bill paying businesses hurt by highway construction

The text as introduced · 528 words

89R3168 SRA-D

By: Menéndez
S.B. No. 2935

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a highway construction mitigation

program for certain businesses.

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

SECTION 1. Subtitle B, Title 6, Transportation Code, is

amended by adding Chapter 249 to read as follows:

CHAPTER 249. HIGHWAY CONSTRUCTION MITIGATION PROGRAM FOR CERTAIN

BUSINESSES

Sec. 249.001. DEFINITIONS. In this chapter:

(1) "Highway construction project" means a project

involving the construction, maintenance, or improvement of a state

highway.

(2) "Mitigation program" means the highway

construction mitigation program established under this chapter.

Sec. 249.002. ESTABLISHMENT OF MITIGATION PROGRAM. For the

purpose of mitigating the negative effects of a highway

construction project on adjacent businesses, the department shall

establish and administer a highway construction mitigation program

to reimburse eligible businesses for economic damages that are

directly attributable to a highway construction project.

Sec. 249.003. FUNDING; ALLOCATION OF MONEY. (a) Using

money appropriated to the department for that purpose, the

department shall award grants under the mitigation program to

eligible businesses on a quarterly, pro rata basis.

(b) An eligible business:

(1) may apply for a grant in multiple quarters; and

(2) may not use in a subsequent grant application

economic damages that were the basis of an application for which a

grant was awarded under this chapter.

Sec. 249.004. ELIGIBILITY FOR PROGRAM. (a) To be eligible

to receive a grant under the mitigation program, a business must:

(1) be organized under the laws of this state;

(2) be in good standing under the laws of this state;

(3) either:

(A) have pedestrian or road traffic access to the

business impacted by a highway construction project; or

(B) be located within five miles of a highway

construction project that has rerouted traffic or increased road

traffic congestion; and

(4) be able to establish that the business sustained

economic damages as a direct result of the highway construction

project, including by presenting:

(A) a decline in gross receipts; or

(B) an increase in expenses.

(b) If a business operates multiple locations that satisfy

the eligibility requirements under this section, each location may

separately apply for a grant under the mitigation program.

Sec. 249.005. USE OF MONEY. A business may use a grant

received under the mitigation program:

(1) to pay the business's expenses; or

(2) for any other legitimate business purpose

authorized by department rule.

Sec. 249.006. MITIGATION PROGRAM INFORMATION. The

department shall publish information regarding the mitigation

program on the department's Internet website, including

information regarding the application process for the mitigation

program.

Sec. 249.007. RULES. The department shall adopt rules

necessary to implement and administer this chapter, including rules

to establish:

(1) a standardized application process for the

mitigation program, the form to apply for a grant, and the manner of

submitting the form; and

(2) procedures for monitoring the disbursement and use

of grant money to ensure compliance with this chapter.

SECTION 2. Not later than January 1, 2026, the Texas

Department of Transportation shall adopt the rules necessary to

implement Chapter 249, Transportation Code, as added by this Act.

SECTION 3. This Act takes effect September 1, 2025.