SB 2722 Texas Senate · 89th Legislature (2025)

Relating to the use of certain tolls and charges imposed by certain counties; authorizing a civil penalty and limiting the counties' authority to adopt an ad valorem tax rate.

SB 2722 restricts how large Texas counties (population 4 million+) can use revenue from tolls and charges on toll projects. It requires counties to spend toll revenue only on operating, maintaining, or retiring debt for toll systems, then mandates that leftover funds be distributed: 30% to municipalities with significant toll lanes for emergency services, and 70% to county roads with specific allocation rules. The bill also authorizes administrative penalties (100-110% of misused funds) for violations and bars counties that violate the law twice from increasing property tax rates above their no-new-revenue limit the following year. This directly affects counties like Harris (Houston) and their municipalities, ensuring toll revenue funds transportation infrastructure rather than general budgets.
Bill status passed 3 of 5 stages cleared
Introduction
Mar 2025
Committee Review
May 2025
Senate Passage
Apr 2025
House Passage
Governor
Introduced Mar 13, 2025 Last action May 22, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Introduced Engrossed · 6 edits · Apr 29, 2025
MODERATE
This bill was amended to clarify that toll revenues in large counties must be used for road-related purposes, with specific allocations to municipalities and counties. The version changed the penalty from an administrative fine to a civil penalty, adjusted penalty percentages, and added new provisions for auditing and reporting. It also introduced a sunset date for certain temporary provisions and updated how funds are distributed among precincts.
Scope change
The bill now explicitly applies to counties with populations of four million or more, with clearer restrictions on how toll revenues can be used, particularly regarding municipal reimbursements and county road maintenance.
ENFORCEMENT

Changed the penalty for violations from an administrative penalty to a civil penalty, with the first violation now carrying a 100% penalty and subsequent violations carrying an 110% penalty (reversed from the original version).

REQUIREMENT

Added new subsections requiring independent auditors to review municipal compliance with revenue usage and report violations to the commissioners court and state auditor's office.

Added restrictions preventing allocated funds from being used on hike, bike, or trail facilities unless required by state or federal guidelines.

TIMELINE

Introduced a sunset provision where certain temporary revenue distribution rules expire on September 1, 2030, after which counties retain all remaining revenues for county road use.

FISCAL

Updated the distribution formula to allocate retained county funds among commissioners precincts based on historical surplus, lane miles, and road condition, with up to 5% allowed for countywide projects.

ELIGIBILITY

Clarified that contractual arrangements between counties and municipalities regarding emergency service reimbursement supersede standard revenue distribution rules.

Floor votes · Senate Apr 29, 2025

How they voted

235
Passed · 2 other
Total votes 30
Apr 29, 2025
D Democratic10
3 Yea 5 Nay 2
50% Nay
R Republican20
20 Yea
100% Yea
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
36
Key actions
12
Committee
11
Amendments
4
May 22, 2025
Lower · Passed
Committee report sent to Calendars
lower
May 21, 2025
Lower · Passed
Committee report distributed
lower
May 13, 2025
Lower · Passed
Reported favorably as substituted
lower
May 13, 2025
Lower · Passed
Recalled from subcommittee
lower
May 1, 2025
Committee
Referred to s/c on Transportation Funding by Speaker
lower
May 1, 2025
Introduced
Read first time
lower
Apr 30, 2025
Introduced
Received from the Senate
lower
Apr 29, 2025
Upper · Passed
Passed
upper
Apr 29, 2025
Upper · Passed
Passed to engrossment as amended
upper
Apr 29, 2025
Amended
Amendment fails of adoption
upper
Apr 29, 2025
Upper · Passed
Amended
upper
Apr 29, 2025
Introduced
Amendment(s) offered
upper
Apr 22, 2025
Upper · Passed
Committee report printed and distributed
upper
Apr 22, 2025
Upper · Passed
Reported favorably as substituted
upper
Apr 16, 2025
Upper · Passed
Vote taken in committee
upper
Apr 9, 2025
Upper · Passed
Left pending in committee
upper
Apr 9, 2025
Upper · Passed
Testimony taken in committee
upper
Mar 27, 2025
Committee
Referred to Transportation
upper
Mar 27, 2025
Introduced
Read first time
upper
6 primary · 1 co-sponsor

Sponsors