BILL ANALYSIS


                                                        S.B. 1038
                                                       By: Leedom
                                                Natural Resources
                                                         03-22-95
                                     Committee Report (Unamended)
BACKGROUND

Current law provides for the administration and management of
permanent school fund lands by the General Land Office.  Specific
terms and requirements of the Natural Resources Code must be
updated periodically and new provisions added to keep the permanent
school fund in conformity with other current law and business
practices.

PURPOSE

As proposed, S.B. 1038 authorizes the commissioner of the general
land office 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, 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
require interest on sales of public school land set by the school
land board (board) to be payable at the times and on such terms as
established by the board, by rule, or by contract, rather than
compounded annually as it accrues on the date of payment set by the
board.

SECTION 2. Amends Section 51.244, Natural Resource Code, to make
nonsubstantive changes.

SECTION 3. Amends Section 51.054(a), Natural Resources Code, as
follows:

     Sec.  51.054.  RESERVATION OF MINERALS.  (a) Authorizes the
     board, if it determines that a mineral reservation would
     substantially reduce the value of the land surface by
     restricting its suitability for agricultural, commercial, and
     residential use, to take action or waive rights that are in
     the best interest of the permanent school fund, including
     certain activities.  Makes a conforming and nonsubstantive
     change.
     
     SECTION 4.     Authorizes the commissioner of the general land office
(commissioner) to issue to the first applicant a permit to prospect
the area on the applicant's application for up to one year from the
date the application is filed.  Prohibits the permit from being
issued until after the land office receives the rental payment set
by the commissioner if the commissioner elects to grant the
application for a permit to prospect under the provisions of this
subchapter.

SECTION 5. Emergency clause.
           Effective date: upon passage.