Bill Text: TX SB608 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the continuation and functions of the School Land Board.
Spectrum: Moderate Partisan Bill (Republican 6-1)
Status: (Passed) 2019-06-07 - Effective on 9/1/19 [SB608 Detail]
Download: Texas-2019-SB608-Enrolled.html
S.B. No. 608 |
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relating to the continuation and functions of the School Land | ||
Board. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 32.003, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 32.003. APPLICATION OF SUNSET ACT. The School Land | ||
Board is subject to Chapter 325, Government Code (Texas Sunset | ||
Act). Unless continued in existence as provided by that chapter, | ||
the board is abolished September 1, 2031 [ |
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SECTION 2. Section 32.012, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 32.012. MEMBERS OF THE BOARD. (a) The board is | ||
composed of: | ||
(1) the commissioner; and | ||
(2) four citizens [ |
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by the governor with the advice and consent of the senate[ |
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(b) Two citizens appointed by the governor must be selected | ||
from lists of nominees submitted by the State Board of Education. | ||
The State Board of Education shall submit to the governor a list of | ||
six nominees for a vacant position described by this subsection. | ||
The governor may request that the State Board of Education submit a | ||
second list of six nominees if the governor does not choose to | ||
appoint a nominee from the first list. | ||
(c) At least one of the citizens appointed under Subsection | ||
(a) must be a resident of a county with a population of less than | ||
200,000. The governor and the State Board of Education shall | ||
collaborate to ensure that the membership of the board complies | ||
with this subsection. | ||
(d) [ |
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the provisions of the Texas Constitution authorizing the filling of | ||
vacancies in state offices by appointment of the governor. | ||
SECTION 3. Section 32.013, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 32.013. TERMS OF APPOINTED MEMBERS. The appointed | ||
members of [ |
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SECTION 4. Subchapter B, Chapter 32, Natural Resources | ||
Code, is amended by adding Section 32.0161 to read as follows: | ||
Sec. 32.0161. ANNUAL JOINT MEETING. (a) The board and the | ||
State Board of Education shall hold an annual joint public meeting | ||
to discuss the allocation of the assets of the permanent school fund | ||
and the investment of the money in the fund. | ||
(b) Each member of the board must attend the annual joint | ||
public meeting, unless the member's absence is excused by majority | ||
vote of the board. | ||
(c) Each member of the State Board of Education must attend | ||
the annual joint public meeting, unless the member's absence is | ||
excused by majority vote of the State Board of Education. If the | ||
State Board of Education delegates powers and duties relating to | ||
the investment of the permanent school fund to a committee of the | ||
State Board of Education, only a majority of the committee members | ||
must attend the meeting. | ||
SECTION 5. Subchapter B, Chapter 32, Natural Resources | ||
Code, is amended by adding Section 32.0191 to read as follows: | ||
Sec. 32.0191. SEPARATION OF RESPONSIBILITIES. The board | ||
shall develop and implement policies that clearly separate the | ||
policymaking responsibilities of the board and the management | ||
responsibilities of the commissioner and the staff of the land | ||
office. | ||
SECTION 6. Subchapter B, Chapter 32, Natural Resources | ||
Code, is amended by adding Section 32.027 to read as follows: | ||
Sec. 32.027. MEMBER TRAINING. (a) A person who is | ||
appointed to and qualifies for office as a member of the board may | ||
not vote, deliberate, or be counted as a member in attendance at a | ||
meeting of the board until the person completes a training program | ||
that complies with this section. | ||
(b) The training program must provide the person with | ||
information regarding: | ||
(1) the law governing board operations; | ||
(2) the programs, functions, rules, and budget of the | ||
board; | ||
(3) the board's investment programs and strategies; | ||
(4) the permanent school fund, including a | ||
comprehensive overview of the law governing the fund; | ||
(5) the scope of and limitations on the rulemaking | ||
authority of the board; | ||
(6) the results of the most recent formal audit of the | ||
board; | ||
(7) the requirements of: | ||
(A) laws relating to open meetings, public | ||
information, administrative procedure, and disclosure of conflicts | ||
of interest; and | ||
(B) other laws applicable to members of a state | ||
policymaking body in performing their duties; and | ||
(8) any applicable ethics policies adopted by the | ||
board or the Texas Ethics Commission. | ||
(c) A person appointed to the board is entitled to | ||
reimbursement, as provided by the General Appropriations Act, for | ||
the travel expenses incurred in attending the training program | ||
regardless of whether the attendance at the program occurs before | ||
or after the person qualifies for office. | ||
(d) The commissioner shall create a training manual that | ||
includes the information required by Subsection (b). | ||
(e) The commissioner shall distribute a copy of the training | ||
manual annually to each appointed member of the board. Each of | ||
those members shall sign and submit to the commissioner a statement | ||
acknowledging that the member received and has reviewed the | ||
training manual. | ||
SECTION 7. Subchapter B, Chapter 32, Natural Resources | ||
Code, is amended by adding Section 32.028 to read as follows: | ||
Sec. 32.028. COMPLAINTS. (a) The board shall maintain a | ||
system to promptly and efficiently act on complaints filed with the | ||
board. The board shall maintain information about parties to the | ||
complaint, the subject matter of the complaint, a summary of the | ||
results of the review or investigation of the complaint, and its | ||
disposition. | ||
(b) The board shall make information available describing | ||
its procedures for complaint investigation and resolution. | ||
(c) The board shall periodically notify the complaint | ||
parties of the status of the complaint until final disposition. | ||
SECTION 8. Sections 51.402(a) and (c), Natural Resources | ||
Code, are amended to read as follows: | ||
(a) Except as provided by Subsection (c), the [ |
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may use funds [ |
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the following purposes: | ||
(1) to add to a tract of public school land to form a | ||
tract of sufficient size to be manageable; | ||
(2) to add contiguous land to public school land; | ||
(3) to acquire, as public school land, interests in | ||
real property for biological, commercial, geological, cultural, or | ||
recreational purposes; | ||
(4) to acquire mineral and royalty interests for the | ||
use and benefit of the permanent school fund; | ||
(5) to protect, maintain, or enhance the value of | ||
public school land; | ||
(6) to acquire interests in real estate; | ||
(7) to pay reasonable fees for professional services | ||
related to a permanent school fund investment; or | ||
(8) to acquire, sell, lease, trade, improve, maintain, | ||
protect, or use land, mineral and royalty interests, or real estate | ||
investments, an investment or interest in public infrastructure, or | ||
other interests, at such prices and under such terms and conditions | ||
the board determines to be in the best interest of the permanent | ||
school fund. | ||
(c) On January 1 of each even-numbered year | ||
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investments made [ |
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exceed an amount that is equal to 15 percent of the market value of | ||
the assets held by the board and the State Board of Education as | ||
part of the permanent school fund [ |
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SECTION 9. Sections 51.4021(a) and (b), Natural Resources | ||
Code, are amended to read as follows: | ||
(a) The board may appoint investment managers, consultants, | ||
or advisors to invest or assist the board in investing funds [ |
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professional investment management or investment advisory services | ||
with one or more organizations that are in the business of managing | ||
or advising on the management of real estate investments. | ||
(b) To be eligible for appointment under this section, an | ||
investment manager, consultant, or advisor shall agree to abide by | ||
the policies, requirements, or restrictions, including ethical | ||
standards and disclosure policies and criteria for determining the | ||
quality of investments and for the use of standard rating services, | ||
that the board adopts for real estate investments of the permanent | ||
school fund. Funds [ |
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be invested in a real estate investment trust, as defined by Section | ||
200.001, Business Organizations Code. | ||
SECTION 10. Section 51.412, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 51.412. REPORTS TO LEGISLATURE. (a) Not later than | ||
September 1 of each even-numbered year, the board shall submit to | ||
the legislature a report that, specifically and in detail, assesses | ||
the direct and indirect economic impact, as anticipated by the | ||
board, of the investment of funds designated under Section 51.401 | ||
for deposit in the real estate special fund account of the permanent | ||
school fund. | ||
(b) The board may not disclose information under this | ||
section that is confidential under applicable state or federal law. | ||
(c) The report must include the following information: | ||
(1) the total amount of the funds [ |
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by Section 51.401 for deposit in the real estate special fund | ||
account of the permanent school fund that the board intends to | ||
invest; | ||
(2) the rate of return the board expects to attain on | ||
the investment; | ||
(3) the amount of the funds [ |
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to distribute to the available school fund or the State Board of | ||
Education for investment in the permanent school fund after making | ||
the investments; | ||
(4) the distribution of the board's investments by | ||
county; | ||
(5) the effect of the board's investments on the level | ||
of employment, personal income, and capital investment in the | ||
state; [ |
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(6) the amounts of all fees or other compensation paid | ||
by the board to investment managers, consultants, or advisors | ||
appointed or organizations contracted with under Section 51.4021; | ||
and | ||
(7) any other information the board considers | ||
necessary to include in the report. | ||
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SECTION 11. Section 51.413(b), Natural Resources Code, is | ||
amended to read as follows: | ||
(b) The board shall adopt rules to establish the procedure | ||
that will be used by the board to determine the date a transfer will | ||
be made and the amount of the funds [ |
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to the available school fund or to the State Board of Education for | ||
investment in the permanent school fund from the real estate | ||
special fund account as provided by Subsection (a). | ||
SECTION 12. Section 51.4131, Natural Resources Code, is | ||
amended to read as follows: | ||
Sec. 51.4131. REPORT ON ANTICIPATED TRANSFER OF FUNDS. Not | ||
later than September 1 of each even-numbered year, the board shall | ||
submit to the legislature, comptroller, State Board of Education, | ||
and Legislative Budget Board a report that, specifically and in | ||
detail, states the date a transfer will be made and the amount of | ||
the funds [ |
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state fiscal biennium from the real estate special fund account of | ||
the permanent school fund established under Section 51.401 to the | ||
available school fund or the State Board of Education for | ||
investment in the permanent school fund. | ||
SECTION 13. (a) The changes in law made by this Act to | ||
Section 32.012, Natural Resources Code, relating to the membership | ||
of the School Land Board do not affect the eligibility of a member | ||
of the board serving immediately before the effective date of this | ||
Act to continue to serve on the board for the term to which the | ||
member was appointed. | ||
(b) As soon as possible after the effective date of this | ||
Act, the governor and the State Board of Education shall | ||
collaborate to appoint members of the board as necessary to ensure | ||
that the composition of the board complies with Section 32.012, | ||
Natural Resources Code, as amended by this Act. | ||
SECTION 14. Section 32.027, Natural Resources Code, as | ||
added by this Act, applies to a member of the School Land Board | ||
appointed before, on, or after the effective date of this Act. A | ||
member of the School Land Board may not vote, deliberate, or be | ||
counted as a member in attendance at a meeting of the board held on | ||
or after December 1, 2019, until the member completes the training. | ||
SECTION 15. This Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 608 passed the Senate on | ||
April 30, 2019, by the following vote: Yeas 31, Nays 0; and that | ||
the Senate concurred in House amendment on May 21, 2019, by the | ||
following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 608 passed the House, with | ||
amendment, on May 17, 2019, by the following vote: Yeas 142, | ||
Nays 1, two present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |