LEGISLATIVE BUDGET BOARD Austin, Texas FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION March 30, 2025 TO: Honorable Tom Craddick, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2323 by Shaheen (Relating to the cessation of tolls by toll project entities in certain circumstances.), As Introduced Because the number of toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined. The bill would amend Chapters 228, 366, and 370 of the Transportation Code by repealing provisions authorizing certain toll project entities, including the Texas Department of Transportation (TxDOT), to use surplus revenue of a toll project to support the financing of another project. The bill would require a toll project of a toll project entity to be maintained without tolls when the costs of acquisition and construction of the project have been paid and either (1) all bonds and bond interest payable from or secured by the project's revenue, or (2) a sufficient amount for payment of all bonds to maturity has been set aside by the issuer. The bill would stipulate that, beginning on the date the project must be maintained without tolls, the toll project would become part of the state highway system and must be maintained by the Texas Transportation Commission if the Legislative Budget Board (LBB) determines that the state has available resources to operate and maintain the project or would become part of the county road system in the county in which the project is located if the county requests and receives approval from the LBB to operate and maintain the project. The bill would require TxDOT, in consultation with the LBB, to conduct a study and produce a report by September 1, 2026, regarding the costs associated with the cessation toll collection on highways in the manner prescribed by the bill. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or, otherwise, on September 1, 2025.The provisions of the bill would apply to TxDOT and local toll project entities, including regional tollway authorities, regional mobility authorities, and counties. Because the number of applicable toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined at this time. Based on the information provided by TxDOT, it is assumed the costs to maintain additional projects as part of the state highway system would be significant. Local Government ImpactIt is assumed implementation of the bill would result in a negative impact to a local toll project entity's ability to secure debt financing for construction and reconstruction of transportation projects. Because the number of applicable toll projects that could become part of a county road system and the costs to operate and maintain these projects is unknown, the potential cost to counties to maintain these additional projects cannot be determined at this time. Source Agencies: b > td > 601 Department of Transportation LBB Staff: b > td > JMc, AAL, GDZ, TG
LEGISLATIVE BUDGET BOARD
Austin, Texas
FISCAL NOTE, 89TH LEGISLATIVE REGULAR SESSION
March 30, 2025
TO: Honorable Tom Craddick, Chair, House Committee on Transportation FROM: Jerry McGinty, Director, Legislative Budget Board IN RE: HB2323 by Shaheen (Relating to the cessation of tolls by toll project entities in certain circumstances.), As Introduced
TO: Honorable Tom Craddick, Chair, House Committee on Transportation
FROM: Jerry McGinty, Director, Legislative Budget Board
IN RE: HB2323 by Shaheen (Relating to the cessation of tolls by toll project entities in certain circumstances.), As Introduced
Honorable Tom Craddick, Chair, House Committee on Transportation
Honorable Tom Craddick, Chair, House Committee on Transportation
Jerry McGinty, Director, Legislative Budget Board
Jerry McGinty, Director, Legislative Budget Board
HB2323 by Shaheen (Relating to the cessation of tolls by toll project entities in certain circumstances.), As Introduced
HB2323 by Shaheen (Relating to the cessation of tolls by toll project entities in certain circumstances.), As Introduced
Because the number of toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined.
Because the number of toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined.
Because the number of toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined.
The bill would amend Chapters 228, 366, and 370 of the Transportation Code by repealing provisions authorizing certain toll project entities, including the Texas Department of Transportation (TxDOT), to use surplus revenue of a toll project to support the financing of another project. The bill would require a toll project of a toll project entity to be maintained without tolls when the costs of acquisition and construction of the project have been paid and either (1) all bonds and bond interest payable from or secured by the project's revenue, or (2) a sufficient amount for payment of all bonds to maturity has been set aside by the issuer. The bill would stipulate that, beginning on the date the project must be maintained without tolls, the toll project would become part of the state highway system and must be maintained by the Texas Transportation Commission if the Legislative Budget Board (LBB) determines that the state has available resources to operate and maintain the project or would become part of the county road system in the county in which the project is located if the county requests and receives approval from the LBB to operate and maintain the project. The bill would require TxDOT, in consultation with the LBB, to conduct a study and produce a report by September 1, 2026, regarding the costs associated with the cessation toll collection on highways in the manner prescribed by the bill. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or, otherwise, on September 1, 2025.The provisions of the bill would apply to TxDOT and local toll project entities, including regional tollway authorities, regional mobility authorities, and counties. Because the number of applicable toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined at this time. Based on the information provided by TxDOT, it is assumed the costs to maintain additional projects as part of the state highway system would be significant.
The bill would stipulate that, beginning on the date the project must be maintained without tolls, the toll project would become part of the state highway system and must be maintained by the Texas Transportation Commission if the Legislative Budget Board (LBB) determines that the state has available resources to operate and maintain the project or would become part of the county road system in the county in which the project is located if the county requests and receives approval from the LBB to operate and maintain the project. The bill would require TxDOT, in consultation with the LBB, to conduct a study and produce a report by September 1, 2026, regarding the costs associated with the cessation toll collection on highways in the manner prescribed by the bill. The bill would take effect immediately upon receiving a vote of two-thirds of all members elected to each house or, otherwise, on September 1, 2025.The provisions of the bill would apply to TxDOT and local toll project entities, including regional tollway authorities, regional mobility authorities, and counties. Because the number of applicable toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined at this time. Based on the information provided by TxDOT, it is assumed the costs to maintain additional projects as part of the state highway system would be significant.
The provisions of the bill would apply to TxDOT and local toll project entities, including regional tollway authorities, regional mobility authorities, and counties. Because the number of applicable toll projects that could become part of the state highway system and the costs to operate and maintain these projects is unknown, the potential increased cost to the State to maintain these additional projects cannot be determined at this time. Based on the information provided by TxDOT, it is assumed the costs to maintain additional projects as part of the state highway system would be significant.
Local Government Impact
It is assumed implementation of the bill would result in a negative impact to a local toll project entity's ability to secure debt financing for construction and reconstruction of transportation projects. Because the number of applicable toll projects that could become part of a county road system and the costs to operate and maintain these projects is unknown, the potential cost to counties to maintain these additional projects cannot be determined at this time.
Source Agencies: b > td > 601 Department of Transportation
601 Department of Transportation
LBB Staff: b > td > JMc, AAL, GDZ, TG
JMc, AAL, GDZ, TG