The bill, S.B. No. 848, introduces a new provision in the Transportation Code that prohibits the Texas Department of Transportation (TxDOT) from requiring local governments to compensate for potential or actual lost revenue from toll projects. Specifically, the new section, 228.0032, states that local governments cannot be mandated to provide monetary compensation to TxDOT or bear the costs associated with lost toll revenue that may arise from the construction, improvement, or use of adjacent nontolled lanes or other competing road infrastructure.

This legislation aims to alleviate the financial burden on local governments by ensuring they are not held responsible for revenue losses that may occur due to competing transportation projects. The bill is set to take effect immediately upon receiving a two-thirds majority vote from both houses of the legislature; otherwise, it will become effective on September 1, 2025.

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