BILL ANALYSIS



S.B. 1038
By: Leedom (Mowery)
May 4, 1995
Committee Report (Unamended)


BACKGROUND

Chapters 51 and 53 of the Natural Resources Code provide for the
administration and management of permanent school fund lands by the
General Land Office.  Specific terms and requirements of these laws
must be updated periodically and new provisions added to keep the
permanent school fund ("PSF") in conformity with other current law
and business practices.

PURPOSE

As proposed, S.B. 1038 permits, rather than requires, the
commissioner of the GLO to issue permits to prospectors to search
for minerals on public school land, amends the calculation of
delinquent interest on sales of public school land, gives the
school land board more flexibility in the mineral reservation
required for the sale of permanent school fund lands, and amends
the delivery of patents.

RULEMAKING AUTHORITY

It is the committee's opinion that rulemaking authority is granted
to the school land board under SECTION 1 (Section 51.070(a),
Natural Resources Code) of this bill.

SECTION BY SECTION ANALYSIS

SECTION 1  Amends Section 51.070(a), Natural Resources Code, to
           allow the School Land Board to set terms and times for
           the payment of interest on unpaid and delinquent
           interest payments for sales of PSF land.  The interest
           could be amortized and paid monthly if so determined by
           the SLB.

SECTION 2  Amends Section 51.244(a), (b), and (c), Natural
           Resources Code, to provide for the mailing of patents
           for recording and to the patentee by certified mail
           instead of registered mail.

SECTION 3  Amends Section 51.054(a), Natural Resources Code with
           regard to the nature and extent of the mineral
           reservation required in sales of PSF lands.  It allows
           the SLB to waive such mineral rights, to designate
           specific drilling or exploration sites, provide for
           horizontal exploration only, or to sell the land with
           no mineral reservation when it determines that the
           development of rights by the mineral lessees would
           substantially reduce the value of the surface estate for
           its normal and intended use.

SECTION 4  Amends Section 53.013(a), Natural Resources Code, to
           make the issuance of a prospecting permit by the
           Commissioner on state or PSF land under Sections 53.11
           and 53.12 permissive rather than mandatory.  It would
           allow the Commissioner to consider the higher and best
           use of the subject land and best interests of the PSF
           and the state before issuing the permit.  The permit,
           if issued, would be effective for a period of up to one
           year.  The permit would not be issued until after the
           land office receives the rental payment set by the
           commissioner.

SECTION 5. Emergency clause.
           Effective upon passage. 

SUMMARY OF COMMITTEE ACTION

S.B. 1038 was considered by the committee in a public hearing on
May 2, 1995.

The following person testified neutrally on the bill:

           Spencer Reid, representing the Texas General Land
Office.

The bill was reported favorably without amendment, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by a record vote of 7
ayes, 0 nays, 0 pnv, 2 absent.