S.B. No. 964
AN ACT
1-1 relating to the location, survey, sale, and lease of vacant and
1-2 unsurveyed public school land and certain public boundaries and
1-3 related fees; to certain uses of and actions and transactions
1-4 involving public school lands; and to certain other state land.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subchapter E, Chapter 51, Natural Resources Code,
1-7 is amended to read as follows:
1-8 SUBCHAPTER E. SALE AND LEASE OF VACANCIES
1-9 Sec. 51.171. SALE AND LEASE OF VACANT LAND. (a) Vacant and
1-10 unsurveyed public school land shall be located, sold, and leased
1-11 under this subchapter, except:
1-12 (1) submerged lands within tidewater limits;
1-13 (2) all islands, flats, and emergent lands within
1-14 tidewater limits;
1-15 (3) natural lakes; and
1-16 (4) riverbeds, including channels and islands in
1-17 riverbeds, above tidewater limits.
1-18 (b) This subchapter does not alter or diminish the public
1-19 domain status of the surface estate of riverbeds and channels and
1-20 islands in riverbeds that are located above tidewater limits.
1-21 Sec. 51.172. DEFINITIONS. In this subchapter:
1-22 (1) "Applicant" means any person who files an
1-23 application. The term may include a good-faith claimant.
2-1 (2) "Application" means an application to purchase or
2-2 lease a vacancy under this subchapter.
2-3 (3) "Good-faith claimant" means a person who:
2-4 (A) occupies or uses or whose predecessors in
2-5 interest have occupied or used a vacancy for purposes other than
2-6 exploring for or removing or purporting to lease or otherwise
2-7 convey oil, gas, sulphur, other minerals, or geothermal resources
2-8 from the vacancy;
2-9 (B) has had, or whose predecessors in interest
2-10 have had, the vacancy enclosed or within definite recognized
2-11 boundaries and in possession for a period of 10 or more years with
2-12 a good-faith belief that the vacancy was included within the
2-13 boundaries of a survey or surveys that were previously titled,
2-14 awarded, or sold under circumstances that would have vested title
2-15 in the vacancy if it were actually located within the boundaries of
2-16 the survey or surveys;
2-17 (C) is the owner of land adjoining a vacancy on
2-18 which no application has previously been filed; or
2-19 (D) holds under a good-faith claimant or is
2-20 entitled to a distributive share of any title acquired under an
2-21 application made by a good-faith claimant.
2-22 (4) "Interest" means any right or title in or to real
2-23 property, whether affecting the surface, subsurface, or mineral
2-24 estate, including:
2-25 (A) fee simple title;
3-1 (B) a determinable fee created under a mineral
3-2 lease or conveyance or otherwise;
3-3 (C) a royalty, nonparticipating royalty, or
3-4 overriding royalty interest;
3-5 (D) a remainder or reversionary interest; or
3-6 (E) an interest arising under a lien.
3-7 (5) "Interested person" means:
3-8 (A) a person who may own or who claims any
3-9 interest in land claimed to be vacant or in any land adjoining or
3-10 overlapping that land as determined from the records of the land
3-11 office, the records of the county clerk's office, and the tax
3-12 records of the county or counties in which the land claimed to be
3-13 vacant is located;
3-14 (B) any other person who asserts a right to or
3-15 interest in the land claimed to be vacant and who is known to the
3-16 applicant or whose identity could be ascertained by the applicant
3-17 with the exercise of reasonable diligence;
3-18 (C) the attorney general; or
3-19 (D) the applicant.
3-20 (6) "Vacancy" means an area of unsurveyed public
3-21 school land that:
3-22 (A) is not in conflict on the ground with land
3-23 previously titled, awarded, or sold;
3-24 (B) has not been listed on the records of the
3-25 land office as public school land; and
4-1 (C) was not, on the date of filing of an
4-2 application:
4-3 (i) subject to an earlier subsisting
4-4 application by an applicant or good-faith claimant; or
4-5 (ii) the subject of pending litigation
4-6 brought by the state to recover the land.
4-7 Sec. 51.173. APPLICATION. (a) To purchase or lease a
4-8 vacancy, a person must file an application. The filing of an
4-9 application commences a proceeding under this subchapter. The
4-10 applicant must file the application with the county surveyor of the
4-11 county in which all or part of the land claimed to be vacant is
4-12 located. If the county does not have a county surveyor, the
4-13 application must be filed with the county clerk.
4-14 (b) The application must:
4-15 (1) describe the land that is claimed to be vacant;
4-16 (2) state whether the applicant is a good-faith
4-17 claimant;
4-18 (3) state whether the applicant seeks to purchase the
4-19 vacancy or obtain a mineral lease on the vacancy;
4-20 (4) state the name and last known address of all
4-21 interested persons; and
4-22 (5) provide any other information that the
4-23 commissioner requires by rule.
4-24 (c) The commissioner by rule shall set an application filing
4-25 fee in an amount of not less than $5. The applicant shall pay the
5-1 filing fee to the county surveyor or county clerk at the time the
5-2 application is filed.
5-3 (d) The county surveyor or county clerk shall mark the exact
5-4 date and hour of filing on the original and a duplicate copy of the
5-5 application and shall return a marked copy to the person filing the
5-6 application. The original shall be recorded in a book kept for
5-7 that purpose separate from the deed or real property records.
5-8 (e) Priority among applications covering the same land
5-9 claimed to be vacant is determined by the time of filing indicated
5-10 by the date and hour marked on the application by the county
5-11 surveyor or county clerk.
5-12 Sec. 51.174. FILING APPLICATION WITH COMMISSIONER. (a) The
5-13 applicant shall file with the commissioner a copy of the
5-14 application with the county surveyor's or clerk's mark indicating
5-15 the time of filing not later than the 10th day after the
5-16 application is filed with the county surveyor or clerk. The
5-17 applicant shall include a filing fee set by the commissioner in an
5-18 amount of not less than $100. If the 10th day after filing falls
5-19 on a Saturday, Sunday, or state or federal holiday, the application
5-20 may be filed on the next regular business day following the 10th
5-21 day.
5-22 (b) The commissioner shall mark the date of filing on the
5-23 application and assign a file number to the application.
5-24 (c) An applicant who does not file the application with the
5-25 commissioner in the time provided in this section or pay the filing
6-1 fee waives all rights under the application.
6-2 (d) The commissioner may refuse to accept for filing an
6-3 application that:
6-4 (1) has material omissions;
6-5 (2) does not describe the land claimed to be vacant
6-6 adequately for the land to be located on the ground; or
6-7 (3) describes as vacant land that has been finally
6-8 adjudicated in a court of this state or of the United States not to
6-9 be vacant.
6-10 Sec. 51.175. DEPOSIT. (a) If an applicant is not a
6-11 good-faith claimant, the commissioner shall estimate the costs of
6-12 proceeding under the application, including the costs of a survey
6-13 made by a licensed state land surveyor or the county surveyor, the
6-14 preparation of copies and working sketches by the land office, the
6-15 mailing or publication of notices and copies, and other similar
6-16 costs, excluding allocable costs of salaries and overhead expended
6-17 by the land office in actually conducting a hearing or preparing
6-18 orders and proposals for decision.
6-19 (b) The commissioner shall notify the applicant in writing
6-20 of the estimated costs and the applicant shall make a deposit with
6-21 the commissioner in the amount of the estimated costs.
6-22 (c) If at any time the commissioner determines that the
6-23 funds on deposit are insufficient to pay the costs of the
6-24 proceeding, the commissioner shall estimate the additional amount
6-25 required and shall notify the applicant in writing to make a
7-1 supplemental deposit of the estimated amount. The notice must be
7-2 dated.
7-3 (d) The applicant shall make an initial deposit or a
7-4 supplemental deposit not later than the 30th day after the date of
7-5 the written notice to make the deposit. The commissioner shall
7-6 cancel the application if the applicant does not make a required
7-7 deposit within the prescribed time. Cancellation terminates all
7-8 rights under that application.
7-9 Sec. 51.176. APPEAL OF AMOUNT OF DEPOSIT. (a) An applicant
7-10 may appeal the amount of an initial deposit or supplemental deposit
7-11 determined by the commissioner in the manner provided for the
7-12 appeal of agency decisions under the Administrative Procedure and
7-13 Texas Register Act (Article 6252-13a, Vernon's Texas Civil
7-14 Statutes).
7-15 (b) If the applicant does not pay the amount determined by
7-16 the district court on or before the 15th day after the judgment of
7-17 the district court becomes final and nonappealable, the
7-18 commissioner shall cancel the application. Cancellation terminates
7-19 all rights under that application.
7-20 Sec. 51.177. DISPOSITION OF DEPOSITS. (a) The commissioner
7-21 shall deposit all initial and supplemental deposits received under
7-22 this subchapter to the credit of a separate trust account in the
7-23 treasury. The treasurer, on the commissioner's order, shall make
7-24 disbursements from that account for purposes authorized by this
7-25 subchapter.
8-1 (b) After proceedings on an application are concluded and
8-2 all expenditures authorized under this subchapter are paid, the
8-3 commissioner shall provide the applicant a complete statement of
8-4 all deposits and expenditures and shall remit to the applicant any
8-5 balance remaining from the deposit or supplemental deposits made by
8-6 the applicant.
8-7 Sec. 51.178. APPOINTMENT OF SURVEYOR. (a) Not later than
8-8 the 60th day after the date on which the required deposit is paid,
8-9 the commissioner shall appoint a licensed state land surveyor or
8-10 the county surveyor of the county in which all or a part of the
8-11 land claimed to be vacant is located to make a survey of that land.
8-12 (b) The fees and expenses paid for the survey are those
8-13 provided by law. If the fees and expenses are not provided by law,
8-14 the commissioner and surveyor shall make an agreement as to the
8-15 fees and expenses reasonable for the work to be performed.
8-16 (c) The fees and expenses shall be paid by the applicant and
8-17 may be paid from the initial deposit or any supplementary deposits
8-18 made by the applicant under this subchapter.
8-19 (d) The commissioner shall promulgate rules setting out the
8-20 qualifications and method of selection of surveyors appointed
8-21 pursuant to this section. The rules shall provide the greatest
8-22 practicable opportunity for all qualified surveyors to obtain
8-23 appointment and shall provide the opportunity for an interested
8-24 party to move for the removal of an appointed surveyor on the
8-25 grounds of bias, prejudice, or conflict of interest. No surveyor
9-1 appointed shall be removed, however, except upon notice to the
9-2 surveyor and all interested parties and hearing. The fact of
9-3 removal of a surveyor shall not be a basis for any disciplinary
9-4 action against that surveyor under the Professional Land Surveying
9-5 Practices Act (Article 5282c, Vernon's Texas Civil Statutes).
9-6 Sec. 51.179. NOTICE TO INTERESTED PERSONS. (a) Not later
9-7 than the 10th day after the date on which the commissioner appoints
9-8 the surveyor, the commissioner shall give notice by certified mail,
9-9 return receipt requested, to all interested persons at the last
9-10 known address. The notice shall contain:
9-11 (1) the date of the notice;
9-12 (2) a statement that a vacancy application has been
9-13 made;
9-14 (3) the name, address, and telephone number of the
9-15 surveyor appointed to make the survey;
9-16 (4) a statement that the survey may begin any time
9-17 after the 20th day after the date of the notice;
9-18 (5) a statement that an interested party is entitled
9-19 to:
9-20 (A) observe the conduct of the survey;
9-21 (B) receive a copy of the final survey report
9-22 and other documents filed by the surveyor; and
9-23 (C) participate in the vacancy proceeding;
9-24 (6) a true and legible copy of the application; and
9-25 (7) other information the commissioner by rule may
10-1 prescribe.
10-2 (b) If the location of an interested person is unknown or if
10-3 a notice is returned as unclaimed or undeliverable, the
10-4 commissioner shall publish notice as prescribed by the Texas Rules
10-5 of Civil Procedure. If notice by publication is made, the survey
10-6 may not begin and further proceedings may not be held until the
10-7 30th day after publication is completed.
10-8 (c) If the applicant, another interested person, or the
10-9 surveyor shows that the delay required by Subsection (b) of this
10-10 section may materially affect the accuracy of the survey because of
10-11 destruction, alteration, or removal of natural features, monuments,
10-12 or witness objects, or for other good cause, the commissioner may
10-13 order the survey to proceed. Notice of the request to proceed with
10-14 the survey and of any order issued in response to the request shall
10-15 be mailed first class to all interested persons.
10-16 (d) The right of an interested person, personally or through
10-17 a representative or representatives, to observe the conduct of a
10-18 survey made under this subchapter does not require a delay in the
10-19 conduct of a survey solely to allow an interested person or that
10-20 person's representative to be present during the survey.
10-21 Sec. 51.180. WAIVER OF NOTICE. (a) An interested person
10-22 may waive service of the notice required by Section 51.179 of this
10-23 code by filing with the commissioner a sworn affidavit stating the
10-24 person's intent to waive notice. The affidavit shall state that
10-25 the person executing the waiver has been provided with a true copy
11-1 of the application filed with the commissioner.
11-2 (b) The affidavit may also state clearly the interested
11-3 person's intent to waive all further notice of the vacancy
11-4 proceedings. If the affidavit states this intent, it must also
11-5 state prominently and clearly that the interested person is aware
11-6 that waiving the right to further notice may result in the loss of
11-7 the opportunity to appear and to contest the application.
11-8 (c) The commissioner by rule may prescribe the form and
11-9 specific content of the affidavit described in this section,
11-10 including additional information to be included.
11-11 Sec. 51.181. SURVEY. (a) Except when notice by publication
11-12 is required, at any time after the 20th day after the date of the
11-13 notice required by Section 51.179(a) of this code, the surveyor
11-14 shall begin the survey of the land claimed to be vacant.
11-15 (b) The surveyor shall prepare and file in the land office:
11-16 (1) a detailed written report of all aspects of the
11-17 survey, including record research conducted, survey corners
11-18 recovered in the course of the field survey, and details of
11-19 boundary construction using recovered corners;
11-20 (2) field notes in the form and content prescribed by
11-21 law, describing the land and the lines and corners surveyed;
11-22 (3) a complete plat depicting in detail the survey
11-23 results;
11-24 (4) the names and addresses of all persons who have
11-25 possession of the land described in the application and a
12-1 description of the lands occupied by those persons; and
12-2 (5) the names and addresses of all persons known to
12-3 the surveyor who have or claim any interest in the land.
12-4 (c) The surveyor shall file the report required by this
12-5 section not later than the 140th day after the date of the notice
12-6 required by Section 51.179(a) of this code. If notice by
12-7 publication is required and the commissioner has not ordered the
12-8 survey to proceed, the surveyor shall file the report not later
12-9 than the 170th day after the date on which notice by publication is
12-10 completed. If the commissioner has ordered the survey to proceed,
12-11 the surveyor shall file the report not later than the 140th day
12-12 after the date of the commissioner's order.
12-13 (d) For good cause shown, the commissioner by written order
12-14 may extend the time for filing the survey. The order shall state
12-15 the cause for the extension and shall be included in the record. A
12-16 single order may not extend the time for filing by more than 60
12-17 days.
12-18 (e) An interested person at the person's own expense may
12-19 have any surveying done that the person considers desirable, but a
12-20 survey report, a plat, or field notes based on a survey made by a
12-21 person not qualified by law to survey public lands in this state
12-22 may not be admitted into evidence in a vacancy proceeding or filed
12-23 in the land office.
12-24 (f) The commissioner shall serve a true copy of the survey
12-25 report, field notes, plat, and all other documents filed by the
13-1 surveyor on each interested person, including those named in the
13-2 survey report, by certified mail, return receipt requested, not
13-3 later than the fifth business day after the survey report is filed
13-4 in the land office.
13-5 Sec. 51.182. ADDITIONAL INTERESTED PERSONS. (a) All
13-6 persons named in the survey report as occupying or as having or
13-7 claiming any interest in the land described in the application
13-8 shall be included in the proceeding as interested persons and shall
13-9 be provided notice as prescribed by this subchapter.
13-10 (b) An application may not be canceled or a proceeding
13-11 terminated because of the discovery of an additional interested
13-12 person unless the commissioner finds that the person filing the
13-13 application knowingly and intentionally omitted the name of the
13-14 person from the application.
13-15 Sec. 51.183. EXCEPTIONS. An interested person may file
13-16 exceptions to the survey report, field notes, and plat not later
13-17 than the 30th day after the date the survey report is filed in the
13-18 land office. A person filing exceptions shall serve a true copy on
13-19 all interested persons and on the surveyor by certified mail,
13-20 return receipt requested. The exceptions shall include a
13-21 certificate of the fact of that service.
13-22 Sec. 51.184. ADDITIONAL SURVEYS. (a) The commissioner or
13-23 the land office staff may consult with the surveyor. The
13-24 commissioner, after notice to the interested persons, may direct
13-25 the surveyor to make additional surveys, to investigate as the
14-1 commissioner considers necessary, and to prepare supplemental
14-2 reports, plats, and field notes the commissioner requires.
14-3 (b) The commissioner shall provide copies of all reports,
14-4 plats, field notes, and other information resulting from additional
14-5 surveys and investigation to all interested persons.
14-6 (c) An interested person may file exceptions or other
14-7 responses not later than the 20th day after the surveyor files the
14-8 required documents with the land office.
14-9 (d) Service of additional documents and exceptions or
14-10 responses to those documents shall be made as provided by Sections
14-11 51.181 and 51.183 of this code.
14-12 Sec. 51.185. ACTION ON APPLICATION. (a) Not later than the
14-13 90th day after the date on which the surveyor files the survey
14-14 report and other documents required to be filed, the commissioner
14-15 shall either deny the application as provided by Section 51.186 of
14-16 this code or hold a hearing to determine whether a vacancy exists.
14-17 (b) Except as provided by Section 51.192 of this code, the
14-18 commissioner may not find that a vacancy exists unless a hearing is
14-19 held.
14-20 (c) The commissioner shall decide all issues raised or that
14-21 could be raised by the application and any exceptions or responses
14-22 to the application, including the existence of a vacancy, the
14-23 boundaries of a vacancy, and the status and rights of any
14-24 interested person as a good-faith claimant or prior applicant.
14-25 (d) The commissioner may not decide in a proceeding on an
15-1 application any claim of the state or permanent school fund for
15-2 damages arising from trespass, the removal or use of minerals or
15-3 geothermal resources, mispayment of proceeds from the sale or use
15-4 of minerals or geothermal resources, damages to the soil,
15-5 vegetation, or other life or habitat, and similar or related
15-6 claims. Those claims may be asserted by the commissioner in
15-7 administrative proceedings under rules adopted by the commissioner
15-8 or through suit brought by the attorney general at the request of
15-9 the commissioner.
15-10 (e) Evidence or testimony regarding the existence or extent
15-11 of mineral development or other economic use of land claimed to be
15-12 vacant may not be introduced or considered, unless that evidence or
15-13 testimony is relevant to determine the existence or boundaries of
15-14 the alleged vacancy or the status of a person as a good-faith
15-15 claimant.
15-16 Sec. 51.186. DENIAL OF APPLICATION. (a) If, after
15-17 reviewing the survey report, any supplemental reports, any
15-18 exceptions to the reports, all pertinent publicly available records
15-19 of the land office and the state archives, and land office staff
15-20 recommendations, the commissioner decides that the land claimed to
15-21 be vacant is not vacant, the commissioner may enter an order
15-22 denying the application. The order shall contain findings of fact,
15-23 conclusions of law, and other matters the commissioner considers
15-24 appropriate.
15-25 (b) The commissioner shall promptly send a true copy of the
16-1 order denying the application to the applicant by certified mail,
16-2 return receipt requested.
16-3 (c) The commissioner shall place in the file assigned to the
16-4 application the original order, all materials filed by the
16-5 surveyor, all exceptions and responses to the surveyor's filings,
16-6 all memoranda provided to the commissioner by the land office
16-7 staff, a list of all files and records of the land office and state
16-8 archives examined by the staff or commissioner in connection with
16-9 the application, and all other relevant papers.
16-10 (d) An interested person may request a rehearing and appeal
16-11 the commissioner's order as provided by the Administrative
16-12 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
16-13 Civil Statutes) and by rules adopted by the commissioner consistent
16-14 with that Act. If a rehearing is not requested, the order becomes
16-15 final on the 30th day after the date it is signed. If a rehearing
16-16 is requested and denied, the order becomes final on the date that
16-17 time for appeal to the district court expires. If appeal is taken,
16-18 the order becomes final on the date that a judgment disposing of
16-19 the order becomes final.
16-20 (e) When the commissioner's order denying the vacancy is
16-21 final, all rights under the application are terminated.
16-22 Sec. 51.187. EFFECT OF FINAL ORDER. (a) A final order of
16-23 the commissioner under this subchapter is conclusive with respect
16-24 to the land described in the application or final order. A final
16-25 order of the commissioner does not have the effect of stare decisis
17-1 with respect to land not described in the application or final
17-2 order, but may be considered with all other evidence.
17-3 (b) The cancellation, withdrawal, abandonment, or
17-4 termination of an application, the refusal of the commissioner to
17-5 accept an application for filing, or the order or judgment of any
17-6 court resulting in or affecting such an action has no effect on a
17-7 subsequent determination of whether any land described in the
17-8 application is vacant.
17-9 (c) A decision of the commissioner issued before September
17-10 1, 1993, that denies a vacancy application or letter of inquiry is
17-11 not conclusive as to the existence or nonexistence of a vacancy.
17-12 Sec. 51.188. RULEMAKING; VENUE OF APPEALS. (a) A hearing
17-13 under this subchapter and further proceedings arising from the
17-14 hearing shall be conducted in accordance with the Administrative
17-15 Procedure and Texas Register Act (Article 6252-13a, Vernon's Texas
17-16 Civil Statutes) and rules adopted by the commissioner consistent
17-17 with that Act.
17-18 (b) Appeal of a final order of the commissioner is to a
17-19 district court of the county in which the land claimed to be vacant
17-20 or a part of that land is located. The district court shall review
17-21 the commissioner's order under the substantial evidence rule.
17-22 Sec. 51.189. COMMISSIONER'S ORDER. (a) If it appears to
17-23 the commissioner that the alleged vacancy is not in conflict with
17-24 land previously titled, awarded, or sold by the state or its
17-25 predecessor sovereigns, the commissioner shall enter an order
18-1 declaring the existence of a vacancy and determining all other
18-2 issues.
18-3 (b) If it appears to the commissioner that the land claimed
18-4 to be vacant is not vacant, the commissioner shall enter an order
18-5 denying the application and determining all other issues.
18-6 (c) The commissioner shall base the order on the testimony
18-7 and other competent evidence presented at the hearing, the
18-8 surveyor's filings and all supplements to those filings, any
18-9 exceptions or responses to the surveyor's filings and all
18-10 supplements to those filings, and the publicly available records of
18-11 the land office and the state archives. The commissioner and the
18-12 examiner or examiners who conduct hearings on the application may
18-13 consult with the land office staff and the surveyor to the extent
18-14 permitted by the Administrative Procedure and Texas Register Act
18-15 (Article 6252-13a, Vernon's Texas Civil Statutes). The record
18-16 shall include a list of the names and titles of all staff
18-17 consulted, a list of the files and documents of the land office and
18-18 state archives examined, and a copy of all memoranda provided to
18-19 the examiners or commissioner by the land office staff or by the
18-20 surveyor.
18-21 (d) The order shall contain:
18-22 (1) findings of fact;
18-23 (2) conclusions of law;
18-24 (3) a field note description of the land, if any,
18-25 found to be vacant, sufficient to locate it on the ground, and
19-1 other elements required by law;
19-2 (4) an accurate plat of the land, if any, found to be
19-3 vacant consistent with the field notes and prepared by the surveyor
19-4 or a licensed state land surveyor on the land office staff; and
19-5 (5) other matters the commissioner considers
19-6 appropriate.
19-7 (e) The commissioner's order may adopt, without restating,
19-8 the findings of fact and conclusions of law stated in a proposal
19-9 for decision prepared by the examiner or examiners who conducted
19-10 the hearings and any opinion or statement contained in that
19-11 proposal for decision.
19-12 Sec. 51.190. DETERMINATION OF BOUNDARIES; REOPENING.
19-13 (a) In determining the boundaries and size of a vacancy, the
19-14 commissioner is not restricted to a description of the land claimed
19-15 to be vacant that is provided by the applicant, the surveyor, or an
19-16 interested party. The commissioner shall adopt the description of
19-17 a vacancy that best describes the vacancy and is consistent with
19-18 the information available under this section.
19-19 (b) If in determining the boundaries and size of a vacancy
19-20 it becomes apparent to the commissioner that persons who have not
19-21 been named as interested persons and who have not been served
19-22 notice of the proceeding under the application may be affected by
19-23 the finding that a vacancy exists at the location and with the
19-24 boundaries believed by the commissioner to conform to the record,
19-25 the proceeding shall be reopened and the persons affected shall be
20-1 joined as interested persons and given an opportunity to
20-2 participate adequately in the proceeding. This subsection does not
20-3 require the refiling of an application or the conduct of a new
20-4 survey by the surveyor.
20-5 Sec. 51.191. GOOD-FAITH CLAIMANT STATUS. (a) An applicant
20-6 or interested person who wishes to assert status as a good-faith
20-7 claimant may file notice of claim of good-faith status at any time
20-8 before the 20th day preceding the date on which the first hearing
20-9 begins. The notice of claim of good-faith status shall state the
20-10 grounds for the claim and describe the land claimed to be affected
20-11 by the good-faith status. The notice shall be filed in the land
20-12 office and served on all interested persons by certified mail,
20-13 return receipt requested.
20-14 (b) Filing notice of claim of good-faith status is not an
20-15 admission by the person asserting the claim that a vacancy exists.
20-16 Sec. 51.192. ORDER WITHOUT NOTICE AND HEARING. (a) An
20-17 applicant who asserts status as a good-faith claimant may present
20-18 evidence to the commissioner that:
20-19 (1) the good-faith claimant owns all of the land and
20-20 interests in land completely surrounding the land claimed to be
20-21 vacant;
20-22 (2) there is no subsisting prior application covering
20-23 the land described in the good-faith claimant's application;
20-24 (3) no previous application has been made covering the
20-25 land described in the good-faith claimant's application; and
21-1 (4) the good-faith claimant meets all other
21-2 requirements of a good-faith claimant.
21-3 (b) If the commissioner finds that the evidence presented is
21-4 accurate, further notice to other persons is not required and, on
21-5 acceptance for filing by the commissioner of a survey made by a
21-6 licensed state land surveyor or the county surveyor of the county
21-7 in which the land claimed to be vacant or a part of that land is
21-8 located, the commissioner may enter an order declaring the
21-9 existence of the vacancy and determining the good-faith status of
21-10 the applicant.
21-11 (c) For purposes of this section, land claimed to be vacant
21-12 and surrounded by lands owned only by the good-faith claimant and
21-13 the state is considered to be surrounded completely by land owned
21-14 by the good-faith claimant.
21-15 (d) Two or more persons may jointly apply as good-faith
21-16 claimants under this section if together they meet the requirements
21-17 of Subsection (a) of this section.
21-18 (e) A person who would have been an interested person under
21-19 an application made under this subchapter by a person other than a
21-20 good-faith claimant may move to set aside an order entered under
21-21 this section by filing a written motion with the commissioner not
21-22 later than the second anniversary of the date of that order. The
21-23 person shall serve a true copy of the motion by certified mail,
21-24 return receipt requested, on the applicant and all persons holding
21-25 or claiming under the applicant.
22-1 (f) The commissioner shall set aside an order issued under
22-2 this section finding that a vacancy exists if, after notice and
22-3 hearing, the commissioner finds that the person asserting rights
22-4 under this section, at the time the order declaring the vacancy was
22-5 entered, did not:
22-6 (1) qualify as a good-faith claimant under this
22-7 subchapter;
22-8 (2) own all of the land and interests in land
22-9 surrounding the land claimed to be vacant; or
22-10 (3) meet another material requirement of this section.
22-11 (g) The commissioner on the commissioner's own motion may
22-12 set aside an order after notice and hearing as required by
22-13 Subsections (e) and (f) of this section.
22-14 (h) If the order is set aside, the commissioner shall reopen
22-15 the proceeding on the application and conduct the reopened
22-16 proceeding in the same manner as proceedings on other applications.
22-17 (i) The issues in a reopened proceeding are limited to the
22-18 status of the applicant as a good-faith claimant entitled to rights
22-19 under this section and the rights of any other person as an
22-20 applicant or good-faith claimant.
22-21 (j) An application of a good-faith claimant who does not own
22-22 all of the land and interests in land completely surrounding the
22-23 land claimed to be vacant is treated as an application under other
22-24 sections of this subchapter.
22-25 Sec. 51.193. SALE OR LEASE OF VACANCY. (a) When a vacancy
23-1 has been established by final order, the school land board may sell
23-2 or lease the vacancy as provided by this subchapter.
23-3 (b) The board shall set the sale price and other terms and
23-4 conditions as in all other sales of other lands dedicated to the
23-5 permanent school fund. The sale price may not be less than the
23-6 fair market value as determined by an appraisal conducted by the
23-7 land office.
23-8 (c) The fee prescribed in Section 32.110(a) of this code
23-9 applies to all sales and leases made under this subchapter.
23-10 (d) The board may allow a credit against the sale price in
23-11 an amount not to exceed the actual cost of the survey paid by an
23-12 applicant or good-faith claimant if:
23-13 (1) the purchaser is a person exercising a
23-14 preferential right to purchase under this subchapter;
23-15 (2) the board has reserved all mineral and geothermal
23-16 leasing rights; and
23-17 (3) the board finds that the fair market value of the
23-18 mineral estate is equal to or exceeds 50 percent of the amount of
23-19 the credit.
23-20 Sec. 51.194. MARKET VALUE; MEDIATION; BINDING ARBITRATION.
23-21 (a) A person seeking to purchase a vacancy by exercising a right
23-22 of preferential purchase under this subchapter, by filing a written
23-23 request with the commissioner, may have the issue of market value
23-24 submitted to mediation before a trained mediator acceptable to both
23-25 the board and the person seeking to purchase the vacancy if:
24-1 (1) the price set by the board under Section 51.193 of
24-2 this code exceeds by 15 percent or more the market value estimated
24-3 in an appraisal made by a real estate appraiser certified in Texas
24-4 for the person seeking to purchase the vacancy; and
24-5 (2) the appraisal was made not more than six months
24-6 before the date on which the board set the price.
24-7 (b) If agreement on price is not reached through mediation
24-8 on or before the 60th day after the first mediation session, the
24-9 person seeking to purchase the vacancy, by filing a written request
24-10 with the commissioner, may have the issue of market value submitted
24-11 to binding arbitration.
24-12 (c) A panel of three real estate appraisers certified in
24-13 Texas shall conduct the arbitration. The person seeking to
24-14 purchase the vacancy shall name one member of the panel, the board
24-15 shall name one member of the panel, and the two panel members shall
24-16 name the third member of the panel, who is the panel's presiding
24-17 officer. The board or the person seeking to purchase the vacancy
24-18 may object to and have disqualified the first person named to the
24-19 panel by the other party. Appraisers employed by or who contract
24-20 with the land office are eligible to serve on the arbitration
24-21 panel.
24-22 (d) The arbitration shall be conducted under the rules of
24-23 the American Arbitration Association or under other rules agreed on
24-24 by the parties.
24-25 (e) The decision of the arbitration panel is not subject to
25-1 judicial review.
25-2 (f) The costs of mediation and arbitration shall be shared
25-3 equally by the land office and the person seeking to purchase the
25-4 vacancy.
25-5 Sec. 51.195. CONDITIONS OF SALE; MINERAL AWARDS. (a) In
25-6 all sales, the board shall reserve to the permanent school fund all
25-7 oil, gas, sulphur, and other minerals and geothermal resources and
25-8 shall determine the manner in which those minerals and geothermal
25-9 resources are to be leased.
25-10 (b) Before the sale of a vacancy, the land office shall
25-11 prepare and present to the board a study of the mineral prospects
25-12 and value of the vacancy, taking into consideration the size and
25-13 configuration of the vacancy, its location with respect to other
25-14 surrounding and nearby tracts, the proximity of mineral production,
25-15 and the likelihood of future mineral leasing and development. The
25-16 study shall include a recommendation as to the method most
25-17 advantageous to the state by which the vacancy could be leased.
25-18 (c) The board shall review the study and land office
25-19 recommendations and shall determine whether:
25-20 (1) the state shall retain all leasing rights and the
25-21 vacancy shall be leased as provided in Subchapter B, Chapter 52,
25-22 and Subchapters B and E, Chapter 53, of this code; or
25-23 (2) the owner of the soil shall be designated to
25-24 execute leases as the agent of the state subject to the rights,
25-25 obligations, and liabilities of Subchapter F, Chapter 52, and
26-1 Subchapter C, Chapter 53, of this code.
26-2 (d) If the board determines that the owner of the soil shall
26-3 act as agent under Subsection (c)(2) of this section, the board
26-4 shall establish the division of bonus, rental, and royalty between
26-5 the permanent school fund and the owner of the soil. The portion
26-6 to be paid to the owner of the soil may not be less than 20 percent
26-7 or more than 50 percent. The board may establish different
26-8 portions to be paid to the owner of the soil for the lease of
26-9 different substances.
26-10 (e) If the board provides for lease by the owner of the soil
26-11 under Subsection (c)(2) of this section, the original purchaser is
26-12 a good-faith claimant, and the vacancy was established under an
26-13 application made by a person other than a good-faith claimant, the
26-14 board shall award the applicant a perpetual nonparticipating
26-15 royalty of not less than 1/32 or more than 1/16 of the value of all
26-16 oil, gas, and sulphur produced and a perpetual nonparticipating
26-17 royalty of not less than one percent or more than two percent of
26-18 the value of all geothermal resources and all other minerals
26-19 produced.
26-20 (f) If the board determines that the state shall retain all
26-21 leasing rights as provided in Subsection (c)(1) of this section,
26-22 the board shall award:
26-23 (1) to an applicant other than a good-faith claimant,
26-24 a perpetual nonparticipating royalty of 1/32 of the value of oil
26-25 and gas and sulphur and one percent of the value of all geothermal
27-1 resources and all other minerals produced; and
27-2 (2) to a good-faith claimant purchasing the vacancy, a
27-3 nonparticipating royalty of 1/32 of the value of oil and gas and
27-4 sulphur and one percent of the value of all geothermal resources
27-5 and all other minerals produced.
27-6 (g) If a preferential right to obtain the first mineral
27-7 lease on a vacancy is exercised by any person, the state's royalty
27-8 under the lease shall be reduced by 25 percent for a period of five
27-9 years after the date of first production under the first lease if
27-10 sales of production from or attributable to the lease are commenced
27-11 during the primary term of the lease.
27-12 Sec. 51.196. PREFERENTIAL RIGHT OF GOOD-FAITH CLAIMANT.
27-13 (a) A good-faith claimant has a preferential right to purchase or
27-14 lease the portion of a vacancy subject to the good-faith claim.
27-15 (b) A good-faith claimant may exercise the preferential
27-16 right by filing a notice of intent to purchase or lease, on a form
27-17 prescribed by the board, not later than the 90th day after the date
27-18 the order establishing the vacancy becomes final. The good-faith
27-19 claimant shall describe in the notice the portion of the vacancy
27-20 the good-faith claimant seeks to purchase or lease. The good-faith
27-21 claimant shall mail a copy of the notice to the applicant and to
27-22 all other interested persons who have asserted status as good-faith
27-23 claimants.
27-24 (c) All preferential rights held by a good-faith claimant
27-25 expire if the good-faith claimant does not file the notice of
28-1 intent within the time prescribed by Subsection (b) of this section
28-2 or does not complete the purchase or lease within 60 days after the
28-3 board sets the terms of the purchase or lease. For good cause
28-4 shown, the board may extend the time to complete the purchase or
28-5 lease by a period not to exceed 90 days.
28-6 (d) A good-faith claimant exercising a preferential right
28-7 shall repay to the applicant the applicant's reasonable expenses
28-8 incurred in determining the existence of a vacancy, excluding
28-9 filing and attorney fees, not later than the date on which the sale
28-10 or purchase by the good-faith claimant is completed. Failure to
28-11 pay the expenses cancels the preferential right of the good-faith
28-12 claimant.
28-13 Sec. 51.197. PREFERENTIAL RIGHT OF APPLICANT OTHER THAN
28-14 GOOD-FAITH CLAIMANT. (a) On the expiration of the preferential
28-15 right of a good-faith claimant to purchase or lease or if there is
28-16 no good-faith claimant, an applicant who is not a good-faith
28-17 claimant has a preferential right to purchase or lease all or any
28-18 portion of the vacancy.
28-19 (b) An applicant may exercise the preferential right by
28-20 filing a notice of intent to purchase or lease, on a form
28-21 prescribed by the board, not later than the 90th day after the date
28-22 on which the rights of the good-faith claimant expire. The
28-23 applicant shall describe in the notice the portion of the vacancy
28-24 the applicant seeks to purchase or lease. The applicant shall mail
28-25 a copy of the notice to all other interested persons asserting
29-1 status as good-faith claimants.
29-2 (c) All preferential rights held by an applicant expire if
29-3 the applicant does not file the notice of intent within the time
29-4 prescribed by Subsection (b) of this section or does not complete
29-5 the purchase or lease within 60 days after the date on which the
29-6 board sets the terms of the purchase or lease. For good cause
29-7 shown, the board may extend the time to complete the purchase or
29-8 lease by a period not to exceed 90 days.
29-9 Sec. 51.198. RIGHTS ASSIGNABLE. An applicant or good-faith
29-10 claimant may assign all rights in a vacancy or land claimed to be
29-11 vacant. The assignment must be in writing. The assignor shall
29-12 record the assignment in the real property records of the county or
29-13 counties in which the vacancy or land claimed to be vacant is
29-14 located and file a certified copy of the recorded assignment in the
29-15 land office.
29-16 Sec. 51.199. LEASE TERMS UNDER PREFERENTIAL RIGHTS. The
29-17 board shall prescribe terms for preferential purchases or leases
29-18 consistent with this subchapter. The board may not grant a
29-19 preferential lease with a royalty of less than 1/8 of the value of
29-20 all oil, gas, and sulphur produced or less than five percent of the
29-21 value of all geothermal resources and all other minerals produced.
29-22 Sec. 51.200. EFFECT OF PRIOR CONVEYANCES. (a) A mineral
29-23 lease, surface lease, deed, or any other conveyance of any interest
29-24 in land executed by a good-faith claimant before the date of
29-25 completion of a sale or lease under this subchapter does not give
30-1 the grantee under that conveyance any interest in or to the vacancy
30-2 or its minerals.
30-3 (b) A title to land or an interest in land acquired from the
30-4 state under a preferential right does not pass as after-acquired
30-5 title under a covenant of general warranty, description, or other
30-6 provision contained in a conveyance executed before the date of
30-7 completion of a sale or lease under this subchapter.
30-8 Sec. 51.201. RULEMAKING AUTHORITY. (a) The commissioner
30-9 may adopt rules consistent with this subchapter relating to
30-10 applications to purchase or lease vacancies and the determination
30-11 of the existence of vacancies.
30-12 (b) The board may adopt rules consistent with this
30-13 subchapter relating to the sale and lease of vacancies.
30-14 Sec. 51.202. CONFLICT WITH OTHER CODE PROVISIONS. To the
30-15 extent that any provision of this subchapter pertaining to
30-16 vacancies or the sale or lease of vacancies conflicts with any
30-17 other provision of this code, this subchapter controls.
30-18 <Sec. 51.171. ><Sale and Lease of Vacant Land><. Vacant and
30-19 unsurveyed public school land except riverbeds, channels, islands,
30-20 lakes, bays, and other areas in tidewater limits shall be sold and
30-21 leased under the provisions of this subchapter.>
30-22 <Sec. 51.172. ><Definitions><. In this subchapter:>
30-23 <(1) "Good-faith claimant" and "claimant" mean any
30-24 person:>
30-25 <(A) who occupies or uses or has previously
31-1 occupied or used or whose predecessors in interest have occupied or
31-2 used a vacancy for purposes other than exploring for or removing
31-3 oil, gas, sulphur, or other minerals from the vacancy; and>
31-4 <(B) who has himself or whose predecessors in
31-5 interest had the vacancy enclosed or within definite recognized
31-6 boundaries and in possession for a period of 10 years with a
31-7 good-faith belief that the vacancy was included inside the
31-8 boundaries of the survey or surveys that were previously titled,
31-9 awarded, or sold under circumstances that would have vested title
31-10 in the vacancy if it were actually located within the boundaries of
31-11 the survey or surveys whose boundaries are recognized boundaries in
31-12 the community.>
31-13 <(2) "Vacancy" means an area of unsurveyed public
31-14 school land that:>
31-15 <(A) is not in conflict on the ground with land
31-16 previously titled, awarded, or sold;>
31-17 <(B) has not been listed on the records of the
31-18 land office as public school land; and>
31-19 <(C) was, on the date of filing, neither subject
31-20 to an earlier subsisting application to purchase or lease by a
31-21 discoverer or claimant nor involved in pending litigation brought
31-22 by the state to recover the land.>
31-23 <(3) "Applicant" means any person, other than a
31-24 good-faith claimant, who discovers and files an application to
31-25 purchase or lease a vacancy.>
32-1 <Sec. 51.174. ><Purchase of Vacancy by Adjoining Landowner><.
32-2 If the owner of the land adjoining an alleged vacancy files an
32-3 application to purchase the vacancy and no application to purchase
32-4 or lease the vacancy has been previously filed, the owner of the
32-5 adjoining land, who otherwise qualifies as a good-faith claimant,
32-6 shall be considered a good-faith claimant regardless of the length
32-7 of time he has owned the adjoining land or has enclosed the vacancy
32-8 or has had it within definite recognized boundaries and in
32-9 possession with the belief that the vacancy was included within his
32-10 survey.>
32-11 <Sec. 51.175. ><Application to Purchase or Lease a Vacancy><.
32-12 (a) An applicant who claims that a vacancy exists and who desires
32-13 to purchase or lease the vacancy shall file with the county
32-14 surveyor in the county in which any part of the vacancy is located
32-15 a sworn written application in duplicate to purchase or lease the
32-16 vacancy.>
32-17 <(b) The application shall:>
32-18 <(1) describe the land that is claimed to be vacant;>
32-19 <(2) state the desire of the applicant to purchase or
32-20 lease the land under the provisions of this chapter;>
32-21 <(3) give the names and addresses of any owners or
32-22 claimants of land or any interest in land or of leases on,
32-23 adjoining, overlapping, or including the land claimed to be vacant
32-24 as far as can be determined from the records of the land office and
32-25 the county clerk's office in the county in which the land is
33-1 located and the tax records of the county in which the land is
33-2 located;>
33-3 <(4) give the names and addresses of any persons who,
33-4 from facts known to the applicant, assert any right to the alleged
33-5 vacant land; and>
33-6 <(5) state that the applicant knows of no other
33-7 claimants than those listed.>
33-8 <Sec. 51.176. ><Filing Fee><. At the time the application is
33-9 filed, the applicant shall pay to the county surveyor a filing fee
33-10 set by the board of not less than $5.>
33-11 <Sec. 51.177. ><Filing Application With County><. (a) The
33-12 county surveyor shall mark the exact date and hour of filing on the
33-13 original and duplicate copy of each application and shall return
33-14 one copy of the application to the applicant and shall record the
33-15 other copy in a book kept for that purpose.>
33-16 <(b) If the county does not have a county surveyor, the
33-17 preliminary filing of the application shall be with the county
33-18 clerk. The county clerk shall record the application in a book
33-19 kept for that purpose and not in the deed records.>
33-20 <Sec. 51.178. ><Filing Application With Commissioner><.
33-21 (a) Within 10 days after the application is filed with the county
33-22 surveyor, the copy of the application that is returned to the
33-23 applicant shall be filed with the commissioner.>
33-24 <(b) The commissioner shall mark the date of filing on the
33-25 application.>
34-1 <(c) The applicant shall pay to the commissioner a filing
34-2 fee set by the commissioner in an amount not less than $100.>
34-3 <(d) Failure to file the application with the commissioner
34-4 in the time provided by this section and to pay the filing fee
34-5 constitutes a waiver of all rights under the application.>
34-6 <(e) As between applicants, priority dates from the time of
34-7 filing the application with the county surveyor.>
34-8 <Sec. 51.179. ><Deposit><. (a) The commissioner shall notify
34-9 the applicant by letter of the estimated cost of proceeding under
34-10 the application, and within 30 days after the date of the
34-11 commissioner's letter, the applicant shall make a deposit with the
34-12 commissioner to pay the cost of the work that may be necessary to
34-13 comply with the request contained in the application.>
34-14 <(b) On failure to make the deposit required under this
34-15 section, all rights under the application are lost.>
34-16 <Sec. 51.180. ><Insufficient Deposit><. (a) If the deposit is
34-17 insufficient, the applicant shall be requested by letter to make a
34-18 further deposit of an amount determined by the commissioner.>
34-19 <(b) If the further deposit is not made within 30 days after
34-20 the date of the letter, work shall be discontinued and the
34-21 application canceled with the cancellation endorsed on the
34-22 application.>
34-23 <(c) On cancellation, the right to purchase or lease the
34-24 vacancy under the application is lost.>
34-25 <Sec. 51.181. ><Appeal of Amount of Deposit><. (a) The
35-1 applicant is entitled to appeal the estimated cost determined by
35-2 the commissioner to a district court in Travis County by giving
35-3 written notice to the commissioner within 15 days after receiving
35-4 the estimated cost from the commissioner as provided in Sections
35-5 51.179 through 51.180 of this code.>
35-6 <(b) The applicant has 15 days after the district court
35-7 enters its decision in which to pay the amount ordered by the
35-8 court's decision.>
35-9 <Sec. 51.182. ><Deposits as Trust Fund><. Deposits provided
35-10 under Sections 51.179 through 51.180 of this code shall be a
35-11 special trust fund to be used only for the purpose authorized by
35-12 this subchapter.>
35-13 <Sec. 51.183. ><Statement and Refund of Remaining Deposit><. As
35-14 soon as the total expense properly charged against the deposit is
35-15 determined, the commissioner shall render a complete statement to
35-16 the applicant together with any balance remaining from the deposit.>
35-17 <Sec. 51.184. ><Notice of Intention to Survey><. (a) After the
35-18 application is filed with the commissioner and the deposit is made,
35-19 the commissioner shall mail a notice of intention to survey to all
35-20 persons named as interested persons in the application at the
35-21 addresses provided in the application and to the attorney general.>
35-22 <(b) The notices shall be deposited in the post office in
35-23 Austin at least 10 days before the date set for the beginning of
35-24 the survey.>
35-25 <Sec. 51.185. ><Appointment of Surveyor><. (a) The
36-1 commissioner shall appoint a surveyor to make the survey in
36-2 accordance with the notice of intention to survey.>
36-3 <(b) The surveyor shall be a surveyor licensed by the state
36-4 or the county surveyor of the county in which the vacancy or part
36-5 of the vacancy is located.>
36-6 <(c) The fees and expenses paid for the survey shall be the
36-7 same as provided by law, and if the fees and expenses are not
36-8 provided by law, the commissioner and surveyor shall make an
36-9 agreement as to fees and expenses that shall not be more than an
36-10 amount that is reasonable for the work performed.>
36-11 <(d) The fees and expenses shall be paid by the applicant.>
36-12 <Sec. 51.186. ><Survey Report><. (a) Except as provided in
36-13 Subsection (b) of this section, a written report of the survey,
36-14 together with field notes describing the land and the lines and
36-15 corners surveyed and a plat showing the results of the survey,
36-16 shall be filed in the land office within 120 days from the filing
36-17 of the application.>
36-18 <(b) The commissioner may extend the time for filing the
36-19 survey if good cause is shown. The cause for extension of time
36-20 shall be stated in writing and filed as part of the record of the
36-21 proceedings. An extension of time may not be more than 60 days.>
36-22 <(c) The survey report shall give the names and post-office
36-23 addresses of all persons who have possession of the land described
36-24 in the application and of all persons found by the surveyor who
36-25 have or claim any interest in the land.>
37-1 <Sec. 51.187. ><Personal Survey><. Any interested party at his
37-2 own expense may have any surveying done that he considers
37-3 desirable.>
37-4 <Sec. 51.188. ><Hearing and Notice><. (a) Within 60 days after
37-5 the surveyor makes his report, a hearing may be held before the
37-6 commissioner to determine whether or not there is a vacancy.>
37-7 <(b) The date for the hearing shall be provided in the
37-8 notice that the commissioner shall give to all persons thought to
37-9 be interested parties and to all persons shown by the record of the
37-10 proceeding to be interested parties, including the attorney
37-11 general.>
37-12 <(c) The notice of the hearing shall be deposited at the
37-13 post office in Austin at least 10 days before the date set for the
37-14 hearing.>
37-15 <(d) At the hearing, the state and each interested party,
37-16 whether or not he received notice, is entitled to be heard.>
37-17 <(e) The hearing shall be conducted in accordance with the
37-18 provisions of the Administrative Procedure and Texas Register Act
37-19 (Article 6252-13a, Vernon's Texas Civil Statutes).>
37-20 <Sec. 51.189. ><Determination of Vacancy by Commissioner><.
37-21 (a) If it appears to the commissioner that the alleged vacancy is
37-22 not in conflict with land previously titled, awarded, or sold by
37-23 the state, he shall give prompt notice of this finding to the
37-24 applicant and to all persons who were previously identified as
37-25 interested parties.>
38-1 <(b) After the notice is given under Subsection (a) of this
38-2 section, and subject to the preferential right of a good-faith
38-3 claimant, the applicant is entitled for 120 days to purchase or
38-4 lease the portion of the land that is determined to be vacant at a
38-5 price set by the board as provided in this code and with the same
38-6 royalty reservation as provided in Section 51.201 of this code.>
38-7 <(c) No award may be made by the commissioner unless a
38-8 hearing is held, and no presumption may obtain in a suit involving
38-9 the existence of a vacancy as a result of the action of the
38-10 commissioner in this respect.>
38-11 <Sec. 51.190. ><Purchase or Lease by Applicant><. (a) If there
38-12 is no good-faith claimant or if no good-faith claimant exercises
38-13 his preferential right within the time allowed, the applicant is
38-14 entitled to purchase or lease, according to his application, the
38-15 vacancy for which he made application and which is found to exist.>
38-16 <(b) Consideration shall be determined by the board as
38-17 provided in this subchapter, but without consideration of potential
38-18 mineral value.>
38-19 <Sec. 51.191. ><Suit to Recover Land><. A good-faith claimant
38-20 of a vacant or unsurveyed tract of land has 30 days after the sale
38-21 or lease of the land to the applicant to institute suit to set
38-22 aside the sale or lease of the land. If the suit is not instituted
38-23 within the 30-day period by the good-faith claimant, he loses all
38-24 preferential rights to purchase or lease the land.>
38-25 <Sec. 51.192. ><Denial of Vacancy by Commissioner><. (a) If
39-1 the commissioner decides that the area alleged to be vacant is not
39-2 vacant, he shall endorse this decision on the application and file
39-3 it with his finding.>
39-4 <(b) The commissioner shall promptly notify the applicant of
39-5 his decision by registered mail and shall file all reports and
39-6 papers received in connection with the application.>
39-7 <(c) After the commissioner takes all action provided under
39-8 Subsections (a) and (b) of this section, he shall take no further
39-9 action with respect to the application unless the existence of the
39-10 alleged vacancy is determined by a court of competent jurisdiction.>
39-11 <(d) Within 90 days after the commissioner's decision is
39-12 mailed, unless the applicant files suit in a district court in a
39-13 county in which part of the alleged vacancy is located to litigate
39-14 the question of the existence of a vacancy, the applicant's
39-15 application and all preference rights acquired to purchase or lease
39-16 the alleged vacancy become null and void.>
39-17 <Sec. 51.193. ><Preferential Right of Good-Faith Claimant><.
39-18 (a) A good-faith claimant who ascertains that a vacancy exists or
39-19 that a claimed vacancy may exist or who has been notified by the
39-20 commissioner that a vacancy has been found to exist on land claimed
39-21 by him shall have a preferential right to purchase or lease the
39-22 vacancy at any time until 90 days after a decision of the
39-23 commissioner declaring the existence of a vacancy.>
39-24 <(b) The good-faith claimant may purchase or lease the
39-25 vacancy by submitting a written application to the commissioner for
40-1 the purchase or lease of the vacancy and by furnishing to the
40-2 commissioner satisfactory proof that he is a good-faith claimant.>
40-3 <(c) The good-faith claimant is entitled to purchase or
40-4 lease the portion of the land that is vacant at the price set by
40-5 the board subject to the royalty reservations provided in this
40-6 subchapter which are effective on the date the application is
40-7 filed.>
40-8 <Sec. 51.194. ><Term of Preferential Right><. A good-faith
40-9 claimant has a preferential right to purchase the land alleged or
40-10 adjudicated to be vacant until 90 days after the final judicial
40-11 determination of the existence of the vacancy.>
40-12 <Sec. 51.195. ><Effect of Good-Faith Claimant's Application><.
40-13 The application of a good-faith claimant may not be used or
40-14 considered as an admission on his part that a vacancy exists.>
40-15 <Sec. 51.196. ><Procedure for Purchase or Lease by Good-Faith
40-16 Claimant><. (a) On the date a good-faith claimant's application is
40-17 filed, if there is no valid and subsisting application previously
40-18 filed by an applicant covering the alleged vacancy, the application
40-19 of the good-faith claimant shall be filed and shall be accompanied
40-20 by:>
40-21 <(1) a filing fee set by the commissioner in an amount
40-22 not less than $1;>
40-23 <(2) a written report of a surveyor licensed by the
40-24 state or by the county surveyor of any county in which all or part
40-25 of the alleged vacancy is located;>
41-1 <(3) field notes describing the land and the lines and
41-2 corners surveyed;>
41-3 <(4) a plat showing the results of the survey; and>
41-4 <(5) any proof that will show to the satisfaction of
41-5 the commissioner that the applicant is a good-faith claimant.>
41-6 <(b) The good-faith claimant may file his application to
41-7 purchase or lease and within 120 days from the date of filing the
41-8 application with the commissioner have a survey made of the alleged
41-9 vacancy and file the report, field notes, and plat in the land
41-10 office together with proof that he is a good-faith claimant.>
41-11 <(c) If it appears to the commissioner that the alleged
41-12 vacancy is not in conflict with land previously titled, awarded, or
41-13 sold by the state, the commissioner shall grant the application
41-14 under the provisions of this subchapter. Before the application is
41-15 granted, the commissioner may hold a hearing at which interested
41-16 persons may appear.>
41-17 <Sec. 51.197. ><Failure to Exercise Preferential Right Within
41-18 Certain Time><. (a) If the good-faith claimant does not exercise
41-19 his preferential right to purchase within 90 days after a decision
41-20 of the commissioner under the provisions of this subchapter, the
41-21 applicant shall be awarded an oil, gas, and mineral lease on not
41-22 more than seven-eighths of the minerals.>
41-23 <(b) The consideration for the lease shall not be less than
41-24 $1 an acre, and the lease shall be for a primary term set by the
41-25 board of not more than five years.>
42-1 <(c) The lease shall be subject to other consideration and
42-2 terms required by the board and the preferential right of a
42-3 good-faith claimant until 90 days after final judicial
42-4 determination under Section 51.194 of this code.>
42-5 <Sec. 51.198. ><Repayment of Applicant's Expenses><. Within 90
42-6 days after the commissioner declares the vacancy to exist, the
42-7 good-faith claimant shall repay to the applicant the expenses
42-8 incurred in determining the existence of a vacancy, except filing
42-9 fees, as provided in this subchapter or the good-faith claimant
42-10 will lose all preferential rights to purchase or lease the land.>
42-11 <Sec. 51.199. ><Judicial Determination of Good-Faith Claimant><.
42-12 If the commissioner fails to determine whether or not there is a
42-13 good-faith claimant or if his decision is questioned by an
42-14 applicant or by a person asserting to be a good-faith claimant, the
42-15 issue shall be determined in any suit brought under this subchapter
42-16 to determine the existence of the alleged vacancy.>
42-17 <Sec. 51.200. ><Rights of Holders of Title and Holders of
42-18 Interests in Title of a Claimant><. (a) If all owners holding title
42-19 under the claimant or an interest in the title under which the
42-20 claimant claims to be a good-faith claimant accept the provisions
42-21 of this section and contribute their proportionate part of the
42-22 royalty reserved to the state and the royalty awarded to the
42-23 applicant, the purchase by the good-faith claimant under the
42-24 preferential right inures distributively to their benefit.>
42-25 <(b) The royalty reservations shall be deducted
43-1 distributively and proportionately from the mineral interest of
43-2 each owner including mineral leases if the area is under a mineral
43-3 lease.>
43-4 <(c) As a condition of this subchapter, the good-faith
43-5 claimant receiving the patent or award or for whose benefit a
43-6 patent or award is received shall recognize the proportionate
43-7 interests of other owners who benefit by the award of the
43-8 preferential right.>
43-9 <(d) The consideration for the purchase shall be determined
43-10 by the board without considering the potential value of minerals or
43-11 any improvements located on the vacancy but shall not be less than
43-12 $1 an acre. The state retains the right to recover from the party
43-13 or parties liable the market value when produced of all oil, gas,
43-14 sulphur, or other minerals that may have been produced from the
43-15 area before the effective date of the patent or award less an
43-16 offset to the operator for the actual cost of development and
43-17 production.>
43-18 <(e) No mineral lease executed by a good-faith claimant
43-19 before filing the vacancy claim may give the lessee any interest in
43-20 or to the vacancy.>
43-21 <(f) No title to land or to a mineral interest in land
43-22 acquired from the state under a preferential right may be held to
43-23 pass as after-acquired title because of any covenant of general
43-24 warranty, description, or other provision contained in any
43-25 conveyance executed before the date of award under the preferential
44-1 right.>
44-2 <Sec. 51.201. ><Reservation of Minerals><. (a) If a good-faith
44-3 claimant purchases a vacancy located within five miles of a well
44-4 producing oil, gas, or other minerals in commercial quantities, not
44-5 less than a free royalty of one-eighth of all oil, gas, sulphur,
44-6 and other minerals shall be reserved to the state.>
44-7 <(b) If a vacancy that is not covered by Subsection (a) of
44-8 this section is sold, not less than a free royalty of one-sixteenth
44-9 of all oil and gas production and one-eighth of all sulphur and
44-10 other minerals shall be reserved to the state.>
44-11 <(c) If a good-faith claimant fails to exercise his
44-12 preferential right to purchase a vacancy within 90 days after the
44-13 commissioner determines the existence of the vacancy, the mineral
44-14 interest reserved by the state shall be not less than a free
44-15 royalty of one-eighth of the oil and gas and not less than a free
44-16 royalty of one-sixth of the sulphur and other minerals.>
44-17 <(d) The state shall reserve not less than a free royalty of
44-18 one-eighth of all oil, gas, sulphur, and other minerals on
44-19 vacancies that are leased by the state as determined by the board.>
44-20 <(e) An oil, gas, or other mineral lease on land in which
44-21 the state reserves a free royalty interest is not effective until a
44-22 certified copy of the recorded lease is filed in the General Land
44-23 Office.>
44-24 <Sec. 51.202. ><Mineral Reservations Under Sale Made to
44-25 Claimant After 90-Day Deadline><. If a good-faith claimant does not
45-1 exercise his preferential right to purchase until after 90 days
45-2 after the decision of the commissioner determining the existence of
45-3 a vacancy, the sale made to the claimant shall be subject to a
45-4 reservation to the state of not less than a free royalty of
45-5 one-eighth of all oil, gas, sulphur, and other minerals and subject
45-6 to any lease made by the state to the applicant.>
45-7 <Sec. 51.203. ><Royalty for Applicant><. If there is a valid
45-8 subsisting application previously filed by an applicant on the date
45-9 that the good-faith claimant files his application to purchase
45-10 under a preferential right, and if the good-faith claimant
45-11 exercises his preferential right to purchase within 90 days after
45-12 the commissioner's decision under this subchapter, a free royalty
45-13 of one-sixteenth of all oil, gas, sulphur, and other minerals that
45-14 may be produced from the land shall be added to the royalty
45-15 interest reserved to the state and shall be awarded by the state to
45-16 the applicant. The free royalty shall be deducted proportionately
45-17 from the good-faith claimant's award.>
45-18 <Sec. 51.205. ><Appeal><. (a) A person who is aggrieved by any
45-19 action taken by the commissioner under the provisions of this
45-20 subchapter or with reference to any application to purchase or
45-21 lease a vacancy may institute suit in the district court of any
45-22 county in which part of the land is located to try the issues of
45-23 boundary, title, ownership of any alleged vacancy involved, and
45-24 preferential rights of the person.>
45-25 <(b) Within 30 days after the suit is filed, the plaintiff
46-1 shall have a certified copy of the original petition served on the
46-2 attorney general and the commissioner by the sheriff or a constable
46-3 of Travis County and shall have the officer's return filed with the
46-4 papers in the suit.>
46-5 <(c) Whether the attorney general answers or intervenes in
46-6 the suit or institutes a suit, the venue of all suits following the
46-7 filing of the application shall be in the county in which the land
46-8 or part of the land is located.>
46-9 <(d) If the litigation is prosecuted to a final judgment,
46-10 the judgment is binding on the state.>
46-11 <(e) The attorney general must intervene on behalf of the
46-12 state in suits brought under this section.>
46-13 <(f) The suit must be filed in accordance with the
46-14 provisions of the Administrative Procedure and Texas Register Act
46-15 (Article 6252-13a, Vernon's Texas Civil Statutes) relating to
46-16 appeals from agency decisions.>
46-17 SECTION 2. Section 118.161, Local Government Code, is
46-18 amended to read as follows:
46-19 Sec. 118.161. Fee Schedule. A county surveyor shall collect
46-20 the following fees:
46-21 (1) for recording the field notes and plat of a survey
46-22 for a tract of land, providing copies of field notes, plats, or
46-23 other papers or records, and certifying any copies, the same amount
46-24 collected by the county clerk of the county as a filing fee;
46-25 (2) for surveying a tract of land or designating a
47-1 homestead:
47-2 (A) the actual expenses incurred, including all
47-3 expenses of making the survey, preparing a survey report, field
47-4 notes, plat, and other documents required by law, and filing those
47-5 documents in the records of the county surveyor or the General Land
47-6 Office; and
47-7 (B) any fees for surveying services agreed on by
47-8 the county surveyor and the person seeking the services; and
47-9 (3) for filing an application to purchase or lease a
47-10 vacancy or for surveying a vacancy, the amounts provided by
47-11 Subchapter E, Chapter 51, Natural Resources Code. <Inspecting and
47-12 recording the field notes and plat of a survey for any tract of
47-13 land:>
47-14 <(A) less than one-third of a league ..... $1.00>
47-15 <(B) one-third of a league ............... $2.00>
47-16 <(C) more than one-third of a league ..... $3.00>
47-17 <(2) Recording surveys and plats required by law to be
47-18 placed on the map of a new county, for each 100
47-19 words ................................... $0.20>
47-20 <(3) Examination of papers and records in his office
47-21 at the request of any person ............ $0.25>
47-22 <(4) Copies of all field notes and plats, or other
47-23 papers or records in the office, for each 100
47-24 words, including certificate ............ $0.20>
47-25 <(5) Surveying of any tract of land, including all
48-1 expenses in making the survey, and returning
48-2 the plat and field notes of the survey:>
48-3 <(A) for each English lineal mile actually
48-4 run ............................... $3.00>
48-5 <(B) for less than one English lineal mile
48-6 run ............................... $2.50>
48-7 <(6) Services in designating a homestead, including
48-8 pay for chain carriers, for each day's
48-9 service ................................ $5.00>
48-10 SECTION 3. Subsection (b), Section 72.006, Local Government
48-11 Code, is amended to read as follows:
48-12 (b) A surveyor appointed under this chapter is entitled to
48-13 receive the actual expenses incurred in making the survey and any
48-14 fees for surveying services agreed on by the surveyor and the
48-15 counties <$3 for each mile surveyed>.
48-16 SECTION 4. Subsection (a), Section 21.078, Natural Resources
48-17 Code, is amended to read as follows:
48-18 (a) The plane coordinate values for a point on the earth's
48-19 surface, to be used in expressing the position or location of the
48-20 point in the appropriate zone, of either system, shall consist of
48-21 two distances, expressed in U.S. Survey Feet and decimals of a foot
48-22 or varas or tenths of a vara when using the Texas Coordinate System
48-23 of 1927 and expressed in meters and decimals of a meter, in U.S.
48-24 Survey Feet or decimals of a foot, or in varas or tenths of a vara
48-25 when using the Texas Coordinate System of 1983.
49-1 SECTION 5. (a) The change in law made by Sections 1 through
49-2 4 of this Act applies only to an application to purchase or lease a
49-3 vacancy under Subchapter E, Chapter 51, Natural Resources Code,
49-4 that is filed with a county surveyor or county clerk on or after
49-5 the effective date of this Act.
49-6 (b) An application filed before that date is governed by the
49-7 law in effect on the date the application is filed, and the former
49-8 law is continued in effect for that purpose.
49-9 SECTION 6. Section 5.115, Water Code, is amended to read as
49-10 follows:
49-11 Sec. 5.115. Notice of Application. (a) At the time an
49-12 application for a permit or license under this code is filed with
49-13 the executive director and is administratively complete, the
49-14 commission shall give notice of the application to any person who
49-15 may be affected by the granting of the permit or license.
49-16 (b) At the time an application for any formal action by the
49-17 commission that will affect lands dedicated to the permanent school
49-18 fund is filed with the executive director or the commission and is
49-19 administratively complete, the commission shall give notice of the
49-20 application to the School Land Board. Notice shall be delivered by
49-21 certified mail, return receipt requested, addressed to the deputy
49-22 commissioner of the asset management division of the General Land
49-23 Office. Delivery is not complete until the return receipt is
49-24 signed by the deputy commissioner of the asset management division
49-25 of the General Land Office and returned to the commission.
50-1 (c) The commission shall adopt rules for the notice required
50-2 by this section.
50-3 (d) <(c)> The notice must state:
50-4 (1) the identifying number given the application by
50-5 the commission;
50-6 (2) the type of permit or license sought under the
50-7 application;
50-8 (3) the name and address of the applicant;
50-9 (4) the date on which the application was submitted;
50-10 and
50-11 (5) a brief summary of the information included in the
50-12 permit application.
50-13 (e) The notice to the School Land Board under this section
50-14 shall additionally:
50-15 (1) state the location of the permanent school fund
50-16 land to be affected; and
50-17 (2) describe any foreseeable impact or effect of the
50-18 commission's action on permanent school fund land.
50-19 (f) A formal action or ruling by the commission on an
50-20 application affecting permanent school fund land that is made
50-21 without the notice required by this section is voidable by the
50-22 School Land Board as to any permanent school fund lands affected by
50-23 the action or ruling.
50-24 SECTION 7. Subchapter D, Chapter 11, Natural Resources Code,
50-25 is amended by adding Section 11.082 to read as follows:
51-1 Sec. 11.082. Notice to School Land Board. (a) A state
51-2 agency or political subdivision may not formally take any action
51-3 that may affect state land dedicated to the permanent school fund
51-4 without first giving notice of the action to the board. Notice of
51-5 the proposed action shall be delivered by certified mail, return
51-6 receipt requested, addressed to the deputy commissioner of the
51-7 asset management division of the General Land Office on or before
51-8 the state agency's or political subdivision's formal initiation of
51-9 the action.
51-10 (b) The notice must:
51-11 (1) describe the proposed action;
51-12 (2) state the location of the permanent school fund
51-13 land to be affected; and
51-14 (3) describe any foreseeable impact or effect of the
51-15 state agency's or political subdivision's action on the permanent
51-16 school fund land.
51-17 (c) An action taken by a state agency or political
51-18 subdivision without the notice required by Subsection (a) of this
51-19 section that affects state land dedicated to the permanent school
51-20 fund is not effective as to permanent school fund land affected by
51-21 the action.
51-22 (d) In this section:
51-23 (1) "Action" means:
51-24 (A) formal adoption of an agency or political
51-25 subdivision policy;
52-1 (B) final adoption of an administrative rule;
52-2 (C) issuance of findings of fact or law;
52-3 (D) issuance of an administrative order in an
52-4 administrative hearing; or
52-5 (E) adoption of a local ordinance or resolution.
52-6 (2) "Board" means the School Land Board.
52-7 (3) "Initiation" means the commencement of the first
52-8 phase of public consideration of a formal policy, rule, or
52-9 ordinance, or a hearing undertaken by a state agency or political
52-10 subdivision that is intended to result in final adoption of a
52-11 formal policy, rule, or ordinance.
52-12 (4) "Political subdivision" means a county, public
52-13 school district, or special-purpose district or authority.
52-14 (5) "State agency" means:
52-15 (A) a department, commission, board, office,
52-16 bureau, council, or other agency in the executive branch of state
52-17 government other than the Texas Department of Transportation and
52-18 the Railroad Commission of Texas; or
52-19 (B) a university system or an institution of
52-20 higher education as defined in Section 61.003, Education Code.
52-21 SECTION 8. Section 32.112, Natural Resources Code, is
52-22 amended to read as follows:
52-23 Sec. 32.112. SALE OF TAX FORECLOSURE PROPERTY. (a) All
52-24 real property or any interest in real property placed in the name
52-25 of the state as a result of a tax foreclosure sale may be sold or
53-1 leased by the board in the same manner as provided for the sale or
53-2 lease of land under Chapter 51 of this code. <The board may sell
53-3 by sealed bid all real property placed in the name of the state as
53-4 a result of any tax foreclosure sale. The sealed bid sales shall
53-5 be conducted in the same manner as sealed bid sales for public
53-6 school land.>
53-7 (b) The board may retain from the proceeds of a sale or
53-8 lease conducted under this section the cost of conducting the
53-9 transaction <sale>, including advertising, appraisal, and
53-10 administrative costs. The balance of the proceeds shall be
53-11 deposited in the State Treasury to the credit of the Texas capital
53-12 trust fund.
53-13 SECTION 9. Section 33.015, Natural Resources Code, is
53-14 amended to read as follows:
53-15 Sec. 33.015. SPECIAL ACCOUNT <FUND>. (a) A dedicated
53-16 account <special fund> is created, and money received by the board
53-17 for the grant of permits under this chapter shall be deposited in
53-18 the State Treasury to the credit of this dedicated account <special
53-19 fund>.
53-20 (b) Sections 403.094(h) and 403.095(b), Government Code, do
53-21 not apply to the dedicated account created under this section.
53-22 SECTION 10. Section 33.131, Natural Resources Code, is
53-23 amended to read as follows:
53-24 Sec. 33.131. STRUCTURES AS PROPERTY OF THE STATE. A
53-25 structure presently existing or to be constructed in the future for
54-1 which a permit is required under Section 33.119 of this code
54-2 <subchapter> is the property of the state. Any construction,
54-3 maintenance, or use of the structure other than as provided in this
54-4 subchapter is declared to be a nuisance per se and is expressly
54-5 prohibited.
54-6 SECTION 11. Subchapter D, Chapter 33, Natural Resources
54-7 Code, is amended by adding Section 33.135 to read as follows:
54-8 Sec. 33.135. NOTICE TO PURCHASER OR GRANTEE OF COASTAL AREA
54-9 PROPERTY. (a) A person who sells, transfers, or conveys an
54-10 interest other than a mineral, leasehold, or security interest in
54-11 real property adjoining and abutting the tidally influenced waters
54-12 of the state must include the following notice as a part of a
54-13 written executory contract for the sale, transfer, or conveyance:
54-14 "NOTICE REGARDING COASTAL AREA PROPERTY
54-15 "(1) The real property described in and subject to
54-16 this contract adjoins and shares a common boundary with the tidally
54-17 influenced submerged lands of the state. The boundary is subject
54-18 to change and can be determined accurately only by a survey on the
54-19 ground made by a licensed state land surveyor in accordance with
54-20 the original grant from the sovereign. The owner of the property
54-21 described in this contract may gain or lose portions of the tract
54-22 because of changes in the boundary.
54-23 "(2) The seller, transferor, or grantor has no
54-24 knowledge of any prior fill as it relates to the property described
54-25 in and subject to this contract.
55-1 "(3) State law prohibits the use, encumbrance,
55-2 construction, or placing of any structure in, on, or over
55-3 state-owned submerged lands below the applicable tide line, without
55-4 proper permission.
55-5 "(4) The purchaser or grantee is hereby advised to
55-6 seek the advice of an attorney or other qualified person as to the
55-7 legal nature and effect of the facts set forth in this notice on
55-8 the property described in and subject to this contract.
55-9 Information regarding the location of the applicable tide line as
55-10 to the property described in and subject to this contract may be
55-11 obtained from the surveying division of the General Land Office in
55-12 Austin."
55-13 (b) If property described under Subsection (a) of this
55-14 section is sold, transferred, or conveyed without an executory
55-15 contract for conveyance, a written statement containing the notice
55-16 prescribed by that subsection must be delivered to the grantee for
55-17 execution and acknowledgement of receipt before the conveyance is
55-18 recorded.
55-19 (c) Failure to include the statement in an executory
55-20 contract for conveyance shall be grounds for the purchaser to
55-21 terminate such contract, and upon termination any earnest money
55-22 shall be returned to the party making the deposit.
55-23 (d) Failure to provide this statement prior to closing,
55-24 either in the executory contract for conveyance or in a separate
55-25 written statement, shall constitute a deceptive act under Section
56-1 17.46, Business & Commerce Code.
56-2 (e) This section or the action of any party subject to this
56-3 section does not diminish or modify the beach access and use rights
56-4 of the public as acquired by statute or under common law.
56-5 SECTION 12. Subchapter B, Chapter 51, Natural Resources Code
56-6 is amended by adding Section 51.0125 to read as follows:
56-7 Sec. 51.0125. LAND USED BY STATE AGENCY. Land that belongs
56-8 to the permanent school fund as a result of having been deeded or
56-9 given to the state and that has been used in the past by a state
56-10 agency shall be first offered for sale or lease to state agencies
56-11 before it can be sold or leased to any other party. No permanent
56-12 school fund land may be used by a state agency without fair market
56-13 value compensation to the permanent school fund.
56-14 SECTION 13. Section 51.052, Natural Resources Code, is
56-15 amended by amending Subsections (e) and (f) and adding Subsection
56-16 (i) to read as follows:
56-17 (e) The owner of land that surrounds land in a tract of 700
56-18 <320> acres or less shall have a preference right to purchase the
56-19 tract before the land is made available for sale to any other
56-20 person, provided the person having the preference right pays not
56-21 less than the market value for the land as determined by the board.
56-22 (f) If the surrounding land is owned by more than one
56-23 person, the owners of land with a common boundary with a tract of
56-24 700 <320> acres or less that is for sale shall have a preference
56-25 right to purchase the tract before it is made available to any
57-1 other person, provided the person with the preference right pays
57-2 not less than the market value of the land as determined by the
57-3 board and the board finds use of the preference to be in the best
57-4 interest of the state. The board shall adopt rules to implement
57-5 this preference right.
57-6 (i) If no bid meeting minimum requirements is received for a
57-7 tract of land offered at a sealed bid sale under Subchapter D of
57-8 Chapter 32 of this code, the asset management division of the land
57-9 office may solicit proposals or negotiate a sale, exchange, or
57-10 lease of the property to any person. The sale price may not be
57-11 less than the appraised value of the land as determined by the
57-12 asset management division. The board must approve any negotiated
57-13 sale, exchange, or lease of any land under this section.
57-14 SECTION 14. Section 51.121, Natural Resources Code, is
57-15 amended by adding Subsection (e) to read as follows:
57-16 (e) Subject to the provisions of the Public Utility
57-17 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes), any
57-18 district created by Article XVI, Section 59, of the Texas
57-19 Constitution that leases unsold public school or asylum land for
57-20 power generation through the use of renewable energy sources, such
57-21 as wind, solar, or geothermal energy and other sustainable sources,
57-22 or a district participating in a power generation project using
57-23 renewable energy sources which is located on unsold public school
57-24 or asylum lands may distribute and sell electric energy generated
57-25 on public school or asylum lands within or without the boundaries
58-1 of the district and may issue bonds to accomplish such purposes
58-2 pursuant to Chapter 656, Acts of the 68th Legislature, Regular
58-3 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes), or
58-4 other applicable law. For any such power generation project which
58-5 is located on both public lands and private lands, the district may
58-6 sell outside its boundaries only the pro rata portion of the total
58-7 amount as is generated on the public lands. All electric energy
58-8 generated pursuant to this section shall be sold for resale only to
58-9 utilities authorized to make retail sales under the Public Utility
58-10 Regulatory Act (Article 1446c, Vernon's Texas Civil Statutes) and
58-11 shall be subject to the solicitation process and integrated
58-12 resource planning process authorized by that Act.
58-13 SECTION 15. Section 51.291, Natural Resources Code, is
58-14 amended to read as follows:
58-15 Sec. 51.291. GRANTS OF EASEMENTS. (a) Except as provided
58-16 by Subsection (b) of this section, the <The> commissioner may
58-17 execute grants of easements for rights-of-way across, through, and
58-18 under unsold public school land, the portion of the Gulf of Mexico
58-19 within the jurisdiction of the state, the state-owned riverbeds and
58-20 beds of navigable streams in the public domain, and all islands,
58-21 saltwater lakes, bays, inlets, marshes, and reefs owned by the
58-22 state within tidewater limits for:
58-23 (1) telephone, telegraph, electric transmission, and
58-24 powerlines;
58-25 (2) oil pipelines, including pipelines connecting the
59-1 onshore storage facilities with the offshore facilities of a
59-2 deepwater port, as defined by the federal Deepwater Port Act of
59-3 1974 (33 U.S.C.A. Section 1501 et seq.), gas pipelines, sulphur
59-4 pipelines, and other electric lines and pipelines of any nature;
59-5 (3) irrigation canals, laterals, and water pipelines;
59-6 (4) roads; and
59-7 (5) any other purpose the commissioner considers to be
59-8 in the best interest of the state.
59-9 (b) Consent to conduct an activity that would disturb or
59-10 remove marl, sand, gravel, shell, or mudshell on or near the
59-11 surface of a state-owned riverbed or the bed of a navigable stream
59-12 in the public domain may be granted only under Chapter 86, Parks
59-13 and Wildlife Code.
59-14 (c) Money received by the land office for the grants of
59-15 easements through and under the state-owned riverbeds and beds of
59-16 navigable streams in the public domain shall be deposited in a
59-17 special fund account in the state treasury to be used for the
59-18 removal or improvement of unauthorized structures on permanent
59-19 school fund land. This fund does not impose a duty or obligation
59-20 on the state to accept ownership of, remove, or improve
59-21 unauthorized structures on permanent school fund land.
59-22 SECTION 16. Section 51.302, Natural Resources Code, is
59-23 amended to read as follows:
59-24 Sec. 51.302. Prohibition and Penalty. (a) No person may
59-25 construct or maintain any structure or facility on land <of the
60-1 facilities listed in Sections 51.291 through 51.293 of this code or
60-2 any other facility on or across any section or part of a section of
60-3 land of the character enumerated in Sections 51.291 through 51.293
60-4 of this code and> owned by the state, nor may any person who has
60-5 not acquired a proper easement, lease, permit, or other instrument
60-6 from the state as required by this chapter or Chapter 33 of this
60-7 code <provided in this subchapter> and who owns or possesses a <any
60-8 of the facilities listed in Sections 51.291 through 51.293 of this
60-9 code or any other> facility or structure that is now located on or
60-10 across <any section or part of a section of land of the character
60-11 enumerated in Sections 51.291 through 51.293 of this code and owned
60-12 by the> state land continue in possession of the land unless he
60-13 obtains from the commissioner, the board, or the board of regents
60-14 an easement, lease, permit, <a grant of a right-of-way easement> or
60-15 other instrument required by this chapter or Chapter 33 of this
60-16 code <easement> for the land on which the facility or structure is
60-17 to be constructed or is located.
60-18 (b) A person who constructs, maintains, owns, or possesses a
60-19 facility or structure on state land without a proper easement or
60-20 lease from the state under this chapter or under Chapter 33 <or 51>
60-21 of this code is liable for a penalty of not less than $50 or more
60-22 than $1,000 a day for each day that a violation occurs. The
60-23 penalty shall be recovered by the commissioner under Section
60-24 51.3021 of this code or in a civil action by the attorney general.
60-25 (c) A person who owns, maintains, or possesses an
61-1 unauthorized <abandoned> facility or structure is, for purposes of
61-2 this section, the person who last owned, maintained, or possessed
61-3 the facility or structure <immediately before abandonment>.
61-4 (d) The commissioner or attorney general may also recover
61-5 from a person who constructs, maintains, owns, or possesses a
61-6 facility or structure on state land without the proper easement the
61-7 costs to the state of removing that facility or structure under
61-8 Section 51.3021 of this code.
61-9 (e) Penalties and costs recovered under this section shall
61-10 be deposited in the special fund established under Sections 52.297
61-11 and 53.155 of this code.
61-12 (f) This section is cumulative of all other applicable
61-13 penalties or enforcement provisions of this code.
61-14 (g) In lieu of seeking administrative penalties or removal
61-15 of the facility or structure under Section 51.3021 of this code,
61-16 the commissioner may elect to accept ownership of the facility or
61-17 structure as a fixture and may exercise the state's rights as owner
61-18 of the facility or structure by filing notice of such ownership in
61-19 the real property records of the county in which the facility or
61-20 structure is located. For facilities or structures located on
61-21 coastal public land, notice of ownership shall be filed in the
61-22 county adjacent to the property on which the facility or structure
61-23 is located. A notice under this subsection shall contain a legal
61-24 description of the adjacent property, the owner of property if
61-25 known, and a description of the facility or structure. A state
62-1 agency fund or trust fund is not liable for the condition of any
62-2 facility or structure as a result of acquiring an interest in the
62-3 facility or structure under this section.
62-4 SECTION 17. Subsections (b), (g), and (h), Section 51.3021,
62-5 Natural Resources Code, are amended to read as follows:
62-6 (b) Before the commissioner may remove a facility or
62-7 structure under this section or impose a penalty under Section
62-8 51.302 of this code, the commissioner must give written notice to a
62-9 person who is constructing, maintains, owns, or possesses the
62-10 facility or structure. The notice must state:
62-11 (1) the specific facility or structure that is without
62-12 proper easement or lease or that threatens public health, safety,
62-13 or welfare;
62-14 (2) that the person who is constructing, maintains,
62-15 owns, or possesses the facility or structure shall remove the
62-16 facility or structure:
62-17 (A) not later than the 30th day after the date
62-18 on which the notice is served, if the facility or structure is on
62-19 state land without a proper lease or easement; or
62-20 (B) within a reasonable time specified by the
62-21 commissioner if the facility or structure is an imminent and
62-22 unreasonable threat to public health, safety, or welfare;
62-23 (3) that failure to remove the facility or structure
62-24 may result in liability for a penalty under Section 51.302(b) of
62-25 this code in an amount specified, removal by the commissioner and
63-1 liability for the costs of removal, attachment of a lien to the
63-2 adjacent littoral property to secure payment of the penalty and
63-3 costs of removal, or any combination of such remedies <both>; and
63-4 (4) that the person who is constructing, maintains,
63-5 owns, or possesses the facility or structure may submit, not later
63-6 than the 30th day after the date on which the notice is served,
63-7 written request for a hearing.
63-8 (g) The commissioner may contract for the removal and
63-9 disposal of a facility or structure under this section and may pay
63-10 the costs of removal from the special fund established under
63-11 Sections 52.297 and 53.155 of this code or from funds appropriated
63-12 by the legislature.
63-13 (h) If the person who is constructing, maintains, owns, or
63-14 possesses the facility or structure does not pay assessed
63-15 penalties, removal costs, and other assessed fees and expenses not
63-16 later than the 60th day after the entry of a final order assessing
63-17 the penalties, costs, and expenses, the commissioner may:
63-18 (1) sell salvageable parts or attachments of the
63-19 facility or structure to offset those costs;
63-20 (2) record a lien, in the total amount of the
63-21 penalties, costs, and other fees and expenses assessed, against the
63-22 adjacent littoral property;
63-23 (3) request the attorney general to institute civil
63-24 proceedings to collect the penalties, costs of removal, and other
63-25 fees and expenses remaining unpaid; or
64-1 (4) use any combination of the remedies prescribed by
64-2 this subsection, or other remedies authorized by law, to collect
64-3 the unpaid penalties, costs of removal, and other fees and expenses
64-4 assessed on account of the unauthorized facility or structure on
64-5 state land and its removal by the commissioner.
64-6 (i) The lien authorized by this section arises and attaches
64-7 at the time a notice of lien is recorded and indexed in the real
64-8 property records in the county where the adjacent littoral property
64-9 is located. The notice of lien must contain a legal description of
64-10 the adjacent littoral property, the name of the owner of the
64-11 adjacent littoral property, if known, and the total amount of the
64-12 penalties, costs, and other fees. The lien is subordinate to the
64-13 rights of prior bona fide purchasers or lienholders on the adjacent
64-14 littoral property.
64-15 (j) <(h)> The decision to remove a facility or structure
64-16 under this section is discretionary with the commissioner. This
64-17 section does not impose a duty on the state to remove a facility or
64-18 structure or to remedy or warn of a hazardous condition on state
64-19 land.
64-20 SECTION 18. Section 51.401, Natural Resources Code, is
64-21 amended by adding Subsection (e) to read as follows:
64-22 (e) Sections 403.094 and 403.095, Government Code, do not
64-23 apply to a fund account created under this section.
64-24 SECTION 19. (a) The change in law made by Section 5.115,
64-25 Water Code, as amended by this Act, applies only to an application
65-1 filed with the Texas Water Commission or its successor on or after
65-2 the effective date of this Act.
65-3 (b) The change in law made by Section 11.082, Natural
65-4 Resources Code, as added by this Act, applies to an action, as
65-5 defined by that section, that is pending before a state agency or
65-6 political subdivision, as defined by that section, on the effective
65-7 date of this Act.
65-8 (c) The change in law made by Section 33.135, Natural
65-9 Resources Code, as added by this Act, applies only to a transfer
65-10 that occurs on or after the effective date of this Act.
65-11 (d) The change in law relating to the attachment of a lien
65-12 made by Section 51.3021, Natural Resources Code, as amended by this
65-13 Act, applies only to a penalty imposed or costs of removal assessed
65-14 on or after the effective date of this Act.
65-15 SECTION 20. Section 51.206, Natural Resources Code, is
65-16 repealed.
65-17 SECTION 21. This Act takes effect September 1, 1993.
65-18 SECTION 22. The importance of this legislation and the
65-19 crowded condition of the calendars in both houses create an
65-20 emergency and an imperative public necessity that the
65-21 constitutional rule requiring bills to be read on three several
65-22 days in each house be suspended, and this rule is hereby suspended.