1-1     By:  Junell (Senate Sponsor - Ellis)                  H.B. No. 3558
 1-2           (In the Senate - Received from the House May 2, 2001;
 1-3     May 3, 2001, read first time and referred to Committee on
 1-4     Education; May 10, 2001, reported favorably by the following vote:
 1-5     Yeas 7, Nays 0; May 10, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the sale, lease, and purchase of interests in real
 1-9     property for the permanent school fund.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1. Sections 51.401(a) and (c)-(e), Natural Resources
1-12     Code, are amended to read as follows:
1-13           (a)  The board may designate funds [money] received from the
1-14     sale of permanent school fund [public school] land under this
1-15     chapter and the proceeds of future mineral leases and royalties
1-16     generated from existing and future active leases of permanent
1-17     school fund mineral interests received under Chapters 52 and 53 of
1-18     this code for deposit in a special fund account of the permanent
1-19     school fund in the State Treasury to be used by the board to
1-20     acquire fee or lesser interests in real property, including mineral
1-21     and royalty interests, for the use and benefit of the permanent
1-22     school fund, as provided by Section 51.402 of this subchapter.
1-23           (c)  Money received from the sale of a particular piece of
1-24     land and designated for the acquisition of interests in real
1-25     property [land] under this subchapter must be used by the board not
1-26     later than two years after the date of the sale of land from which
1-27     the money is derived.  Money received from the lease of minerals
1-28     and royalties derived from active leases and designated for the
1-29     acquisition of interests in real property under this subchapter
1-30     must be used by the board not later than two years after the date
1-31     the money is deposited in the special fund account.
1-32           (d)  Any money remaining [from a specific sale that remains]
1-33     in the special fund account for longer than two years shall be
1-34     deposited in the State Treasury to the credit of the permanent
1-35     school fund.
1-36           (e)  Section [Sections 403.094 and] 403.095, Government Code,
1-37     does [do] not apply to a fund account created under this section.
1-38           SECTION 2.  The heading to Section 51.402, Natural Resources
1-39     Code, is amended to read as follows:
1-40           Sec. 51.402.  [LAND] ACQUISITION OF INTERESTS IN REAL
1-41     PROPERTY.
1-42           SECTION 3. Section 51.402(a), Natural Resources Code, is
1-43     amended to read as follows:
1-44           (a)  The board may use the money designated under Section
1-45     51.401 of this subchapter to acquire property for any of the
1-46     following purposes:
1-47                 (1)  to add to a tract of public school land to form a
1-48     tract of sufficient size to be manageable;
1-49                 (2)  to add contiguous land to public school land; [or]
1-50                 (3)  to acquire, as public school land, property of
1-51     unique biological, commercial, geological, cultural, or
1-52     recreational value; or
1-53                 (4)  to acquire mineral and royalty interests for the
1-54     use and benefit of the permanent school fund.
1-55           SECTION 4.  This Act takes effect September 1, 2001.
1-56                                  * * * * *