By: Bettencourt  S.B. No. 2722
         (In the Senate - Filed March 13, 2025; March 27, 2025, read
  first time and referred to Committee on Transportation;
  April 22, 2025, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 6, Nays 3; April 22, 2025,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 2722 By:  Bettencourt
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the use of certain tolls and charges imposed by certain
  counties; authorizing a civil penalty.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter A, Chapter 284, Transportation Code,
  is amended by adding Section 284.014 to read as follows:
         Sec. 284.014.  RESTRICTION ON USE OF REVENUE FROM TOLLS AND
  OTHER CHARGES IN CERTAIN COUNTIES. (a) This section applies only to
  a county with a population of four million or more.
         (b)  Except as provided by Subsection (d), a county that
  imposes tolls or charges as otherwise authorized by this chapter
  may only use the revenues collected from the tolls or charges to:
               (1)  pay the costs of operating, expanding,
  maintaining, or administering a project;
               (2)  retire debt related to a project; or
               (3)  use or pledge revenues to pay or finance the costs
  of a project, including the costs to study, design, construct,
  maintain, operate, and pool a turnpike project or system, and to pay
  bonds or other obligations related to a project.
         (c)  Subsection (b) applies to any fees received by a county
  for operating a project of another entity but does not apply to any
  other revenue of a project that is collected by the county on behalf
  of another entity under an agreement with the entity.
         (d)  Of the revenues collected from tolls and charges that
  remain after paying the costs described by Subsection (b),
  including costs to establish reserves required by a bond instrument
  and to maintain ratings on bonds or other obligations related to a
  project:
               (1)  30 percent of the amount remaining shall be
  distributed to the municipality that contains more than 40 percent
  of the number of lane miles of the project and may be used by the
  municipality only for the costs of providing law enforcement and
  other emergency services during accidents and disasters affecting a
  project of the county; and
               (2)  subject to Subsection (e) and except as provided
  by Subsection (f), 70 percent of the amount remaining shall be
  retained by the county and may be used only to pay costs related to a
  county road owned and maintained by the county.
         (e)  At least 95 percent of the amount retained by a county
  under Subsection (d)(2) must be allocated among all commissioners
  precincts based on the percentage of roads owned and maintained by
  the county in each precinct, excluding freeways as defined by
  Section 541.302 and any road facilities for which a user must pay a
  toll, fee, or fare, according to the county's road log or
  maintenance schedule on September 1 of the fiscal year preceding
  the allocation.
         (f)  A county may allocate up to five percent of the amount
  retained under Subsection (d)(2) to a county department or project
  with countywide impact, as determined by the county, for a state,
  county, or municipal facility relating to a road, street, highway,
  or related facility, provided that amounts allocated under this
  subsection may not be used on a hike, bike, or trail facility unless
  the expenditure is necessary to comply with a state or federal
  requirement.
         (g)  A county that violates Subsection (b) is subject to a
  civil penalty.  An independent auditor hired by a county to audit
  the county's annual financial report made to the commissioners
  court and to the district judges of the county under Section
  114.025, Local Government Code, shall report any violation of
  Subsection (b) to the state auditor's office.
         (h)  The state auditor's office shall promptly investigate a
  report received under Subsection (g) to determine if the county
  violated Subsection (b).  At the request of the state auditor's
  office, the attorney general shall file suit to collect a civil
  penalty.  If the violation is:
               (1)  a first violation of Subsection (b), the amount of
  the civil penalty is an amount equal to 100 percent of the amount of
  revenues used by the county in violation of Subsection (b); or
               (2)  a second or subsequent violation of Subsection
  (b), the amount of the civil penalty is an amount equal to 110
  percent of the amount of revenues used by the county in violation of
  Subsection (b).
         (i)  A county for which a civil penalty is imposed under
  Subsection (h) shall pay the penalty out of the general fund of the
  county.
         (j)  Notwithstanding any other law, a county for which a
  civil penalty is imposed under Subsection (h)(2) may not adopt a tax
  rate for the tax year following the tax year in which the penalty
  was imposed that exceeds the lesser of the county's no-new-revenue
  tax rate or voter-approval tax rate, as determined under Section
  26.04, Tax Code, for that tax year.
         (k)  A civil penalty collected under this section shall be
  deposited in the state treasury to the credit of the state highway
  fund and may only be appropriated for transportation purposes.
         SECTION 2.  This Act takes effect September 1, 2025.
 
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