Bill > HB542

This bill modifies several sections of the Texas Tax Code and Transportation Code to expand the permitted uses of money in the state highway fund, specifically to include transit-oriented projects alongside traditional highway and road-related expenditures. The bill amends existing statutes to allow funds from gasoline taxes and automobile registration fees to be used for transit-oriented projects, in addition to their current uses of maintaining and constructing state highways. Key changes include allowing the Texas Department of Transportation to use state highway fund money for transit-oriented projects, expanding the permissible uses of funds deposited in the state highway fund, and explicitly referencing Section 7-a of Article VIII of the Texas Constitution. The bill is contingent on voters approving a related constitutional amendment during the 89th Legislature's Regular Session in 2025, and if that amendment is not approved, the bill will have no effect. The proposed changes would take effect on September 1, 2027, and represent a significant broadening of how transportation-related funds can be allocated in Texas, potentially supporting more diverse transportation infrastructure projects.

Budget and Finance

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=HB542