78R8401 ESH-D

By:  Ogden                                                        S.B. No. 1082



A BILL TO BE ENTITLED

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 agreement governing the loan must provide for the 
payment of interest at a rate recalculated semiannually to the 
greater of:
		(1)  the minimum interest rate prescribed by Section 
5a, Article VII, Texas Constitution; or
		(2)  the interest rate on the most recently issued 
10-year note issued by the United States Department of the 
Treasury, as of the date the interest rate is recalculated, as 
published in the Wall Street Journal or another publication 
acceptable to both the department and the board, plus one percent.
	(c)  The agreement must be secured by a pledge of the first 
money coming into the state highway fund.
	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.  (a)  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.
	(b)  The loans are considered an investment of the permanent 
school fund, and the board shall make its best efforts to provide 
the loans on request of the department.
	SECTION 3.  This Act takes effect on the date on which the 
constitutional amendment proposed by __J.R. No. ___, 78th 
Legislature, Regular Session, 2003, takes effect.  If that 
amendment is not approved by the voters, this Act has no effect.