Metcalf bill ending tolls once the road is paid off

The text as introduced · 861 words

89R1753 JAM-D

By: Metcalf
H.B. No. 5346

A BILL TO BE ENTITLED

AN ACT

relating to the cessation of tolls by toll project entities in

certain circumstances.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 372, Transportation Code, is amended by

adding Subchapter D to read as follows:

SUBCHAPTER D. CESSATION OF TOLLS

Sec. 372.151. DEFINITION. In this subchapter, "toll

cessation date" means the date on which a project is scheduled to

become a part of the state highway system maintained by the

commission under Section 372.152.

Sec. 372.152. CESSATION OF TOLLS AFTER BOND REQUIREMENTS

MET. (a) Except as provided by Section 372.153, a toll project

becomes a part of the state highway system and the commission shall

maintain the project without tolls when the costs of acquisition

and construction of the project have been paid and:

(1) all of the bonds and interest on the bonds that are

payable from or secured by revenue of the project have been paid by

the issuer of the bonds or another person with the consent or

approval of the issuer; or

(2) a sufficient amount for the payment of all bonds

and interest on the bonds to maturity has been set aside by the

issuer of the bonds or another person with the consent or approval

of the issuer in a trust fund held for the benefit of the

bondholders.

(b) A toll project entity may not amend a financing or other

agreement in a manner that would extend the date by which a toll

project would become part of the state highway system under

Subsection (a).

Sec. 372.153. ELECTION TO CONTINUE TOLLS AFTER TOLL

CESSATION DATE. (a) A toll project entity may extend by five years

a toll cessation date of a toll project if the extension is approved

by a majority of the votes cast at an election held for that

purpose:

(1) on a uniform election date before the toll

cessation date;

(2) in:

(A) the territory of the toll project entity; or

(B) if the toll project entity is the department,

each county in which the toll project is located; and

(3) by:

(A) the toll project entity; or

(B) if the toll project entity is the department,

each county in which the toll project is located.

(b) After an initial election under this section at which an

extension is approved, the toll project entity may use the process

established by this subchapter to obtain voter approval for

subsequent five-year extensions of the toll cessation date for the

project.

(c) At an election ordered under this section, the ballots

must be printed to permit voting for or against the proposition:

"The continuation of tolls for a period of five years for (toll

project)."

Sec. 372.154. REQUEST FOR ELECTION BY DEPARTMENT. (a) If

the department wishes to extend a toll cessation date for a toll

project the department shall, not later than nine months before the

toll cessation date, send to the commissioners court of each county

in which the toll project is located notice of:

(1) the toll cessation date for the project; and

(2) the department's intention to request an election

for an extension of tolling authority for the project.

(b) Each commissioners court that receives notice under

Subsection (a) shall, as soon as practicable after receiving the

notice, propose to the department:

(1) one or more uniform election dates occurring

before the toll cessation date that would allow the county

sufficient time to comply with applicable provisions of law for

holding the election; and

(2) the date by which a request must be submitted by

the department in order for the county to have sufficient time to

comply with applicable provisions of law for holding the election.

(c) If the department submits to a commissioners court a

request for an election for an extension of tolling authority for

the project that complies with Subsection (b), the commissioners

court shall hold the requested election.

Sec. 372.155. CESSATION OF TOLLS AFTER EXTENSION OF TOLL

CESSATION DATE. A toll project becomes part of the state highway

system and the commission shall maintain the project without tolls

if a five-year toll cessation date extension authorized by an

election under this subchapter expires and a succeeding five-year

extension has not been approved at an election under this

subchapter.

SECTION 2. Section 373.003, Transportation Code, is amended

to read as follows:

Sec. 373.003. PROJECT OWNED IN PERPETUITY. Unless a toll

project is leased, sold, conveyed, or otherwise transferred to

another governmental entity in accordance with applicable law,

including Sections 228.151, 284.011, 366.036, 366.172, [ and ]

370.171, 372.152, and 372.155, a toll project procured by the

department or a local toll project entity determined by the process

under Subchapter B is owned by that entity in perpetuity.

SECTION 3. Sections 284.008(c) and (d), Transportation

Code, are repealed.

SECTION 4. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.