HBA-KDB H.B. 3558 77(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 3558 By: Junell Land & Resource Management 6/5/2001 Enrolled BACKGROUND AND PURPOSE 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. RULEMAKING AUTHORITY 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. ANALYSIS 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. EFFECTIVE DATE September 1, 2001.