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RULE §13.3Grants and Credits

(a) Permanent Improvements.

  (1) On permanent school fund land leased or improvements for any purposes, the commissioner of the General Land Office may:

    (A) grant money from a special account funded from surface damage fees to the lessee to make permanent improvements to the land or improvements; or

    (B) allow the lessee credit against the rent for all or part of the cost of making permanent improvements to the land.

  (2) Permanent improvements are in the nature of a fixture or an appurtenance to the land, and include conservation or reclamation projects. With the exception of the latter, the improvement must become part of the realty rather than being something easily removed. Examples of fixtures include, among other things fences, gates, cattleguards, barns, windmills, water wells, and pipelines, tanks, embankments, terraces, etc. Examples that are not fixtures include deer blinds, trailers, feeders, moveable pumps, generators, and other equipment. Notwithstanding the above, Lessor may approve lease credits and interpret the category of the improvements on a case-by-case basis.

(b) Application.

  (1) A person desiring a grant or credit must submit a written request to the commissioner.

  (2) In deciding whether to make a grant or allow a credit the commissioner may consider whether the grant or credit applied for is in the best interest of the permanent school fund.

(c) Copies and Inspection.

  (1) Before the recipient may receive money or credit against the rent, the recipient must submit to the commissioner copies of all receipts, vouchers, invoices, cancelled checks, and other evidence of the costs of the improvement or project. Upon request, the recipient must also submit copies of documentation for other credit, reimbursement, or grants for improvements or projects on the land.

  (2) Except as provided in subsection (d)(2) of this section, a grant may be made or credit given only after the conservation or reclamation plan or construction of the improvement is completed and a land office employee has made an inspection and certified to its satisfactory completion.

(d) Payment.

  (1) The amount disbursed or credited shall be the lesser of the recipient's actual authorized costs or the amount of the grant or credit previously set by the commissioner, provided that:

    (A) no money may be disbursed or credit given for costs covered by other credit or money under this section or received from any other private or public agency, program, or source; and

    (B) actual costs are limited to costs of material and services specifically required to construct an improvement or for a conservation and reclamation project, and no money may be disbursed or credit given for administrative costs, overhead, mileage, purchase of tools or equipment, or other incidental expenses.

  (2) If construction of the improvement or completion of the plan takes more than one year, money may be disbursed or credit given in installments upon satisfactory completion of each stage of the plan or construction, if payment by this method is necessary and is justified by the increase in value, productivity, or manageability of the land.

  (3) Annually, General Land Office staff will inspect and document the condition and maintenance of the improvements.

Source Note: The provisions of this §13.3 adopted to be effective January 7, 1988, 12 TexReg 4917; amended to be effective December 9, 2009, 34 TexReg 8778

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