BILL ANALYSIS H.B. 1798 By: McCoulskey April 18, 1995 Committee Report (Amended) BACKGROUND H.B. 1798 is the enabling act for the implementation of HJR 82, which proposes a constitutional amendment to Article VII authorizing the legislature to provide a process to allow the curing of certain land titles by the issuance of patents under certain conditions. It would amend Chapter 51, Natural Resources Code to add new Sections 11.083 and 11.084. PURPOSE H.B. 1798 sets forth the procedure by which patents would be issued. It defines the process by which applications for patents are made and reviewed, specifies the conditions which must be met by the applicant, and sets forth the basis of consideration by the three (3) member panel. The bill sets constraints on the extent of applicability of the process and excludes certain lands from its application. RULEMAKING AUTHORITY It is the committee's opinion that this bill grants additional rulemaking authority in SECTION 1 to the commissioner of the Texas General Land Office. SECTION BY SECTION ANALYSIS SECTION 1 Amends Subchapter D, Chapter 11, Natural Resources Code, by the addition of Sections 11.083 and 11.084. Section 11.083(a) creates a three (3) member panel composed of the Commissioner of the Texas General Land Office, the Attorney General, and the Comptroller, which shall issue a patent releasing all or part of the state's interest in land, including mineral rights, if the panel finds that: A) the land is surveyed, unsold, permanent school fund ("PSF") land according to the records of the GLO; B) the land cannot be patented under existing law (prior to 1/1/1996); and C) the person claiming title to the land; i) holds under color of title (a written document of record); ii) holds under a chain of title that originated before 1/1/1946, and that is not based on a grant from the sovereign; iii) acquired the land without knowledge that there was no grant or patent to the land; iv) holds a properly recorded deed; and v) has paid all taxes and penalties due on the land. Section 11.083(b) provides that the section does not apply to beaches, submerged or filled submerged land, islands, or land found by a court of competent jurisdiction after January 1, 1946 to be state PSF land. Section 11.083 (c) provides that Section 11.083 cannot be used to resolve a boundary dispute or to change the mineral reservation in an existing patent. Section 11.084 provides for the filing of an application for patent under Section 11.083 with the Commissioner on a form prescribed by the Commissioner together with all documentation necessary to support the applicant's claim. The GLO is to review the application and supporting documentation, and if it determines that all criteria and conditions have been met, the Commissioner shall convene the panel to determine whether a patent is to be issued. The approval of the panel to release the state's interest must be unanimous. Section 11.084 (d) gives rule making authority to the Commissioner of the Texas General Land Office necessary to administer Sections 11.083 and 11.084. SECTION 2 Provides that the act takes effect on the date the constitutional amendment proposed by HJR 82 takes effect; if the proposed constitutional amendment is not approved, HB 1798 has no effect. SECTION 3 Emergency clause. EXPLANATION OF AMENDMENTS COMMITTEE AMENDMENT NO. 1 This amendment strikes the word "shall" in line 9, page 1, and replaces it with the word "may." This change makes the panel's issuance of a patent permissive rather than mandatory. The panel "may" issue a permit if the panel finds that all requirements have been met. SUMMARY OF COMMITTEE ACTION H.B. 1798 was considered by the committee in a public hearing on April 18, 1995. The following persons testified in favor of the bill: Representative Huey McCoulskey; and Kathryn Keller, representing the Texas Farm Bureau. The committee considered one amendment to the bill. The amendment was adopted without objection. The bill was reported favorably as amended, with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 pnv, 3 absent.