(a) The governing body of a unit of election that receives a refund under Section 451.614 may use the refund only for public purposes directly related to the functions of government that will benefit the residents of the unit as a whole.
(b) If the governing body distributes refund revenue to any other person, the governing body shall:
(1) ensure that the recipient spends the amount received to benefit the residents of the unit of election as a whole;
(2) ensure that the amount distributed is spent for public purposes that are the predominant purpose of the distribution; and
(3) condition the distribution by contract or other legal manner to provide the governing body with sufficient control of the use of the amounts distributed to ensure that the public purposes for which the distribution is made are carried out and to protect the public investment in the revenue.
Official text of the Texas Transportation Code as published by the Texas Legislative Council.