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A BILL TO BE ENTITLED
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AN ACT
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relating to creating a fund to provide grants to certain local |
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entities in areas of the state affected by decreased oil and gas |
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production for economic development and diversification projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter F, Chapter 401, Government Code, is |
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amended by adding Section 401.107 to read as follows: |
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Sec. 401.107. FUND FOR AREAS ECONOMICALLY IMPACTED BY |
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DECREASED OIL AND GAS PRODUCTION. (a) In this section, "fund" means |
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the oil and gas downturn assistance fund. |
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(b) The oil and gas downturn assistance fund is an account |
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in the general revenue fund created to provide grants for the |
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purpose of economic development and diversification in eligible |
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municipalities, counties, and school districts, as provided in |
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Subsection (e). The fund consists of excess general revenue |
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transferred to the fund as provided in Subsection (c). |
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(c) If the total available general revenue available for a |
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state fiscal biennium at the end of the fiscal biennium exceeds the |
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amount of the total available general revenue stated in the |
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comptroller's biennial revenue estimate for that fiscal biennium, |
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the comptroller shall transfer any excess general revenue to the |
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credit of the fund. |
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(d) The fund is administered by the governor. The governor |
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shall adopt rules necessary to administer the fund, including rules |
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relating to: |
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(1) the grant application process; and |
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(2) the method by which grants will be awarded if the |
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amount of grants for which eligible municipalities, counties, and |
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school districts have applied exceeds the available balance in the |
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fund. |
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(e) A municipality, county, or school district is eligible |
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for a grant from the fund if, for the tax year in which the state |
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fiscal biennium for which a grant under this section is sought |
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begins, the appraised value of property for ad valorem tax purposes |
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in the municipality, county, or school district has decreased by 20 |
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percent or more from the appraised value for the tax year in which |
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the preceding fiscal biennium began. For purposes of this section, |
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the appraised value of property is the taxable value of property |
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certified under Section 26.01, Tax Code. |
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SECTION 2. This Act takes effect September 1, 2017. |