BILL ANALYSIS


                                                        H.B. 1798
                                      By: McCoulskey (Armbrister)
                                                Natural Resources
                                                          5-21-95
                              Senate Committee Report (Unamended)
BACKGROUND

Texas has been faced with problems regarding title to sovereign
lands sold or disposed of to private persons in cases where a
patent was never issued from the state or the republic passing
legal title to land.  In the absence of the patent, legal title
remains with the sovereign.  The current day "owner" of the land is
usually totally unaware of the title defect and is without any
legal recourse to require or cause a patent to be issued, as the
lands of the public domain are now constitutionally dedicated to
the Permanent School Fund (PSF).  The Texas General Land Office and
the School Land Board, legally charged with the management and
administration of PSF, are also powerless to issue the patent,
being constitutionally bound to receive the land's fair market
value in full before the patent is issued.

H.B. 1798 is the enabling legislation for H.J.R. 82.

PURPOSE

As proposed, H.B. 1798 authorizes a three-member panel consisting
of the attorney general, comptroller, and the commissioner of the
general land office to issue a patent releasing all or part of the
state's interest in land, including mineral rights if the panel
makes certain findings.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the commissioner of the General Land Office under SECTION 1
(Section 11.084(d), Natural Resources Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 11D, Natural Resources Code, by adding
Sections 11.083 and 11.084, as follows:

     Sec.  11.083.  PATENT FOR INTEREST IN LAND RELEASED BY STATE. 
     (a) Authorizes a three-member panel consisting of the attorney
     general, comptroller, and the commissioner of the general land
     office (commissioner) to issue a patent releasing all or part
     of the state's interest in land, including mineral rights, if
     the panel makes certain findings.
     
     (b) Sets forth land to which this section does not apply.
       
       (c) Prohibits this section from being used to resolve
       boundary disputes; or change the mineral reservation in an
       existing patent.
       
       Sec.  11.084.  PROCEDURE FOR APPLYING FOR PATENT FOR INTEREST
     IN LAND RELEASED BY THE STATE.  (a) Authorizes a person
     claiming title to land to apply for a patent by filing with
     the commissioner an application on a form prescribed by the
     commissioner.  Requires the claimant to attach to the
     application all documentation necessary to support the
     claimant's request for a patent.
     
     (b) Requires the General Land Office (office) to review the
       claimants application to determine whether the claimant
       meets the criteria for issuance of a patent.
       
       (c) Requires the commissioner to convene the panel to
       determine whether a patent is to be issued if the office
       determines the criteria have been met.
       
       (d) Authorizes the commissioner to adopt rules to administer
       Section 11.083 and this section.
       
       SECTION 2.   Effective date: on the date the constitutional amendment
proposed by the 74th Legislature, Regular Session, 1995, takes
effect, providing that the legislature is authorized to settle
title disputes between the state and a private party.  Provides
that if the proposed constitutional amendment is not approved, this
Act has no effect.

SECTION 3. Emergency clause.