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.