Texas Natural Resources Code 51.402 – Use of Designated Funds
(a) The board may use funds designated under § 51.401 for any of 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, residential, 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 and mineral or royalty interests on that land;
(6) to acquire real property holdings;
(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 property holdings, at such prices and under such terms and conditions the board determines to be in the best interest of the permanent school fund.
(b) Before using funds under Subsection (a), the board must determine, using the prudent investor standard, that the use of the funds for the intended purpose is authorized by Subsection (a) and in the best interest of the permanent school fund. A determination by the board on the use of funds under this section is conclusive unless the determination was made as a result of fraud or obvious error.
Terms Used In Texas Natural Resources Code 51.402
- Fraud: Intentional deception resulting in injury to another.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: means real and personal property. See Texas Government Code 311.005
- Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
(b-1) The board may confer with one or more employees of the board or with a third party regarding an investment or potential investment in real estate, including the acquisition or potential acquisition of interests in real estate, to the extent permitted to the board of trustees of the Texas growth fund under § 551.075, Government Code.
(c) Repealed by Acts 2021, 87th Leg., R.S., Ch. 875 (S.B. 1232), Sec. 2.10(3), eff. December 31, 2022.