Bucy Bill Opens Highway Fund To Transit-Oriented Projects

The text as introduced · 710 words

89R1587 CMO-D

By: Bucy
H.B. No. 542

A BILL TO BE ENTITLED

AN ACT

relating to the use of certain money transferred to and deposited in

the state highway fund as required by the Texas Constitution.

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

SECTION 1. Section 162.503, Tax Code, is amended to read as

follows:

Sec. 162.503. ALLOCATION OF GASOLINE TAX. [ (a) ] On or

before the fifth workday after the end of each month, the

comptroller, after making all deductions for refund purposes and

for the amounts allocated under Sections 162.502 and 162.5025,

shall allocate the net remainder of the taxes collected under

Subchapter B as follows:

(1) one-fourth of the tax shall be deposited to the

credit of the available school fund;

(2) one-half of the tax shall be deposited to the

credit of the state highway fund for the purposes authorized by

Section 7-a, Article VIII, Texas Constitution [ construction and

maintenance of the state road system under existing law ]; and

(3) from the remaining one-fourth of the tax the

comptroller shall:

(A) deposit to the credit of the county and road

district highway fund all the remaining tax receipts until a total

of $7,300,000 has been credited to the fund each fiscal year; and

(B) after the amount required to be deposited to

the county and road district highway fund has been deposited,

deposit to the credit of the state highway fund the remainder of the

one-fourth of the tax, the amount to be provided on the basis of

allocations made each month of the fiscal year, which sum shall be

used by the Texas Department of Transportation for the

construction, improvement, and maintenance of farm-to-market

roads.

SECTION 2. Section 201.002(c), Transportation Code, is

amended to read as follows:

(c) All money authorized to be appropriated in accordance

with this section for the operation of the department and the

purchase of equipment shall be appropriated from the state highway

fund. The commission shall use the amount remaining in the fund

for the furtherance of public road construction and for

establishing a system of state highways and for transit-oriented

projects .

SECTION 3. Section 202.002(a), Transportation Code, is

amended to read as follows:

(a) The commission shall use automobile registration fees

in the state highway fund for the purposes authorized by Section

7-a, Article VIII, Texas Constitution, [ to maintain state highways ]

and may not divert funds from automobile registration fees for

another use.

SECTION 4. Section 222.001, Transportation Code, is amended

by amending Subsection (a) and adding Subsection (a-1) to read as

follows:

(a) Money that is required to be used for public roadways by

the Texas Constitution , except for Section 7-a, Article VIII, Texas

Constitution, or federal law and that is deposited in the state

treasury to the credit of the state highway fund, including money

deposited to the credit of the state highway fund under Title 23,

United States Code, may be used only:

(1) to improve the state highway system; or

(2) to mitigate adverse environmental effects that

result directly from construction or maintenance of a state highway

by the department.

(a-1) Money that is required to be used for public roadways

and transit-oriented projects by the Texas Constitution and that is

deposited in the state treasury to the credit of the state highway

fund may be used only to:

(1) improve the state highway system;

(2) support transit-oriented projects; or

(3) mitigate adverse environmental effects that

result directly from construction or maintenance of a project

described by Subdivision (1) or (2).

SECTION 5. Section 222.002, Transportation Code, is amended

to read as follows:

Sec. 222.002. USE OF STATE HIGHWAY FUND FOR DEPARTMENT

FUNCTIONS. Money in the state highway fund that is not required to

be spent for public roadways or transit-oriented projects by the

Texas Constitution or federal law may be used for any function

performed by the department.

SECTION 6. This Act takes effect September 1, 2027, but only

if the constitutional amendment proposed by the 89th Legislature,

Regular Session, 2025, authorizing the use of money in the state

highway fund for transit-oriented projects is approved by the

voters. If that amendment is not approved by the voters, this Act

has no effect.