BILL ANALYSIS H.J.R. 82 By: McCoulskey April 19, 1995 Committee Report (Unamended) BACKGROUND Throughout its history, 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 Republic passing legal title to the 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 way 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 ("GLO") and the School Land Board ("SLB"), legally charged with the management and administration of the PSF, are also powerless to issue the patent, being constitutionally bound to receive land's fair market value in full before the patent is issued. The only solution to this situation has been to amend the Constitution (Article VII) either to directly relinquish the PSF's interest in a specific survey or tract of land (as in the 1993 instance of the Shelby, Frazier, and McCormick League Grant in Austin and Fort Bend Counties) or to constitutionally allow the GLO, through the SLB, to issue the patent if certain conditions are met. This latter process, however, has in past amendments (1987 and 1991) been created so as to automatically expire on December 31st of the year following adoption. PURPOSE HJR 82 proposes to amend Article VII of the Texas Constitution by adding Section 2B to authorize the legislature to enact a procedure that will provide, under certain specific conditions, for the relinquishment of the PSF interest in land whose title is defective due to the lack of a patent. RULEMAKING AUTHORITY It is the committee's opinion that this resolution does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1 Amends Article VII of the Texas Constitution to include a Section 2B. Section 2B, Subsection (a), authorizes the legislature to provide a procedure for the release of all or part of the state's PSF interest in land, including minerals if: A) the land is surveyed, unsold, 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. Subsection (b) provides that the Subsection (a) 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. Subsection (c) provides that Section 2B cannot be used to resolve a boundary dispute or to change the mineral reservation in an existing patent. Subsection (d) provides that Section 2B is to take effect January 1, 1996 and Subsection (d) is to expire January 2, 1996. SECTION 2 Directs the submission to the voters on November 7, 1995 of the following proposition: "The constitutional amendment authorizing the legislature to settle land title disputes between the state and a private party." SUMMARY OF COMMITTEE ACTION H.J.R. 82 was considered by the committee in a public hearing on April 18, 1995. For purposes of testimony, the committee considered the following related bill and resolution together: H.J.R. 82 and H.B. 1798. The following persons testified in favor of the bill and resolution: Representative Huey McCoulskey; and Kathryn Keller, representing the Texas Farm Bureau. The resolution was reported favorably without amendment, with the recommendation that it do pass and be printed, by a record vote of 6 ayes, 0 nays, 0 pnv, 3 absent.