By:  Ogden                                                        S.B. No. 1082
	(In the Senate - Filed March 10, 2003; March 17, 2003, read 
first time and referred to Committee on Infrastructure Development 
and Security; April 2, 2003, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 8, Nays 0; 
April 2, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1082                                   By:  Ogden


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 State Board of Education may make a loan under this 
section upon determining that the terms of the agreement governing 
the loan must provide for the payment of interest at a rate equal 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.
	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.



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