BILL ANALYSIS Senate Research Center S.B. 2722 By: Bettencourt Transportation 4/3/2025 As Filed AUTHOR'S / SPONSOR'S STATEMENT OF INTENT In the beginning of 2020, it was found that there was a stark increase in the transfer of excess funds to the Harris County Commissioners Court. Upon more investigation, the Harris County Toll Road Authority (HCTRA) was found to be distributing their excess funds equally among all commissioners, irrespective of county road lane miles. It was found that a portion of this excess revenue was being put towards projects for non-drivers: sidewalks, bike lanes, bike paths, intersections, etc. The distribution of excess HCTRA funds is being guided by political formulation and not on a transportation-related basis. Toll revenue being diverted to matters unrelated to transportation projects continues to raise major concerns throughout the community. S.B. 2722 aims to control the diversion for excess toll revenue. This bill stipulates that of the revenue collected from tolls, 30 percent will be diverted to the municipality that contains more than 40 percent of the number of lane miles. This money can only be used to reimburse the municipality for the costs of providing law enforcement and other emergency services. The remaining 70 percent of toll revenue will be distributed to the county and can only be used on roads owned and maintained by the county. Lastly, S.B. 2722 will require the county to hire an independent auditor to ensure that these funds are being spent properly. As proposed, S.B. 2722 amends current law relating to the use of certain tolls and charges imposed by certain counties and authorizes an administrative penalty. RULEMAKING AUTHORITY This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 284, Transportation Code, by adding Section 284.014, as follows: Sec. 284.014. RESTRICTION ON USE OF REVENUE FROM TOLLS AND OTHER CHARGES IN CERTAIN COUNTIES. (a) Provides that this section applies only to a county with a population of four million or more. (b) Provides that a county that imposes tolls or charges as otherwise authorized by Chapter 284 (Causeways, Bridges, Tunnels, Turnpikes, Ferries, and Highways in Certain Counties), except as provided by Subsection (c), is authorized to use the revenues collected from the tolls or charges only to pay the costs of operating, expanding, maintaining, or administering a toll project or system or to retire debt related to a toll project or system. Provides that this subsection applies to any fees received by a county for operating a toll project of another entity but does not apply to any other revenue of a toll project that is collected by the county on behalf of another entity under an agreement with the entity. (c) Provides that, of the revenues collected from tolls and charges that remain after paying the costs described by Subsection (b): (1) 30 percent of the amount remaining is required to be distributed to the municipality that contains more than 40 percent of the number of lane miles of the toll project and is authorized to be used only to reimburse the municipality for the costs of providing law enforcement and other emergency services during accidents and disasters affecting a project of the county; and (2) 70 percent of surplus revenue is required to be distributed to the county for use on county owned and maintained roads. Requires that a minimum of 95 percent of the surplus revenue received by the county be allocated to the commissioner precincts based on the percentage of roads owned and maintained by the county in each precinct per the county's road log, excluding toll roads and freeways as of September 1st before the beginning of the next fiscal year. (3) Authorizes the county to allocate up to 5 percent of the funds to other county departments or projects with countywide impact, as determined by the county, for state, county, or municipal facilities, the funds are restricted to roads, streets, highways and related facilities. (d) Requires an independent auditor hired by a county to audit the county's annual financial report made to the commissioners court and to the district judges of the county under Section 114.025 (County Auditor's Monthly and Annual Reports to Commissioners Court and District Judges), Local Government Code, to report any violation of Subsection (b) to the Texas Department of Transportation (TxDOT). (e) Requires TxDOT to promptly investigate a report received under Subsection (d). Requires TxDOT, if TxDOT determines that the county violated Subsection (b) and the violation is: (1) a first violation of Subsection (b), to impose an administrative penalty against the county in an amount equal to 110 percent of the amount of revenues used by the county in violation of Subsection (b), or (2) a second or subsequent violation of Subsection (b), to impose an administrative penalty against the county in an amount equal to 100 percent of the amount of revenues used by the county in violation of Subsection (b). (f) Requires a county for which an administrative penalty is imposed under Subsection (e) to pay the penalty out of the general fund of the county. Provides that an administrative penalty is only authorized to be used as provided by Subsection (b). (g) Prohibits a county for which an administrative penalty is imposed under Subsection (e)(2), notwithstanding any other law, from adopting a tax rate for the tax year following the tax year in which the penalty was imposed that exceeds the lesser of the county's no-new-revenue tax rate or voter-approval tax rate, as determined under Section 26.04 (Submission of Roll to Governing Body; No-New-Revenue and Voter-Approval Tax Rates), Tax Code, for that tax year. SECTION 2. Effective date: September 1, 2025.
BILL ANALYSIS
Senate Research Center S.B. 2722
By: Bettencourt
Transportation
4/3/2025
As Filed
Senate Research Center
S.B. 2722
By: Bettencourt
Transportation
4/3/2025
As Filed
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In the beginning of 2020, it was found that there was a stark increase in the transfer of excess funds to the Harris County Commissioners Court. Upon more investigation, the Harris County Toll Road Authority (HCTRA) was found to be distributing their excess funds equally among all commissioners, irrespective of county road lane miles. It was found that a portion of this excess revenue was being put towards projects for non-drivers: sidewalks, bike lanes, bike paths, intersections, etc. The distribution of excess HCTRA funds is being guided by political formulation and not on a transportation-related basis.
Toll revenue being diverted to matters unrelated to transportation projects continues to raise major concerns throughout the community. S.B. 2722 aims to control the diversion for excess toll revenue. This bill stipulates that of the revenue collected from tolls, 30 percent will be diverted to the municipality that contains more than 40 percent of the number of lane miles. This money can only be used to reimburse the municipality for the costs of providing law enforcement and other emergency services. The remaining 70 percent of toll revenue will be distributed to the county and can only be used on roads owned and maintained by the county. Lastly, S.B. 2722 will require the county to hire an independent auditor to ensure that these funds are being spent properly.
As proposed, S.B. 2722 amends current law relating to the use of certain tolls and charges imposed by certain counties and authorizes an administrative penalty.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Subchapter A, Chapter 284, Transportation Code, by adding Section 284.014, as follows:
Sec. 284.014. RESTRICTION ON USE OF REVENUE FROM TOLLS AND OTHER CHARGES IN CERTAIN COUNTIES. (a) Provides that this section applies only to a county with a population of four million or more.
(b) Provides that a county that imposes tolls or charges as otherwise authorized by Chapter 284 (Causeways, Bridges, Tunnels, Turnpikes, Ferries, and Highways in Certain Counties), except as provided by Subsection (c), is authorized to use the revenues collected from the tolls or charges only to pay the costs of operating, expanding, maintaining, or administering a toll project or system or to retire debt related to a toll project or system. Provides that this subsection applies to any fees received by a county for operating a toll project of another entity but does not apply to any other revenue of a toll project that is collected by the county on behalf of another entity under an agreement with the entity.
(c) Provides that, of the revenues collected from tolls and charges that remain after paying the costs described by Subsection (b):
(1) 30 percent of the amount remaining is required to be distributed to the municipality that contains more than 40 percent of the number of lane miles of the toll project and is authorized to be used only to reimburse the municipality for the costs of providing law enforcement and other emergency services during accidents and disasters affecting a project of the county; and
(2) 70 percent of surplus revenue is required to be distributed to the county for use on county owned and maintained roads. Requires that a minimum of 95 percent of the surplus revenue received by the county be allocated to the commissioner precincts based on the percentage of roads owned and maintained by the county in each precinct per the county's road log, excluding toll roads and freeways as of September 1st before the beginning of the next fiscal year.
(3) Authorizes the county to allocate up to 5 percent of the funds to other county departments or projects with countywide impact, as determined by the county, for state, county, or municipal facilities, the funds are restricted to roads, streets, highways and related facilities.
(d) Requires an independent auditor hired by a county to audit the county's annual financial report made to the commissioners court and to the district judges of the county under Section 114.025 (County Auditor's Monthly and Annual Reports to Commissioners Court and District Judges), Local Government Code, to report any violation of Subsection (b) to the Texas Department of Transportation (TxDOT).
(e) Requires TxDOT to promptly investigate a report received under Subsection (d). Requires TxDOT, if TxDOT determines that the county violated Subsection (b) and the violation is:
(1) a first violation of Subsection (b), to impose an administrative penalty against the county in an amount equal to 110 percent of the amount of revenues used by the county in violation of Subsection (b), or
(2) a second or subsequent violation of Subsection (b), to impose an administrative penalty against the county in an amount equal to 100 percent of the amount of revenues used by the county in violation of Subsection (b).
(f) Requires a county for which an administrative penalty is imposed under Subsection (e) to pay the penalty out of the general fund of the county. Provides that an administrative penalty is only authorized to be used as provided by Subsection (b).
(g) Prohibits a county for which an administrative penalty is imposed under Subsection (e)(2), notwithstanding any other law, from adopting a tax rate for the tax year following the tax year in which the penalty was imposed that exceeds the lesser of the county's no-new-revenue tax rate or voter-approval tax rate, as determined under Section 26.04 (Submission of Roll to Governing Body; No-New-Revenue and Voter-Approval Tax Rates), Tax Code, for that tax year.
SECTION 2. Effective date: September 1, 2025.