Bill Text: TX HB1882 | 2017-2018 | 85th Legislature | Introduced

---

Bill Title: Relating to the management of university land by The University of Texas System.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Introduced - Dead) 2017-04-12 - Left pending in committee [HB1882 Detail]

Download: Texas-2017-HB1882-Introduced.html

---

85R7609 KJE-F
By: King of Uvalde H.B. No. 1882

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