S.B. 1082 78(R)    BILL ANALYSIS


S.B. 1082
By: Ogden
Public Education
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Currently, the Texas Department of Transportation's (TxDOT) shortage of
available funds causes TxDOT to purchase rights-of-way only when a
project is well underway.  The ability to purchase rights-of-way earlier
in the process could allow TxDOT to acquire land at lower costs. S.B. 1082
allows TxDOT, in agreement with the State Board of Education, to borrow
funds from the permanent school fund to purchase rights-of-way for the
state highway system.  


RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department,
institution, or agency. 


ANALYSIS

S.B. 1082 amends the Transportation Code, by authorizing the Texas
Department of Transportation (TxDOT), on terms and conditions agreed on by
TxDOT and the State Board of Education (SBOE), to borrow from the
permanent school fund to acquire rights-of-way for the state highway
system. 

The bill authorizes the SBOE to make a loan under this section upon
determining that the terms of the agreement governing the loan provide for
the payment of the greater of certain interest rates. The bill requires
the agreement to be secured by a pledge of the first money coming into the
state highway fund. 

The bill prohibits TxDOT from using the proceeds of a loan made under this
section for the construction of a state highway or other facility of the
Trans Texas Corridor.  

S.B. 1082 amends the Education Code, by authorizing the SBOE, to make
loans from the permanent school fund to TxDOT for acquiring rights-of-way
for the highway system. 


EFFECTIVE DATE

This Act takes effect on the date on which S.J.R. No. 43, takes effect. If
that resolution is not approved by the voters, this Act has no effect.