SB 2935

relating to the establishment of a highway construction mitigation
program for certain businesses.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subtitle B, Title 6, Transportation Code, is
amended by adding Chapter 249 to read as follows:
CHAPTER 249.  HIGHWAY CONSTRUCTION MITIGATION PROGRAM FOR CERTAIN
Sec. 249.001.  DEFINITIONS.  In this chapter:
(1)  "Highway construction project" means a project
involving the construction, maintenance, or improvement of a state
(2)  "Mitigation program" means the highway
construction mitigation program established under this chapter.
Sec. 249.002.  ESTABLISHMENT OF MITIGATION PROGRAM.  For the
purpose of mitigating the negative effects of a highway
construction project on adjacent businesses, the department shall
establish and administer a highway construction mitigation program
to reimburse eligible businesses for economic damages that are
directly attributable to a highway construction project.
Sec. 249.003.  FUNDING; ALLOCATION OF MONEY.  (a)  Using
money appropriated to the department for that purpose, the
department shall award grants under the mitigation program to
eligible businesses on a quarterly, pro rata basis.
(1)  may apply for a grant in multiple quarters; and
(2)  may not use in a subsequent grant application
economic damages that were the basis of an application for which a
grant was awarded under this chapter.
Sec. 249.004.  ELIGIBILITY FOR PROGRAM.  (a)  To be eligible
to receive a grant under the mitigation program, a business must:
(1)  be organized under the laws of this state;
(2)  be in good standing under the laws of this state;
(A)  have pedestrian or road traffic access to the
business impacted by a highway construction project; or
(B)  be located within five miles of a highway
construction project that has rerouted traffic or increased road
(4)  be able to establish that the business sustained
economic damages as a direct result of the highway construction
project, including by presenting:
(A)  a decline in gross receipts; or
(b)  If a business operates multiple locations that satisfy
the eligibility requirements under this section, each location may
separately apply for a grant under the mitigation program.
Sec. 249.005.  USE OF MONEY.  A business may use a grant
received under the mitigation program:
(1)  to pay the business's expenses; or
(2)  for any other legitimate business purpose
Sec. 249.006.  MITIGATION PROGRAM INFORMATION.  The
department shall publish information regarding the mitigation
program on the department's Internet website, including
information regarding the application process for the mitigation
Sec. 249.007.  RULES.  The department shall adopt rules
necessary to implement and administer this chapter, including rules
(1)  a standardized application process for the
mitigation program, the form to apply for a grant, and the manner of
(2)  procedures for monitoring the disbursement and use
of grant money to ensure compliance with this chapter.
SECTION 2.  Not later than January 1, 2026, the Texas
Department of Transportation  shall adopt the rules necessary to
implement Chapter 249, Transportation Code, as added by this Act.
SECTION 3.  This Act takes effect September 1, 2025.