88R14394 JAM-D By: Bucy H.B. No. 5215 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, 2025, but only if the constitutional amendment proposed by the 88th Legislature, Regular Session, 2023, 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.