Second Toll Violation Caps A County’s Property Tax Rate

The text as introduced · 647 words

By: DeAyala
H.B. No. 5177

A BILL TO BE ENTITLED

AN ACT

relating to the use of certain tolls and charges imposed by certain

counties; authorizing an administrative 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 (c), 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 pay

the costs of operating, expanding, maintaining, or administering a

toll project or system or to retire debt related to a toll project

or system. This subsection applies to any fees received by a county

for operating a toll project of another entity but does not apply to

any other revenue of a toll project that is collected by the county

on behalf of another entity under an agreement with the entity.

(c) Of the revenues collected from tolls and charges that

remain after paying the costs described by Subsection (b):

(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 toll project and may be used only

to reimburse the municipality for the costs of providing law

enforcement and other emergency services during accidents and

disasters affecting a project of the county; and

(2) 70 percent of surplus revenue shall be distributed

to the county for use on county owned and maintained roads. A

minimum of 95% of the surplus revenue received by the county shall

be allocated to the commissioner precincts based on the percentage

of roads owned and maintained by the County in each precinct per the

County's Road Log excluding toll roads and freeways as of September

1st before the beginning of the next fiscal year.

(3) The County may allocate up to 5% of the funds to

other County Departments or projects with countywide impact, as

determined by the county, for state, county, or municipal

facilities, the funds are restricted to roads, streets, highways

and related facilities.

(d) 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 department.

(e) The department shall promptly investigate a report

received under Subsection (d). If the department determines that

the county violated Subsection (b) and the violation is:

(1) a first violation of Subsection (b), the

department shall impose an administrative penalty against the

county in an amount equal to 110 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 department shall impose an administrative penalty against

the county in an amount equal to 100 percent of the amount of

revenues used by the county in violation of Subsection (b).

(f) A county for which an administrative penalty is imposed

under Subsection (e) shall pay the penalty out of the general fund

of the county. An administrative penalty may only be used as

provided by Subsection (b).

(g) Notwithstanding any other law, a county for which an

administrative penalty is imposed under Subsection (e)(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.

SECTION 2. This Act takes effect September 1, 2025.