Texas House Bill HB542

Texas 2025 - 89th Regular

• Filed: 11/12/24

Caption

Relating to the use of certain money transferred to and deposited in the state highway fund as required by the Texas Constitution.

Impact

The implications of HB542 are significant, particularly in how state funds are utilized for infrastructure projects. By clearly defining the use of the state highway fund, the bill seeks to ensure that revenues are directed towards improving the state highway system and supporting transit-oriented projects. Moreover, it includes provisions for mitigating any adverse environmental effects resulting from highway construction and maintenance, thereby addressing potential ecological concerns associated with roadworks. The bill sets a clear framework that aligns with Texas' constitutional mandates while expanding the potential uses of highway funds to include transit infrastructure.

Summary

House Bill 542 addresses the allocation and use of funds deposited into the state highway fund as mandated by the Texas Constitution. The bill amends existing sections of the Tax Code and Transportation Code to clarify how gasoline taxes and other revenues are appropriated for various transportation-related projects. Specifically, it ensures that funds collected from gasoline taxes are properly allocated towards the operation of the Texas Department of Transportation (TxDOT), public roadway construction, and transit-oriented initiatives. This is in line with constitutional directives that aim to streamline and clarify the use of revenues for the construction and maintenance of essential infrastructure.

Contention

One of the potential points of contention surrounding HB542 is its provision for funding transit-oriented projects. While proponents argue that investing in public transit is essential for sustainable development and reducing congestion, critics may raise concerns about the prioritization of transit initiatives over traditional roadway improvements. Additionally, the bill's effectiveness is contingent upon approval from voters for a related constitutional amendment scheduled for consideration. Should this amendment fail, the bill's provisions could become moot, leading to discussions about the adequacy of the current transportation funding model and its responsiveness to evolving state needs.

Texas Constitutional Statutes Affected

Tax Code

• Chapter 162. Motor Fuel Taxes
  • Section: 503

Transportation Code

• Chapter 201. General Provisions And Administration
  • Section: New Section

• Chapter 202. Control Of Transportation Assets
  • Section: New Section

• Chapter 222. Funding And Federal Aid
  • Section: 001