By Ogden                                               H.B. No. 421
       74R1214 DAK-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to allocating a portion of revenue from the oil and gas
    1-3  severance taxes to counties for road maintenance and improvement.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 201.404, Tax Code, is amended to read as
    1-6  follows:
    1-7        Sec. 201.404.  ALLOCATION OF REVENUE.  After deducting the
    1-8  amount required to be deposited by Section 201.403 of this code,
    1-9  the comptroller shall:
   1-10              (1)  deposit 25 percent <one-fourth> of the revenue
   1-11  collected from the tax imposed by this chapter to the credit of the
   1-12  foundation school fund and 65 percent <three-fourths> to the
   1-13  general revenue fund; and
   1-14              (2)  deposit 10 percent of the revenue collected from
   1-15  the tax imposed by this chapter to the credit of a trust account
   1-16  created under Section 4.004, County Road and Bridge Act (Article
   1-17  6702-1, Vernon's Texas Civil Statutes), to be disbursed to counties
   1-18  for road maintenance and improvement in the manner provided by that
   1-19  section.
   1-20        SECTION 2.  Section 202.353, Tax Code, is amended to read as
   1-21  follows:
   1-22        Sec. 202.353.  ALLOCATION OF REVENUE.  After deducting the
   1-23  amount required to be deposited by Section 202.352 of this code,
   1-24  the comptroller shall:
    2-1              (1)  deposit 25 percent <one-fourth> of the revenue
    2-2  collected from the tax imposed by this chapter to the credit of the
    2-3  foundation school fund and 65 percent <three-fourths> to the
    2-4  general revenue fund; and
    2-5              (2)  deposit 10 percent of the revenue collected from
    2-6  the tax imposed by this chapter to the credit of a trust account
    2-7  created under Section 4.004, County Road and Bridge Act (Article
    2-8  6702-1, Vernon's Texas Civil Statutes), to be disbursed to counties
    2-9  for road maintenance and improvement in the manner provided by that
   2-10  section.
   2-11        SECTION 3.  Subchapter A, Chapter 4, County Road and Bridge
   2-12  Act (Article 6702-1, Vernon's Texas Civil Statutes), is amended by
   2-13  adding Section 4.004 to read as follows:
   2-14        Sec. 4.004.  TRUST ACCOUNT FOR REVENUE FROM SEVERANCE TAXES
   2-15  FOR ROAD MAINTENANCE AND IMPROVEMENT.  (a)  The comptroller shall
   2-16  deposit with the state treasurer:
   2-17              (1)  the revenue collected from the gas production tax
   2-18  as specified by Section 201.404(2), Tax Code; and
   2-19              (2)  the revenue collected from the oil production tax
   2-20  as specified by Section 202.353(2), Tax Code.
   2-21        (b)  The treasurer shall keep the deposits in trust in a
   2-22  separate account.  The comptroller shall send to the county
   2-23  treasurer payable to the county the county's share of the revenue
   2-24  in the trust account as provided by this section.
   2-25        (c)  The comptroller shall determine a ratio for each county
   2-26  in which:
   2-27              (1)  the numerator is the amount of taxes received
    3-1  under this chapter for a calendar month from the county under
    3-2  Chapters 201 and 202, Tax Code, on the gas and oil produced in the
    3-3  county; and
    3-4              (2)  the denominator is the total amount of taxes
    3-5  received under Chapters 201 and 202, Tax Code, in the state for the
    3-6  calendar month.
    3-7        (d)  The comptroller shall remit to a county an amount equal
    3-8  to the ratio for the county as determined by Subsection (c) of this
    3-9  section for the calendar month multiplied by the amount deposited
   3-10  in the trust account for the calendar month.
   3-11        (e)  The comptroller shall remit to a county the amount
   3-12  provided by this section not later than the 90th day after the last
   3-13  day of the calendar month during which the revenue was deposited in
   3-14  the trust account.
   3-15        (f)  Interest earned on all deposits made with the state
   3-16  treasurer under this section shall be credited to the general
   3-17  revenue fund.
   3-18        (g)  A county may use money received under this section  only
   3-19  for the maintenance and improvement of county roads in the county.
   3-20        SECTION 4.  This Act takes effect September 1, 1995, and
   3-21  applies only to tax revenue collected under Chapters 201 and 202,
   3-22  Tax Code, from oil and gas produced on or after that date.  Tax
   3-23  revenue collected under Chapters 201 and 202, Tax Code, from oil
   3-24  and gas produced before that date is governed by the law in effect
   3-25  at the time the oil and gas was produced, and that law is continued
   3-26  in effect for that purpose.
   3-27        SECTION 5.  The importance of this legislation and the
    4-1  crowded condition of the calendars in both houses create an
    4-2  emergency and an imperative public necessity that the
    4-3  constitutional rule requiring bills to be read on three several
    4-4  days in each house be suspended, and this rule is hereby suspended.