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  H.B. No. 4025
 
 
 
 
AN ACT
  relating to funding to counties for transportation infrastructure
  projects located in areas of the state affected by increased oil and
  gas production, including money from county energy transportation
  reinvestment zones.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 222.1071(b), (f), (i), and (m),
  Transportation Code, are amended to read as follows:
         (b)  A county, after determining that an area is affected
  because of oil and gas exploration and production activities and
  would benefit from funding under Chapter 256, by order or
  resolution of the commissioners court:
               (1)  may designate a contiguous geographic area in the
  jurisdiction of the county to be a county energy transportation
  reinvestment zone to promote one or more transportation
  infrastructure projects, as that term is defined by Section
  256.101, located in the county [zone]; and
               (2)  may jointly administer a county energy
  transportation reinvestment zone with a contiguous county energy
  transportation reinvestment zone formed by another county.
         (f)  The order or resolution designating an area as a county
  energy transportation reinvestment zone must:
               (1)  describe the boundaries of the zone with
  sufficient definiteness to identify with ordinary and reasonable
  certainty the territory included in the zone;
               (2)  provide that the zone takes effect immediately on
  adoption of the order or resolution designating an area and that the
  base year shall be the year of passage of the order or resolution
  designating an area or some year in the future;
               (3)  establish an ad valorem tax increment account for
  the zone or provide for the establishment of a joint ad valorem tax
  increment account, if applicable; and
               (4)  if two or more counties are designating a zone for
  the same transportation infrastructure project or projects,
  include a finding that:
                     (A)  the project or projects will benefit the
  property and residents located in the counties [zone];
                     (B)  the creation of the zone will serve a public
  purpose of the county; and
                     (C)  details the transportation infrastructure
  projects for which each county is responsible.
         (i)  The county may:
               (1)  use money in the tax increment account to provide:
                     (A)  matching funds under Section 256.105; and
                     (B)  funding for one or more transportation
  infrastructure projects located in the county [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 to a road
  utility district formed as provided by Subsection (n).
         (m)  The commissioners court of a county may enter into an
  agreement with the department to designate a county energy
  transportation reinvestment zone under this section for a specified
  transportation infrastructure project involving a state highway
  located in the county [proposed zone].
         SECTION 2.  Sections 222.1072(a) and (b), Transportation
  Code, are amended to read as follows:
         (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 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)  Except as provided by Subsection (c), the advisory board
  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.
         SECTION 3.  Section 251.018, Transportation Code, as added
  by Chapter 1372 (S.B. 1747), Acts of the 83rd Legislature, Regular
  Session, 2013, 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(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)  20 [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)  3
  0 percent according to horizontal well
  completions, determined by the ratio of horizontal well completions
  in the preceding fiscal year in the county that designated a county
  energy transportation reinvestment zone 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 256.106, Transportation Code, is amended
  to read as follows:
         Sec. 256.106.  PROGRAM ADMINISTRATION.  (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.
         (b)  The department may use [one-half of] one percent of the
  amount deposited into the fund in the preceding fiscal year, not to
  exceed $500,000 in a state fiscal biennium, to administer this
  subchapter.
         SECTION 7.  This Act takes effect September 1, 2015.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 4025 was passed by the House on April
  30, 2015, by the following vote:  Yeas 137, Nays 2, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 4025 on May 28, 2015, by the following vote:  Yeas 142, Nays 0,
  2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 4025 was passed by the Senate, with
  amendments, on May 26, 2015, by the following vote:  Yeas 29, Nays
  2.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor