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A BILL TO BE ENTITLED
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AN ACT
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relating to the management of university land by The University of |
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Texas System. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 66.41, Education Code, is amended to |
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read as follows: |
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Sec. 66.41. MANAGEMENT OF UNIVERSITY LANDS. The board of |
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regents of The University of Texas System has the sole and exclusive |
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management and control of the lands set aside and appropriated to, |
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or acquired by, the permanent university fund. The board may sell, |
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lease, and otherwise manage, control, and use the lands in any |
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manner and at prices and under terms and conditions the board deems |
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best for the interest of the permanent university fund, not in |
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conflict with the constitution or this chapter. However, the land |
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shall not be sold at a price less per acre than that at which the |
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same class of other public land may be sold under the statutes. No |
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grazing lease shall be made for a period of more than 10 years. |
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SECTION 2. Section 66.46, Education Code, is amended by |
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amending Subsections (d) and (m) and adding Subsections (d-1), (n), |
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and (o) to read as follows: |
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(d) An easement under this section may not be granted for a |
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term that is longer than 10 years, but the easement may be renewed |
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by the board of regents. The rent to be charged for an easement |
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under this section shall be: |
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(1) an amount agreed to by the grantee and the board; |
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or |
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(2) if applicable, the amount determined as provided |
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by Subsection (n). |
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(d-1) Notwithstanding Subsection (d), the board of regents |
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may grant or renew an easement or other interest in university land |
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for a term longer than 10 years, and may charge below market rate |
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rent for the interest, if: |
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(1) the interest is granted or renewed to a |
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municipality, a river authority, an electric cooperative organized |
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under Chapter 161, Utilities Code, or a nonprofit organization; and |
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(2) the terms of the interest: |
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(A) require the grantee to use the land in a |
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manner that primarily promotes a public purpose of the board and |
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benefits the land; and |
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(B) include provisions under which the board is |
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granted sufficient control to ensure that the public purpose is |
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accomplished and the board receives the return benefit. |
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(m) The board of regents shall establish procedures by which |
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a person seeking an easement or other interest under this section |
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may seek relief from a rate or damage schedule or from the rent or |
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other amount to be charged for the interest being sought that the |
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person believes does not represent the fair market value of the |
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interest [being sought]. The procedures must require: |
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(1) the fair market value of the interest to be |
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conclusively determined by an appraisal obtained by the person |
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seeking relief and conducted by an appraiser licensed or certified |
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under Chapter 1103, Occupations Code, applying standards generally |
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applicable to the assessment of damages for the condemnation of an |
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easement under Chapter 21, Property Code; and |
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(2) if requested by the person seeking relief, binding |
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arbitration to be conducted by a mutually agreeable impartial third |
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party, as described by Section 2009.053, Government Code. |
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(n) If an appraisal conducted as provided by Subsection |
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(m)(1) establishes the fair market value of an easement or other |
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interest in property at an amount that is not more than five percent |
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above or below the rate or damage schedule or the rent or other |
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amount to be charged for the interest, as applicable, the board of |
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regents shall charge for the interest an amount equal to the |
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interest's fair market value as determined by that appraisal. |
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(o) If binding arbitration is requested under Subsection |
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(m)(2), the fees and expenses of the impartial third party must be |
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paid: |
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(1) equally by the board of regents and the person |
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seeking relief; or |
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(2) by the nonprevailing party if the fair market |
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value of the easement or other interest in property being sought is |
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determined to be the same as or approximately the same as the amount |
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requested by the prevailing party, as determined by the impartial |
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third party conducting the arbitration. |
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SECTION 3. This Act takes effect September 1, 2017. |