H.B. No. 3727 establishes a grant program aimed at funding specific railroad grade separation projects to enhance public safety, promote economic development, and alleviate traffic congestion. The bill introduces a new section, 471.010, to the Transportation Code, which outlines the criteria for awarding grants to political subdivisions for projects that involve the separation of railroads from public roadways and pedestrian crossings. Each grant must be approved by the Texas Transportation Commission, which requires that at least 10 percent of the total project costs be funded from sources other than state funds.

The bill also stipulates that the funding for this grant program will come exclusively from legislative appropriations and external gifts or grants, explicitly prohibiting the use of state highway fund money for these grants. Additionally, it mandates that any political subdivision receiving a grant must designate the Texas Department of Transportation to manage the contracting and oversight of the project, and the commission is tasked with adopting necessary rules for implementation by October 1, 2025. The act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

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