| 1 | 1 | | 89R3168 SRA-D |
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| 2 | 2 | | By: Menéndez S.B. No. 2935 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | |
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| 6 | 6 | | |
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| 7 | 7 | | A BILL TO BE ENTITLED |
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| 8 | 8 | | AN ACT |
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| 9 | 9 | | relating to the establishment of a highway construction mitigation |
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| 10 | 10 | | program for certain businesses. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subtitle B, Title 6, Transportation Code, is |
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| 13 | 13 | | amended by adding Chapter 249 to read as follows: |
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| 14 | 14 | | CHAPTER 249. HIGHWAY CONSTRUCTION MITIGATION PROGRAM FOR CERTAIN |
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| 15 | 15 | | BUSINESSES |
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| 16 | 16 | | Sec. 249.001. DEFINITIONS. In this chapter: |
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| 17 | 17 | | (1) "Highway construction project" means a project |
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| 18 | 18 | | involving the construction, maintenance, or improvement of a state |
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| 19 | 19 | | highway. |
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| 20 | 20 | | (2) "Mitigation program" means the highway |
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| 21 | 21 | | construction mitigation program established under this chapter. |
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| 22 | 22 | | Sec. 249.002. ESTABLISHMENT OF MITIGATION PROGRAM. For the |
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| 23 | 23 | | purpose of mitigating the negative effects of a highway |
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| 24 | 24 | | construction project on adjacent businesses, the department shall |
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| 25 | 25 | | establish and administer a highway construction mitigation program |
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| 26 | 26 | | to reimburse eligible businesses for economic damages that are |
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| 27 | 27 | | directly attributable to a highway construction project. |
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| 28 | 28 | | Sec. 249.003. FUNDING; ALLOCATION OF MONEY. (a) Using |
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| 29 | 29 | | money appropriated to the department for that purpose, the |
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| 30 | 30 | | department shall award grants under the mitigation program to |
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| 31 | 31 | | eligible businesses on a quarterly, pro rata basis. |
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| 32 | 32 | | (b) An eligible business: |
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| 33 | 33 | | (1) may apply for a grant in multiple quarters; and |
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| 34 | 34 | | (2) may not use in a subsequent grant application |
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| 35 | 35 | | economic damages that were the basis of an application for which a |
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| 36 | 36 | | grant was awarded under this chapter. |
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| 37 | 37 | | Sec. 249.004. ELIGIBILITY FOR PROGRAM. (a) To be eligible |
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| 38 | 38 | | to receive a grant under the mitigation program, a business must: |
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| 39 | 39 | | (1) be organized under the laws of this state; |
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| 40 | 40 | | (2) be in good standing under the laws of this state; |
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| 41 | 41 | | (3) either: |
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| 42 | 42 | | (A) have pedestrian or road traffic access to the |
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| 43 | 43 | | business impacted by a highway construction project; or |
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| 44 | 44 | | (B) be located within five miles of a highway |
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| 45 | 45 | | construction project that has rerouted traffic or increased road |
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| 46 | 46 | | traffic congestion; and |
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| 47 | 47 | | (4) be able to establish that the business sustained |
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| 48 | 48 | | economic damages as a direct result of the highway construction |
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| 49 | 49 | | project, including by presenting: |
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| 50 | 50 | | (A) a decline in gross receipts; or |
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| 51 | 51 | | (B) an increase in expenses. |
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| 52 | 52 | | (b) If a business operates multiple locations that satisfy |
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| 53 | 53 | | the eligibility requirements under this section, each location may |
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| 54 | 54 | | separately apply for a grant under the mitigation program. |
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| 55 | 55 | | Sec. 249.005. USE OF MONEY. A business may use a grant |
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| 56 | 56 | | received under the mitigation program: |
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| 57 | 57 | | (1) to pay the business's expenses; or |
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| 58 | 58 | | (2) for any other legitimate business purpose |
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| 59 | 59 | | authorized by department rule. |
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| 60 | 60 | | Sec. 249.006. MITIGATION PROGRAM INFORMATION. The |
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| 61 | 61 | | department shall publish information regarding the mitigation |
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| 62 | 62 | | program on the department's Internet website, including |
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| 63 | 63 | | information regarding the application process for the mitigation |
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| 64 | 64 | | program. |
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| 65 | 65 | | Sec. 249.007. RULES. The department shall adopt rules |
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| 66 | 66 | | necessary to implement and administer this chapter, including rules |
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| 67 | 67 | | to establish: |
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| 68 | 68 | | (1) a standardized application process for the |
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| 69 | 69 | | mitigation program, the form to apply for a grant, and the manner of |
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| 70 | 70 | | submitting the form; and |
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| 71 | 71 | | (2) procedures for monitoring the disbursement and use |
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| 72 | 72 | | of grant money to ensure compliance with this chapter. |
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| 73 | 73 | | SECTION 2. Not later than January 1, 2026, the Texas |
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| 74 | 74 | | Department of Transportation shall adopt the rules necessary to |
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| 75 | 75 | | implement Chapter 249, Transportation Code, as added by this Act. |
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| 76 | 76 | | SECTION 3. This Act takes effect September 1, 2025. |
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