S.B. No. 1082




AN ACT

relating to loans from the permanent school fund for the 
acquisition of rights-of-way for the state highway system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter A, Chapter 222, Transportation Code, 
is amended by adding Section 222.003 to read as follows:
	Sec. 222.003.  LOANS FROM PERMANENT SCHOOL FUND.  (a)  On 
terms and conditions agreed on by the department and the State Board 
of Education, the department may borrow from the permanent school 
fund for the purpose of acquiring rights-of-way for the state 
highway system.
	(b)  The State Board of Education may make a loan under this 
section upon determining that the terms of the agreement governing 
the loan provide for the payment of interest at a rate at least 
equal to the greater of:
		(1)  the minimum interest rate prescribed by Section 
5a, Article VII, Texas Constitution; or
		(2)  the current average interest earnings yield on all 
fixed-income investments of the permanent school fund as of the 
date the loan is made.
	(c)  The agreement must be secured by a pledge of the first 
money coming into the state highway fund.
	(d)  The department may not use the proceeds of a loan made 
under this section for the construction of a state highway or other 
facility of the Trans Texas Corridor.  For purposes of this 
subsection, "Trans Texas Corridor" means a statewide system of 
multimodal transportation facilities under the department's 
jurisdiction and as designated by the commission, regardless of the 
name given to the system.
	SECTION 2.  Chapter 43, Education Code, is amended by adding 
Section 43.020 to read as follows:
	Sec. 43.020.  LOANS FOR HIGHWAY RIGHTS-OF-WAY.  As provided 
by Section 5a, Article VII, Texas Constitution, the State Board of 
Education may make loans from the permanent school fund to the Texas 
Department of Transportation for the purpose of acquiring 
rights-of-way for the state highway system.
	SECTION 3.  This Act takes effect on the date on which the 
constitutional amendment proposed by S.J.R. No. 43, 78th 
Legislature, Regular Session, 2003, takes effect.  If that 
amendment is not approved by the voters, this Act has no effect.

                                                                              




______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 1082 passed the Senate on 
April 14, 2003, by a viva-voce vote.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 1082 passed the House on 
May 28, 2003, by a non-record vote.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor