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Signed Into Law
Signed June 20, 2025Effective 2025-09-01
HB2560

Regular Session

Relating to creation of the Adopt-a-County Road program.

Government Affairs & Regulatory Compliance Analysis

HB2560: Government Affairs Overview

HB2560 authorizes a "pay-for-performance" infrastructure model effective September 1, 2025, allowing businesses to fund specific county road repairs in exchange for recognition signage. While participation is voluntary, this is a strategic tool for heavy-industry operators (energy, logistics, agriculture) to expedite maintenance on critical supply routes that counties otherwise neglect due to budget constraints.

Rep. Joanne Shofner·House Bill·Regular Session

Low
Low Cost
Effective:2025-09-01
Enforcing Agencies

County Commissioners Courts

Business Impact

Who HB2560 Affects

This legislation has regulatory implications for the following Texas businesses and organizations:

Regulatory Priority: low

Standard regulatory changes (effective 2025-09-01). Review during normal business planning.

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Transportation

Affected business types:

  • Trucking companies
  • Towing operators
  • Fleet operators
  • Logistics providers
View all transportation legislation

Key Operational Considerations

  • 1Indemnification: Ensure the agreement explicitly states that funding the repair does not transfer liability for road defects or accidents to your company.
  • 2Government Affairs: Teams interacting with local officials must be briefed on this statute to use it as a negotiation lever for road improvements.

Estimated Cost Impact

lowMinimal cost impact anticipated.

Enforcing Agencies

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HB2560
Relating to creation of the Adopt-a-County Road program.
Low Urgency
Unanimous Passage
House Vote127 - 0
YEA
100% in favor127 voting
Senate Vote31 - 0
YEA
100% in favor31 voting
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
County Commissioners Courts
Primary Author: Rep. Joanne Shofner
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: N/A (Voluntary participation). Agreements may be executed immediately upon the effective date.
  • Agency Rulemaking: No state-level rulemaking is required. Individual County Commissioners Courts must adopt local orders to implement the program. Expect a "regulatory gray zone" in Q4 2025 while counties draft their specific application procedures.

Immediate Action Plan

  • Audit Supply Routes: Immediately identify county-maintained roads where poor surface conditions are increasing fleet maintenance costs or slowing logistics.
  • Engage Commissioners Early: Contact relevant County Commissioners in July 2025 to propose a partnership so the agreement is ready for the September 1 effective date.
  • Define Scope of Work: Prepare an engineering estimate for the required road repairs to anchor negotiations on the donation amount.
  • Review Insurance: Confirm with your carrier that funding public improvements does not trigger any exclusions in your General Liability policy.

Operational Changes Required

Contracts

Participation requires a new Section 256.011 Partnership Agreement.

  • Drafting Control: Do not rely on county-generated templates. Your legal team must ensure the contract defines "maintenance" specifically (e.g., "asphalt overlay" vs. "patching") to ensure the donation yields the necessary operational benefit.
  • Indemnification: Ensure the agreement explicitly states that funding the repair does not transfer liability for road defects or accidents to your company.

Hiring/Training

  • Government Affairs: Teams interacting with local officials must be briefed on this statute to use it as a negotiation lever for road improvements.
  • Finance/Tax: Classifying these payments requires review. While the statute calls them "donations," the receipt of signage and operational benefit (better roads) complicates the tax treatment (Charitable Contribution vs. Business Expense).

Reporting & Record-Keeping

  • Fund Tracing: The statute requires the county to use funds *exclusively* for the designated road. You must require a post-project audit or completion report from the county to verify this for your internal records.
  • Tax Substantiation: Maintain the executed agreement and proof of payment to substantiate the expenditure.

Fees & Costs

  • Variable Costs: There is no statutory cap or floor on the donation amount; it is subject to negotiation with the Commissioners Court based on the cost of the specific road repair.

Strategic Ambiguities & Considerations

  • "Repair and Maintain" Standards: The statute does not define the quality of work required. Without a specific contractual scope of work, a county could accept a grant for a full repaving but only perform minor patch repairs.
  • Signage Duration: The law mandates the county install signs but does not specify how long they must remain up. Your contract must stipulate the duration of the signage display (e.g., "for 12 months following project completion").
  • Exclusivity: The statute does not prevent a competitor from adopting an adjacent section of the road. Exclusivity terms must be negotiated directly.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Feb 7, 2025
Passed House
May 10, 2025
Passed Senate
May 23, 2025
Signed
Jun 20, 2025
Effective
Sep 1, 2025
TopicsCounty GovernmentCounty Government--roadsVehicles & TrafficVehicles & Traffic--rules of RoadSignsGifts & Donations
03

House Authors

Rep. Joanne ShofnerRepublican · Primary Author
Coauthors (17)

Senate Sponsor

Sen. Robert NicholsRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

Related Legislation

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More from Rep. Joanne Shofner

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about HB2560

Q

What does Texas HB2560 do?

HB2560 authorizes a "pay-for-performance" infrastructure model effective September 1, 2025, allowing businesses to fund specific county road repairs in exchange for recognition signage. While participation is voluntary, this is a strategic tool for heavy-industry operators (energy, logistics, agriculture) to expedite maintenance on critical supply routes that counties otherwise neglect due to budget constraints.

Q

Who authored HB2560?

HB2560 was authored by Texas Representative Joanne Shofner during the Regular Session.

Q

When was HB2560 signed into law?

HB2560 was signed into law by Governor Greg Abbott on June 20, 2025.

Q

Which agencies enforce HB2560?

HB2560 is enforced by County Commissioners Courts.

Q

How significant are the changes in HB2560?

The regulatory priority for HB2560 is rated as "low". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of HB2560?

The cost impact of HB2560 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does HB2560 address?

HB2560 addresses topics including county government, county government--roads, vehicles & traffic, vehicles & traffic--rules of road and signs.

Q

What are the key dates for HB2560?

Key dates for HB2560: Effective date is 2025-09-01. Consult with legal counsel regarding applicability.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026