Texas 2019 - 86th Regular

Texas House Bill HB1315 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R10359 JXC-D
2	2	By: Flynn H.B. No. 1315
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the continuation and functions of the School Land
8	8	Board.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 32.003, Natural Resources Code, is
11	11	amended to read as follows:
12	12	Sec. 32.003. APPLICATION OF SUNSET ACT. The School Land
13	13	Board is subject to Chapter 325, Government Code (Texas Sunset
14	14	Act). Unless continued in existence as provided by that chapter,
15	15	the board is abolished September 1, 2031 [2019].
16	16	SECTION 2. Section 32.012, Natural Resources Code, is
17	17	amended to read as follows:
18	18	Sec. 32.012. MEMBERS OF THE BOARD. (a) The board is
19	19	composed of:
20	20	(1) the commissioner;
21	21	(2) two citizens [a citizen] of the state appointed by
22	22	the governor with the advice and consent of the senate; and
23	23	(3) two citizens [a citizen] of the state appointed by
24	24	the attorney general with the advice and consent of the senate.
25	25	(a-1) One citizen appointed by the governor and one citizen
26	26	appointed by the attorney general must be selected from lists of
27	27	nominees submitted by the State Board of Education. The State Board
28	28	of Education shall submit to the governor or the attorney general,
29	29	as applicable, a list of six nominees for a vacant position
30	30	described by this subsection. The governor or attorney general, as
31	31	applicable, may request that the State Board of Education submit a
32	32	second list of six nominees if the governor or attorney general does
33	33	not choose to appoint a nominee from the first list.
34	34	(b) The authority of the attorney general to appoint [one of
35	35	the] members of the board, including the authority to make
36	36	appointments during the recess of the senate, is the same as the
37	37	authority of the governor to fill vacancies in state offices under
38	38	the Texas Constitution.
39	39	(c) Each appointment made by the governor and the attorney
40	40	general shall be made in accordance with and subject to the
41	41	provisions of the Texas Constitution authorizing the filling of
42	42	vacancies in state offices by appointment of the governor.
43	43	SECTION 3. Subchapter B, Chapter 32, Natural Resources
44	44	Code, is amended by adding Section 32.0161 to read as follows:
45	45	Sec. 32.0161. ANNUAL JOINT MEETING. The board and the State
46	46	Board of Education shall hold an annual joint public meeting to
47	47	discuss the allocation of the assets of the permanent school fund
48	48	and the investment of the money in the fund.
49	49	SECTION 4. Subchapter B, Chapter 32, Natural Resources
50	50	Code, is amended by adding Section 32.0191 to read as follows:
51	51	Sec. 32.0191. SEPARATION OF RESPONSIBILITIES. The board
52	52	shall develop and implement policies that clearly separate the
53	53	policymaking responsibilities of the board and the management
54	54	responsibilities of the commissioner and the staff of the land
55	55	office.
56	56	SECTION 5. Subchapter B, Chapter 32, Natural Resources
57	57	Code, is amended by adding Section 32.027 to read as follows:
58	58	Sec. 32.027. MEMBER TRAINING. (a) A person who is
59	59	appointed to and qualifies for office as a member of the board may
60	60	not vote, deliberate, or be counted as a member in attendance at a
61	61	meeting of the board until the person completes a training program
62	62	that complies with this section.
63	63	(b) The training program must provide the person with
64	64	information regarding:
65	65	(1) the law governing board operations;
66	66	(2) the programs, functions, rules, and budget of the
67	67	board;
68	68	(3) the board's investment programs and strategies;
69	69	(4) the permanent school fund, including a
70	70	comprehensive overview of the law governing the fund;
71	71	(5) the scope of and limitations on the rulemaking
72	72	authority of the board;
73	73	(6) the results of the most recent formal audit of the
74	74	board;
75	75	(7) the requirements of:
76	76	(A) laws relating to open meetings, public
77	77	information, administrative procedure, and disclosure of conflicts
78	78	of interest; and
79	79	(B) other laws applicable to members of a state
80	80	policymaking body in performing their duties; and
81	81	(8) any applicable ethics policies adopted by the
82	82	board or the Texas Ethics Commission.
83	83	(c) A person appointed to the board is entitled to
84	84	reimbursement, as provided by the General Appropriations Act, for
85	85	the travel expenses incurred in attending the training program
86	86	regardless of whether the attendance at the program occurs before
87	87	or after the person qualifies for office.
88	88	(d) The commissioner shall create a training manual that
89	89	includes the information required by Subsection (b).
90	90	(e) The commissioner shall distribute a copy of the training
91	91	manual annually to each appointed member of the board. On receipt
92	92	of the training manual, each appointed member of the board shall
93	93	sign and submit to the commissioner a statement acknowledging
94	94	receipt of the training manual.
95	95	SECTION 6. Subchapter B, Chapter 32, Natural Resources
96	96	Code, is amended by adding Section 32.028 to read as follows:
97	97	Sec. 32.028. COMPLAINTS. (a) The board shall maintain a
98	98	system to promptly and efficiently act on complaints filed with the
99	99	board. The board shall maintain information about parties to the
100	100	complaint, the subject matter of the complaint, a summary of the
101	101	results of the review or investigation of the complaint, and its
102	102	disposition.
103	103	(b) The board shall make information available describing
104	104	its procedures for complaint investigation and resolution.
105	105	(c) The board shall periodically notify the complaint
106	106	parties of the status of the complaint until final disposition.
107	107	SECTION 7. Sections 51.402(a) and (c), Natural Resources
108	108	Code, are amended to read as follows:
109	109	(a) The board may use funds [the money] designated under
110	110	Section 51.401 for any of the following purposes:
111	111	(1) to add to a tract of public school land to form a
112	112	tract of sufficient size to be manageable;
113	113	(2) to add contiguous land to public school land;
114	114	(3) to acquire, as public school land, interests in
115	115	real property for biological, commercial, geological, cultural, or
116	116	recreational purposes;
117	117	(4) to acquire mineral and royalty interests for the
118	118	use and benefit of the permanent school fund;
119	119	(5) to protect, maintain, or enhance the value of
120	120	public school land;
121	121	(6) to acquire interests in real estate;
122	122	(7) to pay reasonable fees for professional services
123	123	related to a permanent school fund investment; or
124	124	(8) to acquire, sell, lease, trade, improve, maintain,
125	125	protect, or use land, mineral and royalty interests, or real estate
126	126	investments, an investment or interest in public infrastructure, or
127	127	other interests, at such prices and under such terms and conditions
128	128	the board determines to be in the best interest of the permanent
129	129	school fund.
130	130	(c) Notwithstanding Subsection (a) of this section, on
131	131	January 1 of each even-numbered year, the sum of any funds
132	132	designated under Section 51.401 not being used for a purpose listed
133	133	in Subsection (a) of this section and the market value of the
134	134	investments in real estate made under this section [on January 1 of
135	135	each even-numbered year] may not exceed an amount that is equal to
136	136	15 percent of the sum of:
137	137	(1) the funds held by the board and the State Board of
138	138	Education as part of the permanent school fund; and
139	139	(2) the market value of the assets held by the board
140	140	and the State Board of Education as part of the permanent school
141	141	fund [on that date].
142	142	SECTION 8. Sections 51.4021(a) and (b), Natural Resources
143	143	Code, are amended to read as follows:
144	144	(a) The board may appoint investment managers, consultants,
145	145	or advisors to invest or assist the board in investing funds [the
146	146	money] designated under Section 51.401 by contracting for
147	147	professional investment management or investment advisory services
148	148	with one or more organizations that are in the business of managing
149	149	or advising on the management of real estate investments.
150	150	(b) To be eligible for appointment under this section, an
151	151	investment manager, consultant, or advisor shall agree to abide by
152	152	the policies, requirements, or restrictions, including ethical
153	153	standards and disclosure policies and criteria for determining the
154	154	quality of investments and for the use of standard rating services,
155	155	that the board adopts for real estate investments of the permanent
156	156	school fund. Funds [Money] designated under Section 51.401 may not
157	157	be invested in a real estate investment trust, as defined by Section
158	158	200.001, Business Organizations Code.
159	159	SECTION 9. Section 51.412, Natural Resources Code, is
160	160	amended to read as follows:
161	161	Sec. 51.412. REPORTS TO LEGISLATURE. (a) Not later than
162	162	September 1 of each even-numbered year, the board shall submit to
163	163	the legislature a report that, specifically and in detail, assesses
164	164	the direct and indirect economic impact, as anticipated by the
165	165	board, of the investment of funds designated under Section 51.401
166	166	for deposit in the real estate special fund account of the permanent
167	167	school fund.
168	168	(b) The board may not disclose information under this
169	169	section that is confidential under applicable state or federal law.
170	170	(c) The report must include the following information:
171	171	(1) the total amount of the funds [money] designated
172	172	by Section 51.401 for deposit in the real estate special fund
173	173	account of the permanent school fund that the board intends to
174	174	invest;
175	175	(2) the rate of return the board expects to attain on
176	176	the investment;
177	177	(3) the amount of the funds [money] the board expects
178	178	to distribute to the available school fund or the State Board of
179	179	Education for investment in the permanent school fund after making
180	180	the investments;
181	181	(4) the distribution of the board's investments by
182	182	county;
183	183	(5) the effect of the board's investments on the level
184	184	of employment, personal income, and capital investment in the
185	185	state; and
186	186	(6) any other information the board considers
187	187	necessary to include in the report.
188	188	[(b) Not later than January 1 of each odd-numbered year, the
189	189	board shall submit to the legislature a report that assesses the
190	190	return and economic impact of the investments reported to the
191	191	legislature before the preceding regular legislative session.]
192	192	SECTION 10. Section 51.413(b), Natural Resources Code, is
193	193	amended to read as follows:
194	194	(b) The board shall adopt rules to establish the procedure
195	195	that will be used by the board to determine the date a transfer will
196	196	be made and the amount of the funds [money] that will be transferred
197	197	to the available school fund or to the State Board of Education for
198	198	investment in the permanent school fund from the real estate
199	199	special fund account as provided by Subsection (a).
200	200	SECTION 11. Section 51.4131, Natural Resources Code, is
201	201	amended to read as follows:
202	202	Sec. 51.4131. REPORT ON ANTICIPATED TRANSFER OF FUNDS. Not
203	203	later than September 1 of each even-numbered year, the board shall
204	204	submit to the legislature, comptroller, State Board of Education,
205	205	and Legislative Budget Board a report that, specifically and in
206	206	detail, states the date a transfer will be made and the amount of
207	207	the funds [money] the board will transfer during the subsequent
208	208	state fiscal biennium from the real estate special fund account of
209	209	the permanent school fund established under Section 51.401 to the
210	210	available school fund or the State Board of Education for
211	211	investment in the permanent school fund.
212	212	SECTION 12. Not later than September 1, 2020, the governor
213	213	and the attorney general shall appoint members to the School Land
214	214	Board in accordance with Section 32.012(a-1), Natural Resources
215	215	Code, as added by this Act.
216	216	SECTION 13. Section 32.027, Natural Resources Code, as
217	217	added by this Act, applies to a member of the School Land Board
218	218	appointed before, on, or after the effective date of this Act. A
219	219	member of the School Land Board may not vote, deliberate, or be
220	220	counted as a member in attendance at a meeting of the board held on
221	221	or after December 1, 2019, until the member completes the training.
222	222	SECTION 14. This Act takes effect September 1, 2019.