Texas Senate Bill SB374

Texas 2019 - 86th Regular

Caption

Relating to the cessation of tolls by toll project entities in certain circumstances.

Impact

The bill is poised to affect how local governmental entities manage toll revenue and the continuation of tolls on state-operated projects. By formalizing the conditions for toll cessation, SB374 will provide a clearer framework for financial accountability in toll road projects. This legislation aligns with efforts to optimize taxpayer funds and ensure that once a toll project is financially settled, it does not continue to impose charges on users unnecessarily. It supports the transition of toll projects into state systems, potentially simplifying the funding and operation of future transportation projects.

Summary

SB374 focuses on the conditions under which tolls can cease on toll projects in Texas. The bill seeks to amend various sections of the Transportation Code to establish when toll facilities transition to being part of the state highway system. Specifically, it proposes that tolls should be eliminated when all bonds related to a toll project have been fully paid off or sufficient funds have been set aside to cover all bond obligations. This change aims to enhance the management of toll projects and integrate them more seamlessly into state transportation infrastructure once their financing obligations are met.

Contention

One notable point of contention surrounding SB374 is the balance it seeks to create between user fees and public funding of transportation infrastructure. Advocates argue that ceasing tolls when projects are fully funded is a fair approach that reflects the completion of financial obligations to stakeholders, while opponents may express concern about the long-term viability of toll-funded projects and the implications for public financing of new projects. The bill also attempts to clarify the management of toll revenue, which can be a contentious issue among local and state authorities, especially regarding how funds are allocated and used.