SRC-AMY S.B. 1082 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1082
78R8401 ESH-DBy: Ogden
Infrastructure Development and Security
3/20/2003
As Filed


DIGEST 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.  As
proposed, 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.  This bill defines such loans
as an investment of the permanent school fund. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 222A, Transportation Code, by adding Section
222.003, as follows: 

Sec. 222.003.  LOANS FROM PERMANENT SCHOOL FUND.  (a) Authorizes 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. 

(b) Requires the agreement governing the loan to provide for the payment
of interest recalculated semiannually to the greater of certain interest
rate indicators. 

(c) Requires the agreement to be secured by a pledge of the first money
coming into the state highway fund. 

SECTION 2.  Amends Chapter 43, Education Code, by adding Section 43.020,
as follows: 

Sec. 43.020.  LOANS FOR HIGHWAY RIGHTS-OF-WAY.  (a) Authorizes the SBOE,
as provided by Article VII, Section 5A of the Texas Constitution
(Permanent School Fund; Available School Fund; Use of Funds; Distribution
of School Fund) to make loans from the permanent school fund to TxDOT for
acquiring rights-of-way for the highway system. 

(b) Provides that the loans are considered an investment and requires the
SBOE to make its best efforts to provide the loans on request of TxDOT. 

SECTION 3.  Effective date:  effective date of the related Joint
Resolution if approved by the voters.