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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers and duties of the School Land Board and the |
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commissioner of the General Land Office. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 32.001(4), Natural Resources Code, is |
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amended to read as follows: |
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(4) "Land" means: |
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(A) land dedicated to or acquired on behalf of |
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the permanent school fund and the asylum funds under [by] the |
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constitution and laws of this state; |
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(B) the mineral estate in areas within tidewater |
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limits, including islands, lakes, bays, and the bed of the sea which |
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belong to the state; |
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(C) the mineral estate in river beds and |
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channels; and |
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(D) land owned by the state or held in trust for |
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the use and benefit of the state or of a department, board, or |
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agency of the state. |
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SECTION 2. Subchapter A, Chapter 32, Natural Resources |
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Code, is amended by adding Section 32.003 to read as follows: |
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Sec. 32.003. APPLICATION OF SUNSET ACT. The School Land |
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Board is subject to Chapter 325, Government Code (Texas Sunset |
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Act). Unless continued in existence as provided by that chapter, |
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the board is abolished September 1, 2017. |
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SECTION 3. Section 32.016(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) When necessary, the board shall meet on the first and |
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third Tuesdays of each month at a time and location to be designated |
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by the board [in the land office]. |
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SECTION 4. Section 32.061, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 32.061. BOARD'S GENERAL DUTIES. Except as provided by |
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Subchapter G, Chapter 51, of this code, the board shall: |
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(1) set the dates to open received bids for the sale of |
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[surveyed] land [dedicated to the permanent school fund], for the |
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lease of land for prospecting or exploring for, mining, producing, |
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storing, caring for, transporting, preserving, selling, or |
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disposing of oil, gas, or other minerals leased under this chapter, |
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and for the commitment of land to a contract for development; |
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(2) determine the prices and set the terms and |
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conditions under [of the contract for] which land shall be sold, |
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leased, or committed to a contract for development; |
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(3) consult with the president, chairman, or other |
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head of the department, board, or agency, as applicable, or with the |
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representative of the head, on each matter before the board that |
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affects land owned or held in trust for the use and benefit of a |
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department, board, or agency of the state; and |
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(4) perform any other duties which may be required by |
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law. |
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SECTION 5. Section 32.102, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 32.102. LIST OF LAND. From time to time as requested |
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by the board, the commissioner shall furnish the board a list of |
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land areas subject to the provisions of this chapter. |
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SECTION 6. Section 32.105, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 32.105. DATE FOR OPENING BIDS. The date for opening |
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bids for the sale, lease, or commitment to a contract for |
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development of land shall be: |
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(1) the first or third Tuesday of a [the] month in |
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which the board meets; or |
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(2) any date on which the board has a special meeting. |
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SECTION 7. Sections 32.107(a), (b), and (c), Natural |
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Resources Code, are amended to read as follows: |
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(a) The board shall publish notice that the board will |
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receive bids for the sale, lease, or commitment to a contract for |
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development of land in at least three issues of at least four daily |
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newspapers or other publications, two of which may be |
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Internet-based journals, trade publications, newsletters, or |
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similar news media, that are, in the opinion of the commissioner, |
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likely to reach the public interested in responding to the notice of |
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sale, lease, or commitment to a contract for development. |
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(b) The notice shall be published at least 30 days before |
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the date the bids are due [advertised to be opened]. |
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(c) The notice shall state that land is to be offered for |
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sale, lease, or commitment to a contract for development on a |
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certain date and at a certain time and the method of the sale, |
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lease, or commitment to a contract for development and shall give |
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notice of how [that] a person may obtain additional information |
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concerning [publications from the land office that describe] the |
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land offered for sale, lease, or commitment to a contract for |
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development. |
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SECTION 8. Sections 32.110(a) and (c), Natural Resources |
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Code, are amended to read as follows: |
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(a) On land sales and mineral leases made by the board, the |
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purchaser or bidder is required to pay by separate check an amount |
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equal to one and one-half percent of the bid or sale amount payable |
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to the commissioner as a special fee. The board may waive the |
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special fee on land sales to any state agency, board, commission, |
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political subdivision, or other governmental entity. |
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(c) Failure to pay the special fee shall not void a bid, but |
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the commissioner shall demand payment of the fee before accepting |
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the bid and completing the transaction [a lease is issued to the
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best bidder. If the best bidder fails or refuses to make the
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payment within 30 days after demand by the commissioner, the bidder
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is not entitled to a sale of or a lease on the tract covered by that
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bid and the cash bonus shall be automatically forfeited to be
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deposited by the commissioner in the State Treasury to the credit of
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the permanent school fund or the appropriate special mineral fund.
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The board, at its option, may offer the tract for sale or lease to
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the next best bidder under the same terms as submitted by and as
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would have been granted to the best bidder]. |
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SECTION 9. Section 32.253, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 32.253. PURPOSE OF TRADE. Land dedicated to or |
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acquired for the use and benefit of the permanent school fund may be |
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traded to: |
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(1) aggregate sufficient acreage of contiguous land to |
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create a manageable unit; |
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(2) acquire land having unique biological, |
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geological, cultural, or recreational value; [or] |
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(3) create a buffer zone for the enhancement of |
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already existing public land, facilities, or amenities; or |
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(4) acquire land for the use and benefit of the |
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permanent school fund as determined by the board to be in the best |
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interest of the fund. |
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SECTION 10. Section 51.001, Natural Resources Code, is |
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amended by amending Subdivision (8) and adding Subdivision (12) to |
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read as follows: |
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(8) "Surveyed land" means all or part of any tract of |
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land surveyed either on the ground or by protraction and dedicated |
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to or acquired on behalf of the public school fund which is unsold |
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and for which field notes are on file in the land office or that may |
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be delineated on the maps of that office as such. |
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(12) "Sovereign land" means land that has not been |
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sold and severed by the sovereign. |
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SECTION 11. The heading to Section 51.013, Natural |
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Resources Code, is amended to read as follows: |
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Sec. 51.013. CLASSIFICATION [AND VALUATION] OF LAND. |
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SECTION 12. Section 51.013(b), Natural Resources Code, is |
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amended to read as follows: |
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(b) After the classification [and determination of market
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value] is entered on the records of the land office, no further |
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action needs to be taken by the commissioner and no notice is |
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required to be given to the county clerk for the classification [and
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determination of market value] to be effective. |
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SECTION 13. Section 51.014, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.014. RULES. [(a)] The commissioner may adopt |
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rules necessary to carry out the provisions of this chapter and may |
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alter or amend the rules to protect the public interest. |
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[(b)
Before rules are adopted under Subsection (a) of this
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section, the commissioner shall submit the rules to the governor
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for his approval.] |
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SECTION 14. Sections 51.052(e), (f), (g), (i), and (k), |
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Natural Resources Code, are amended to read as follows: |
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(e) The owner of land that surrounds [land in] a tract of |
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land approved for sale by the board shall have a preference right to |
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purchase the tract before the land is made available for sale to any |
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other person, provided the person having the preference right pays |
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not less than the market value for the land as determined by the |
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board and the board finds use of the preference to be in the best |
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interest of the state. The board shall adopt rules to implement |
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this preference right. |
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(f) If the surrounding land is owned by more than one |
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person, the owners of land with a common boundary with a tract of |
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land approved [1,200 acres or less that is] for sale by the board |
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shall have a preference right to purchase the tract before it is |
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made available to any other person, provided the person with the |
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preference right pays not less than the market value of the land as |
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determined by the board and the board finds use of the preference to |
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be in the best interest of the state. The board shall adopt rules to |
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implement this preference right. |
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(g) If land is located within the boundaries of or adjacent |
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to any state park, refuge, natural area, or historical site subject |
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to the management and control of the Parks and Wildlife Department, |
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the department has a preference right to purchase the land before it |
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is made available [for sale] to any other person. A sale to the |
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department under this section may not be for less than the market |
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value of the land, as determined by the board. |
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(i) If no bid meeting minimum requirements is received for a |
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tract of land offered at a sealed bid sale under Subchapter D of |
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Chapter 32, or if the transaction involves commercial real estate |
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and the board determines that it is in the best interest of the |
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permanent school fund, the asset management division of the land |
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office may solicit proposals or negotiate a sale, exchange, or |
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lease of the land to any person. [The asset management division
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may contract for the services of a real estate broker or of a
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private brokerage or real estate firm to assist in a transaction
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under this subsection.] The board must approve any negotiated |
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sale, exchange, or lease of any land under this section. |
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(k) The [If an award of a bid under this section does not
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result in a final transaction, the] asset management division of |
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the land office may contract for the services of a real estate |
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broker or of a private brokerage or real estate firm to assist in |
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any sale, lease, or exchange of land under this subchapter [the real
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estate transaction]. |
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SECTION 15. Section 51.056, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.056. APPLICATION OR REQUEST TO PURCHASE LAND. |
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[(a)] A person who wants to purchase public school land shall |
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submit to the commissioner a [separate] written application or |
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request in a form designated by the commissioner [for each tract]. |
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[(b) Each application shall:
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[(1) designate the land to be purchased;
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[(2) state the bid offered;
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[(3)
include an affidavit disclosing the names of all
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persons or entities either directly or indirectly interested in the
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purchase of the land.
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[(c)
The sale of the land is effective from the date of the
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receipt and filing of the application, affidavit, obligation, and
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the payment of the initial portion of the price offered.
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[(d)
The application to purchase and the notice of award
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shall state that the land is sold without condition of settlement
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and with a reservation of minerals, as determined by the board.] |
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SECTION 16. Section 51.066, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.066. LAND [NOTICE OF] AWARD. (a) The commissioner |
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shall prepare and issue a land [notice of] award for each tract of |
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sovereign land sold. |
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(b) Each land [notice of] award shall be appropriately |
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numbered and shall be worded in a manner that will constitute a |
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receipt for the first or full payment after it is signed by the |
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commissioner. |
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(c) One copy of the land [notice of] award shall be retained |
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in the land office and the other copy shall be sent to the |
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purchaser. |
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SECTION 17. The heading to Section 51.070, Natural |
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Resources Code, is amended to read as follows: |
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Sec. 51.070. UNPAID PRINCIPAL [AND INTEREST] ON PUBLIC |
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SCHOOL LAND SALES. |
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SECTION 18. Sections 51.070(a) and (b), Natural Resources |
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Code, are amended to read as follows: |
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(a) Unpaid and delinquent principal [and interest] on sales |
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of public school land shall bear interest at a rate set by the |
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board, which principal and interest shall be payable at the times |
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and on such terms as are established by the board [by rule or by
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contract]. |
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(b) No patent may be issued for any public school land until |
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all [unpaid] principal, accrued [and compounded] interest, late |
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charges, and other fees and expenses are [is] paid in full [to the
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time of issuing the patent]. |
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SECTION 19. Section 51.071, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.071. FORFEITURE OF LAND. (a) If principal, |
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accrued [and] interest, late charges, and other fees and expenses |
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on a sale of sovereign land are [is] not paid when due as required by |
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the terms set by the board, the land is subject to forfeiture by the |
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commissioner by entry on the file [wrapper] containing the papers |
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"Land Forfeited" or similar words, the date of the forfeiture, and |
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the official signature of the commissioner. |
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(b) After the entry is made on the file [wrapper], the land |
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and all payments that have been made for it are forfeited to the |
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state, and the land may be resold in accordance with the provisions |
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of this subchapter [offered for sale on a subsequent sale date]. |
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SECTION 20. Section 51.073, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.073. CLASSIFICATION AND SALE OF LEASED AND |
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FORFEITED LAND. [(a)] Before it is sold, the commissioner shall |
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classify and determine the market value of land on which leases have |
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expired and land forfeited to the state. |
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[(b)
Except as provided in Section 51.064 of this code, no
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land may be sold until it is advertised.] |
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SECTION 21. Section 51.086(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) All sales of escheated land that is a part of the |
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permanent school fund must be made [to the highest bidder] at a |
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price that may not be less than [the greater of $2.50 an acre or] the |
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minimum price set by the court under Section 71.107, Property Code, |
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and in the same manner as the sale of public school land as provided |
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by this chapter. |
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SECTION 22. Sections 51.172(4) and (7), Natural Resources |
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Code, are amended to read as follows: |
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(4) "Necessary party" means: |
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(A) an applicant or good-faith claimant whose |
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present legal interest in the surface or mineral estate of the land |
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claimed to be vacant may be adversely affected by a vacancy |
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determination; |
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(B) a person who asserts a right to or who claims |
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an interest in land claimed to be vacant; |
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(C) a person who asserts a right to or who claims |
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an interest in [land claimed to be vacant or in] land adjoining land |
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claimed to be vacant as shown in the records of the land office or |
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the county records, including tax records, of any county in which |
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all or part of the land claimed to be vacant is located; |
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(D) a person whose name appears in the records |
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described by Paragraph (C); or |
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(E) an attorney ad litem appointed under Section |
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51.180. |
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(7) "Vacancy application" means a form submitted to |
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the commissioner by an applicant to: |
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(A) initiate a determination by the commissioner |
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whether land claimed to be vacant is vacant; and |
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(B) purchase [vacant land;] or |
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[(C)] lease vacant land. |
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SECTION 23. Section 51.177(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) Not later than the 45th day after the date the |
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commissioner accepts [applicant files] the duplicate copies as |
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properly filed by the applicant [with the commissioner] as provided |
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by Section 51.176(f), the commissioner shall: |
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(1) determine whether the vacancy application is |
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administratively complete; and |
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(2) provide to the applicant the notice required by |
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this section. |
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SECTION 24. Section 51.180, Natural Resources Code, is |
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amended to read as follows: |
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Sec. 51.180. ATTORNEY AD LITEM. (a) If the [The] |
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applicant cannot [must] provide evidence to the commissioner to |
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establish the applicant's ownership of all interests as defined by |
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Section 51.172 in the land surrounding the land claimed to be |
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vacant, the commissioner shall investigate the ownership interests |
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of the land claimed to be vacant and the surrounding land to ensure |
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that all necessary parties have been identified and located. |
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(b) The investigation must conclude not later than the 60th |
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day after the application commencement date. If the investigation |
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yields any [applicant fails to provide sufficient] evidence that a |
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necessary party may not have been identified and located, as |
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determined by the commissioner, the commissioner shall, not later |
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than the 30th day after the conclusion of the investigation |
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[application commencement date], appoint an attorney ad litem to [:
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[(1)] identify and locate all necessary parties |
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[; and
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[(2)
represent the interests of any necessary party
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that has not been located]. |
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(c) The commissioner shall provide the attorney ad litem |
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with all documents submitted by the applicant and the results of the |
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investigation to identify necessary parties, and the attorney ad |
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litem shall search public land records and other available records |
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to identify and locate necessary parties. |
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(d) If any necessary party cannot be located, the attorney |
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ad litem shall represent the interests of that necessary party. |
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SECTION 25. Sections 51.181(a) and (b), Natural Resources |
|
Code, are amended to read as follows: |
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(a) Not later than the 30th day after the application |
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commencement date, and at any time after that date that the |
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commissioner considers it necessary to notify an identified |
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necessary party, the commissioner shall provide to each necessary |
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party identified and located as of that date a written notice that: |
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(1) informs the necessary party that a vacancy |
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application has been filed; |
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(2) states the application commencement date; and |
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(3) includes: |
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(A) a copy of the vacancy application and any |
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attachments; and |
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(B) a form for requesting subsequent notices |
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regarding the application. |
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(b) If the attorney ad litem is unable to locate an |
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identified [identify each] necessary party, the attorney ad litem |
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shall notify the commissioner in writing, and the commissioner |
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[applicant] shall provide notice required under this section by |
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publication in the same manner prescribed by the Texas Rules of |
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Civil Procedure. |
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SECTION 26. Section 51.187(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) If the commissioner has not issued a final order with a |
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finding of "Not Vacant Land" on or before the first anniversary of |
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the application commencement date and one or more exceptions have |
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been filed under Section 51.182(a) or 51.186(b), the commissioner |
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shall order a hearing to determine if a vacancy exists. A hearing |
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under this subchapter: |
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(1) shall be held not later than the 60th day after the |
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date the hearing is ordered; |
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(2) shall be conducted as a contested case hearing |
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subject to Chapter 2001, Government Code; and |
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(3) may be waived by written agreement of all |
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necessary parties and the commissioner. |
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SECTION 27. Section 51.188(a), Natural Resources Code, is |
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amended to read as follows: |
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(a) At any time during or after an investigation of or |
|
hearing regarding a vacancy application, the commissioner may |
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determine that land claimed to be vacant is not vacant and issue a |
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final order with a finding of "Not Vacant Land[.]" or an order |
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finding a vacancy if a hearing is not required under Section 51.187. |
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SECTION 28. Section 51.194, Natural Resources Code, is |
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amended by amending Subsection (a) and adding Subsections (a-1) and |
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(a-2) to read as follows: |
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(a) A good-faith claimant who has been notified by the |
|
commissioner that a vacancy exists under this subchapter has a |
|
preferential right to purchase or lease the interest claimed in the |
|
land before the land was declared vacant. The preferential right |
|
may be exercised after a final judicial determination or after the |
|
commissioner's final order and the period for filing an appeal has |
|
expired. |
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(a-1) If a good-faith claimant does not apply to purchase or |
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lease the interest before the later of the 121st day after the date |
|
the commissioner's order becomes final or the 60th day after the |
|
date of the final judicial determination of an appeal under this |
|
subchapter, then the good-faith claimant's preferential right |
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expires. |
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(a-2) If a good-faith claimant does not close a transaction |
|
to purchase or lease the interest before the 121st day after the |
|
date the terms and conditions are determined by the board, then the |
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good-faith claimant's preferential right expires. |
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SECTION 29. The following provisions of the Natural |
|
Resources Code are repealed: |
|
(1) Section 32.103; |
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(2) Section 51.052(a); |
|
(3) Section 51.057; |
|
(4) Section 51.058; |
|
(5) Section 51.059; |
|
(6) Section 51.060; |
|
(7) Section 51.061; |
|
(8) Section 51.062; |
|
(9) Section 51.063; |
|
(10) Section 51.064; |
|
(11) Section 51.068; |
|
(12) Section 51.084; and |
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(13) Section 51.086(b). |
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SECTION 30. This Act takes effect immediately if it |
|
receives a vote of two-thirds of all the members elected to each |
|
house, as provided by Section 39, Article III, Texas Constitution. |
|
If this Act does not receive the vote necessary for immediate |
|
effect, this Act takes effect September 1, 2009. |