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