Texas 2009 81st Regular

Texas Senate Bill SB894 House Committee Report / Analysis

Filed 02/01/2025

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                    BILL ANALYSIS             S.B. 894     By: Nelson     Pensions, Investments & Financial Services     Committee Report (Unamended)             BACKGROUND AND PURPOSE   In the Barnett Shale region, many cities are receiving royalties, leases, permit fees, and other non-tax revenue in exchange for drilling rights. Currently, municipalities are not expressly authorized to invest excess funds derived from contracts or leases made on municipally owned mineral rights.    S.B. 894 allows municipalities to invest such excess funds in any investment authorized to be made by a trustee under the Texas Trust Code.       RULEMAKING AUTHORITY   It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.      ANALYSIS   S.B. 894 amends the Government Code to authorize a municipality to invest funds received by the municipality from a lease or contract for the management and development of land owned by the municipality and leased for oil, gas, or other mineral development in any investment authorized to be made by a trustee under the Texas Trust Code. The bill requires the excess funds invested by a municipality to be segregated and accounted for separately from other municipal funds.      EFFECTIVE DATE   September 1, 2009.       

BILL ANALYSIS

# BILL ANALYSIS

 

 

 

S.B. 894
By: Nelson
Pensions, Investments & Financial Services
Committee Report (Unamended)

S.B. 894

By: Nelson

Pensions, Investments & Financial Services

Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE   In the Barnett Shale region, many cities are receiving royalties, leases, permit fees, and other non-tax revenue in exchange for drilling rights. Currently, municipalities are not expressly authorized to invest excess funds derived from contracts or leases made on municipally owned mineral rights.    S.B. 894 allows municipalities to invest such excess funds in any investment authorized to be made by a trustee under the Texas Trust Code.
RULEMAKING AUTHORITY   It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS   S.B. 894 amends the Government Code to authorize a municipality to invest funds received by the municipality from a lease or contract for the management and development of land owned by the municipality and leased for oil, gas, or other mineral development in any investment authorized to be made by a trustee under the Texas Trust Code. The bill requires the excess funds invested by a municipality to be segregated and accounted for separately from other municipal funds.
EFFECTIVE DATE   September 1, 2009.

BACKGROUND AND PURPOSE

 

In the Barnett Shale region, many cities are receiving royalties, leases, permit fees, and other non-tax revenue in exchange for drilling rights. Currently, municipalities are not expressly authorized to invest excess funds derived from contracts or leases made on municipally owned mineral rights. 

 

S.B. 894 allows municipalities to invest such excess funds in any investment authorized to be made by a trustee under the Texas Trust Code. 



RULEMAKING AUTHORITY

 

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.



ANALYSIS

 

S.B. 894 amends the Government Code to authorize a municipality to invest funds received by the municipality from a lease or contract for the management and development of land owned by the municipality and leased for oil, gas, or other mineral development in any investment authorized to be made by a trustee under the Texas Trust Code. The bill requires the excess funds invested by a municipality to be segregated and accounted for separately from other municipal funds.



EFFECTIVE DATE

 

September 1, 2009.