Bill > SB1557

This bill modifies the powers and operations of regional transportation authorities in Texas, introducing several key changes. It establishes a new General Mobility Program that allows municipalities within a single-subregion transportation authority to use up to 25% of the authority's sales and use tax for infrastructure projects like sidewalks, trails, roads, streetlights, traffic signals, and drainage improvements. The funding will be distributed 50% upfront at the start of the fiscal year and 50% on a reimbursement basis, with any unused funds going towards paying down the authority's outstanding debt. The bill also limits the sales and use tax rate options for transportation authorities to 0.25%, 0.5%, or 0.75% (removing the previous 1% option), and restricts the amount of tax revenue that can be pledged for bond security to no more than 75%. Additionally, the bill adjusts rules around withdrawing from a transportation authority, requiring elections for withdrawal to occur less frequently, and adds provisions about issuing new obligations when a withdrawal election is pending. The changes are set to take effect on September 1, 2025, with some grandfathering provisions for existing bond commitments.

Transportation and Infrastructure

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1557