85R11414 MTB-D

By: Uresti, Seliger S.B. No. 1707

A BILL TO BE ENTITLED

AN ACT

relating to funding for county transportation infrastructure projects in counties with significant oil and gas production.

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

SECTION 1. Section 222.1071, Transportation Code, is amended by adding Subsections (h-1), (i-1), (p), and (q) and amending Subsection (k) to read as follows:

(h-1) The chief appraiser of the appraisal district in which the zone is located shall certify to the county assessor-collector the amount of tax increment produced by the county.

(i-1) At least 95 percent of the tax increment paid into the tax increment account for the zone must be used to plan, construct, or maintain transportation infrastructure in the zone.

(k) A county energy transportation reinvestment zone terminates on December 31 of the eighth [10th] year after the year the zone was designated [unless extended by an act of the county commissioners court that designated the zone. The extension may not exceed five years]. On termination of the zone, any money remaining in the tax increment account must be transferred to the road and bridge fund described by Chapter 256 for the county that deposited the money into the tax increment account.

(p) Notwithstanding any other provision of this section, a county may not designate an area in the jurisdiction of the county as a county energy transportation reinvestment zone after September 1, 2017.

(q) An owner of property located in an area designated as a county energy transportation reinvestment zone may protest a county's failure to follow a provision of this section to the appraisal review board established for the appraisal district in which the property is located in the manner provided by Subchapter C, Chapter 41, Tax Code. If the appraisal review board determines the protest in favor of the property owner, the county may not pay the tax increment produced by the county into the tax increment account for the zone. The comptroller shall adopt rules as necessary to implement this subsection.

SECTION 2. Section 222.1072, Transportation Code, is transferred to Subchapter C, Chapter 256, Transportation Code, redesignated as Section 256.107, Transportation Code, and amended to read as follows:

Sec. 256.107 [222.1072]. COUNTY GRANT PROGRAM ADVISORY BOARD [OF COUNTY ENERGY TRANSPORTATION REINVESTMENT ZONE]. (a) A county may create [is eligible to apply for a grant under Subchapter C, Chapter 256, if the county creates] an advisory board to advise the county on transportation infrastructure projects to be funded by a grant from the department under this subchapter [the establishment, administration, and expenditures of a county energy transportation reinvestment zone]. The county commissioners court shall determine the terms and duties of the advisory board members.

(b) An [Except as provided by Subsection (c), the] advisory board created under this section [of a county energy transportation reinvestment zone] consists of the following members appointed by the county judge and approved by the county commissioners court:

(1) up to three oil and gas company representatives who perform company activities in the county and are local taxpayers; and

(2) two public members.

(c) [County energy transportation reinvestment zones that are jointly administered are advised by a single joint advisory board for the zones. A joint advisory board under this subsection consists of members appointed under Subsection (b) for each zone to be jointly administered.

[(d)] An advisory board member may not receive compensation for service on the board or reimbursement for expenses incurred in performing services as a member.

SECTION 3. Section 256.009(a), Transportation Code, is amended to read as follows:

(a) Not later than January 30 of each year, the county auditor or, if the county does not have a county auditor, the official having the duties of the county auditor shall file a report with the comptroller that includes:

(1) an account of how:

(A) the money allocated to a county under Section 256.002 during the preceding year was spent; [and]

(B) if the county designated a county energy transportation reinvestment zone, expenditures were made by transportation infrastructure project money paid into a tax increment account for the zone; and

(C) money [or] from an award under Subchapter C was spent;

(2) a description, including location, of any new roads constructed in whole or in part with the money:

(A) allocated to a county under Section 256.002 during the preceding year; [and]

(B) paid into a tax increment account for the zone [or from an award under Subchapter C] if the county designated a county energy transportation reinvestment zone; and

(C) from an award under Subchapter C;

(3) any other information related to the administration of Sections 256.002 and 256.003 that the comptroller requires; and

(4) the total amount of expenditures for county road and bridge construction, maintenance, rehabilitation, right-of-way acquisition, and utility construction and other appropriate road expenditures of county funds in the preceding county fiscal year that are required by the constitution or other law to be spent on public roads or highways.

SECTION 4. Section 256.103(b), Transportation Code, is amended to read as follows:

(b) Grants distributed during a fiscal year must be allocated among counties as follows:

(1) 20 percent according to weight tolerance permits, determined by the ratio of weight tolerance permits issued in the preceding fiscal year for the county [that designated a county energy transportation reinvestment zone] to the total number of weight tolerance permits issued in the state in that fiscal year, as determined by the Texas Department of Motor Vehicles;

(2) 20 percent according to oil and gas production taxes, determined by the ratio of oil and gas production taxes collected by the comptroller in the preceding fiscal year in the county [that designated a county energy transportation reinvestment zone] to the total amount of oil and gas production taxes collected in the state in that fiscal year, as determined by the comptroller;

(3) 50 percent according to well completions, determined by the ratio of well completions in the preceding fiscal year in the county [that designated a county energy transportation reinvestment zone] to the total number of well completions in the state in that fiscal year, as determined by the Railroad Commission of Texas; and

(4) 10 percent according to the volume of oil and gas waste injected, determined by the ratio of the volume of oil and gas waste injected in the preceding fiscal year in the county [that designated a county energy transportation reinvestment zone] to the total volume of oil and gas waste injected in the state in that fiscal year, as determined by the Railroad Commission of Texas.

SECTION 5. Section 256.104(a), Transportation Code, is amended to read as follows:

(a) In applying for a grant under this subchapter, the county shall:

(1) provide the road condition report described by Section 251.018 made by the county for the previous year; and

(2) submit to the department[:

[(A) a copy of the order or resolution establishing a county energy transportation reinvestment zone in the county, except that the department may waive the submission until the time the grant is awarded; and

[(B)] a plan that:

(A) [(i)] provides a list of transportation infrastructure projects to be funded by the grant;

(B) [(ii)] describes the scope of the transportation infrastructure project or projects to be funded by the grant using best practices for prioritizing the projects;

(C) [(iii)] provides for matching funds as required by Section 256.105; and

(D) [(iv)] meets any other requirements imposed by the department.

SECTION 6. This Act takes effect September 1, 2017.