The bill, S.B. No. 1557, amends the Transportation Code to enhance the powers of regional transportation authorities in Texas, particularly regarding the management and allocation of sales and use tax revenues. A new section, 452.204, establishes a General Mobility Program, allowing municipalities within a subregion governed by a subregional board to use up to 25% of the sales and use tax for various mobility projects, including the construction and maintenance of sidewalks, trails, and roads, as well as traffic control improvements and drainage measures. Municipalities are required to provide an annual list of intended projects to the subregional board, and the distribution of funds is structured to ensure timely access to resources for these initiatives.

Additionally, the bill modifies existing provisions related to the pledging of revenue for bond security and the use of excess revenue. It specifies that up to 75% of the revenue from imposed taxes can be pledged, and introduces a new requirement that excess revenue must be allocated to fund the General Mobility Program established under the new section. The bill also revises the frequency of elections for withdrawal from the authority and clarifies the conditions under which sales and use tax rates can be adjusted in certain authorities. The changes are set to take effect on September 1, 2025.

Statutes affected:
Introduced: Transportation Code 452.357, Transportation Code 452.358, Transportation Code 452.401, Transportation Code 452.651, Transportation Code 452.658 (Transportation Code 452)