84R9730 CJC-D

By: Fletcher H.B. No. 3763

A BILL TO BE ENTITLED

AN ACT

relating to the allocation of certain increases in state sales tax revenue due to transportation projects to the state highway fund through the use of economic impact zones established by the Texas Department of Transportation.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Chapter 222, Transportation Code, is amended by adding Subchapter F to read as follows:

SUBCHAPTER F. ECONOMIC IMPACT ZONES

Sec. 222.151. DEFINITIONS. In this subchapter:

(1) "Base year amount" means the amount of state sales tax revenue collected in a zone during the calendar year in which the zone is established.

(2) "Sales tax increment" means the amount in any calendar year after the year in which the zone was established by which state sales tax revenue collected in the zone exceeds the base year amount.

(3) "Zone" means an economic impact zone established under this subchapter.

Sec. 222.152. AUTHORITY TO ESTABLISH ZONE. (a) The department may establish an economic impact zone around a transportation project, subject to certification by the Legislative Budget Board.

(b) To the greatest extent practicable, the department shall collaborate with a municipality or county in which a zone will be located in establishing the zone.

Sec. 222.153. ECONOMIC IMPACT STATEMENT; LEGISLATIVE BUDGET BOARD CERTIFICATION. (a) Before the department establishes a zone, the department must prepare an economic impact statement and submit the statement to the Legislative Budget Board.

(b) The economic impact statement must:

(1) clearly designate the boundaries of the zone;

(2) identify the base year amount for the zone; and

(3) contain estimates of the amount of state sales tax collections in the zone for the 30-year period following establishment of the zone.

(c) After reviewing the economic impact statement, the Legislative Budget Board may certify the zone or return the statement to the department if the board determines more information is needed before the zone may be certified.

(d) The department may establish a zone certified by the board at any time during the 12 months following certification.

Sec. 222.154. COMPTROLLER ALLOCATION OF INCREMENT. (a) The department shall notify the comptroller of the department's establishment of a zone not later than the 30th day after the date the zone is established. The notification must include a copy of the zone's certification by the Legislative Budget Board.

(b) Beginning on the first day of the calendar month following the establishment of the zone, the comptroller shall deposit the sales tax increment collected by or forwarded to the comptroller in a separate account outside the treasury with the comptroller. The comptroller may make a transfer authorized by this section from the account without the necessity of an appropriation.

(c) The comptroller may estimate the amount of sales tax increment that will be deposited under Subsection (b) during each calendar year. The comptroller may make deposits to the account on a monthly basis based on the estimate. At the end of each calendar year, the comptroller shall adjust the deposits to reflect the amount of revenue actually deposited to the account during the calendar year.

(d) On January 1 of each calendar year, the comptroller shall transfer the money deposited under Subsection (b) as follows:

(1) 20 percent to the credit of the state highway fund; and

(2) the remainder to the credit of the general revenue fund.

(e) On termination of the zone, the comptroller shall transfer any money deposited under Subsection (b) that remains to the credit of the general revenue fund.

Sec. 222.155. TERMINATION. A zone created under this subchapter terminates on the 30th anniversary of the date the zone was established.

SECTION 2. This Act takes effect September 1, 2015.