bill making toll roads stop tolling once paid off

The text as introduced · 1,565 words

89R10298 JAM-D

By: Paxton, et al.
S.B. No. 2324

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. Sections 228.012(a) and (b), Transportation

Code, are amended to read as follows:

(a) The department shall create a separate account in the

state highway fund to hold payments received by the department

under a comprehensive development agreement [ and the surplus

revenue of a toll project or system ]. The department shall create

subaccounts in the account for each project, system, or

region. Interest earned on money in a subaccount shall be

deposited to the credit of that subaccount.

(b) The department shall hold money in a subaccount in trust

for the benefit of the region in which a project or system is

located and may assign the responsibility for allocating money in a

subaccount to a metropolitan planning organization in which the

region is located for projects approved by the department. At the

time the project is approved by the department money shall be

allocated and distributed to projects authorized by Section

228.0055 [ or Section 228.006, as applicable ].

SECTION 2. Section 228.053(f), Transportation Code, is

amended to read as follows:

(f) The revenue and disbursements for each toll project or

system shall be kept separately. The revenue from one project may

not be used to pay the cost of another project except as authorized

by Section [ Sections ] 228.0055 [ and 228.006 ].

SECTION 3. Section 228.104(a), Transportation Code, is

amended to read as follows:

(a) The principal of, interest on, and any redemption

premium on bonds issued by the commission under this subchapter are

payable solely from:

(1) the revenue of the toll project or system for which

the bonds are issued, including tolls pledged to pay the bonds;

(2) the proceeds of bonds issued for the project or

system;

(3) the amounts deposited in a debt service reserve

fund as required by the trust agreement securing bonds issued for

the project or system;

(4) amounts received under a credit agreement relating

to the project or system for which the bonds are issued; and

(5) [ surplus revenue of another project or system as

authorized by Section 228.006; and

[ (6) ] amounts received by the department:

(A) as pass-through tolls under Section 222.104;

(B) under an agreement with a local governmental

entity entered into under Section 228.254;

(C) under other agreements with a local

governmental entity relating to the project or system for which the

bonds are issued; and

(D) under a comprehensive development agreement

entered into under Section 223.201.

SECTION 4. Section 228.105, Transportation Code, is amended

to read as follows:

Sec. 228.105. SOURCES OF PAYMENT OF AND SECURITY FOR TOLL

REVENUE BONDS. Notwithstanding any other provisions of this

subchapter, toll revenue bonds issued by the commission may:

(1) be payable from and secured by:

(A) payments made under an agreement with a local

governmental entity as provided by Section 228.254;

(B) the proceeds of bonds issued for the toll

project or system; or

(C) amounts deposited in a debt service reserve

fund as required by the trust agreement securing bonds issued for

the project or system; [ or

[ (D) surplus revenue of another toll project or

system as authorized by Section 228.006; ] and

(2) state on their faces any pledge of revenue or taxes

and any security for the bonds under the agreement.

SECTION 5. Section 366.113(a), Transportation Code, is

amended to read as follows:

(a) The principal of, interest on, and any redemption

premium on bonds issued by an authority are payable solely from:

(1) the revenue of the turnpike project or system for

which the bonds are issued, including tolls pledged to pay the

bonds;

(2) payments made under an agreement with the

commission or a local governmental entity as provided by Subchapter

G;

(3) money derived from any other source available to

the authority, other than money derived from a turnpike project

that is not part of the same system or money derived from a

different system[ , except to the extent that the surplus revenue of

a turnpike project or system has been pledged for that purpose ];

and

(4) amounts received under a credit agreement relating

to the turnpike project or system for which the bonds are issued.

SECTION 6. Section 370.113(a), Transportation Code, is

amended to read as follows:

(a) The principal of, interest on, and any redemption

premium on bonds issued by an authority are payable solely from:

(1) the revenue of the transportation project for

which the bonds are issued;

(2) payments made under an agreement with the

commission, the department, or other governmental entity as

authorized by this chapter;

(3) money derived from any other source available to

the authority, other than money derived from a transportation

project that is not part of the same system or money derived from a

different system, except to the extent that the surplus revenue of a

transportation project or system , other than a turnpike project,

has been pledged for that purpose;

(4) amounts received under a credit agreement relating

to the transportation project for which the bonds are issued; and

(5) the proceeds of the sale of other bonds.

SECTION 7. Section 372.0535(b), Transportation Code, is

amended to read as follows:

(b) Not later than the 180th day after the last day of a toll

project entity's fiscal year, the entity shall publish on the

entity's Internet website a report on the entity's financial data,

including:

(1) the final maturity of all bonds issued by the

entity for a toll project or system;

(2) toll revenue for each toll project for the

previous fiscal year;

(3) an accounting of total revenue collected and

expenses incurred by the entity for the previous fiscal year, such

as debt service, maintenance and operation costs, and any other

miscellaneous expenses[ , and any surplus revenue ]; and

(4) a capital improvement plan with proposed or

expected capital expenditures over a period determined by the

entity.

SECTION 8. Subchapter B, Chapter 372, Transportation Code,

is amended by adding Section 372.060 to read as follows:

Sec. 372.060. CESSATION OF TOLLS. (a) A toll project shall

be maintained without tolls in the manner provided by Subsection

(c) 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 revenues 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 must be maintained without tolls under Subsection (a).

(c) Beginning on the date on which a toll project must be

maintained without tolls under Subsection (a), the toll project:

(1) becomes part of the state highway system and must

be maintained by the commission if:

(A) the Legislative Budget Board determines that

the state has available resources necessary to operate and maintain

the project; and

(B) the project is not transferred to a county

under Subdivision (2);

(2) becomes part of the road system of a county in

which the project is located and must be maintained by that county

if:

(A) the county requests from the Legislative

Budget Board approval to operate and maintain the project; and

(B) the Legislative Budget Board approves the

request made under Paragraph (A); or

(3) shall be maintained without tolls by the entity

operating the project if the project does not become part of the

state highway system under Subdivision (1) or a county road system

under Subdivision (2).

SECTION 9. The following provisions of the Transportation

Code are repealed:

(1) Section 228.006;

(2) Section 228.109(d);

(3) Sections 284.008(c) and (d);

(4) Section 366.003(9-a);

(5) Section 366.037;

(6) Section 366.071;

(7) Section 366.072(b); and

(8) Section 366.175.

SECTION 10. Not later than September 1, 2026, the Texas

Department of Transportation, in consultation with the Legislative

Budget Board, shall conduct a study and produce a report regarding

the costs associated with the cessation of the collection of tolls

on highways in this state in the manner provided by Section 372.060,

Transportation Code, as added by this Act. The study and report

must identify:

(1) all toll roads in this state;

(2) the projected date by which each of those toll

roads will be required to be maintained without tolls under Section

372.060, Transportation Code, as added by this Act; and

(3) the projected maintenance and operation costs

associated with adding each of those roads to the state highway

system.

SECTION 11. 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.