TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 1. GENERAL LAND OFFICE

Chapter 13. LAND RESOURCES

The General Land Office (GLO) and the School Land Board (SLB) adopt the repeal of Title 31, Part 1, Chapter 13, Subchapter F, relating to Application to Purchase or Lease Vacant and Unsurveyed Public School Land, §§13.71 - 13.86 of the Texas Administrative Code. The GLO simultaneously adopts new Subchapter F, relating to Vacancy Process, §§13.71 - 13.83 of the Texas Administrative Code, without changes to the text, as published in the May 19, 2006, issue of the Texas Register (31 TexReg 4169) and will not be republished. The newly adopted Subchapter F, §§13.71 - 13.83, contains rules governing the administrative procedures for processing and investigation of vacancy applications submitted to the GLO and the terms and conditions for the sale or lease of the vacant land. These rules are adopted pursuant to new legislation that requires the GLO and the SLB to adopt rules governing the administration of the statutes and the terms and conditions for the sale or lease of vacant land in accordance with Tex. Nat. Res. Code §51.174(c).

The GLO adopts the repeal of the existing Subchapter F, relating to Application to Purchase or Lease Vacant and Unsurveyed Public School Land, §§13.71 - 13.86 of the Texas Administrative Code as all application pending before the GLO and actions arising out of vacancy application pending in the courts of the State of Texas that came within the purview of these rules have been finalized. The statute with which these rules originally correspond has been amended twice, most recently by S.B.1103, 79th Leg., R.S. (2005). Therefore as all applications are finalized and the statute had been amended these rules no longer have force or effect and are no longer necessary.

The GLO adopts the repeal of §13.71 relating to Purpose and Scope; §13.72 relating to Definitions; §13.73 relating to General Provisions/Exclusions; §13.74 Application; §13.75 Filing the Application; §13.76 Establishing Good Faith Status; §13.77 relating to Priority Among Good-Faith Claimants; §13.78 relating to Deposit for Cost of Proceeding on the Application; §13.79 relating to Appointment of Surveyor; §13.80 relating to Notice of Intent to Survey; §13.81 relating to Disqualification of Surveyor; §13.82 relating to Survey Report; §13.83 relating to Exceptions to Survey; §13.84 relating to Additional Surveys; §13.85 relating to Action on Application; and §13.86 Decision Without a Hearing.

The GLO and the SLB adopt the new Subchapter F, relating to Vacancy Process, §13.71 relating to General Provisions; §13.72 relating to Definitions; §13.73 relating to Extension of Deadlines; §13.74 relating to Application Process; §13.75 relating to Exceptions to Application; §13.76 relating to Deposits; §13.77 relating to Disqualification and Removal of Appointed Surveyor; §13.78 relating to Attorney Ad litem; §13.79 relating to Form of Pleadings; §13.80 relating to Conduct of Vacancy Hearings; §13.81 relating to Appearance of Parties at Vacancy Hearings; Representation; §13.82 relating to Commissioner's Final Order and Record of Proceedings; and §13.83 Determination of Good-Faith Claimant Status. The adopted new sections are pursuant to Texas S.B. 1103 79th Leg., R.S. (2005) which amended Texas Natural Resources Code, Chapter 51, Subchapter E. The Legislature amended the vacancy statute to create a more expedient and efficient administrative process for processing vacancy applications for landowners, interested and affected property interest owners, good faith claimants and applicants. These rules establish the requirements of the administrative proceedings included in the new statute.

Adopted §13.71, relating to General provisions describes the rules applicability, delegations by the commissioner, and incorporates the Administrative Procedure Act, Chapter 2001, Texas Government Code. Adopted §13.72, relating to Definitions provides definitions for additional terms used in the rules but not defined by the statute.

The Legislature's amendment of Texas Natural Resources Code, Chapter 51, Subchapter E included additional deadlines to the GLO's administrative process for processing vacancy applications. The new statute allows for extension of the deadlines under Tex. Nat. Res. Code §51.174(b) and adopted §13.73, relating to Extension of Deadlines explains how requests for extensions shall be submitted and granted. The rule also allows the Commissioner to suspend such the deadlines in the statute for good cause or extreme circumstances outlined in the proposed rule.

The new statute significantly amended the application process and proposed §13.74 relating to Application Process explains the GLO's initial processing of the vacancy application and when a vacancy application may be refuse for filing and dismissed without prejudice. The new statute greatly increased the definition of property interests under which a person now may be defined as a Necessary Party to the vacancy application and process. Adopted §13.75, relating to Exceptions to Application, explains how the Necessary Parties may file their exceptions to the Vacancy Application pursuant to the new statute.

As with the previous laws governing the Vacancy process, the commissioner has the statutory authority to recover from the applicant certain costs the agency expends in processing and investigating the vacancy application. The commissioner under the new statute shall require the applicant to submit a deposit to cover the reasonable costs and adopted §13.76, relating to Deposits describes how the commissioner shall use the deposit, how the applicant may submit the requested funds to the agency, the time frame for submission of the deposit or supplemental deposits, and failure to do so will result in the termination of that particular vacancy application.

Under the new statute the commissioner has the discretion as to the appointment of a surveyor for a particular vacancy application. If the commissioner decides a surveyor is needed, the commissioner shall appoint a licensed land surveyor who is not associated with the vacancy application to prepare a report in accordance with the statutory requirement under Tex. Nat. Res. Code §51.185. Adopted §13.77, relating to Disqualification and Removal of an Appointed Surveyor, details the process the GLO will take if a Necessary Party submits a petition to the commissioner requesting the removal of a surveyor because of bias, prejudice or conflict of interest. The adopted rule contains the deadline for filing the exception and the form and content of the petition the Necessary Party must submit. The adopted rule details of the hearing the GLO will hold to consider the petition and how the commissioner will make a determination on the petition. The adopted rule also allows the commissioner to remove a surveyor for bias, prejudice or conflict of interest on his own motion but in accordance with the requirements of this proposed section.

In order to ensure that all possible property interest owners receive notice of the vacancy application, the Legislature added a new Attorney Ad litem requirement. If an applicant cannot provide evidence that the applicant owns all the property interests in the land surrounding the land claimed to be vacant, the commissioner must appoint an Attorney Ad litem to ensure that all such property interest owners are identified and properly noticed. Adopted §13.78, relating to Attorney Ad litem explains that the ad litem will search all property records identified in the statute, as well as any other records related to the land claimed to be vacant that in the reasonable professional judgment of the at litem will ensure that all Necessary Parties are identified. The ad litem will present the results of his or her search to the commissioner in order for those identified parties to receive notice of the pending vacancy application. The Attorney Ad litem will represent those parties that have not been located in accordance with the statute for the duration of the vacancy proceedings. The addition of the Attorney Ad litem will ensure that all reasonable steps have been taken to identify any property owners that may have an interest in the land claimed to be vacant and that those parties may participate, if they so choose, in the vacancy application process.

The Legislature amended the vacancy hearing process to bring the hearings back under the Administrative Procedure Act, Chapter 2001, Texas Government Code (APA). The GLO will still hold the hearings, the State Office of Administrative Hearings will not be involved; however the GLO will use the hearing procedures under the APA to ensure that all property interest owners are accorded due process in the determination of whether a vacancy exists. Adopted §13.79, relating to Forms of Pleadings contains the requirements for pleadings that Necessary Parties may file for the hearing. Adopted §13.80, relating to Conduct of Vacancy Hearings explains that the vacancy hearings will be conducted in accordance with the APA and includes the actions that each Necessary Party may take during the hearing such as calling witnesses and the right to cross examination. Adopted §13.81, relating to Appearance of Parties at Vacancy Hearings; Representation discusses how parties may either represent themselves or have an attorney or other representative represent their interests in the vacancy hearing. This section also includes the expected conduct and decorum of all parties attending the hearings and the commissioner's ability to remove people from such hearings under certain circumstances.

As with the previous legislation governing Vacancies, the commissioner must issue a final order determining whether a vacancy exists under the pending vacancy application. Adopted §13.82, relating to Commissioner's Final Order and Record of Proceedings contains the administrative processes the commissioner and staff will follow upon the execution of the a final order. All Necessary Parties will receive a copy of the final order and attachments. Each Final Order will contain a staff recommendation, list of documents examined and staff consulted, and findings of facts and conclusion of law. The GLO will filed a Notice of Claim of Vacancy with the real property records of the County Clerk and County Surveyor no later than the 121st day of the date of the commissioner's final order in the event the commissioner determines a vacancy exists.

The Legislature expanded the definition of persons who may claim to be Good Faith Claimants under the vacancy statute to include mineral estate holders, royalty interest holders, persons holding easements or right-of-ways in the land claimed to be vacant, and persons who used the alleged vacancy for any purpose including the exploration of oil, gas, sulphur, other minerals or geothermal resources, or persons holding title under persons described more fully in section 51.172, Tex. Nat. Res. Code (Vernon Supp. 2005). Adopted §13.83, relating to Determination of Good-Faith Claimant Status explains the documentary evidence a person applying for Good Faith Claimant Status must submit to the commissioner as well as the Good Faith Claimant affidavit. Those documents include among others, documents establishing previous use, proof of color of title and a statement of fact supporting the good faith belief that the vacant land was within the boundaries of land to which they claimed title. If there exist multiple parties claiming Good Faith Status to the same portion of land, adopted §13.83, relating to Determination of Good-Faith Claimant Status, provides a priority of claims under which the status will be granted that accords with the description of Good Faith Claimants under §51.172(2)(B), Tex. Nat. Res. Code (Vernon Supp. 2005). If a person is denied their good faith claimant status, under §51.193(1), that person may request a hearing regarding that determination. Adopted §13.83 states that such a hearing will be held in accordance with 31 TAC, Part 1, Chapter 2 Subchapter B §§2.31 - 2.36, relating to Procedures for Non-Contested Case Hearings.

These rules apply to all vacancy applications filed after June 17, 2005, the date when amended Tex. Nat. Res. Code §§51.171 through 51.195 became effective. These rules supplement the new statutes by including the necessary administrative processes the GLO staff needs in order to effectively carry out the statutory authority granted in the amended statutes.

No comments were received regarding the adoption of the repeal of Title 31, Part 1, Chapter 13, Subchapter F, relating to Application to Purchase or Lease Vacant and Unsurveyed Public School Land, §§13.71 - 13.86 of the Texas Administrative Code or the adoption of new Subchapter F, relating to Vacancy Process, §§13.71 - 13.83 of the Texas Administrative Code.

Subchapter F. APPLICATION TO PURCHASE OR LEASE VACANT AND UNSURVEYED PUBLIC SCHOOL LAND

31 TAC §§13.71 - 13.86

These rules are adopted under the authority of Tex. Nat. Res. Code §§51.174(c) and 51.175 Tex. Nat. Res. Code (Vernon Supp. 2005) which authorizes the commissioner to adopt rules necessary and convenient to administer the vacancy subchapter and the SLB to adopt rules for among other things establishes the preferential rights of good faith claimants under the statute respectively.

Tex. Nat. Res. Code, Sale and Lease of Vacancies, §§51.171 through 51.195, are affected by these adopted rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 29, 2006.

TRD-200603501

Trace Finley

Policy Director

General Land Office

Effective date: July 19, 2006

Proposal publication date: May 19, 2006

For further information, please call: (512) 475-1859


Subchapter F. VACANCY PROCESS

31 TAC §§13.71 - 13.83

These rules are adopted under the authority of Tex. Nat. Res. Code §§51.174(c) and 51.175 Tex. Nat. Res. Code (Vernon Supp. 2005) which authorizes the commissioner to adopt rules necessary and convenient to administer the vacancy subchapter and the SLB to adopt rules for among other things establishes the preferential rights of good faith claimants under the statute respectively.

Tex. Nat. Res. Code, Sale and Lease of Vacancies, §§51.171 through 51.195, are affected by these adopted rules.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on June 29, 2006.

TRD-200603500

Trace Finley

Policy Director

General Land Office

Effective date: July 19, 2006

Proposal publication date: May 19, 2006

For further information, please call: (512) 475-1859