Office of House Bill AnalysisH.B. 3558
By: Junell
Land & Resource Management


Under current law, the School Land Board (board) is responsible for the
management and development of all real property owned by the permanent
school fund (fund).  The board is authorized to dispose of real property
owned by the fund and to invest those proceeds in properties with greater
potential to generate revenue.  House Bill 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 the fund. 


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


House Bill 3558 amends the Natural Resources Code to authorize the School
Land Board (board) to designate funds received from the sale of permanent
school fund (fund) land, rather than public school land, and the proceeds
of future mineral leases and royalties generated from existing and future
active leases of fund mineral interests for deposit in a special fund
account of the fund 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 the fund.  Money received
from the lease of minerals and royalties derived from active leases and
designated for the acquisition of interests in real property must be used
by the board not later than two years after the date the money is deposited
in the special fund account.  The bill requires any money remaining in the
special fund account for longer than two years to be deposited in the State
Treasury to the credit of the fund.   


September 1, 2001.