1-1                                   AN ACT
 1-2     relating to the sale, lease, and purchase of interests in real
 1-3     property for the permanent school fund.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 51.401(a) and (c)-(e), Natural Resources
 1-6     Code, are amended to read as follows:
 1-7           (a)  The board may designate funds [money] received from the
 1-8     sale of permanent school fund [public school] land under this
 1-9     chapter and the proceeds of future mineral leases and royalties
1-10     generated from existing and future active leases of permanent
1-11     school fund mineral interests received under Chapters 52 and 53 of
1-12     this code for deposit in a special fund account of the permanent
1-13     school fund in the State Treasury to be used by the board to
1-14     acquire fee or lesser interests in real property, including mineral
1-15     and royalty interests, for the use and benefit of the permanent
1-16     school fund, as provided by Section 51.402 of this subchapter.
1-17           (c)  Money received from the sale of a particular piece of
1-18     land and designated for the acquisition of interests in real
1-19     property [land] under this subchapter must be used by the board not
1-20     later than two years after the date of the sale of land from which
1-21     the money is derived.  Money received from the lease of minerals
1-22     and royalties derived from active leases and designated for the
1-23     acquisition of interests in real property under this subchapter
1-24     must be used by the board not later than two years after the date
 2-1     the money is deposited in the special fund account.
 2-2           (d)  Any money remaining [from a specific sale that remains]
 2-3     in the special fund account for longer than two years shall be
 2-4     deposited in the State Treasury to the credit of the permanent
 2-5     school fund.
 2-6           (e)  Section [Sections 403.094 and] 403.095, Government Code,
 2-7     does [do] not apply to a fund account created under this section.
 2-8           SECTION 2.  The heading to Section 51.402, Natural Resources
 2-9     Code, is amended to read as follows:
2-10           Sec. 51.402.  [LAND] ACQUISITION OF INTERESTS IN REAL
2-11     PROPERTY.
2-12           SECTION 3. Section 51.402(a), Natural Resources Code, is
2-13     amended to read as follows:
2-14           (a)  The board may use the money designated under Section
2-15     51.401 of this subchapter to acquire property for any of the
2-16     following purposes:
2-17                 (1)  to add to a tract of public school land to form a
2-18     tract of sufficient size to be manageable;
2-19                 (2)  to add contiguous land to public school land; [or]
2-20                 (3)  to acquire, as public school land, property of
2-21     unique biological, commercial, geological, cultural, or
2-22     recreational value; or
2-23                 (4)  to acquire mineral and royalty interests for the
2-24     use and benefit of the permanent school fund.
2-25           SECTION 4.  This Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I certify that H.B. No. 3558 was passed by the House on May
         1, 2001, by a non-record vote.
                                             _______________________________
                                                 Chief Clerk of the House
               I certify that H.B. No. 3558 was passed by the Senate on May
         17, 2001, by the following vote:  Yeas 30, Nays 0, 1 present, not
         voting.
                                             _______________________________
                                                 Secretary of the Senate
         APPROVED:  __________________________
                              Date
                    __________________________
                            Governor