Texas 2017 - 85th Regular

Texas House Bill HB1882 Compare Versions

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11 85R7609 KJE-F
22 By: King of Uvalde H.B. No. 1882
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the management of university land by The University of
88 Texas System.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 66.41, Education Code, is amended to
1111 read as follows:
1212 Sec. 66.41. MANAGEMENT OF UNIVERSITY LANDS. The board of
1313 regents of The University of Texas System has the sole and exclusive
1414 management and control of the lands set aside and appropriated to,
1515 or acquired by, the permanent university fund. The board may sell,
1616 lease, and otherwise manage, control, and use the lands in any
1717 manner and at prices and under terms and conditions the board deems
1818 best for the interest of the permanent university fund, not in
1919 conflict with the constitution or this chapter. However, the land
2020 shall not be sold at a price less per acre than that at which the
2121 same class of other public land may be sold under the statutes. No
2222 grazing lease shall be made for a period of more than 10 years.
2323 SECTION 2. Section 66.46, Education Code, is amended by
2424 amending Subsections (d) and (m) and adding Subsections (d-1), (n),
2525 and (o) to read as follows:
2626 (d) An easement under this section may not be granted for a
2727 term that is longer than 10 years, but the easement may be renewed
2828 by the board of regents. The rent to be charged for an easement
2929 under this section shall be:
3030 (1) an amount agreed to by the grantee and the board;
3131 or
3232 (2) if applicable, the amount determined as provided
3333 by Subsection (n).
3434 (d-1) Notwithstanding Subsection (d), the board of regents
3535 may grant or renew an easement or other interest in university land
3636 for a term longer than 10 years, and may charge below market rate
3737 rent for the interest, if:
3838 (1) the interest is granted or renewed to a
3939 municipality, a river authority, an electric cooperative organized
4040 under Chapter 161, Utilities Code, or a nonprofit organization; and
4141 (2) the terms of the interest:
4242 (A) require the grantee to use the land in a
4343 manner that primarily promotes a public purpose of the board and
4444 benefits the land; and
4545 (B) include provisions under which the board is
4646 granted sufficient control to ensure that the public purpose is
4747 accomplished and the board receives the return benefit.
4848 (m) The board of regents shall establish procedures by which
4949 a person seeking an easement or other interest under this section
5050 may seek relief from a rate or damage schedule or from the rent or
5151 other amount to be charged for the interest being sought that the
5252 person believes does not represent the fair market value of the
5353 interest [being sought]. The procedures must require:
5454 (1) the fair market value of the interest to be
5555 conclusively determined by an appraisal obtained by the person
5656 seeking relief and conducted by an appraiser licensed or certified
5757 under Chapter 1103, Occupations Code, applying standards generally
5858 applicable to the assessment of damages for the condemnation of an
5959 easement under Chapter 21, Property Code; and
6060 (2) if requested by the person seeking relief, binding
6161 arbitration to be conducted by a mutually agreeable impartial third
6262 party, as described by Section 2009.053, Government Code.
6363 (n) If an appraisal conducted as provided by Subsection
6464 (m)(1) establishes the fair market value of an easement or other
6565 interest in property at an amount that is not more than five percent
6666 above or below the rate or damage schedule or the rent or other
6767 amount to be charged for the interest, as applicable, the board of
6868 regents shall charge for the interest an amount equal to the
6969 interest's fair market value as determined by that appraisal.
7070 (o) If binding arbitration is requested under Subsection
7171 (m)(2), the fees and expenses of the impartial third party must be
7272 paid:
7373 (1) equally by the board of regents and the person
7474 seeking relief; or
7575 (2) by the nonprevailing party if the fair market
7676 value of the easement or other interest in property being sought is
7777 determined to be the same as or approximately the same as the amount
7878 requested by the prevailing party, as determined by the impartial
7979 third party conducting the arbitration.
8080 SECTION 3. This Act takes effect September 1, 2017.