SRC-CTC H.B. 3558 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3558
77R9387 ESH-FBy: Junell (Ellis)
Education
5/7/2001
Engrossed


DIGEST AND PURPOSE 

Currently, the School Land Board (board) is responsible for the management
and development of all real property owned by the permanent school fund
(PSF).  The board is authorized to dispose of real property owned by PSF
and to invest those proceeds in properties with greater 
potential to generate revenue.  H.B. 3558 authorizes the board to use the
proceeds from future mineral leases and royalties available to the board
for the acquisition of additional real property and mineral interests on
behalf of PSF. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Sections 51.401(a) and (c)-(e), Natural Resources Code,
as follows: 

(a) Authorizes the School Land Board (board) to designate funds, rather
than money, received from the sale of permanent school fund (PSF), rather
than public school, land under this chapter and the proceeds of future
mineral leases and royalties generated from existing and future active
leases of permanent school fund mineral interests received under Chapters
52 and 53 of this code for deposit in a special fund account of PSF in the
state treasury to be used by the board to acquire fee or lesser interests
in real property, including mineral and royalty interests, for the use and
benefit of PSF, as provided by Section 51.402 of this subchapter. 

(c) Replaces the word "land" with "interests in real property."  Requires
money received from the lease of minerals and royalties derived from active
leases and designated for the acquisition of interests in real property
under this subchapter to be used by the board by a certain date. 

 (d) Makes a nonsubstantive change.

 (e) Removes reference to Section 403.094, Government Code.

SECTION 2.  Amends the heading to Section 51.402, Natural Resources Code,
to read as follows: 

 Sec. 401.402.  ACQUISITION OF INTERESTS IN REAL PROPERTY.

SECTION 3.  Amends Section 51.402(a), Natural Resources Code, to authorize
the board to use the money designated under Section 51.401 of this
subchapter to acquire mineral and royalty interests for the use and benefit
of PSF. 

SECTION 4.  Effective date: September 1, 2001.