SB2722 - Relating to the use of certain tolls and charges imposed by certain counties; authorizing a civil penalty and limiting the counties' authority to adopt an ad valorem tax rate.

  89R30395 CXP-F     By: Bettencourt, et al. S.B. No. 2722     (DeAyala, Cunningham, Hull, Jones of Harris, Paul)     Substitute the following for S.B. No. 2722:  No.       A BILL TO BE ENTITLED   AN ACT   relating to the use of certain tolls and charges imposed by certain   counties; authorizing a civil penalty and limiting the counties'   authority to adopt an ad valorem tax rate.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 284, Transportation Code,   is amended by adding Section 284.014 to read as follows:           Sec.   284.014.     RESTRICTION ON USE OF REVENUE FROM TOLLS AND   OTHER CHARGES IN CERTAIN COUNTIES. (a) This section applies only   to a county with a population of four million or more.           (b)     Except as provided by this section, a county that   imposes tolls or charges as otherwise authorized by this chapter   may only use the revenues collected from the tolls or charges to:                 (1)     pay the costs of operating, expanding,   maintaining, or administering a project;                 (2)  retire debt related to a project; or                 (3)     use or pledge revenues to pay or finance the costs   of a project, including the costs to study, design, construct,   maintain, operate, and pool a turnpike project or system, and to pay   bonds or other obligations related to a project.           (c)     Subsection (b) applies to any fees received by a county   for operating a project of another entity but does not apply to any   other revenue of a project that is collected by the county on behalf   of another entity under an agreement with the entity.           (c-1)     Of the revenues collected from tolls and charges that   remain after paying the costs described by Subsection (b),   including costs to establish reserves required by a bond instrument   and to maintain ratings on bonds or other obligations related to a   project:                 (1)     except as provided by Subsection (c-4), $25   million shall be distributed to the municipality that contains more   than 40 percent of the number of lane miles of the project and may be   used by the municipality only for the costs of providing law   enforcement, fire protection, and emergency medical services   during accidents or disasters affecting a toll project of the   county under this chapter; and                 (2)     subject to Subsection (e) and except as provided   by Subsection (f), the amount remaining after the distribution   described by Subdivision (1), if any, shall be retained by the   county and may be used only to pay costs related to a county road   owned and maintained by the county.           (c-2)     An independent auditor hired by a municipality   described by Subsection (c-1)(1) annually shall review the   municipality's annual financial report to determine whether the   municipality is in compliance with the usage requirements of that   subsection and shall certify the amount of the municipality's   expenditures that were used for the purposes described by that   subsection. The independent auditor shall provide a copy of the   audit and report any violation of the usage requirements of   Subsection (c-1)(1) to the:                 (1)  commissioners court of the county;                 (2)  attorney general;                 (3)  governor;                 (4)  lieutenant governor;                 (5)  speaker of the house of representatives;                 (6)     chair of each standing committee of the   legislature with primary jurisdiction over transportation; and                 (7)  chair of the commission.           (c-3)     If the independent auditor certifies under Subsection   (c-2) that the municipality's expenditures were less than the   amount transferred to the municipality under Subsection (c-1)(1)   for the applicable period, the county shall deduct that difference   from the amount to be transferred to the municipality as the next   disbursement under Subsection (c-1)(1).           (c-4)     Subsections (c-1)(1), (c-2), and (c-3) do not apply if   a county has entered into a contractual arrangement with a   municipality regarding the use of revenues collected from tolls or   charges as otherwise authorized by this chapter to pay the   municipality's costs of providing law enforcement, fire   protection, and emergency medical services during accidents or   disasters affecting a toll project of the county under this   chapter.           (c-5)     This subsection and Subsections (c-1), (c-2), (c-3),   and (c-4) expire September 1, 2030.           (d)     Beginning September 1, 2030, the county shall retain the   amount that remains from the revenues collected from tolls and   charges after paying the costs described by Subsection (b),   including costs to establish reserves required by a bond instrument   and to maintain ratings on bonds or other obligations related to a   project, and, subject to Subsection (e) and except as provided by   Subsection (f), may use the amount retained only to pay costs   related to a county road owned and maintained by the county.           (e)     At least 95 percent of the amount retained by a county   under this section must be allocated among all commissioners   precincts as follows:                 (1)     one-third of the amount allocated based on the   historical surplus funds transferred for the county's fiscal years   2005 through 2025 by precinct;                 (2)     one-third of the amount allocated based on the   number of county lane miles in each precinct, excluding freeways as   defined by Section 541.302 and any road facilities for which a user   must pay a toll, fee, or fare, according to the county's road log or   maintenance schedule on September 1 of the fiscal year preceding   the allocation; and                 (3)     one-third of the amount allocated based on the   road and pavement condition of county roads in each precinct,   excluding freeways as defined by Section 541.302 and any road   facilities for which a user must pay a toll, fee, or fare, according   to the county engineer's annual report on September 1 of the fiscal   year preceding the allocation.           (f)     A county may allocate up to five percent of the amount   retained under this section to a county department or project with   countywide impact, as determined by the county, for a state,   county, or municipal facility relating to a road, street, highway,   or related facility.           (f-1)     An amount allocated under Subsection (e) or (f) may   not be used on a hike, bike, or trail facility unless the   expenditure is necessary to comply with a state or federal   guideline.           (g)     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,   Local Government Code, annually shall review the county's annual   financial report to determine whether the county is in compliance   with this section and shall certify the amount of the county's   expenditures that were used for the purposes described by this   section. The independent auditor shall provide a copy of the audit   and report any violation of this section to the:                 (1)  commissioners court of the county;                 (2)  attorney general;                 (3)  governor;                 (4)  lieutenant governor;                 (5)  speaker of the house of representatives;                 (6)     chair of each standing committee of the   legislature with primary jurisdiction over transportation; and                 (7)  chair of the commission.           (h)     A county that violates this section is subject to a   civil penalty. The attorney general shall promptly investigate a   report received under Subsection (g) to determine if the county   violated this section.   On determining that a violation of this   section occurred, the attorney general may file suit to collect a   civil penalty.   If the violation is:                 (1)     a first violation of this section, the amount of   the civil penalty is an amount equal to 100 percent of the amount of   revenues used by the county in violation of this section; or                 (2)     a second or subsequent violation of this section,   the amount of the civil penalty is an amount equal to 110 percent of   the amount of revenues used by the county in violation of this   section.           (i)     A county for which a civil penalty is imposed under   Subsection (h) shall pay the penalty out of the general fund of the   county.           (j)     Notwithstanding any other law, a county for which a   civil penalty is imposed under Subsection (h)(2) may not adopt 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, Tax Code, for that tax year.           (k)     A civil penalty collected under this section shall be   deposited in the state treasury to the credit of the state highway   fund and may only be appropriated for transportation purposes.          SECTION 2.  This Act takes effect September 1, 2025.