89R10298 JAM-D
By: Paxton, et al. S.B. No. 2324
A BILL TO BE ENTITLED
AN ACT
relating to the cessation of tolls by toll project entities in
certain circumstances.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 228.012(a) and (b), Transportation
Code, are amended to read as follows:
(a) The department shall create a separate account in the
state highway fund to hold payments received by the department
under a comprehensive development agreement [and the surplus
revenue of a toll project or system]. The department shall create
subaccounts in the account for each project, system, or
region. Interest earned on money in a subaccount shall be
deposited to the credit of that subaccount.
(b) The department shall hold money in a subaccount in trust
for the benefit of the region in which a project or system is
located and may assign the responsibility for allocating money in a
subaccount to a metropolitan planning organization in which the
region is located for projects approved by the department. At the
time the project is approved by the department money shall be
allocated and distributed to projects authorized by Section
228.0055 [or Section 228.006, as applicable].
SECTION 2. Section 228.053(f), Transportation Code, is
amended to read as follows:
(f) The revenue and disbursements for each toll project or
system shall be kept separately. The revenue from one project may
not be used to pay the cost of another project except as authorized
by Section [Sections] 228.0055 [and 228.006].
SECTION 3. Section 228.104(a), Transportation Code, is
amended to read as follows:
(a) The principal of, interest on, and any redemption
premium on bonds issued by the commission under this subchapter are
payable solely from:
(1) the revenue of the toll project or system for which
the bonds are issued, including tolls pledged to pay the bonds;
(2) the proceeds of bonds issued for the project or
system;
(3) the amounts deposited in a debt service reserve
fund as required by the trust agreement securing bonds issued for
the project or system;
(4) amounts received under a credit agreement relating
to the project or system for which the bonds are issued; and
(5) [surplus revenue of another project or system as
authorized by Section 228.006; and
[(6)] amounts received by the department:
(A) as pass-through tolls under Section 222.104;
(B) under an agreement with a local governmental
entity entered into under Section 228.254;
(C) under other agreements with a local
governmental entity relating to the project or system for which the
bonds are issued; and
(D) under a comprehensive development agreement
entered into under Section 223.201.
SECTION 4. Section 228.105, Transportation Code, is amended
to read as follows:
Sec. 228.105. SOURCES OF PAYMENT OF AND SECURITY FOR TOLL
REVENUE BONDS. Notwithstanding any other provisions of this
subchapter, toll revenue bonds issued by the commission may:
(1) be payable from and secured by:
(A) payments made under an agreement with a local
governmental entity as provided by Section 228.254;
(B) the proceeds of bonds issued for the toll
project or system; or
(C) amounts deposited in a debt service reserve
fund as required by the trust agreement securing bonds issued for
the project or system; [or
[(D) surplus revenue of another toll project or
system as authorized by Section 228.006;] and
(2) state on their faces any pledge of revenue or taxes
and any security for the bonds under the agreement.
SECTION 5. Section 366.113(a), Transportation Code, is
amended to read as follows:
(a) The principal of, interest on, and any redemption
premium on bonds issued by an authority are payable solely from:
(1) the revenue of the turnpike project or system for
which the bonds are issued, including tolls pledged to pay the
bonds;
(2) payments made under an agreement with the
commission or a local governmental entity as provided by Subchapter
G;
(3) money derived from any other source available to
the authority, other than money derived from a turnpike project
that is not part of the same system or money derived from a
different system[, except to the extent that the surplus revenue of
a turnpike project or system has been pledged for that purpose];
and
(4) amounts received under a credit agreement relating
to the turnpike project or system for which the bonds are issued.
SECTION 6. Section 370.113(a), Transportation Code, is
amended to read as follows:
(a) The principal of, interest on, and any redemption
premium on bonds issued by an authority are payable solely from:
(1) the revenue of the transportation project for
which the bonds are issued;
(2) payments made under an agreement with the
commission, the department, or other governmental entity as
authorized by this chapter;
(3) money derived from any other source available to
the authority, other than money derived from a transportation
project that is not part of the same system or money derived from a
different system, except to the extent that the surplus revenue of a
transportation project or system, other than a turnpike project,
has been pledged for that purpose;
(4) amounts received under a credit agreement relating
to the transportation project for which the bonds are issued; and
(5) the proceeds of the sale of other bonds.
SECTION 7. Section 372.0535(b), Transportation Code, is
amended to read as follows:
(b) Not later than the 180th day after the last day of a toll
project entity's fiscal year, the entity shall publish on the
entity's Internet website a report on the entity's financial data,
including:
(1) the final maturity of all bonds issued by the
entity for a toll project or system;
(2) toll revenue for each toll project for the
previous fiscal year;
(3) an accounting of total revenue collected and
expenses incurred by the entity for the previous fiscal year, such
as debt service, maintenance and operation costs, and any other
miscellaneous expenses[, and any surplus revenue]; and
(4) a capital improvement plan with proposed or
expected capital expenditures over a period determined by the
entity.
SECTION 8. Subchapter B, Chapter 372, Transportation Code,
is amended by adding Section 372.060 to read as follows:
Sec. 372.060. CESSATION OF TOLLS. (a) A toll project shall
be maintained without tolls in the manner provided by Subsection
(c) when the costs of acquisition and construction of the project
have been paid and:
(1) all of the bonds and interest on the bonds that are
payable from or secured by revenues of the project have been paid by
the issuer of the bonds or another person with the consent or
approval of the issuer; or
(2) a sufficient amount for the payment of all bonds
and interest on the bonds to maturity has been set aside by the
issuer of the bonds or another person with the consent or approval
of the issuer in a trust fund held for the benefit of the
bondholders.
(b) A toll project entity may not amend a financing or other
agreement in a manner that would extend the date by which a toll
project must be maintained without tolls under Subsection (a).
(c) Beginning on the date on which a toll project must be
maintained without tolls under Subsection (a), the toll project:
(1) becomes part of the state highway system and must
be maintained by the commission if:
(A) the Legislative Budget Board determines that
the state has available resources necessary to operate and maintain
the project; and
(B) the project is not transferred to a county
under Subdivision (2);
(2) becomes part of the road system of a county in
which the project is located and must be maintained by that county
if:
(A) the county requests from the Legislative
Budget Board approval to operate and maintain the project; and
(B) the Legislative Budget Board approves the
request made under Paragraph (A); or
(3) shall be maintained without tolls by the entity
operating the project if the project does not become part of the
state highway system under Subdivision (1) or a county road system
under Subdivision (2).
SECTION 9. The following provisions of the Transportation
Code are repealed:
(1) Section 228.006;
(2) Section 228.109(d);
(3) Sections 284.008(c) and (d);
(4) Section 366.003(9-a);
(5) Section 366.037;
(6) Section 366.071;
(7) Section 366.072(b); and
(8) Section 366.175.
SECTION 10. Not later than September 1, 2026, the Texas
Department of Transportation, in consultation with the Legislative
Budget Board, shall conduct a study and produce a report regarding
the costs associated with the cessation of the collection of tolls
on highways in this state in the manner provided by Section 372.060,
Transportation Code, as added by this Act. The study and report
must identify:
(1) all toll roads in this state;
(2) the projected date by which each of those toll
roads will be required to be maintained without tolls under Section
372.060, Transportation Code, as added by this Act; and
(3) the projected maintenance and operation costs
associated with adding each of those roads to the state highway
system.
SECTION 11. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2025.