By: Duncan S.B. No. 986
(Darby)
A BILL TO BE ENTITLED
AN ACT
relating to the powers and duties of the board of regents of the
Texas Tech University System.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter A, Chapter 109,
Education Code, is amended to read as follows:
SUBCHAPTER A. GENERAL AND ADMINISTRATIVE PROVISIONS
SECTION 2. Section 109.001, Education Code, is amended by
adding Subsection (d) to read as follows:
(d) The board may accept, retain in depositories of its
choosing, and administer, on terms and conditions acceptable to the
board, gifts, grants, or donations of any kind, from any source, for
use by the system or any of the component institutions of the
system.
SECTION 3. Sections 109.21, 109.22, and 109.23, Education
Code, are transferred to Subchapter A, Chapter 109, Education Code,
redesignated as Sections 109.002, 109.003, and 109.004, Education
Code, and amended to read as follows:
Sec. 109.002 [109.21]. BOARD OF REGENTS. The government,
control, and direction of the policies of the university system and
the component institutions are vested in a board of nine regents,
who shall be appointed by the governor with the advice and consent
of the senate.
Sec. 109.003 [109.22]. BOARD MEMBERS: TERMS, VACANCIES.
Members of the board will [Except for the initial appointees,
members] hold office for staggered [of] terms of six years, with the
terms of three members expiring on January 31 of odd-numbered
years. [In making the initial appointments, the governor shall
designate three for terms expiring in 1971, three for terms
expiring in 1973, and three for terms expiring in 1975.] Any
vacancy shall be filled for the unexpired portion of the term by
appointment by the governor with the advice and consent of the
senate.
Sec. 109.004 [109.23]. CHIEF EXECUTIVE OFFICER:
SELECTION, DUTIES. The board shall appoint [provide] a chief
executive officer, who shall devote the officer's [his] attention
to the executive management of the university system and who shall
be directly accountable to the board for the conduct of the
university system. The board, when required by law to be the
governing body of any other state educational institution or
facility, shall also direct the chief executive officer to be
directly responsible for the executive management of that other
institution or facility.
SECTION 4. The heading to Subchapter B, Chapter 109,
Education Code, is amended to read as follows:
SUBCHAPTER B. POWERS AND DUTIES [ADMINISTRATIVE PROVISIONS]
SECTION 5. Sections 109.41, 109.42, 109.48, and 109.54,
Education Code, are transferred to Subchapter B, Chapter 109,
Education Code, redesignated as Sections 109.051, 109.052,
109.053, and 109.054, Education Code, and amended to read as
follows:
Sec. 109.051 [109.41]. EMINENT DOMAIN. The board of
regents has the power of eminent domain to acquire land and
improvements needed to carry out the purposes of the university
system and the component institutions.
Sec. 109.052 [109.42]. RESIDENCES FOR CHANCELLOR AND
PRESIDENTS [RESIDENCE FOR PRESIDENT]. The board may purchase a
house or may purchase land and construct a house suitable for the
residence of the chancellor of the university system or a president
of a component [the] university.
Sec. 109.053 [109.48]. UTILITIES EASEMENTS. On terms,
conditions, stipulations, and compensation as determined by the
board, the board may convey, dedicate, or use any other appropriate
method of conveyance to grant, convey, or dedicate rights, title,
rights-of-way, or easements involving or in connection with the
furnishing or providing of electricity, water, sewage disposal,
natural gas, telephone, telegraph, or other utility service on,
over, or through the campuses [campus] of the Texas Tech University
System and the component institutions [in Lubbock County]. The
chairman of the board may execute and deliver conveyances or
dedications on behalf of the university system and the component
institutions [Texas Tech University].
Sec. 109.054 [109.54]. MANAGEMENT OF LANDS. The board has
the sole and exclusive management and control of lands set aside and
appropriated to or acquired by the institutions under its
governance. The board may lease, sell, exchange, acquire, dispose
of, and otherwise manage, control, and use the lands in any manner
and at prices and under terms and conditions the board deems best
for the interest of the institutions. However, the board may not
sell any of the original main campus of Texas Tech University
located in Lubbock, Lubbock County, unless the sale is approved by
act of the legislature. No grazing lease shall be made for a period
of more than five years.
SECTION 6. The heading to Subchapter C, Chapter 109,
Education Code, is amended to read as follows:
SUBCHAPTER C. TEXAS TECH UNIVERSITY [POWERS AND DUTIES]
SECTION 7. Section 109.01, Education Code, is transferred
to Subchapter C, Chapter 109, Education Code, and redesignated as
Section 109.101, Education Code, to read as follows:
Sec. 109.101 [109.01]. TEXAS TECH UNIVERSITY. Texas Tech
University is a coeducational institution of higher education
located in the city of Lubbock.
SECTION 8. Sections 109.43, 109.45, and 109.52, Education
Code, are redesignated as Sections 109.102, 109.103, and 109.104,
Education Code, and amended to read as follows:
Sec. 109.102 [109.43]. DORMITORIES: RULES AND
REGULATIONS. The board may adopt rules and regulations it deems
advisable requiring any class or classes of students to reside in
university dormitories or other buildings.
Sec. 109.103 [109.45]. [CITY] MUSEUM. (a) The board may
establish [rent, lease, or convey, for a sum of money to be
determined by the board, a part of the campus, not to exceed four
acres, to the city of Lubbock for the sole purpose of building, with
bonds or current city taxes, and maintaining with city tax money,] a
history, science, and art museum.
(b) The board may provide [rent or lease] a building or any
part of a building [on the parcel of land to the city of Lubbock] for
the sole purpose of maintaining a history, science, and art museum
[for a sum of money to be determined by the board].
[(c) The board may dedicate for public use a street or
streets leading to and connecting the parcel of land and building
and to provide ingress and egress to and from a public highway and
to and from adjacent parking lots.
[(d) The board, at its discretion, may contract with the
city of Lubbock for the staffing, operation, and maintenance of a
history and art museum with funds provided by the city of Lubbock.
[(e) The board may enter into contracts and agreements which
are necessary and proper for carrying out the provisions of this
section, provided that no expenditure of money by the board shall be
made except as may be appropriated by the legislature.]
Sec. 109.104 [109.52]. DONATIONS, GIFTS, GRANTS, AND
ENDOWMENTS. The board may accept donations, gifts, grants, and
endowments for Texas Tech University to be held for the benefit of
the institution [in trust] and administered by the board.
SECTION 9. Subchapter D, Chapter 109, Education Code, is
amended to read as follows:
SUBCHAPTER D. MINERAL DEVELOPMENT IN UNIVERSITY LAND
Sec. 109.151 [109.61]. MINERAL LEASES; DISPOSITION OF
PROCEEDS. (a) The board may lease for oil, gas, sulphur, or other
mineral development to the highest bidder at public auction all or
part of the lands under the exclusive control of the board owned by
the State of Texas and acquired for the use of Texas Tech University
and its divisions.
(b) Any money received by virtue of this section shall be
deposited in a special fund managed by the board to be known as the
Texas Tech University special mineral fund. Money in the fund is
considered to be institutional funds, as defined by Section 51.009,
of the university and is to be used exclusively for the university
[and its branches and divisions]. All deposits in and investments
of the fund shall be made in accordance with Section 51.0031.
Section 34.017, Natural Resources Code, does not apply to the fund.
Sec. 109.152 [109.62]. MAJORITY OF BOARD TO ACT. A
majority of the board has power to act in all cases under this
subchapter except as otherwise provided in this subchapter.
Sec. 109.153 [109.63]. SUBDIVISION OF LAND; TITLES.
(a) The board may have the lands surveyed or subdivided into
tracts, lots, or blocks which, in its [their] judgment, will be most
conducive and convenient to an advantageous sale or lease of oil,
gas, sulphur, or other minerals in and under and that may be
produced from the lands; and the board may make maps and plats which
it deems necessary to carry out the purposes of this subchapter.
(b) The board may obtain authentic abstracts of title to the
lands from time to time as it deems necessary and may take necessary
steps to perfect a merchantable title to the lands.
Sec. 109.154 [109.64]. SALE OF LEASES; ADVERTISEMENTS;
PAYMENTS. (a) Whenever in the opinion of the board there is a
demand for the purchase of oil, gas, sulphur, or other mineral
leases on any tract or part of any tract of land which can be [will]
reasonably expected to result in [insure] an advantageous sale, the
board shall place the oil, gas, sulphur, or other mineral leases on
the land on the market in a tract or tracts, or any part of a tract,
which the board may designate.
(b) The board shall have advertised a brief description of
the land from which the oil, gas, sulphur, or other minerals is
proposed to be leased. The advertisement shall be made by
publishing [inserting] in two or more papers of general circulation
in this state, and in addition, the board may, in its discretion,
cause the advertisement to be placed in an oil and gas journal
published in and out of the state. The board may also mail copies of
the proposals to the county judge of the county where the lands are
located and to other persons the board believes would be
interested. The board may specify that publication of the offer by
electronic means, including an Internet posting, satisfies the
requirement for publication of the advertisement in at least two
papers of general circulation in this state.
(c) The board may sell the lease or leases to the highest
bidder at public auction [at the university in Lubbock at any hour
between 10 a. m. and 5 p. m].
(d) The highest bidder shall pay to the board on the day of
the sale 25 percent of the bonus bid, and the balance of the bid
shall be paid within 24 hours after the bidder is notified that the
bid has been accepted. Payments shall be made in cash, certified
check, [or] cashier's check, or electronic payment, as the board
directs. The failure of the bidder to pay the balance of the amount
bid will forfeit to the board the 25 percent of the bonus bid paid.
Sec. 109.155 [109.65]. SEPARATE BIDS; MINIMUM ROYALTY;
DELAY RENTAL. (a) A separate bid shall be made for each tract or
subdivision of a tract.
(b) No bid shall be accepted which offers a royalty of less
than one-eighth of the gross production of oil, gas, sulphur, and
other minerals in the land bid upon. The board may increase[, and]
this minimum royalty [may be increased] at the discretion of the
board.
(c) Every bid shall carry the obligation to pay an amount
not less than $5 [$1] per acre for delay in drilling or development.
The amount shall be fixed by the board in advance of the
advertisement. The delay rental [amount fixed] shall be paid every
year for five years unless in the meantime production in paying
quantities is had upon the land or the land is released by the
lessee.
Sec. 109.156 [109.66]. REJECTION OF BIDS; WITHDRAWAL OF
LAND. The board may reject any and all bids and may withdraw any
land advertised for lease.
Sec. 109.157 [109.67]. ACCEPTANCE; CONDITIONS AND
PROVISIONS OF LEASE. (a) If, in the opinion of the board, [any one
of] the highest bidder [bidders] has offered a reasonable and
proper price for any tract, which is not less than the price set by
the board, the lands advertised may be leased for oil, gas, sulphur,
and other mineral purposes under the terms of this section and
subject to regulations prescribed by the board which are not
inconsistent with the provisions of this section. In the event no
bid is accepted by the board at public auction, any subsequent
procedure for the sale of the leases shall be in the manner
prescribed in the preceding sections.
(b) No lease shall be made by the board which will permit the
drilling or mining for oil, gas, sulphur, or other minerals within
500 [300] feet of any building or structure on the land without the
consent of the board. In making any lease on any experimental
station or farm, the lease shall provide that the operations for
oil, gas, and other minerals shall not in any way interfere with use
of the land for university purposes and shall not cause the
abandonment of the property or its use for experimental farm
purposes. The lease shall also provide that the lessee operating
the property shall drill and carry on the lessee's [his] operations
in such a way as not to interfere with uses [cause the abandonment]
of the property for university purposes, and the leased property
shall be subject to the use by the state for all university
purposes[, and the board shall continue to operate the university].
Sec. 109.158 [109.68]. ACCEPTANCE AND FILING OF BIDS;
[YEARLY PAYMENTS;] TERMINATION OF LEASE. (a) If the board
determines that a satisfactory bid has been received for the oil,
gas, sulphur, or other mineral lands, it shall accept the bid and
reject all others and shall file the accepted bid in the general
land office.
(b) [Whenever the royalties shall amount to as much as the
yearly payments fixed by the board, the yearly payments may be
discontinued.
[(c)] If before the expiration of five years oil, gas,
sulphur, or other minerals have not been produced in paying
quantities, the lease shall terminate unless extended as provided
in Sections 109.160 [109.70] and 109.161 [109.71 of this code].
Sec. 109.159 [109.69]. AWARD AND FILING OF LEASE. If the
board determines that a satisfactory bid has been received for the
oil, gas, sulphur, or other minerals, it shall make an award to the
bidder offering the highest price, and a lease shall be filed in the
general land office.
Sec. 109.160 [109.70]. EXPLORATORY TERM OF LEASE;
EXTENSION; OTHER PROVISIONS. (a) The exploratory term of a lease
as determined by the board prior to the promulgation of the
advertisement shall not exceed five years, and each lease shall
provide that the lease will terminate at the expiration of its
exploratory term unless by unanimous vote of the board the lease is
extended for a period not to exceed [of] three years.
(b) [The lease may be extended if the board finds that there
is a likelihood of oil, gas, sulphur, or other minerals being
discovered by the lessees, and that the lessees have proceeded with
diligence to protect the interest of the state.] If oil, gas,
sulphur, or other minerals are being produced in paying quantities
from the premises, the lease shall continue in force and effect as
long as the oil, gas, sulphur, or other minerals are being so
produced. No extension may be made by the board until the last 30
days of the original term of the lease.
(c) The lease shall include additional provisions and
regulations prescribed by the board to preserve the interest of the
state, not inconsistent with the provisions of this subchapter.
Sec. 109.161 [109.71]. EXTENSION OF LEASES. When in the
discretion of the board it is deemed for the best interest of the
state to extend a lease issued by the board, the board may by
unanimous vote extend the lease for a period not to exceed three
years, on the condition that the lessee shall continue to pay yearly
rental as provided in the lease and shall comply with any additional
terms [which] the board requires [may see fit and proper to demand].
The board may extend the lease and execute an extension agreement.
Sec. 109.162 [109.72]. CONTROL OF DRILLING AND PRODUCTION.
The drilling for and the production of oil, gas, and other minerals
from the lands shall be governed and controlled by the Railroad
Commission of Texas and other applicable regulatory bodies which
govern and control other fields in this state.
Sec. 109.163 [109.73]. DRILLING OPERATIONS: SUSPENSION OF
RENT; CONTINUANCE OF LEASE; DUTY TO PREVENT DRAINAGE. (a) If
during the term of a lease issued under the provisions of this
subchapter the lessee is engaged in actual drilling operations for
the discovery of oil, gas, sulphur, or other minerals, no rentals
shall be payable as to the tract on which the operations are being
conducted as long as the operations are proceeding in a good and
workmanlike manner in a good faith attempt to produce oil, gas,
sulphur, or other minerals from the well [faith].
(b) In the event oil, gas, sulphur, or other minerals are
discovered in paying quantities on any tract of land covered by a
lease, then the lease as to that tract shall remain in force as long
as oil, gas, sulphur, or other minerals are produced in paying
quantities from the tract.
(c) In the event of the discovery of oil, gas, sulphur, or
other minerals on any tract covered by a lease or on any land
adjoining the tract, the lessee shall conduct such operations as
may be necessary to prevent drainage from the tract covered by the
lease to properly develop the same to the extent that a reasonably
prudent individual [man] would do under the same and similar
circumstances.
Sec. 109.164 [109.74]. TITLE TO RIGHTS PURCHASED;
ASSIGNMENT; RELINQUISHMENT. (a) Title to all rights purchased may
be held by the lessee [owners] as long as the area produces oil,
gas, sulphur, or other minerals in paying quantities.
(b) All rights purchased may be assigned. All assignments
shall be filed in the general land office as prescribed by rule,
accompanied by 10 cents per acre for each acre assigned and the
filing fee as prescribed by rule. An assignment shall not be
effective unless filed as required by rule.
(c) All rights to all or any part of a leased tract may be
released to the state at any time by recording a release instrument
in the county or counties in which the tract is located. Releases
shall also be filed with the chairman of the board and the general
land office, accompanied by the filing fee prescribed by rule. A
release shall not relieve the lessee [owner] of any obligations or
liabilities incurred prior to the release.
(d) The board shall authorize any required infrastructure,
including [the laying of pipeline and telephone line and] the
opening of roads deemed reasonably necessary in carrying out the
purposes of this subchapter.
Sec. 109.165 [109.75]. PAYMENT OF ROYALTIES; RECORDS;
REPORT OF RECEIPTS. (a) If oil, gas, or other minerals are
developed on any of the lands leased by the board, the royalty as
stipulated in the sale shall be paid to the general land office in
Austin on or before the last day of each month for the preceding
month during the life of the rights purchased. The royalty payments
shall be set aside as specified in Section 109.151 [109.61] and used
as provided in that section.
(b) The royalty paid to the general land office shall be
accompanied by the sworn statement of the lessee [owner], manager,
or other authorized agent showing the gross amount of oil, gas,
sulphur, or other minerals produced and sold off the premises and
the market value of the minerals, together with a copy of all daily
gauges, or vats, tanks, gas meter readings, pipeline receipts, gas
line receipts, and other checks and memoranda of the amounts
produced and put into pipelines, vats, tanks, or pool and gas lines
or gas storage. The books and accounts, receipts and discharges of
all wells, tanks, vats, pools, meters, and pipelines, and all
contracts and other records pertaining to the production,
transportation, sale, and marketing of the oil, gas, sulphur, or
other minerals shall at all times be subject to inspection and
examination by any member of the board or any duly authorized
representative of the board.
(c) The commissioner of the general land office shall tender
to the board on or before the 10th day of each month a report of all
receipts that are collected from the lease or sale of oil, gas,
sulphur, or other minerals and that are deposited in the special
fund as provided by Section 109.151 [109.61] during the preceding
month.
Sec. 109.166 [109.76]. PROTECTION FROM DRAINAGE;
FORFEITURE OF RIGHTS. (a) In every case where the area in which
oil, gas, sulphur, or other minerals sold is contiguous or adjacent
to lands which are not lands belonging to and held by the
university, the acceptance of the bid and the sale made thereby
shall constitute an obligation of the lessee [owner] to adequately
protect the land leased from drainage from the adjacent lands to the
extent that a reasonably prudent operator would do under the same
and similar circumstances.
(b) In cases where the area in which the oil, gas, sulphur,
or other minerals sold is contiguous to other lands belonging to and
held by the university which have been leased or sold at a lesser
royalty, the lessee [owner] shall protect the land from drainage
from the lands leased or sold for a lesser royalty.
(c) On failure to protect the land from drainage as provided
in this section, the sale and all rights acquired may be forfeited
by the board in the manner provided in Section 109.167 [109.77 of
this code] for forfeitures.
Sec. 109.167 [109.77]. FORFEITURE AND OTHER REMEDIES;
LIENS. (a) Leases granted under the provisions of this chapter
are subject to forfeiture by the board by an order entered in the
minutes of the board reciting the acts or omissions constituting a
default and declaring a forfeiture.
(b) Any of the following acts or omissions constitutes a
default:
(1) the failure or refusal by the lessee [owner] of the
rights acquired under this chapter to make a payment of a sum due,
either as rental or royalty on production, within 30 days after the
payment becomes due;
(2) the making of a false return or false report
concerning production, royalty, drilling, or mining by the lessee
[owner] or the lessee's [his] authorized agent;
(3) the failure or refusal of the lessee [owner] or the
lessee's [his] agent to drill an offset well or wells in good faith,
as required by the lease;
(4) the refusal of the lessee [owner] or the lessee's
[his] agent to allow the proper authorities access to the records
and other data pertaining to the operations authorized in this
subchapter;
(5) the failure or refusal of the lessee [owner] or the
lessee's [his] authorized agent to give correct information to the
proper authorities, or to furnish the log of any well within 30 days
after production is found in paying quantities; or
(6) the violation by the lessee [owner] of any
material term of the lease.
(c) The board may, if it so desires, have suit for
forfeiture instituted through the attorney general.
(d) On proper showing by the forfeiting lessee [owner]
within 30 days after the declaration of forfeiture, the lease may be
reinstated at the discretion of the board and upon terms prescribed
by the board.
(e) In case of violation by the lessee [owner] of the lease
contract, the remedy of forfeiture shall not be the exclusive
remedy, and the state may institute suit for damages or specific
performance or both.
(f) The state shall have a first lien on oil, gas, sulphur,
or other minerals produced or that may be produced in the leased
area, and on all rigs, tanks, vats, pipelines, telephone lines, and
machinery and appliances used in the production and handling of
oil, gas, sulphur, or other minerals produced, to secure the amount
due from the lessee [owner of the lease].
Sec. 109.168 [109.78]. FILING OF DOCUMENTS AND PAYMENT OF
ROYALTIES, FEES, AND RENTALS. (a) All surveys, files, copies of
sale and lease contracts, and other records pertaining to the sales
and leases authorized in this subchapter shall be filed in the
general land office and shall constitute archives.
(b) Payment of all royalties, lease fees, rentals for delay
in drilling or mining, filing fees for assignments and
relinquishments, and all other payments shall be made to the
commissioner of the general land office at Austin. The
commissioner shall transmit all payments received to the board for
deposit to the credit of the Texas Tech University special mineral
fund as provided by Section 109.151 [109.61].
Sec. 109.169 [109.79]. FORMS, REGULATIONS, RULES, AND
CONTRACTS. The board shall adopt proper forms, regulations, rules,
and contracts which, in its judgment, will protect the income from
lands leased pursuant to this subchapter.
Sec. 109.170 [109.80]. MANAGEMENT OF SURFACE AND MINERAL
ESTATES. (a) The board may lease for oil, gas, sulphur, ore,
water, and other mineral development all land under its exclusive
control for the use of the university. The board may make and enter
into pooling agreements, division orders, or other contracts
necessary in the management and development of its land.
(b) All leases, pooling agreements, division orders, or
other contracts entered into by the board shall be on terms that the
board considers in the best interest of the university. The board
may not sell a lease for less than the royalty and rental terms
demanded at that time by the General Land Office in connection with
the sale of oil, gas, and other mineral leases of the public lands
of this state.
(c) All money received under the leases and contracts
executed for the management and development of the land, except
revenue pledged to the payment of revenue bonds or notes, shall be
deposited to the credit of a special fund created by the board. The
board shall designate a depository for the special fund and protect
the money deposited in it by the pledging of assets of the
depository in the same manner as is required for the protection of
public funds. Money deposited in the special fund may be used by
the board for the administration of the university, for payment of
principal of and interest on revenue bonds or notes issued by the
board, and for any other purpose that in the judgment of the board
may be for the good of the university.
SECTION 10. Sections 110.01, 110.02, and 110.11, Education
Code, are amended to read as follows:
Sec. 110.01. SEPARATE INSTITUTION. Texas Tech University
Health Sciences Center is a separate institution and not a
department, school, or branch of Texas Tech University but is under
the direction, management, and control of the Texas Tech University
System Board of Regents. The center is composed of a medical school
and other components assigned by law or by the coordinating board.
Sec. 110.02. CONCURRENT AND SEPARATE POWERS. The board of
regents has the same powers of governance, control, jurisdiction,
and management [direction, management, and control] over the Health
Sciences Center as it exercises [they exercise] over Texas Tech
University System and its components. However, the board shall act
separately and independently on all matters affecting the Health
Sciences Center as a separate institution.
Sec. 110.11. MEDICAL SCHOOL ADMISSION POLICIES. The board
of regents [Board of Regents] shall promulgate appropriate rules
and regulations pertaining to the admission of students to the
medical school [which will provide for admission of those students
to its entering class each year who are equally or as well qualified
as all other students and who have entered a contract with or
received a commitment for a stipend, grant, loan or scholarship
from the State Rural Medical Education Board. The State Rural
Medical Education Board may contract with medical students
providing for such students to engage in a general or family
practice of medicine for not less than four years after licensing
and a period of medical residency, as determined by the rules and
regulations established by the State Rural Medical Education Board,
in cities of Texas which have a population of less than 5,000 or in
rural areas, as that term may be defined by the State Rural Medical
Education Board, and said Board is hereby given the authority to
define and from time to time redefine the term rural area, at the
time the medical practice is commenced. This contract shall
provide for a monthly stipend of at least $100 to be granted by the
State Rural Medical Education Board to each person under contract
with the State while enrolled as a medical school student].
SECTION 11. The following provisions of the Education Code
are repealed:
(1) Section 109.44;
(2) Section 109.46;
(3) Section 109.47;
(4) Section 109.49;
(5) Section 110.04; and
(6) Section 110.14.
SECTION 12. 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, 2013.