|  | 
      
        |  | 
      
        |  | 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 to the extent not prohibited | 
      
        |  | by state or federal law, 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 the 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 the 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. |