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A BILL TO BE ENTITLED
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AN ACT
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relating to funding to counties for transportation infrastructure |
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projects located in areas of the state affected by increased oil and |
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gas production. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 222.1071(b), (f), (i), and (m), |
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Transportation Code, are amended to read as follows: |
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(b) A county, after determining that an area is affected |
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because of oil and gas exploration and production activities and |
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would benefit from funding under Chapter 256, by order or |
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resolution of the commissioners court: |
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(1) may designate a contiguous geographic area in the |
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jurisdiction of the county to be a county energy transportation |
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reinvestment zone to promote one or more transportation |
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infrastructure projects, as that term is defined by Section |
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256.101, located in the county [zone]; and |
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(2) may jointly administer a county energy |
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transportation reinvestment zone with a contiguous county energy |
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transportation reinvestment zone formed by another county. |
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(f) The order or resolution designating an area as a county |
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energy transportation reinvestment zone must: |
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(1) describe the boundaries of the zone with |
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sufficient definiteness to identify with ordinary and reasonable |
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certainty the territory included in the zone; |
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(2) provide that the zone takes effect immediately on |
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adoption of the order or resolution designating an area and that the |
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base year shall be the year of passage of the order or resolution |
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designating an area or some year in the future; |
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(3) establish an ad valorem tax increment account for |
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the zone or provide for the establishment of a joint ad valorem tax |
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increment account, if applicable; and |
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(4) if two or more counties are designating a zone for |
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the same transportation infrastructure project or projects, |
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include a finding that: |
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(A) the project or projects will benefit the |
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property and residents located in the counties [zone]; |
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(B) the creation of the zone will serve a public |
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purpose of the county; and |
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(C) details the transportation infrastructure |
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projects for which each county is responsible. |
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(i) The county may: |
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(1) use money in the tax increment account to provide: |
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(A) matching funds under Section 256.105; and |
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(B) funding for one or more transportation |
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infrastructure projects located in the county [zone]; |
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(2) apply for grants under Subchapter C, Chapter 256[,
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subject to Section 222.1072]; |
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(3) use one [five] percent of any grant distributed to |
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the county under Subchapter C, Chapter 256, for the administration |
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of a county energy transportation reinvestment zone, not to exceed |
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$100,000 [$250,000]; |
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(4) enter into an agreement to provide for the joint |
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administration of county energy transportation reinvestment zones |
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if the commissioners court of the county has designated a county |
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energy transportation reinvestment zone under this section for the |
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same transportation infrastructure project or projects as another |
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county commissioners court; and |
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(5) pledge money in the tax increment account to a road |
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utility district formed as provided by Subsection (n). |
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(m) The commissioners court of a county may enter into an |
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agreement with the department to designate a county energy |
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transportation reinvestment zone under this section for a specified |
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transportation infrastructure project involving a state highway |
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located in the county [proposed zone]. |
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SECTION 2. Sections 222.1072(a) and (b), Transportation |
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Code, are amended to read as follows: |
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(a) A county may create [is eligible to apply for a grant
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under Subchapter C, Chapter 256, if the county creates] an advisory |
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board to advise the county on the establishment, administration, |
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and expenditures of a county energy transportation reinvestment |
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zone. The county commissioners court shall determine the terms and |
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duties of the advisory board members. |
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(b) Except as provided by Subsection (c), the advisory board |
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of a county energy transportation reinvestment zone consists of the |
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following members appointed by the county judge and approved by the |
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county commissioners court: |
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(1) up to three oil and gas company representatives |
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who perform a company activity or related service [activities in
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the county and are local taxpayers]; and |
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(2) two public members. |
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SECTION 3. Section 251.018, Transportation Code, as added |
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by Chapter 1372 (S.B. 1747), Acts of the 83rd Legislature, Regular |
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Session, 2013, is amended to read as follows: |
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Sec. 251.018. ROAD REPORTS. A road condition report made by |
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a county that is operating under a system of administering county |
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roads under Chapter 252 or a special law, including a report made |
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under Section 251.005, must include the primary cause of any road, |
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culvert, or bridge degradation if reasonably ascertained along with |
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a brief description of the degradation. |
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SECTION 4. Sections 256.101(3) and (4), Transportation |
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Code, are amended to read as follows: |
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(3) "Weight tolerance permit" means a permit issued |
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under Section 623.011 for [Chapter 623 authorizing] a vehicle |
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operating specifically in relation to the exploration, |
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development, or production of oil or gas [to exceed maximum legal
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weight limitations]. |
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(4) "Well completion" means the completion, reentry, |
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or recompletion of a vertical or horizontal [an] oil or gas well. |
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SECTION 5. Section 256.103(b), Transportation Code, is |
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amended to read as follows: |
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(b) Grants distributed during a fiscal year must be |
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allocated among counties as follows: |
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(1) 20 percent according to weight tolerance permits, |
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determined by the ratio of weight tolerance permits issued in the |
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preceding fiscal year for the county that designated a county |
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energy transportation reinvestment zone to the total number of |
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weight tolerance permits issued in the state in that fiscal year, as |
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determined by the Texas Department of Motor Vehicles; |
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(2) 20 percent according to oil and gas production |
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taxes, determined by the ratio of oil and gas production taxes |
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collected by the comptroller in the preceding fiscal year in the |
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county that designated a county energy transportation reinvestment |
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zone to the total amount of oil and gas production taxes collected |
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in the state in that fiscal year, as determined by the comptroller; |
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(3) 10 [50] percent according to vertical well |
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completions, determined by the ratio of vertical well completions |
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in the preceding fiscal year in the county that designated a county |
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energy transportation reinvestment zone to the total number of |
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vertical well completions in the state in that fiscal year, as |
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determined by the Railroad Commission of Texas; [and] |
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(4) 40 percent according to horizontal well |
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completions, determined by the ratio of horizontal well completions |
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in the preceding fiscal year in the county that designated a county |
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energy transportation reinvestment zone to the total number of |
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horizontal well completions in the state in that fiscal year, as |
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determined by the Railroad Commission of Texas; and |
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(5) 10 percent according to the total number [volume] |
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of oil and gas waste disposal wells as defined by the Railroad |
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Commission of Texas [injected], determined by the ratio of the |
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total number [volume] of oil and gas waste disposal wells |
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[injected] in the last full [preceding fiscal] year for which the |
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Railroad Commission of Texas has a report for commercial disposal |
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wells in the county that designated a county energy transportation |
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reinvestment zone to the total number [volume] of oil and gas waste |
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disposal wells [injected] in the state in that [fiscal] year, as |
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determined by the Railroad Commission of Texas. |
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SECTION 6. Section 256.106, Transportation Code, is amended |
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to read as follows: |
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Sec. 256.106. PROGRAM ADMINISTRATION. (a) A county that |
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makes a second or subsequent application for a grant from the |
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department under this subchapter must: |
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(1) provide the department with a copy of a report |
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filed under Section 251.018; |
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(2) certify that all previous grants are being spent |
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in accordance with the plan submitted under Section 256.104; [and] |
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(3) provide an update on and brief description of the |
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status of all uncompleted transportation infrastructure projects; |
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and |
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(4) provide an accounting of how previous grants were |
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spent, including any amounts spent on administrative costs. |
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(b) The department may use [one-half of] one percent of the |
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amount deposited into the fund in the preceding fiscal year, not to |
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exceed $500,000 in a state fiscal biennium, to administer this |
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subchapter. |
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SECTION 7. This Act takes effect September 1, 2015. |
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