PART 4. SCHOOL LAND BOARD
CHAPTER 151. OPERATIONS OF THE SCHOOL LAND BOARD
The School Land Board (Board) proposes amendments to 31 TAC §151.6, concerning new procedures for the release of funds from the Real Estate Special Fund Account, pursuant to Texas Natural Resources Code, Section 51.413(b). The proposed amendments create new procedures for the release of funds from the Real Estate Special Fund Account to reflect legislative changes that have occurred since the current rule was adopted in 2016.
At its May 7, 2024 meeting, the Board unanimously approved a recommendation from its staff to amend 31 TAC §151.6.
FISCAL IMPACT ON STATE AND LOCAL GOVERNMENT: Mr. David Repp, Chief Financial Officer for the General Land Office, has determined that for the first five-year period the proposed amendments are in effect, there will be no fiscal implications for the state or local governments as a result of the proposed amendments.
PUBLIC BENEFITS AND PROBABLE ECONOMIC COSTS: Mr. Repp has determined that for each year of the first five years the proposed amendments are in effect, there will be no economic effect on businesses or individuals. The public benefit will be the potential increase in funds available to the state’s schoolchildren.
LOCAL EMPLOYMENT IMPACT STATEMENT: Mr. Repp has determined that the proposed amendments will not affect a local economy, so the Board is not required to prepare a local employment impact statement under Texas Government Code, §2001.022.
FISCAL IMPACT ON SMALL BUSINESSES, MICRO-BUSINESSES, AND RURAL COMMUNITIES: The Board has determined there will be no adverse economic effect on small businesses, micro-businesses, or rural communities as a result of the proposed amendments, therefore preparation of an economic impact statement and a regulatory flexibility analysis, as detailed under Texas Government Code, §2006.002, is not required.
GOVERNMENT GROWTH IMPACT STATEMENT: Pursuant to Texas Government Code, §2001.0221, Mr. Repp provides the following Government Growth Impact Statement for the proposed amendments. For each year of the first five years the proposed amendments will be in effect, the Board has determined the following:
(1) the proposed amendments will not create or eliminate a government program;
(2) implementation of the proposed amendments will not require the creation or elimination of existing employee positions;
(3) implementation of the proposed amendments will not require an increase or decrease in future legislative appropriations to the Board;
(4) the proposed amendments will not require an increase or decrease in fees paid to the Board;
(5) the proposed amendments do not create a new regulation;
(6) the proposed amendments will not expand, limit, or repeal an existing regulation;
(7) the proposed amendments will not increase or decrease the number of individuals subject to the rules; and
(8) the proposed amendments will not affect this state's economy.
PUBLIC COMMENT REQUEST: Written comments on the proposed amendments may be submitted by mail to Mr. Walter Talley, Texas Register Liaison, Texas General Land Office, P.O. Box 12873, Austin, Texas 78711, facsimile number (512) 463-6311 or email to walter.talley@glo.texas.gov. Written comments must be received no later than 5:00 p.m., thirty (30) days from the date of publication of the proposed amendments in the Texas Register.
The amendments are proposed under Section 51.413(b) of the Texas Natural Resources Code, which requires the Board to 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 that will be transferred to the available school fund or to the Texas Permanent School Fund Corporation for investment in the permanent school fund from the real estate special fund account. Jeff Gordon, GLO General Counsel, has determined and certifies that the proposed amendment is within the Board’s authority to adopt.
§151.6.Procedures for the Release of Funds from the Real Estate Special Fund Account.
Procedures for the Release of Funds from the Real Estate Special Fund Account.
(1) These rules shall establish the procedures to be used by the School Land Board (SLB) to determine the dates that releases will be made and the amounts of money that will be released on those dates from the Real Estate Special Fund Account (RESFA) to either the Available School Fund (ASF) or the Texas Permanent School Fund Corporation (TXPSF) for investment in the Permanent School Fund (PSF), as required by Section 51.413(b) of the Texas Natural Resources Code.
(2) Not later than September 1 of each even-numbered year, the Chief Financial Officer (CFO) of the General Land Office will provide to the SLB at a regularly scheduled SLB meeting the amount of funds available in the RESFA for release, effective September 1. At such regularly scheduled meeting, the SLB will adopt a resolution detailing the actual amounts, if any, to be released from the RESFA to either the ASF or the TXPSF for investment in the PSF in each of the individual years of the next-approaching fiscal biennium and the actual dates of the releases.
(3) Not later than September 1 of each even-numbered year, the SLB, in consultation with the CFO, will submit a report to the Legislature, Comptroller, TXPSF, and Legislative Budget Board that states the dates and amounts approved by the SLB for release from the RESFA to either the ASF or TXPSF for investment in the PSF during the next-approaching fiscal biennium.
[These rules shall establish the procedures
to be used by the School Land Board (SLB) to determine the dates that
releases will be made and the amounts of money that will be released
on those dates from the Real Estate Special Fund Account (RESFA) to
either the Available School Fund (ASF) or the State Board of Education
(SBOE) for investment in the Permanent School Fund (PSF), as required
by Section 51.413(b) of the Texas Natural Resources Code.]
[(1) Not later than July 31 of each even-numbered year, the Chief Investment Officer (CIO) of the General Land Office (GLO) will perform an analysis, using March 31 GLO investment valuation data, as follows:]
[(A) Determine an amount equal to 6% of the average market value of the GLO PSF Real Assets Investment Portfolio (Portfolio) over the trailing sixteen-quarter measurement period.]
[(B) Round the amount calculated in paragraph (1)(A) of this section up or down to the nearest $5,000,000 increment.]
[(C) Determine the average quarterly change in the amount determined in paragraph (1)(A) of this section over the trailing sixteen-quarter measurement period. Multiply this amount times 4 and add the resulting product to the amount determined in paragraph (1)(A) of this section. Round the resulting amount up or down to the nearest $5,000,000 increment.]
[(2) Not later than September 1 of each even-numbered year, the CIO will provide to the SLB at a regularly scheduled SLB meeting the results of the analysis performed in accordance with paragraph (1) of this section and make recommendations to the SLB regarding the release of funds from the RESFA. At such regularly scheduled meeting, the SLB will adopt a resolution detailing the actual amounts to be released to either the ASF or the SBOE for investment in the PSF in each of the individual years of the next-approaching fiscal biennium and the actual dates of the releases.]
[(3) Not later than September 1 of each even-numbered year, the SLB, in consultation with the CIO, will submit a report to the Legislature, Comptroller, SBOE, and Legislative Budget Board that states the dates and amounts approved by the SLB for release from the RESFA to either the ASF or SBOE for investment in the PSF during the next-approaching fiscal biennium.]
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.
Filed with the Office of the Secretary of State on May 10, 2024.
TRD-202402092
Mark Havens
Chief Clerk, Deputy Land Commissioner
School Land Board
Earliest possible date of adoption: June 23, 2024
For further information, please call: (512) 475-1859