Bill Text: TX SB986 | 2013-2014 | 83rd Legislature | Engrossed
Bill Title: Relating to the powers and duties of the board of regents of the Texas Tech University System.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2013-05-20 - Committee report sent to Calendars [SB986 Detail]
Download: Texas-2013-SB986-Engrossed.html
By: Duncan | S.B. No. 986 |
|
||
|
||
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 [ |
||
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 [ |
||
Members of the board will [ |
||
|
||
terms of three members expiring on January 31 of odd-numbered | ||
years. [ |
||
|
||
|
||
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 [ |
||
SELECTION, DUTIES. The board shall appoint [ |
||
executive officer, who shall devote the officer's [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
PRESIDENTS [ |
||
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 [ |
||
Sec. 109.053 [ |
||
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 [ |
||
System and the component institutions [ |
||
chairman of the board may execute and deliver conveyances or | ||
dedications on behalf of the university system and the component | ||
institutions [ |
||
Sec. 109.054 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
establish [ |
||
|
||
|
||
|
||
history, science, and art museum. | ||
(b) The board may provide [ |
||
part of a building [ |
||
the sole purpose of maintaining a history, science, and art museum | ||
[ |
||
[ |
||
|
||
|
||
|
||
[ |
||
|
||
|
||
[ |
||
|
||
|
||
|
||
Sec. 109.104 [ |
||
ENDOWMENTS. The board may accept donations, gifts, grants, and | ||
endowments for Texas Tech University to be held for the benefit of | ||
the institution [ |
||
SECTION 9. Subchapter D, Chapter 109, Education Code, is | ||
amended to read as follows: | ||
SUBCHAPTER D. MINERAL DEVELOPMENT IN UNIVERSITY LAND | ||
Sec. 109.151 [ |
||
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 | ||
[ |
||
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 [ |
||
majority of the board has power to act in all cases under this | ||
subchapter except as otherwise provided in this subchapter. | ||
Sec. 109.153 [ |
||
(a) The board may have the lands surveyed or subdivided into | ||
tracts, lots, or blocks which, in its [ |
||
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 [ |
||
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 [ |
||
reasonably expected to result in [ |
||
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 [ |
||
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 [ |
||
|
||
(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, [ |
||
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 [ |
||
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[ |
||
this minimum royalty [ |
||
board. | ||
(c) Every bid shall carry the obligation to pay an amount | ||
not less than $5 [ |
||
The amount shall be fixed by the board in advance of the | ||
advertisement. The delay rental [ |
||
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 [ |
||
LAND. The board may reject any and all bids and may withdraw any | ||
land advertised for lease. | ||
Sec. 109.157 [ |
||
PROVISIONS OF LEASE. (a) If, in the opinion of the board, [ |
||
|
||
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 [ |
||
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 [ |
||
in such a way as not to interfere with uses [ |
||
of the property for university purposes, and the leased property | ||
shall be subject to the use by the state for all university | ||
purposes[ |
||
Sec. 109.158 [ |
||
[ |
||
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) [ |
||
|
||
|
||
[ |
||
sulphur, or other minerals have not been produced in paying | ||
quantities, the lease shall terminate unless extended as provided | ||
in Sections 109.160 [ |
||
Sec. 109.159 [ |
||
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 [ |
||
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 [ |
||
(b) [ |
||
|
||
|
||
|
||
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 [ |
||
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 [ |
||
The board may extend the lease and execute an extension agreement. | ||
Sec. 109.162 [ |
||
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 [ |
||
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 [ |
||
(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 [ |
||
circumstances. | ||
Sec. 109.164 [ |
||
ASSIGNMENT; RELINQUISHMENT. (a) Title to all rights purchased may | ||
be held by the lessee [ |
||
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 [ |
||
liabilities incurred prior to the release. | ||
(d) The board shall authorize any required infrastructure, | ||
including [ |
||
opening of roads deemed reasonably necessary in carrying out the | ||
purposes of this subchapter. | ||
Sec. 109.165 [ |
||
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 [ |
||
as provided in that section. | ||
(b) The royalty paid to the general land office shall be | ||
accompanied by the sworn statement of the lessee [ |
||
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 [ |
||
month. | ||
Sec. 109.166 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
|
||
Sec. 109.167 [ |
||
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 [ |
||
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 | ||
[ |
||
(3) the failure or refusal of the lessee [ |
||
lessee's [ |
||
as required by the lease; | ||
(4) the refusal of the lessee [ |
||
[ |
||
and other data pertaining to the operations authorized in this | ||
subchapter; | ||
(5) the failure or refusal of the lessee [ |
||
lessee's [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
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 [ |
||
Sec. 109.168 [ |
||
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 [ |
||
Sec. 109.169 [ |
||
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 [ |
||
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 [ |
||
Sciences Center as it exercises [ |
||
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 [ |
||
and regulations pertaining to the admission of students to the | ||
medical school [ |
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
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. |