusive
434	434	control for the use of the university. The board may make and enter
435	435	into pooling agreements, division orders, or other contracts
436	436	necessary in the management and development of its land.
437	437	(b) All leases, pooling agreements, division orders, or
438	438	other contracts entered into by the board shall be on terms that the
439	439	board considers in the best interest of the university. The board
440	440	may not sell a lease for less than the royalty and rental terms
441	441	demanded at that time by the General Land Office in connection with
442	442	the sale of oil, gas, and other mineral leases of the public lands
443	443	of this state.
444	444	(c) All money received under the leases and contracts
445	445	executed for the management and development of the land, except
446	446	revenue pledged to the payment of revenue bonds or notes, shall be
447	447	deposited to the credit of a special fund created by the board. The
448	448	board shall designate a depository for the special fund and protect
449	449	the money deposited in it by the pledging of assets of the
450	450	depository in the same manner as is required for the protection of
451	451	public funds. Money deposited in the special fund may be used by
452	452	the board for the administration of the university, for payment of
453	453	principal of and interest on revenue bonds or notes issued by the
454	454	board, and for any other purpose that in the judgment of the board
455	455	may be for the good of the university.
456	456	SECTION 10. Sections 110.01, 110.02, and 110.11, Education
457	457	Code, are amended to read as follows:
458	458	Sec. 110.01. SEPARATE INSTITUTION. Texas Tech University
459	459	Health Sciences Center is a separate institution and not a
460	460	department, school, or branch of Texas Tech University but is under
461	461	the direction, management, and control of the Texas Tech University
462	462	System Board of Regents. The center is composed of a medical school
463	463	and other components assigned by law or by the coordinating board.
464	464	Sec. 110.02. CONCURRENT AND SEPARATE POWERS. The board of
465	465	regents has the same powers of governance, control, jurisdiction,
466	466	and management [direction, management, and control] over the Health
467	467	Sciences Center as it exercises [they exercise] over Texas Tech
468	468	University System and its components. However, the board shall act
469	469	separately and independently on all matters affecting the Health
470	470	Sciences Center as a separate institution.
471	471	Sec. 110.11. MEDICAL SCHOOL ADMISSION POLICIES. The board
472	472	of regents [Board of Regents] shall promulgate appropriate rules
473	473	and regulations pertaining to the admission of students to the
474	474	medical school [which will provide for admission of those students
475	475	to its entering class each year who are equally or as well qualified
476	476	as all other students and who have entered a contract with or
477	477	received a commitment for a stipend, grant, loan or scholarship
478	478	from the State Rural Medical Education Board. The State Rural
479	479	Medical Education Board may contract with medical students
480	480	providing for such students to engage in a general or family
481	481	practice of medicine for not less than four years after licensing
482	482	and a period of medical residency, as determined by the rules and
483	483	regulations established by the State Rural Medical Education Board,
484	484	in cities of Texas which have a population of less than 5,000 or in
485	485	rural areas, as that term may be defined by the State Rural Medical
486	486	Education Board, and said Board is hereby given the authority to
487	487	define and from time to time redefine the term rural area, at the
488	488	time the medical practice is commenced. This contract shall
489	489	provide for a monthly stipend of at least $100 to be granted by the
490	490	State Rural Medical Education Board to each person under contract
491	491	with the State while enrolled as a medical school student].
492	492	SECTION 11. The following provisions of the Education Code
493	493	are repealed:
494	494	(1) Section 109.44;
495	495	(2) Section 109.46;
496	496	(3) Section 109.47;
497	497	(4) Section 109.49;
498	498	(5) Section 110.04; and
499	499	(6) Section 110.14.
500	500	SECTION 12. This Act takes effect immediately if it
501	501	receives a vote of two-thirds of all the members elected to each
502	502	house, as provided by Section 39, Article III, Texas Constitution.
503	503	If this Act does not receive the vote necessary for immediate
504	504	effect, this Act takes effect September 1, 2013.