CHAPTER 161. VETERANS LAND BOARD
NATURAL RESOURCES CODE
TITLE 7. RESOURCES PROGRAMS
CHAPTER 161. VETERANS LAND BOARD
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 161.001. DEFINITIONS. (a) In this chapter:
(1) "Board" means the Veterans' Land Board.
(2) "Commissioner" means the Commissioner of the General Land
Office.
(3) "Land office" means the General Land Office.
(4) "Program" means the Veterans' Land Program.
(5) "Fund" means the veterans' land fund.
(6) "Bonds" means general obligation bonds issued by the board
for the purpose of funding the program.
(7) "Veteran" means a person who:
(A)(i) served not less than 90 days, unless sooner discharged by
reason of a service-connected disability, on active duty in the
Army, Navy, Air Force, Coast Guard, United States Public Health
Service (as constituted under 42 U.S.C. Section 201 et seq.), or
Marine Corps of the United States after September 16, 1940, and
who on the date of filing an application under the program has
not been dishonorably discharged from the branch of the service
in which the person served;
(ii) has at least 20 years of active or reserve military service
as computed when determining the person's eligibility to receive
retired pay under applicable federal law;
(iii) has enlisted or received an appointment in the Texas
National Guard, who has completed all initial active duty
training required as a condition of the enlistment or
appointment, and who on the date of filing the person's
application has not been dishonorably discharged from the Texas
National Guard; or
(iv) served in the armed forces of the Republic of Vietnam
between February 28, 1961, and May 7, 1975, if the board adopts a
rule regarding these veterans under Subsection (b);
(B) at the time of the person's enlistment, induction,
commissioning, appointment, or drafting was a bona fide resident
of this state or has resided in this state at least one year
immediately before the date of filing an application under this
chapter; and
(C) at the time of the person's application under this chapter
is a bona fide resident of this state. The term includes the
unmarried surviving spouse of a veteran who died or who is
identified as missing in action if the deceased or missing
veteran meets the requirements of this section, with the
exception that the deceased or missing veteran need not have
served 90 days under Paragraph (A)(i) of this subdivision, and if
the deceased or missing veteran was a bona fide resident of this
state at the time of enlistment, induction, commissioning,
appointment, or drafting.
(8) "Commission" means the Texas Veterans Commission.
(b) Notwithstanding Subdivision (7) of Subsection (a) of this
section, the board may by rule change the definition of "veteran"
as necessary or appropriate to protect the best interests of the
program. If the board adopts a rule to change the definition of
"veteran" to include a person who served in the armed forces of
the Republic of Vietnam between February 28, 1961, and May 7,
1975, the rule must include procedures for establishing proof of
that service.
(c) For purposes of this section, a person who has been
discharged from the branch of the service in which the person
served or from the Texas National Guard is considered not to have
been dishonorably discharged if the person:
(1) received an honorable discharge;
(2) received a discharge under honorable conditions; or
(3) received a discharge and provides evidence from the United
States Department of Veterans Affairs, its successor, or other
competent authority that indicates that the character of the
person's duty has been determined to be other than dishonorable.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, Sec. 1;
Acts 1989, 71st Leg., ch. 298, Sec. 1, eff. June 14, 1989; Acts
1993, 73rd Leg., ch. 242, Sec. 1.01, eff. Aug. 30, 1993; Acts
2001, 77th Leg., ch. 83, Sec. 1, eff. May 11, 2001; Acts 2003,
78th Leg., ch. 1145, Sec. 1, 2, eff. June 20, 2003.
Amended by:
Acts 2005, 79th Leg., Ch.
17, Sec. 3, eff. September 1, 2005.
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 1, eff. June 15, 2007.
SUBCHAPTER B. ADMINISTRATIVE PROVISIONS
Sec. 161.011. VETERANS LAND BOARD DESIGNATED. The Veterans Land
Board is a state agency designated to perform the governmental
functions authorized in Article III, Section 49-b of the Texas
Constitution.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.0111. SUNSET PROVISION. The Veterans' Land Board is
subject to review under Chapter 325, Government Code (Texas
Sunset Act), but is not abolished under that chapter. The board
shall be reviewed during the period in which state agencies
abolished in 2019 and every 12th year after 2019 are reviewed.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 2, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.20(42),
eff. Sept. 1, 1987; Acts 1991, 72nd Leg., 1st C.S., ch. 17, Sec.
3.08, eff. Nov. 12, 1991; Acts 1995, 74th Leg., ch. 970, Sec.
2.03, eff. Sept. 1, 1995; Acts 1997, 75th Leg., ch. 1169, Sec.
2.10, eff. Sept. 1, 1997; Acts 2001, 77th Leg., ch. 1481, Sec.
2.04, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1112, Sec.
2.05, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 2, eff. June 15, 2007.
Sec. 161.013. EXECUTIVE SECRETARY AND ASSISTANT EXECUTIVE
SECRETARY. (a) The board shall select an executive secretary
and an assistant executive secretary, each of whom shall be
nominated by the commissioner and approved by a majority of the
board.
(b) The executive secretary and assistant executive secretary
shall perform all duties required of them by the board.
Acts 1977, 65th Leg., p. 2655, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.014. EMPLOYEES. (a) The commissioner may employ all
other employees that may be necessary for the discharge of the
board's duties. The employees may include stenographers, typists,
bookkeepers, surveyors, appraisers, and other employees in the
number and for the time necessary to perform these duties.
(b) The employees of the board are considered to be employees of
the land office, and civil and criminal laws regulating the
conduct and relations of the employees of the land office apply
to the employees of the board.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.015. COMPENSATION AND DUTIES OF EMPLOYEES. The
employees of the board shall be paid their compensation and shall
perform their duties with the same rules and requirements of the
general law governing other state employees in those respects.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.016. FISCAL AGENT. (a) The board may designate the
comptroller as the fiscal agent for payment of principal of and
interest on the bonds.
(b) The comptroller shall act as fiscal agent without
compensation.
(c) In the alternative, the board may employ a private fiscal
agent to perform these services and shall pay him adequate
compensation.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1997, 75th Leg., ch. 1423, Sec.
14.16, eff. Sept. 1, 1997.
Sec. 161.017. MEETINGS OF BOARD. (a) When necessary, the board
shall meet on the first and third Tuesdays of each month in the
land office, where its session shall be held and continue until
its docket is cleared. The board may recess at its own
discretion.
(b) The chairman of the board may call special meetings of the
board at any time he thinks necessary by giving the other members
notice.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.018. MINUTES OF BOARD. Minutes of each meeting of the
board shall be kept, and only those matters that actually
transpire at the meeting shall be entered in the minutes.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.019. DEPOSITORY FOR PAPERS, RECORDS, AND ARCHIVES.
Papers, records, and archives of the board shall be deposited and
kept in the land office.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.020. PURCHASE OF SUPPLIES. The board may purchase at
state expense through the comptroller supplies, including
stationery, stamps, printing, record books, and other things that
may be needed to carry on the board's functions as a state agency
in performing the duties imposed by this chapter.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
937, Sec. 1.105, eff. September 1, 2007.
Sec. 161.021. SEAL. The board shall procure and adopt a seal
bearing the words "Veterans Land Board" encircled by the oak and
olive branches common to other official seals.
Acts 1977, 65th Leg., p. 2656, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.022. CHAPTER APPLICATION TO SUCCESSOR BOARDS. The
provisions of this chapter shall apply to any successor of the
board.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.023. 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 legislation that created the board;
(2) the programs, functions, rules, and budget of the board;
(3) the results of the most recent formal audit of the board;
(4) the requirements of laws relating to open meetings, public
information, administrative procedure, and conflicts of interest;
and
(5) 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.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.024. CONFLICTS OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be an appointed member of the board and may
not be a board employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.) if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the field of real property sales,
brokerage, or development; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of real
property sales, brokerage, or development.
(c) A person may not be an appointed member of the board or act
as the general counsel to the board if the person is required to
register as a lobbyist under Chapter 305, Government Code,
because of the person's activities for compensation on behalf of
a profession related to the operation of the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985. Amended by Acts 1987, 70th Leg., ch. 167, Sec. 2.19(22),
eff. Sept. 1, 1987.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.025. EQUAL PROTECTION FOR BOARD MEMBERS. Appointments
to the board shall be made without regard to the race, color,
disability, sex, religion, age, or national origin of the
appointees.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.026. REMOVAL OF BOARD MEMBER. (a) It is a ground for
removal from the board if an appointed member:
(1) does not have at the time of appointment the qualifications
required by Article III, Section 49-b, of the Texas Constitution
for appointment to the board;
(2) does not maintain during the service on the board the
qualifications required by Article III, Section 49-b, of the
Texas Constitution for appointment to the board;
(3) is ineligible for membership under Section 161.024;
(4) is unable to discharge his duties for a substantial portion
of the term for which he was appointed because of illness or
disability; or
(5) is absent from more than one-half of the regularly scheduled
board meetings which the member is eligible to attend during each
calendar year, except when the absence is excused by a majority
vote of the board.
(b) The validity of an action of the board is not affected by
the fact that it was taken when a ground for removal of an
appointed member of the board existed.
(c) If the executive secretary has knowledge that a potential
ground for removal exists, the executive secretary shall notify
the presiding officer of the board of the potential ground. The
presiding officer of the board shall then notify the governor and
the attorney general that a potential ground for removal exists.
If the potential ground for removal involves the presiding
officer, the executive secretary shall notify the next highest
ranking officer of the board, who shall then notify the governor
and the attorney general that a potential ground for removal
exists.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.027. ANNUAL ACCOUNTING. The board shall file annually
with the governor and the presiding officer of each house of the
legislature a complete and detailed written report accounting for
all funds received and disbursed by the board during the
preceding year. The form of the annual report and the reporting
time shall be that provided in the General Appropriations Act.
The report shall be included in the reports of the General Land
Office.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.028. CAREER LADDER. (a) The executive secretary or
his designee shall develop an intraagency career ladder program,
one part of which shall require the intraagency posting of all
nonentry level positions concurrently with any public posting.
(b) The program and posting requirements of this section apply
to the employees of the board and the employees of the land
office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.029. PERFORMANCE EVALUATIONS. (a) The executive
secretary or his designee shall develop a system of annual
performance evaluations based on measurable job tasks. All merit
pay for board employees must be based on the system established
under this section.
(b) The evaluations required by this section apply to the
employees of the board and the employees of the land office that
support the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.030. AUDIT. The financial transactions of the board
are subject to audit by the state auditor in accordance with
Chapter 321, Government Code.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985. Amended by Acts 1989, 71st Leg., ch. 584, Sec. 8, eff.
Sept. 1, 1989.
Sec. 161.0301. INTERNAL AUDITOR. An internal auditor who
performs an audit function for the board shall:
(1) submit to the board any parts of the applicable internal
audit plan that relate to the board; and
(2) report to the board regarding the results of any internal
audits that relate to the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.031. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive
secretary or his or her designee shall prepare and maintain a
written plan to assure implementation of a program of equal
employment opportunity whereby all personnel transactions are
made without regard to race, color, handicap, sex, religion, age,
or national origin. The plan shall include:
(1) a comprehensive analysis which meets federal and state
guidelines of all the agency's work force by race, sex, ethnic
origin, class of position, and salary or wages;
(2) plans for recruitment, evaluation, selection, appointment,
training, promotion, and other personnel policies;
(3) procedures by which a determination can be made of
significant underutilization in the agency work force of all
persons for whom federal and state guidelines encourage a more
equitable balance and steps reasonably designed to overcome any
identified underutilization; and
(4) objectives and goals, with appropriate timetables for the
achievement of the objectives and goals, assignments of
responsibility for their achievement, and an appropriate program
for reviewing and maintaining these goals and objectives once
achieved.
(b) The plan shall be filed with the governor's office within 60
days of the effective date of this Act, cover an annual period,
and be updated at least annually. The governor's office shall
develop a biennial report to the legislature based on the
information submitted. Such report may be made separately or as a
part of other biennial reports made to the legislature.
(c) The personnel transactions referred to in Subsection (a) of
this section apply to the employees of the board and the
employees of the land office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.032. STANDARDS OF CONDUCT. (a) The board shall
provide to its members and employees as often as is necessary
information regarding their qualifications under this chapter and
their responsibilities under applicable laws relating to
standards of conduct for state officers or employees.
(b) The employees referred to in Subsection (a) of this section
are the employees of the board and the employees of the land
office that support the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.033. PUBLIC DEBATE BEFORE BOARD. The board shall
develop and implement policies that will provide the public with
a reasonable opportunity to appear before the board and to speak
on any issue under the jurisdiction of the board.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 3, eff. Sept. 1,
1985.
Sec. 161.034. 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
the disposition of the complaint.
(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.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.035. USE OF TECHNOLOGY. The board shall implement a
policy requiring the board to use appropriate technological
solutions to improve the board's ability to perform its
functions. The policy must ensure that the public is able to
interact with the board on the Internet.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
Sec. 161.036. NEGOTIATED RULEMAKING; ALTERNATIVE DISPUTE
RESOLUTION. (a) The board shall develop and implement a policy
to encourage the use of:
(1) negotiated rulemaking procedures under Chapter 2008,
Government Code, for the adoption of board rules; and
(2) appropriate alternative dispute resolution procedures under
Chapter 2009, Government Code, to assist in the resolution of
internal and external disputes under the board's jurisdiction,
other than disputes governed by Section 161.311.
(b) The board's procedures relating to alternative dispute
resolution shall conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The board shall designate a trained person to:
(1) coordinate the implementation of the policy adopted under
Subsection (a);
(2) serve as a resource for any training needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the board.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 3, eff. June 15, 2007.
SUBCHAPTER C. POWERS AND DUTIES
Sec. 161.061. GENERAL DUTIES OF BOARD. The board shall:
(1) authorize and execute negotiable bonds as provided by law;
(2) provide by resolution for use of the fund in a manner that
will effectuate the intent of the constitution and the law;
(3) prescribe the interest rates as provided by law;
(4) provide for the forfeiture of contracts of sale and purchase
and resale of forfeited land;
(5) conduct investigations it considers necessary;
(6) obtain and review any components of internal audit plans
that relate to board functions and approve those plans as
appropriate during public meetings of the board;
(7) obtain and review any internal audit reports that relate to
board functions and discuss those reports during public meetings
of the board; and
(8) formulate policies and rules necessary and not in conflict
with the law to ensure the proper administration and to carry out
the intent and purposes of the law.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.02, eff. Aug. 30, 1993.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 4, eff. June 15, 2007.
Sec. 161.062. GENERAL DUTIES OF COMMISSIONER. The commissioner
is the chairman of the board and administrator of the program as
provided in Article III, Section 49-b of the Texas Constitution,
and shall perform the duties and functions of the board
prescribed by law except for those duties and functions provided
in Section 161.061 of this code, which shall be performed by the
board.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.063. RULES. (a) The board may adopt rules that are
not inconsistent with this chapter and that it considers
necessary or advisable. The board shall adopt rules and
procedures that it considers necessary to ensure the integrity of
the program.
(b) The rules shall be considered a part of this chapter and
violation of the rules subject the offender to prosecution under
Sections 161.401 through 161.403 of this code.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, Sec. 4,
eff. Sept. 1, 1985.
Sec. 161.064. BOARD AUTHORITY TO MAKE INVESTIGATIONS. The board
may make any investigation it considers necessary relating to
transactions involving land purchases or sales under this
chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.065. OATHS; BOOKS, RECORDS, AND DOCUMENTS. (a) The
board is specifically authorized to administer oaths and to
examine the books, records, or other documents dealing with or
relating to the transactions of any person involved in the
transaction.
(b) The board may make copies of the books, records, and other
documents that in its judgment may show or tend to show fraud on
the board or a veteran or a violation or attempted violation
under this chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.066. SUBPOENA DUCES TECUM. The board may issue a
subpoena duces tecum to require a person to produce books,
records, or any other documents for the board's examination.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.067. FORFEITURE OF CHARTER AND RIGHTS. (a) If a
corporation fails or refuses to comply with the orders of the
board under Sections 161.064 through 161.066 of this code, the
corporation shall forfeit its right to do business in this state,
and its permit or charter shall be canceled or forfeited by the
attorney general.
(b) The failure or refusal by a person is presumed to be prima
facie evidence of fraud on the board and veteran in violation of
this chapter, and the person shall lose and forfeit all rights
and benefits under this chapter.
Acts 1977, 65th Leg., p. 2657, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.068. FORM OF INSTRUMENTS. The board may prescribe the
form and contents of notices, bids, applications, awards,
contracts, deeds, and instruments used by the board in carrying
out a project or plan if it is not in conflict with the law.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.069. FEES. (a) The board shall collect the fee it
considers necessary from each applicant under Subchapter G of
this chapter and deposit the fee in a bank. Interest received on
the deposit shall be credited to the General Land Office special
fund and shall be spent for administrative purposes.
(b) Repealed by Acts 1985, 69th Leg., ch. 798, Sec. 22, eff.
Sept. 1, 1985.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1985, 69th Leg., ch. 798, Sec. 22,
eff. Sept. 1, 1985.
Sec. 161.070. ADDITIONAL FEES. (a) The board shall set and
collect, for the use of the state, reasonable fees in amounts
determined by the board for services it may provide in connection
with processing and servicing of purchase applications and
contracts of sale and purchase and matters incidental to these
purchases. These fees may include but are not limited to the
following:
(1) appraisal fee for each application under Subchapter G of
this chapter;
(2) contract of sale and purchase transfer fee for each
transfer;
(3) mineral lease service fee for each lease executed by
purchasers;
(4) reappraisal fee, if required by the board;
(5) fee for each loan of abstract;
(6) fee for servicing and filing each easement;
(7) service fee for each contract of sale and purchase;
(8) fee for homesite, severance, or paid-in-full deed;
(9) title examination fee;
(10) recording fees;
(11) fee for preparing credit reports;
(12) fee from each successful bidder under Section 161.319 of
this code in an amount sufficient to pay for examination of
title, recording fees, and other expenses incidental to resale of
land under Section 161.319 of this code;
(13) fee for preparation of legal instruments, including but not
limited to deeds, contracts, affidavits, and curative
instruments;
(14) fee for legal research, including but not limited to
preparation of title opinions and other legal opinions,
preparation for court appearances;
(15) fee for general research, including but not limited to
preparation of certified copies of documents on file with the
board; and
(16) fees for any other services which may be requested of the
board.
(b) These fees may be added to the price of any land sold or
resold by the board.
(c) Fees or portions of fees that are in the opinion of the
board unused shall be refunded.
(d) Money received from payment of these fees and not refunded
shall be deposited in the State Treasury and credited to the fund
and shall be spent as provided in the General Appropriations Act.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1983, 68th Leg., p. 406, ch. 81,
Sec. 21(o), eff. Sept. 1, 1983; Acts 1985, 69th Leg., ch. 798,
Sec. 5, eff. Sept. 1, 1985.
Sec. 161.071. PAMPHLETS. The board shall have published
pamphlets containing the provisions of this chapter and rules the
board desires, and these pamphlets shall be made available to any
interested veteran, veterans organization, or other interested
person in the state.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.072. LEASE BY BOARD. (a) The board may lease any
property that it owns on terms it considers proper.
(b) A lease for agricultural and grazing purposes is subject to
cancellation on the sale of the property to a veteran.
(c) The board may execute oil, gas, and mineral leases on land
purchased by it before it sells the land by following the same
procedure provided for the school land board in the lease of
public school land.
Acts 1977, 65th Leg., p. 2658, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.073. CONTRACTS WITH PRIVATE ENTITIES. The board may
contract with a private entity to administer all or part of the
program if it is cost effective to do so.
Added by Acts 1985, 69th Leg., ch. 798, Sec. 6, eff. Sept. 1,
1985.
Sec. 161.074. BOND ENHANCEMENT AGREEMENTS. (a) The board may
at any time and from time to time enter into one or more bond
enhancement agreements that the board determines to be necessary
or appropriate to place the obligation of the board, as
represented by the bonds, in whole or in part, on the interest
rate, currency, cash flow, or other basis desired by the board.
Bond enhancement agreements may include, on terms and conditions
approved by the board, interest rate swap agreements, currency
swap agreements, forward payment conversion agreements,
agreements providing for payments based on levels of or changes
in interest rates or currency exchange rates, agreements to
exchange cash flows or a series of payments, or agreements,
including options, puts, or calls, to hedge payment, currency,
rate, spread, or other exposure. A bond enhancement agreement is
an agreement for professional services and shall contain the
terms and conditions and be for the period that the board
approves. The fees and expenses of the board in connection with
the issuance of bonds and the purchase and sale of land may be
paid from money in the fund, provided that payments due from the
board under a bond enhancement agreement, other than fees and
expenses, that relate to the payment of debt service on bonds
constitute payments of principal of and interest on the bonds.
(b) The resolution of the board authorizing a bond enhancement
agreement may authorize one or more designated officers or
employees of the board to act on behalf of the board in entering
into and delivering the bond enhancement agreement and in
determining or setting the counterparty and terms of the bond
enhancement agreement specified in the resolution, except that
the resolution must set the maximum amount and term for the bond
enhancement agreement.
(c) Unless the board elects otherwise in its approval of a bond
enhancement agreement, the bond enhancement agreement is not a
credit agreement for purposes of Chapter 1371, Government Code,
regardless of whether the bonds relating to the bond enhancement
agreement were issued in part under that law.
Added by Acts 1993, 73rd Leg., ch. 242, Sec. 1.03, eff. Aug. 30,
1993. Amended by Acts 1999, 76th Leg., ch. 134, Sec. 1, eff. May
20, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 8.354, eff. Sept.
1, 2001.
Sec. 161.075. INFORMATION FOR LENDING INSTITUTIONS. (a) In
this section, "lending institution" has the meaning assigned by
Section 161.502.
(b) On request, the board shall provide to a lending institution
information regarding state land and housing benefits programs
for veterans in this state.
Added by Acts 2003, 78th Leg., ch. 69, Sec. 3, eff. May 16, 2003.
Sec. 161.076. MEMORANDUM OF UNDERSTANDING. (a) The board shall
enter into a memorandum of understanding with the commission.
The memorandum of understanding must specify the guidelines,
powers, and duties necessary for the board and the commission to
coordinate veterans benefits outreach activities.
(b) The memorandum of understanding must address board and
commission coordination with respect to the following veterans
benefits outreach activities:
(1) operation by the board of a consolidated communications
center;
(2) combined direct mail efforts;
(3) sharing veterans contact databases;
(4) dissemination of information through integrated websites and
a joint brochure;
(5) veterans benefits seminars; and
(6) any other veterans benefits outreach activity determined by
the board and the commission to be appropriate for coordination
by those agencies.
(c) The memorandum of understanding must identify the joint and
separate powers and duties of the board and the commission as
necessary to implement coordinated veterans benefits outreach
activities, including powers and duties relating to:
(1) reimbursements for coordinated activities;
(2) the management and funding of a consolidated communications
center;
(3) operating expenses associated with the coordinated
activities, including expenses relating to office space,
printing, and postage;
(4) the development and maintenance of integrated web services
regarding veterans benefits and services;
(5) the development and dissemination of a joint brochure
regarding veterans benefits and services; and
(6) joint presentations at or sponsorship of veterans benefits
seminars.
(d) The commission and the board shall periodically update the
memorandum of understanding and continue to explore additional
opportunities for coordination between the agencies regarding
their respective veterans benefits outreach activities.
(e) The commission and the board shall consider the appropriate
use of authorized bond proceeds and federal money to ensure that
each agency complies with applicable funding constraints in
entering into the memorandum of understanding.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 4, eff. June 15, 2007.
Sec. 161.077. COMMUNICATIONS CENTER. (a) Based on the
memorandum of understanding described by Section 161.076, the
board shall operate a consolidated communications center to
provide information regarding the benefits and services available
to veterans of this state, including benefits and services
offered by the board and the commission.
(b) In operating the communications center, employees must be
knowledgeable about the functions of the center and be able to
access information regarding all available veterans benefits and
services and shall:
(1) answer the veterans toll-free hotline; and
(2) disseminate to veterans, including newly discharged
veterans, information regarding the benefits and services, as
appropriate.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 4, eff. June 15, 2007.
Sec. 161.078. WEBSITE; BROCHURE. (a) Based on the memorandum
of understanding described by Section 161.076, the board shall
integrate web services and develop a hard-copy brochure that
provides in a centralized, comprehensive, and simplified format
information about all available veterans benefits and services,
including benefits and services offered by the board and the
commission. In integrating web services, the board shall develop
a single entry point to allow public access to information
related to all available veterans benefits and services.
(b) This section does not preclude the board or commission from
operating additional websites or disseminating other information
as determined appropriate by the board or the commission, in
accordance with the memorandum of understanding provided under
Section 161.076.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 4, eff. June 15, 2007.
Sec. 161.079. BENEFITS SEMINARS. (a) To ensure that the
veterans of this state receive uniform information on all
veterans benefits and services available, the board and the
commission shall:
(1) jointly plan and provide state-sponsored veterans benefits
seminars; and
(2) coordinate the involvement of each agency in seminars hosted
for veterans by other organizations.
(b) Planning and coordination under this section must ensure the
consistent presentation of benefits and services information by
the board or the commission at seminars described by this
section.
Added by Acts 2007, 80th Leg., R.S., Ch.
334, Sec. 4, eff. June 15, 2007.
SUBCHAPTER D. GENERAL OBLIGATION BONDS
Sec. 161.111. ISSUANCE AND SALE OF BONDS; DISPOSITION OF
PROCEEDS. By appropriate action, the board may provide by
resolution for the issuance and sale of negotiable bonds
authorized by the constitution, and the proceeds shall be a part
of the fund.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.112. INSTALLMENTS. The board, at its option, may issue
bonds in one or several installments.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.113. INTEREST RATE. The bonds shall bear the rate or
rates of interest prescribed by the board.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.05, eff. Aug. 30, 1993.
Sec. 161.114. PAYMENT AND MATURITY OF BONDS. (a) The bonds
shall be payable as provided by the board and shall mature
serially or otherwise not later than 40 years from their date.
(b) Bonds previously issued shall mature according to their
provisions.
(c) The board shall determine the medium of payment for both
principal of and interest on the bonds.
(d) The board at its own option may make the bonds redeemable or
subject to tender for purchase before maturity at the price and
under the terms and conditions fixed by the board in the
resolution providing for the issuance and sale of the bonds.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.06, eff. Aug. 30, 1993.
Sec. 161.115. FORM, DENOMINATION, AND PLACE OF PAYMENT OF BONDS.
The board shall determine the form of the bonds, including the
forms of interest coupons attached to the bonds, and shall fix
the denomination or denominations of the bonds and the place or
places for payment of the principal of and interest on the bonds.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.116. MANNER OF EXECUTION. (a) The bonds shall be
executed by and on behalf of the board and the state as
obligations of the state in the manner provided in Subsection (b)
of this section.
(b) The bonds shall be signed and executed as the board provides
in the resolution or order authorizing the issuance of the bonds.
Acts 1977, 65th Leg., p. 2659, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.07, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 300, Sec. 36,
eff. Aug. 30, 1993; Acts 2001, 77th Leg., ch. 620, Sec. 1, eff.
Sept. 1, 2001.
Sec. 161.117. SIGNATURES AND SEALS. (a) The resolution
authorizing the issuance of an installment or series of bonds may
prescribe the extent to which facsimile signatures and facsimile
seals may be used in lieu of manual signatures and manually
impressed seals in executing the bonds and attached coupons.
(b) Interest coupons may be signed with the facsimile signatures
of the chairman and secretary of the board.
(c) If an officer whose manual or facsimile signature appears on
a bond, or whose facsimile signature appears on a coupon, ceases
to be an officer before the bonds are delivered, the signature
shall still be valid and sufficient for all purposes the same as
if the officer had remained in office until the delivery of the
bonds.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.118. APPROVAL BY ATTORNEY GENERAL. Before bonds are
delivered to the purchasers, the record relating to the bonds
shall be examined by the attorney general. If the record
demonstrates that the bonds have been issued in accordance with
the constitution and this subchapter, the bonds shall be approved
by the attorney general.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.08, eff. Aug. 30, 1993.
Sec. 161.119. REGISTRATION WITH COMPTROLLER. After the bonds
are approved by the attorney general, they shall be registered in
the office of the comptroller.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.09, eff. Aug. 30, 1993.
Sec. 161.120. VALIDITY OF BONDS. (a) After the bonds are
approved by the attorney general and registered with the state
comptroller, they shall be held as valid and binding obligations
of the state in every action, suit, or proceeding in which their
validity is or may be brought into question.
(b) In each action brought to enforce collection of the bonds or
rights incident to the bonds, the certificate of approval by the
attorney general or a certified copy of that certificate shall be
admitted and received in evidence as to the validity of the
bonds.
(c) The only defense that can be offered against the validity of
the bonds shall be forgery or fraud.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.121. BONDS AS NEGOTIABLE INSTRUMENTS. Bonds issued
under this chapter have and are declared to have all qualities
and incidents of negotiable instruments under the laws of this
state.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.123. NOTICE FOR BIDS ON BONDS. If the board authorizes
the issuance of a series of bonds and decides to call for bids,
it shall publish an appropriate notice at least one time not less
than 10 days before the date of the sale in a recognized
financial journal of general circulation.
Acts 1977, 65th Leg., p. 2660, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.10, eff. Aug. 30, 1993.
Sec. 161.124. SECURITY FOR BID. The board may require bidders
to accompany their bids with exchange or bank cashier's checks in
an amount considered adequate by the board to be a forfeit
guaranteeing the acceptance and payment for bonds covered by the
bids and accepted by the board.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.11, eff. Aug. 30, 1993.
Sec. 161.125. SALE OF BONDS. Bonds may be sold at public or
private sale at a price or prices and on terms determined by the
board.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.12, eff. Aug. 30, 1993.
Sec. 161.126. REPLACEMENT BONDS. The board may provide for
replacement of bonds that are mutilated, lost, or destroyed.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.127. REFUNDING BONDS. (a) The board may provide by
resolution for issuance of refunding bonds for the purpose of
refunding outstanding bonds issued under this chapter together
with accrued interest on the bonds.
(b) As far as applicable, the preceding provisions of this
subchapter shall govern:
(1) the issuance of the refunding bonds;
(2) the maturities and other details of the refunding bonds;
(3) the rights of bondholders; and
(4) the duties of the board with respect to the refunding bonds.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977.
Sec. 161.128. BONDS AS INVESTMENTS AND SECURITY. (a) Bonds
issued under this chapter are legal and authorized investments
for banks, savings banks, trust companies, building and loan
associations, insurance companies, fiduciaries, trustees,
guardians, and for the sinking funds of cities, towns, villages,
counties, school districts, and other political subdivisions and
public agencies of the state.
(b) The bonds are legal and sufficient security for the deposits
in the amount of the par value of the bonds.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.13, eff. Aug. 30, 1993.
Sec. 161.129. TAXATION OF BONDS. Bonds are exempt from any tax
by the state and by cities, towns, villages, counties, school
districts, and other political subdivisions and public agencies
of the state.
Acts 1977, 65th Leg., p. 2661, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.14, eff. Aug. 30, 1993.
Sec. 161.130. CONSTITUTIONAL APPROPRIATIONS. (a) If during the
existence of the fund or during the time general obligation bonds
are payable from the fund the board determines that there will
not be sufficient money in the fund during the following biennium
available to pay principal of or interest on the bonds that are
to come due and to be paid from the fund during that biennium,
the comptroller shall transfer to the fund the first money coming
into the State Treasury not otherwise appropriated by the
constitution in amounts sufficient to pay the obligations.
(b) The money appropriated shall be used to pay the obligations
only if at the time the principal or interest actually become due
there is not sufficient money in the fund available to pay the
amount due.
Added by Acts 1993, 73rd Leg., ch. 242, Sec. 1.15, eff. Aug. 30,
1993.
Sec. 161.131. MINORITY-OWNED BUSINESSES. (a) The board shall
make a good faith effort to award to minority-owned businesses:
(1) contracts relating to the issuance of bonds by the board
under this chapter in the amount of at least 20 percent of the
total costs of issuing those bonds; and
(2) contracts for the items to be financed by bonds issued by
the board in the amount of at least 20 percent of the proceeds of
those bonds.
(b) Not later than October 31 of each year, the board shall file
with the governor and each house of the legislature a written
report containing the following information for the previous year
for all businesses and for minority-owned businesses classified
by minority group:
(1) the total number of contracts relating to the issuance of
bonds by the board under this chapter and to the items to be
financed by those bonds;
(2) the total dollar amount the board must pay under each
contract described by Subdivision (1) of this subsection; and
(3) the total number of businesses submitting bids or proposals
relating to the issuance of bonds by the board under this chapter
and to the items to be financed by those bonds.
(c) In this section:
(1) "Minority-owned business" means a business entity at least
51 percent of which is owned by members of a minority group or,
in the case of a corporation, at least 51 percent of the shares
of which are owned by members of a minority group, and that is
managed and controlled by members of a minority group in its
daily operations.
(2) "Minority group" includes:
(A) African Americans;
(B) American Indians;
(C) Asian Americans; and
(D) Mexican Americans and other Americans of Hispanic origin.
Added by Acts 1993, 73rd Leg., ch. 242, Sec. 1.15, eff. Aug. 30,
1993.
Sec. 161.132. WOMEN-OWNED BUSINESSES. (a) The board shall make
a good faith effort to award to women-owned businesses:
(1) contracts relating to the issuance of bonds by the board
under this chapter in the amount of at least 10 percent of the
total costs of issuing those bonds; and
(2) contracts for the items to be financed by bonds issued by
the board in the amount of at least 10 percent of the proceeds of
those bonds.
(b) Not later than October 31 of each year, the board shall file
with the governor and each house of the legislature a written
report containing the following information for the previous year
for all businesses and for women-owned businesses classified by
minority group:
(1) the total number of contracts relating to the issuance of
bonds by the board under this chapter and to the items to be
financed by those bonds;
(2) the total dollar amount the board must pay under each
contract described by Subdivision (1) of this subsection; and
(3) the total number of businesses submitting bids or proposals
relating to the issuance of bonds by the board under this chapter
and to the items to be financed by those bonds.
(c) In this section:
(1) "Women-owned business" means a business entity at least 51
percent of which is owned by women or, in the case of a
corporation, at least 51 percent of the shares of which are owned
by women, and that is managed and controlled by women in its
daily operations.
(2) "Minority group" includes:
(A) African Americans;
(B) American Indians;
(C) Asian Americans; and
(D) Mexican Americans and other Americans of Hispanic origin.
Added by Acts 1993, 73rd Leg., ch. 242, Sec. 1.15, eff. Aug. 30,
1993.
SUBCHAPTER E. VETERANS' LAND FUND
Sec. 161.171. MONEY AND LAND INCLUDED IN FUND. (a) The
veterans' land fund shall include:
(1) land purchased by the board from money in the fund;
(2) money attributable to general obligation bonds issued and
sold by the board, including proceeds from the issuance and sale
of the bonds;
(3) money received from the sale or resale of land or rights in
land purchased with the proceeds from the general obligation
bonds;
(4) money received from the sale or resale of land or rights in
land purchased with other money attributable to the general
obligation bonds;
(5) proceeds derived from the sale or other disposition of the
board's interest in:
(A) contracts for the sale of land or rights in land; or
(B) a loan made under Subchapter K;
(6) interest and penalties received from the sale or resale of
land purchased under this chapter or from rights in the land;
(7) bonuses, income, rents, royalties, and any other pecuniary
benefit received by the board from:
(A) land purchased under this chapter; or
(B) loans made under Subchapter K;
(8) money received as indemnity or forfeiture for the failure of
any bidder for purchase of general obligation bonds to comply
with the person's bid and accept and pay for the bonds or for the
failure of a bidder for purchase of land comprising a part of the
fund to comply with the person's bid and accept and pay for the
land and amounts received by the board under bond enhancement
agreements with respect to the bonds;
(9) interest received from investments of this money;
(10) any interest of the board in a loan made under Subchapter K
using money in the fund, including any title insurance related to
the loan or land purchased with the loan; and
(11) any equitable interest in property encumbered under
Subchapter K and attributable to the fund.
(b) Except as otherwise provided by law, money in the fund shall
be deposited in the State Treasury to the credit of the fund.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.17, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 71, Sec. 1,
eff. May 9, 1997; Acts 2001, 77th Leg., ch. 333, Sec. 1, eff. May
21, 2001.
Sec. 161.173. INVESTMENT OF MONEY IN FUND. (a) Money in the
fund that is not immediately committed to paying principal of and
interest on the bonds, to the purchase of land, or to the payment
of expenses as provided in this chapter may be invested in:
(1) direct security repurchase agreements and reverse security
repurchase agreements made with state or national banks that have
main offices or branch offices in this state or with primary
dealers as approved by the Federal Reserve System;
(2) direct obligations of or obligations the principal and
interest of which are guaranteed by the United States;
(3) direct obligations of or obligations guaranteed by the
Federal Home Loan Banks, the Federal National Mortgage
Association, the Federal Farm Credit System, the Student Loan
Marketing Association, the Federal Home Loan Mortgage
Corporation, or a successor organization to one of those
organizations;
(4) bankers' acceptances that:
(A) are eligible for purchase by members of the Federal Reserve
System;
(B) do not exceed 270 days to maturity; and
(C) are issued by a bank that has received the highest
short-term credit rating by a nationally recognized investment
rating firm;
(5) commercial paper that:
(A) does not exceed 270 days to maturity; and
(B) has received the highest short-term credit rating by a
nationally recognized investment rating firm;
(6) contracts written by the board in which the board grants the
purchaser the right to purchase securities in the board's
marketable securities portfolio at a specified price over a
specified period and for which the board is paid a fee and
specifically prohibits naked-option or uncovered option trading;
(7) obligations of a state or an agency, county, city, or other
political subdivision of a state, including revenue bonds issued
under Chapter 164, and mutual funds composed of these
obligations;
(8) an investment instrument, obligation, or other evidence of
indebtedness the payment of which is directly or indirectly
guaranteed by the full faith and credit of the United States;
(9) an investment, account, depository receipt, or deposit that
is fully:
(A) insured by the Federal Deposit Insurance Corporation or its
successor; or
(B) secured by securities described by Subdivision (2), (3), or
(8) of this subsection;
(10) a collateralized mortgage obligation fully secured by
securities or mortgages issued or guaranteed by the Government
National Mortgage Association (GNMA) or any entity described by
Subdivision (3) of this subsection;
(11) a security or evidence of indebtedness issued by the Farm
Credit System Financial Assistance Corporation, the Private
Export Funding Corporation, or the Export-Import Bank; and
(12) any other investment authorized for investment of state
funds by the comptroller under Section 404.024, Government Code.
(b) In this section:
(1) "Direct security repurchase agreement" means an agreement
under which the board buys, holds for a specified time, and then
sells back any of the following securities, obligations, or
participation certificates:
(A) United States government securities;
(B) direct obligations of or obligations the principal and
interest of which are guaranteed by the United States;
(C) direct obligations of or obligations guaranteed by the
Federal Home Loan Banks, the Federal National Mortgage
Association, the Federal Farm Credit System, the Student Loan
Marketing Association, the Federal Home Loan Mortgage
Corporation, or a successor organization to one of those
organizations; or
(D) any other investment instrument, obligation, or other
evidence of indebtedness the payment of which is directly or
indirectly guaranteed by the full faith and credit of the United
States.
(2) "Market value" means the fair and reasonable prevailing
price at which a security is being sold on the open market at the
time of the appraisement of the security by the board.
(3) "Reverse security repurchase agreement" means an agreement
under which the board sells and after a specified time buys back
any of the securities, obligations, or participation certificates
listed in Paragraphs (A) through (D) of Subdivision (1) of this
subsection.
(c) The Veterans Land Board shall not invest more than $50
million in revenue bonds issued under Chapter 164 and shall
report to the governor, the senate committee on finance, and the
house of representatives committee on appropriations on or before
December 1, 2000, regarding the status of its investment in such
revenue bonds and all related debt service.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1989, 71st Leg., ch. 720, Sec. 2,
eff. June 14, 1989; Acts 1991, 72nd Leg., ch. 56, Sec. 1, 2; Acts
1993, 73rd Leg., ch. 242, Sec. 1.18, eff. Aug. 30, 1993; Acts
1995, 74th Leg., ch. 265, Sec. 2, eff. Aug. 28, 1995; Acts 1997,
75th Leg., ch. 1423, Sec. 14.17, eff. Sept. 1, 1997; Acts 1999,
76th Leg., ch; 262, Sec. 1, 2, eff. May 28, 1999; Acts 1999, 76th
Leg., ch. 344, Sec. 5.013, eff. Sept. 1, 1999.
Sec. 161.1731. CUSTODY AND INVESTMENT OF ASSETS PENDING
TRANSACTIONS. With the approval of the comptroller, the board,
in managing the assets of the fund, pending the completion of an
investment transaction, may:
(1) select one or more commercial banks, depository trust
companies, or other entities to serve as a custodian of the cash
or securities of the fund; and
(2) authorize the custodian to invest cash held under
Subdivision (1) in the investments determined by the board.
Added by Acts 1997, 75th Leg., ch. 71, Sec. 2, eff. May 9, 1997.
Sec. 161.1732. LENDING SECURITIES. (a) In managing the assets
of the fund, the board may:
(1) select one or more commercial banks, depository trust
companies, or other entities to serve as a custodian of the
securities of the fund; and
(2) authorize the custodian to lend the securities held under
Subdivision (1) as provided by this section and by rules adopted
by the board.
(b) To be eligible to lend securities under this section, a
custodian selected by the board under Subsection (a) must be
experienced in the operation of a fully secured securities loan
program and must:
(1) maintain adequate capital in the prudent judgment of the
board to assure the safety of the securities;
(2) execute an indemnification agreement satisfactory in form
and content to the board fully indemnifying the board against
loss resulting from the custodian's operation of a securities
loan program for the fund's securities; and
(3) require any securities broker or dealer to whom it lends
securities of the fund to deliver to, and maintain with, the
custodian collateral in the form of cash, United States
government securities, or letters of credit that are issued by
banks rated as to investment quality not less than A or its
equivalent by a nationally recognized investment rating firm in
an amount equal to at least 100 percent of the market value, from
time to time, of the loaned securities.
Added by Acts 1997, 75th Leg., ch. 71, Sec. 2, eff. May 9, 1997.
Amended by Acts 1999, 76th Leg., ch. 134, Sec. 2, eff. May 20,
1999.
Sec. 161.174. USE OF FUND TO PAY PRINCIPAL AND INTEREST. The
principal of and interest on bonds issued by the board shall be
paid from money in the fund as provided by the constitutional
provision authorizing the bonds.
Acts 1977, 65th Leg., p. 2662, ch. 871, art. I, Sec. 1, eff.
Sept. 1, 1977. Amended by Acts 1993, 73rd Leg., ch. 242, Sec.
1.19, eff. Aug. 30, 1993.
Sec. 161.175. USE OF FUND TO PAY EXPENSES RELATED TO THE LAND.
(a) The board may use money in the fund attributable to bonds
that have been issued and sold to pay:
(1) expenses of surveying and monumenting the land and the
tra