The bill, S.B. No. 1557, amends the Transportation Code to enhance the powers of regional transportation authorities, 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 utilize 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. Municipalities are required to submit an annual list of intended projects and will receive 50% of the allocated funds at the start of the fiscal year, with the remaining 50% available on a reimbursement basis. Any unused funds must be directed towards paying down outstanding debts secured by the sales and use tax.

Additionally, the bill modifies existing provisions related to the pledging of revenue for bond security and the imposition of sales and use taxes. It specifies that authorities may pledge no more than 75% of the revenue from imposed taxes and introduces a new requirement for the use of excess revenue to fund operating reserves and the General Mobility Program. The bill also revises the frequency of elections for withdrawal from an authority and establishes limitations on issuing obligations in certain circumstances. The changes aim to provide more flexibility and resources for municipalities to improve transportation infrastructure while ensuring financial accountability and stability within regional transportation authorities. The act is 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)