By: Perry S.B. No. 907
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the powers and duties of the board of regents of the
  Texas Tech University System and to workers' compensation coverage
  for employees of the system's components.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter A, Chapter 109,
  Education Code, is amended to read as follows:
  SUBCHAPTER A. GENERAL AND ADMINISTRATIVE PROVISIONS
         SECTION 2.  Section 109.001, Education Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  The board of regents of the Texas Tech University System
  may accept, retain in depositories of its choosing, and administer,
  on terms and conditions acceptable to the board, gifts, grants, or
  donations of any kind, from any source, for use by the system or any
  of the component institutions of the system.
         SECTION 3.  Sections 109.21, 109.22, and 109.23, Education
  Code, are transferred to Subchapter A, Chapter 109, Education Code,
  redesignated as Sections 109.002, 109.003, and 109.004, Education
  Code, and amended to read as follows:
         Sec. 109.002 [109.21].  BOARD OF REGENTS. The government,
  control, and direction of the policies of the university system and
  the component institutions are vested in a board of nine regents,
  who shall be appointed by the governor with the advice and consent
  of the senate.
         Sec. 109.003 [109.22].  BOARD MEMBERS: TERMS, VACANCIES.
  Members of the board will [Except for the initial appointees,
  members] hold office for staggered [of] terms of six years, with the
  terms of three members expiring on January 31 of odd-numbered
  years. [In making the initial appointments, the governor shall
  designate three for terms expiring in 1971, three for terms
  expiring in 1973, and three for terms expiring in 1975.] Any
  vacancy shall be filled for the unexpired portion of the term by
  appointment by the governor with the advice and consent of the
  senate.
         Sec. 109.004 [109.23].  CHIEF EXECUTIVE OFFICER:
  SELECTION, DUTIES. The board shall appoint [provide] a chief
  executive officer, who shall devote the officer's [his] attention
  to the executive management of the university system and who shall
  be directly accountable to the board for the conduct of the
  university system. The board, when required by law to be the
  governing body of any other state educational institution or
  facility, shall also direct the chief executive officer to be
  directly responsible for the executive management of that other
  institution or facility.
         SECTION 4.  The heading to Subchapter B, Chapter 109,
  Education Code, is amended to read as follows:
  SUBCHAPTER B. POWERS AND DUTIES [ADMINISTRATIVE PROVISIONS]
         SECTION 5.  Sections 109.41, 109.42, 109.48, and 109.54,
  Education Code, are transferred to Subchapter B, Chapter 109,
  Education Code, redesignated as Sections 109.051, 109.052,
  109.053, and 109.054, Education Code, and amended to read as
  follows:
         Sec. 109.051 [109.41].  EMINENT DOMAIN. The board of
  regents has the power of eminent domain to acquire land needed to
  carry out the purposes of the university system and the component
  institutions.
         Sec. 109.052 [109.42].  RESIDENCES FOR CHANCELLOR AND
  PRESIDENTS [RESIDENCE FOR PRESIDENT]. The board may purchase a
  house or may purchase land and construct a house suitable for the
  residence of the chancellor of the university system or a president
  of a component [the] university.
         Sec. 109.053 [109.48].  UTILITIES EASEMENTS. On terms,
  conditions, stipulations, and compensation as determined by the
  board, the board may convey, dedicate, or use any other appropriate
  method of conveyance to grant, convey, or dedicate rights, title,
  rights-of-way, or easements involving or in connection with the
  furnishing or providing of electricity, water, sewage disposal,
  natural gas, telephone, telegraph, or other utility service on,
  over, or through the campuses [campus] of the Texas Tech University
  System and the component institutions [in Lubbock County]. The
  chairman of the board may execute and deliver conveyances or
  dedications on behalf of the university system and the component
  institutions [Texas Tech University].
         Sec. 109.054 [109.54].  MANAGEMENT OF LANDS. The board has
  the sole and exclusive management and control of lands set aside and
  appropriated to or acquired by the institutions under its
  governance. The board may lease, sell, exchange, acquire, dispose
  of, and otherwise manage, control, and use the lands in any manner
  and at prices and under terms and conditions the board deems best
  for the interest of the institutions. However, the board may not
  sell any of the original main campus of Texas Tech University
  located in Lubbock, Lubbock County, unless the sale is approved by
  act of the legislature. No grazing lease shall be made for a period
  of more than five years.
         SECTION 6.  The heading to Subchapter C, Chapter 109,
  Education Code, is amended to read as follows:
  SUBCHAPTER C. TEXAS TECH UNIVERSITY [POWERS AND DUTIES]
         SECTION 7.  Section 109.01, Education Code, is transferred
  to Subchapter C, Chapter 109, Education Code, and redesignated as
  Section 109.101, Education Code, to read as follows:
         Sec. 109.101 [109.01].  TEXAS TECH UNIVERSITY. Texas Tech
  University is a coeducational institution of higher education
  located in the city of Lubbock.
         SECTION 8.  Sections 109.43, 109.45, and 109.52, Education
  Code, are redesignated as Sections 109.102, 109.103, and 109.104,
  Education Code, and amended to read as follows:
         Sec. 109.102 [109.43].  DORMITORIES: RULES AND
  REGULATIONS. The board may adopt rules and regulations it deems
  advisable requiring any class or classes of students to reside in
  university dormitories or other buildings.
         Sec. 109.103 [109.45].  [CITY] MUSEUM. (a)  The board may
  establish [rent, lease, or convey, for a sum of money to be
  determined by the board, a part of the campus, not to exceed four
  acres, to the city of Lubbock for the sole purpose of building, with
  bonds or current city taxes, and maintaining with city tax money,] a
  history, science, and art museum.
         (b)  The board may provide [rent or lease] a building or any
  part of a building [on the parcel of land to the city of Lubbock] for
  the sole purpose of maintaining a history, science, and art museum
  [for a sum of money to be determined by the board].
         [(c)     The board may dedicate for public use a street or
  streets leading to and connecting the parcel of land and building
  and to provide ingress and egress to and from a public highway and
  to and from adjacent parking lots.
         [(d)     The board, at its discretion, may contract with the
  city of Lubbock for the staffing, operation, and maintenance of a
  history and art museum with funds provided by the city of Lubbock.
         [(e)     The board may enter into contracts and agreements which
  are necessary and proper for carrying out the provisions of this
  section, provided that no expenditure of money by the board shall be
  made except as may be appropriated by the legislature.]
         Sec. 109.104 [109.52].  DONATIONS, GIFTS, GRANTS, AND
  ENDOWMENTS. The board may accept donations, gifts, grants, and
  endowments for Texas Tech University to be held for the benefit of
  the institution [in trust] and administered by the board.
         SECTION 9.  Subchapter D, Chapter 109, Education Code, is
  amended to read as follows:
  SUBCHAPTER D.  MINERAL DEVELOPMENT IN UNIVERSITY LAND
         Sec. 109.151 [109.61].  MINERAL LEASES; DISPOSITION OF
  PROCEEDS. (a)  The board may lease for oil, gas, sulphur, or other
  mineral development to the highest bidder at public auction all or
  part of the lands under the exclusive control of the board owned by
  the State of Texas and acquired for the use of Texas Tech University
  and its divisions.
         (b)  Any money received by virtue of this section shall be
  deposited in a special fund managed by the board to be known as the
  Texas Tech University special mineral fund. Money in the fund is
  considered to be institutional funds, as defined by Section 51.009,
  of the university and is to be used exclusively for the university
  [and its branches and divisions]. All deposits in and investments
  of the fund shall be made in accordance with Section 51.0031.
  Section 34.017, Natural Resources Code, does not apply to the fund.
         Sec. 109.152 [109.62].  MAJORITY OF BOARD TO ACT. A
  majority of the board has power to act in all cases under this
  subchapter except as otherwise provided in this subchapter.
         Sec. 109.153 [109.63].  SUBDIVISION OF LAND; TITLES.
  (a)  The board may have the lands surveyed or subdivided into
  tracts, lots, or blocks which, in its [their] judgment, will be most
  conducive and convenient to an advantageous sale or lease of oil,
  gas, sulphur, or other minerals in and under and that may be
  produced from the lands; and the board may make maps and plats which
  it deems necessary to carry out the purposes of this subchapter.
         (b)  The board may obtain authentic abstracts of title to the
  lands from time to time as it deems necessary and may take necessary
  steps to perfect a merchantable title to the lands.
         Sec. 109.154 [109.64].  SALE OF LEASES; ADVERTISEMENTS;
  PAYMENTS. (a)  Whenever in the opinion of the board there is a
  demand for the purchase of oil, gas, sulphur, or other mineral
  leases on any tract or part of any tract of land which can be [will]
  reasonably expected to result in [insure] an advantageous sale, the
  board shall place the oil, gas, sulphur, or other mineral leases on
  the land on the market in a tract or tracts, or any part of a tract,
  which the board may designate.
         (b)  The board shall have advertised a brief description of
  the land from which the oil, gas, sulphur, or other minerals is
  proposed to be leased. The advertisement shall be made by
  publishing [inserting] in two or more papers of general circulation
  in this state, and in addition, the board may, in its discretion,
  cause the advertisement to be placed in an oil and gas journal
  published in and out of the state. The board may also mail copies of
  the proposals to the county judge of the county where the lands are
  located and to other persons the board believes would be
  interested.
         (c)  The board may sell the lease or leases to the highest
  bidder at public auction [at the university in Lubbock at any hour
  between 10 a. m. and 5 p. m].
         (d)  The highest bidder shall pay to the board on the day of
  the sale 25 percent of the bonus bid, and the balance of the bid
  shall be paid within 24 hours after the bidder is notified that the
  bid has been accepted. Payments shall be made in cash, certified
  check, [or] cashier's check, or electronic payment, as the board
  directs. The failure of the bidder to pay the balance of the amount
  bid will forfeit to the board the 25 percent of the bonus bid paid.
         Sec. 109.155 [109.65].  SEPARATE BIDS; MINIMUM ROYALTY;
  DELAY RENTAL. (a)  A separate bid shall be made for each tract or
  subdivision of a tract.
         (b)  No bid shall be accepted which offers a royalty of less
  than one-eighth of the gross production of oil, gas, sulphur, and
  other minerals in the land bid upon. The board may increase[, and]
  this minimum royalty [may be increased] at the discretion of the
  board.
         (c)  Every bid shall carry the obligation to pay an amount
  not less than $5 [$1] per acre for delay in drilling or development.
  The amount shall be fixed by the board in advance of the
  advertisement. The delay rental [amount fixed] shall be paid every
  year for five years unless in the meantime production in paying
  quantities is had upon the land or the land is released by the
  lessee.
         Sec. 109.156 [109.66].  REJECTION OF BIDS; WITHDRAWAL OF
  LAND. The board may reject any and all bids and may withdraw any
  land advertised for lease.
         Sec. 109.157 [109.67].  ACCEPTANCE; CONDITIONS AND
  PROVISIONS OF LEASE. (a)  If, in the opinion of the board, [any one
  of] the highest bidder [bidders] has offered a reasonable and
  proper price for any tract, which is not less than the price set by
  the board, the lands advertised may be leased for oil, gas, sulphur,
  and other mineral purposes under the terms of this section and
  subject to regulations prescribed by the board which are not
  inconsistent with the provisions of this section. In the event no
  bid is accepted by the board at public auction, any subsequent
  procedure for the sale of the leases shall be in the manner
  prescribed in the preceding sections.
         (b)  No lease shall be made by the board which will permit the
  drilling or mining for oil, gas, sulphur, or other minerals within
  500 [300] feet of any building or structure on the land without the
  consent of the board. In making any lease on any experimental
  station or farm, the lease shall provide that the operations for
  oil, gas, and other minerals shall not in any way interfere with use
  of the land for university purposes and shall not cause the
  abandonment of the property or its use for experimental farm
  purposes. The lease shall also provide that the lessee operating
  the property shall drill and carry on the lessee's [his] operations
  in such a way as not to interfere with uses [cause the abandonment]
  of the property for university purposes, and the leased property
  shall be subject to the use by the state for all university
  purposes[, and the board shall continue to operate the university].
         Sec. 109.158 [109.68].  ACCEPTANCE AND FILING OF BIDS;
  [YEARLY PAYMENTS;] TERMINATION OF LEASE. (a)  If the board
  determines that a satisfactory bid has been received for the oil,
  gas, sulphur, or other mineral lands, it shall accept the bid and
  reject all others and shall file the accepted bid in the general
  land office.
         (b)  [Whenever the royalties shall amount to as much as the
  yearly payments fixed by the board, the yearly payments may be
  discontinued.
         [(c)] If before the expiration of five years oil, gas,
  sulphur, or other minerals have not been produced in paying
  quantities, the lease shall terminate unless extended as provided
  in Sections 109.160 [109.70] and 109.161 [109.71 of this code].
         Sec. 109.159 [109.69].  AWARD AND FILING OF LEASE. If the
  board determines that a satisfactory bid has been received for the
  oil, gas, sulphur, or other minerals, it shall make an award to the
  bidder offering the highest price, and a lease shall be filed in the
  general land office.
         Sec. 109.160 [109.70].  EXPLORATORY TERM OF LEASE;
  EXTENSION; OTHER PROVISIONS. (a)  The exploratory term of a lease
  as determined by the board prior to the promulgation of the
  advertisement shall not exceed five years, and each lease shall
  provide that the lease will terminate at the expiration of its
  exploratory term unless by unanimous vote of the board the lease is
  extended for a period not to exceed [of] three years.
         (b)  [The lease may be extended if the board finds that there
  is a likelihood of oil, gas, sulphur, or other minerals being
  discovered by the lessees, and that the lessees have proceeded with
  diligence to protect the interest of the state.] If oil, gas,
  sulphur, or other minerals are being produced in paying quantities
  from the premises, the lease shall continue in force and effect as
  long as the oil, gas, sulphur, or other minerals are being so
  produced. No extension may be made by the board until the last 30
  days of the original term of the lease.
         (c)  The lease shall include additional provisions and
  regulations prescribed by the board to preserve the interest of the
  state, not inconsistent with the provisions of this subchapter.
         Sec. 109.161 [109.71].  EXTENSION OF LEASES. When in the
  discretion of the board it is deemed for the best interest of the
  state to extend a lease issued by the board, the board may by
  unanimous vote extend the lease for a period not to exceed three
  years, on the condition that the lessee shall continue to pay yearly
  rental as provided in the lease and shall comply with any additional
  terms [which] the board requires [may see fit and proper to demand].
  The board may extend the lease and execute an extension agreement.
         Sec. 109.162 [109.72].  CONTROL OF DRILLING AND PRODUCTION.
  The drilling for and the production of oil, gas, and other minerals
  from the lands shall be governed and controlled by the Railroad
  Commission of Texas and other applicable regulatory bodies which
  govern and control other fields in this state.
         Sec. 109.163 [109.73].  DRILLING OPERATIONS: SUSPENSION OF
  RENT; CONTINUANCE OF LEASE; DUTY TO PREVENT DRAINAGE. (a)  If
  during the term of a lease issued under the provisions of this
  subchapter the lessee is engaged in actual drilling operations for
  the discovery of oil, gas, sulphur, or other minerals, no rentals
  shall be payable as to the tract on which the operations are being
  conducted as long as the operations are proceeding in a good and
  workmanlike manner in a good faith attempt to produce oil, gas,
  sulphur, or other minerals from the well [faith].
         (b)  In the event oil, gas, sulphur, or other minerals are
  discovered in paying quantities on any tract of land covered by a
  lease, then the lease as to that tract shall remain in force as long
  as oil, gas, sulphur, or other minerals are produced in paying
  quantities from the tract.
         (c)  In the event of the discovery of oil, gas, sulphur, or
  other minerals on any tract covered by a lease or on any land
  adjoining the tract, the lessee shall conduct such operations as
  may be necessary to prevent drainage from the tract covered by the
  lease to properly develop the same to the extent that a reasonably
  prudent individual [man] would do under the same and similar
  circumstances.
         Sec. 109.164 [109.74].  TITLE TO RIGHTS PURCHASED;
  ASSIGNMENT; RELINQUISHMENT. (a)  Title to all rights purchased may
  be held by the lessee [owners] as long as the area produces oil,
  gas, sulphur, or other minerals in paying quantities.
         (b)  All rights purchased may be assigned. All assignments
  shall be filed in the general land office as prescribed by rule,
  accompanied by 10 cents per acre for each acre assigned and the
  filing fee as prescribed by rule. An assignment shall not be
  effective unless filed as required by rule.
         (c)  All rights to all or any part of a leased tract may be
  released to the state at any time by recording a release instrument
  in the county or counties in which the tract is located. Releases
  shall also be filed with the chairman of the board and the general
  land office, accompanied by the filing fee prescribed by rule. A
  release shall not relieve the lessee [owner] of any obligations or
  liabilities incurred prior to the release.
         (d)  The board shall authorize any required infrastructure,
  including [the laying of pipeline and telephone line and] the
  opening of roads deemed reasonably necessary in carrying out the
  purposes of this subchapter.
         Sec. 109.165 [109.75].  PAYMENT OF ROYALTIES; RECORDS;
  REPORT OF RECEIPTS. (a)  If oil, gas, or other minerals are
  developed on any of the lands leased by the board, the royalty as
  stipulated in the sale shall be paid to the general land office in
  Austin on or before the last day of each month for the preceding
  month during the life of the rights purchased. The royalty payments
  shall be set aside as specified in Section 109.151 [109.61] and used
  as provided in that section.
         (b)  The royalty paid to the general land office shall be
  accompanied by the sworn statement of the lessee [owner], manager,
  or other authorized agent showing the gross amount of oil, gas,
  sulphur, or other minerals produced and sold off the premises and
  the market value of the minerals, together with a copy of all daily
  gauges, or vats, tanks, gas meter readings, pipeline receipts, gas
  line receipts, and other checks and memoranda of the amounts
  produced and put into pipelines, vats, tanks, or pool and gas lines
  or gas storage. The books and accounts, receipts and discharges of
  all wells, tanks, vats, pools, meters, and pipelines, and all
  contracts and other records pertaining to the production,
  transportation, sale, and marketing of the oil, gas, sulphur, or
  other minerals shall at all times be subject to inspection and
  examination by any member of the board or any duly authorized
  representative of the board.
         (c)  The commissioner of the general land office shall tender
  to the board on or before the 10th day of each month a report of all
  receipts that are collected from the lease or sale of oil, gas,
  sulphur, or other minerals and that are deposited in the special
  fund as provided by Section 109.151 [109.61] during the preceding
  month.
         Sec. 109.166 [109.76].  PROTECTION FROM DRAINAGE;
  FORFEITURE OF RIGHTS. (a)  In every case where the area in which
  oil, gas, sulphur, or other minerals sold is contiguous or adjacent
  to lands which are not lands belonging to and held by the
  university, the acceptance of the bid and the sale made thereby
  shall constitute an obligation of the lessee [owner] to adequately
  protect the land leased from drainage from the adjacent lands to the
  extent that a reasonably prudent operator would do under the same
  and similar circumstances.
         (b)  In cases where the area in which the oil, gas, sulphur,
  or other minerals sold is contiguous to other lands belonging to and
  held by the university which have been leased or sold at a lesser
  royalty, the lessee [owner] shall protect the land from drainage
  from the lands leased or sold for a lesser royalty.
         (c)  On failure to protect the land from drainage as provided
  in this section, the sale and all rights acquired may be forfeited
  by the board in the manner provided in Section 109.167 [109.77 of
  this code] for forfeitures.
         Sec. 109.167 [109.77].  FORFEITURE AND OTHER REMEDIES;
  LIENS. (a)  Leases granted under the provisions of this chapter
  are subject to forfeiture by the board by an order entered in the
  minutes of the board reciting the acts or omissions constituting a
  default and declaring a forfeiture.
         (b)  Any of the following acts or omissions constitutes a
  default:
               (1)  the failure or refusal by the lessee [owner] of the
  rights acquired under this chapter to make a payment of a sum due,
  either as rental or royalty on production, within 30 days after the
  payment becomes due;
               (2)  the making of a false return or false report
  concerning production, royalty, drilling, or mining by the lessee
  [owner] or the lessee's [his] authorized agent;
               (3)  the failure or refusal of the lessee [owner] or the
  lessee's [his] agent to drill an offset well or wells in good faith,
  as required by the lease;
               (4)  the refusal of the lessee [owner] or the lessee's 
  [his] agent to allow the proper authorities access to the records
  and other data pertaining to the operations authorized in this
  subchapter;
               (5)  the failure or refusal of the lessee [owner] or the
  lessee's [his] authorized agent to give correct information to the
  proper authorities, or to furnish the log of any well within 30 days
  after production is found in paying quantities; or
               (6)  the violation by the lessee [owner] of any
  material term of the lease.
         (c)  The board may, if it so desires, have suit for
  forfeiture instituted through the attorney general.
         (d)  On proper showing by the forfeiting lessee [owner]
  within 30 days after the declaration of forfeiture, the lease may be
  reinstated at the discretion of the board and upon terms prescribed
  by the board.
         (e)  In case of violation by the lessee [owner] of the lease
  contract, the remedy of forfeiture shall not be the exclusive
  remedy, and the state may institute suit for damages or specific
  performance or both.
         (f)  The state shall have a first lien on oil, gas, sulphur,
  or other minerals produced or that may be produced in the leased
  area, and on all rigs, tanks, vats, pipelines, telephone lines, and
  machinery and appliances used in the production and handling of
  oil, gas, sulphur, or other minerals produced, to secure the amount
  due from the lessee [owner of the lease].
         Sec. 109.168 [109.78].  FILING OF DOCUMENTS AND PAYMENT OF
  ROYALTIES, FEES, AND RENTALS. (a)  All surveys, files, copies of
  sale and lease contracts, and other records pertaining to the sales
  and leases authorized in this subchapter shall be filed in the
  general land office and shall constitute archives.
         (b)  Payment of all royalties, lease fees, rentals for delay
  in drilling or mining, filing fees for assignments and
  relinquishments, and all other payments shall be made to the
  commissioner of the general land office at Austin. The
  commissioner shall transmit all payments received to the board for
  deposit to the credit of the Texas Tech University special mineral
  fund as provided by Section 109.151 [109.61].
         Sec. 109.169 [109.79].  FORMS, REGULATIONS, RULES, AND
  CONTRACTS. The board shall adopt proper forms, regulations, rules,
  and contracts which, in its judgment, will protect the income from
  lands leased pursuant to this subchapter.
         Sec. 109.170 [109.80].  MANAGEMENT OF SURFACE AND MINERAL
  ESTATES. (a)  The board may lease for oil, gas, sulphur, ore,
  water, and other mineral development all land under its exclusive
  control for the use of the university. The board may make and enter
  into pooling agreements, division orders, or other contracts
  necessary in the management and development of its land.
         (b)  All leases, pooling agreements, division orders, or
  other contracts entered into by the board shall be on terms that the
  board considers in the best interest of the university. The board
  may not sell a lease for less than the royalty and rental terms
  demanded at that time by the General Land Office in connection with
  the sale of oil, gas, and other mineral leases of the public lands
  of this state.
         (c)  All money received under the leases and contracts
  executed for the management and development of the land, except
  revenue pledged to the payment of revenue bonds or notes, shall be
  deposited to the credit of a special fund created by the board. The
  board shall designate a depository for the special fund and protect
  the money deposited in it by the pledging of assets of the
  depository in the same manner as is required for the protection of
  public funds. Money deposited in the special fund may be used by
  the board for the administration of the university, for payment of
  principal of and interest on revenue bonds or notes issued by the
  board, and for any other purpose that in the judgment of the board
  may be for the good of the university.
         SECTION 10.  Sections 110.01, 110.02, 110.11, and 110.32,
  Education Code, are amended to read as follows:
         Sec. 110.01.  TEXAS TECH UNIVERSITY HEALTH SCIENCES CENTER;
  SEPARATE INSTITUTION. Texas Tech University Health Sciences Center
  is a separate institution and not a department, school, or branch of
  Texas Tech University but is under the direction, management, and
  control of the Texas Tech University System Board of Regents. The
  center is composed of a medical school and other components
  assigned by law or by the coordinating board.
         Sec. 110.02.  CONCURRENT [AND SEPARATE] POWERS. The board
  of regents has the same powers of governance, control,
  jurisdiction, and management [direction, management, and control]
  over the Health Sciences Center as it exercises [they exercise]
  over Texas Tech University System and its components. [However,
  the board shall act separately and independently on all matters
  affecting the Health Sciences Center as a separate institution.]
         Sec. 110.11.  MEDICAL SCHOOL ADMISSION POLICIES. The board
  of regents [Board of Regents] shall promulgate appropriate rules
  and regulations pertaining to the admission of students to the
  medical school [which will provide for admission of those students
  to its entering class each year who are equally or as well qualified
  as all other students and who have entered a contract with or
  received a commitment for a stipend, grant, loan or scholarship
  from the State Rural Medical Education Board. The State Rural
  Medical Education Board may contract with medical students
  providing for such students to engage in a general or family
  practice of medicine for not less than four years after licensing
  and a period of medical residency, as determined by the rules and
  regulations established by the State Rural Medical Education Board,
  in cities of Texas which have a population of less than 5,000 or in
  rural areas, as that term may be defined by the State Rural Medical
  Education Board, and said Board is hereby given the authority to
  define and from time to time redefine the term rural area, at the
  time the medical practice is commenced. This contract shall
  provide for a monthly stipend of at least $100 to be granted by the
  State Rural Medical Education Board to each person under contract
  with the State while enrolled as a medical school student].
         Sec. 110.32.  CONCURRENT POWERS.  The board of regents has
  the same powers of governance, control, jurisdiction, and
  management [direction, management, and control] over the Texas Tech
  University Health Sciences Center at El Paso as the board of regents
  exercises over the other component institutions of the Texas Tech
  University System.
         SECTION 11.  The heading to Section 501.022, Labor Code, is
  amended to read as follows:
         Sec. 501.022.  EMPLOYEES OF COMPONENT INSTITUTIONS OR SYSTEM
  ADMINISTRATION OF TEXAS TECH UNIVERSITY SYSTEM.
         SECTION 12.  Section 501.022, Labor Code, is amended by
  amending Subsection (a) and adding Subsections (e) and (f) to read
  as follows:
         (a)  An eligible employee of Texas Tech University, Texas
  Tech University Health Sciences Center, Angelo State University,
  Texas Tech University System Administration, Texas Tech University
  Health Sciences Center at El Paso, or another agency under the
  direction and control of the board of regents of Texas Tech
  University System is entitled to participate in the workers'
  compensation program for state employees provided under this
  chapter.
         (e)  For purposes of this chapter, Texas Tech University
  System Administration is a state agency and shall act in the
  capacity of employer.
         (f)  For purposes of this chapter, Texas Tech University
  Health Sciences Center at El Paso is a state agency and shall act in
  the capacity of employer.
         SECTION 13.  The following provisions of the Education Code
  are repealed:
               (1)  Section 109.44;
               (2)  Section 109.46;
               (3)  Section 109.47;
               (4)  Section 109.49;
               (5)  Section 110.04; and
               (6)  Section 110.14.
         SECTION 14.  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, 2015.