H.B. No. 5177 introduces new regulations regarding the use of toll revenues in counties with populations of four million or more. The bill stipulates that these counties can only utilize the revenues collected from tolls and charges for specific purposes, including the operation, maintenance, and expansion of toll projects, as well as retiring related debts. Additionally, it mandates that after covering these costs, 30% of the remaining revenue must be allocated to municipalities for law enforcement and emergency services, while 70% is designated for county-owned roads, with specific guidelines on how these funds should be distributed among commissioner precincts.

The bill also establishes an administrative penalty system for counties that violate these revenue usage restrictions. If a county is found to have misused toll revenues, the Texas Department will impose penalties based on the severity of the violation, with first-time offenders facing a penalty of 110% of the misused amount and repeat offenders facing a penalty of 100%. Furthermore, counties subjected to penalties will be restricted in their ability to adopt tax rates in the following year, ensuring compliance with the new regulations. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: ()