85R11840 MTB-F

By: Uresti S.B. No. 1708

A BILL TO BE ENTITLED

AN ACT

relating to funding for counties for transportation infrastructure projects located in areas of the state affected by increased oil and gas production, including administration of county energy transportation reinvestment zones.

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

SECTION 1. Sections 222.1071(i) and (n), Transportation Code, are amended to read as follows:

(i) The county may:

(1) use money in the tax increment account, before September 1, 2017, to provide:

(A) matching funds under Section 256.105; and

(B) funding for one or more transportation infrastructure projects located in the zone;

(2) apply for grants under Subchapter C, Chapter 256[, subject to Section 222.1072];

(3) use one [five] percent of any grant distributed to the county under Subchapter C, Chapter 256, for the administration of a county energy transportation reinvestment zone, not to exceed $100,000 [$250,000];

(4) enter into an agreement to provide for the joint administration of county energy transportation reinvestment zones if the commissioners court of the county has designated a county energy transportation reinvestment zone under this section for the same transportation infrastructure project or projects as another county commissioners court; and

(5) pledge money in the tax increment account, before September 1, 2017, to a road utility district formed as provided by Subsection (n).

(n) In the alternative, to assist the county in developing a transportation infrastructure project, if authorized by the commission under Chapter 441, a road utility district may be formed under that chapter that has the same boundaries as a county energy transportation reinvestment zone created under this section. The road utility district may issue bonds to pay all or part of the cost of a transportation infrastructure project and may pledge and assign all or a specified amount of money in the tax increment account, before September 1, 2017, to secure those bonds if the county:

(1) collects a tax increment; and

(2) pledges all or a specified amount of the tax increment to the road utility district.

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 a company activity or related service [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 251.018, Transportation Code, is amended to read as follows:

Sec. 251.018. ROAD REPORTS. A road condition report made by a county that is operating under a system of administering county roads under Chapter 252 or a special law, including a report made under Section 251.005, must include the primary cause of any road, culvert, or bridge degradation if reasonably ascertained along with a brief description of the degradation.

SECTION 4. Sections 256.101(3) and (4), Transportation Code, are amended to read as follows:

(3) "Weight tolerance permit" means a permit issued under Section 623.011 for [Chapter 623 authorizing] a vehicle operating specifically in relation to the exploration, development, or production of oil or gas [to exceed maximum legal weight limitations].

(4) "Well completion" means the completion, reentry, or recompletion of a vertical or horizontal [an] oil or gas well.

SECTION 5. Section 256.103, Transportation Code, is amended by adding Subsection (a-1) and amending Subsection (b) to read as follows:

(a-1) To be eligible for a grant under this subchapter, a county must have at least 400 active wells, including horizontal, vertical, and oil and gas waste disposal wells, as determined by the most recent data of the Railroad Commission of Texas.

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

(1) 10 [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) 15 [50] percent according to vertical well completions, determined by the ratio of vertical well completions in the preceding fiscal year in the county [that designated a county energy transportation reinvestment zone] to the total number of vertical well completions in the state in that fiscal year, as determined by the Railroad Commission of Texas; [and]

(4) 45 percent according to horizontal well completions, determined by the ratio of horizontal well completions in the preceding fiscal year in the county to the total number of horizontal well completions in the state in that fiscal year, as determined by the Railroad Commission of Texas; and

(5) 10 percent according to the total number [volume] of oil and gas waste disposal wells as defined by the Railroad Commission of Texas [injected], determined by the ratio of the total number [volume] of oil and gas waste disposal wells [injected] in the last full [preceding fiscal] year for which the Railroad Commission of Texas has a report for commercial disposal wells in the county [that designated a county energy transportation reinvestment zone] to the total number [volume] of oil and gas waste disposal wells [injected] in the state in that [fiscal] year, as determined by the Railroad Commission of Texas.

SECTION 6. 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 7. Section 256.106(a), Transportation Code, is amended to read as follows:

(a) A county that makes a second or subsequent application for a grant from the department under this subchapter must:

(1) provide the department with a copy of a report filed under Section 251.018;

(2) certify that all previous grants are being spent in accordance with the plan submitted under Section 256.104; [and]

(3) provide an update on and brief description of the status of all uncompleted transportation infrastructure projects; and

(4) provide an accounting of how previous grants were spent, including any amounts spent on administrative costs.

SECTION 8. This Act takes effect September 1, 2017.