S.B. No. 1305         AN ACT   relating to the grant program using money from the transportation   infrastructure fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 222.110(a), (e), and (h),   Transportation Code, are amended to read as follows:          (a)  In this section, "sales[:                [(1)  "Sales] tax base" for a transportation   reinvestment zone means the amount of sales and use taxes imposed by   a municipality under Section 321.101(a), Tax Code, or by a county   under Chapter 323, Tax Code, as applicable, attributable to the   zone for the year in which the zone was designated under this   chapter.                [(2)     "Transportation reinvestment zone" includes a   county energy transportation reinvestment zone.]          (e)  The sales and use taxes to be deposited into the tax   increment account under this section may be disbursed from the   account only to:                (1)  pay for projects authorized under Section 222.104   or 222.108; and                (2)  notwithstanding Sections 321.506 and 323.505, Tax   Code, satisfy claims of holders of tax increment bonds, notes, or   other obligations issued or incurred for projects authorized under   Section 222.104[, 222.1071,] or 222.108.          (h)  The hearing required under Subsection (g) may be held in   conjunction with a hearing held under Section 222.106(e) or[,]   222.107(e)[, or 222.1071(d)] if the ordinance or order designating   an area as a transportation reinvestment zone under Section 222.106   or[,] 222.107[, or 222.1071] also designates a sales tax increment   under Subsection (b).          SECTION 2.  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 received [designated a county   energy transportation reinvestment zone, money paid into a tax   increment account for the zone or from] an award under Subchapter C,   the money 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)  received [paid into a tax increment account   for the zone or] from any [an] award under Subchapter C [if the   county designated a county energy transportation reinvestment   zone];                (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 3.  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 4.  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 5.  Sections 222.1071, 222.1072, and 222.110(i),   Transportation Code, are repealed.          SECTION 6.  The repeal by this Act of Section 222.1071,   Transportation Code, does not affect the validity of bonds issued   under that section before the effective date of this Act. Bonds   issued before the effective date of this Act are governed by the law   in effect when the bonds were issued, and that law is continued in   effect for purposes of the validity of those bonds.          SECTION 7.  The repeal by this Act of Section 222.1071,   Transportation Code, does not affect the amount of any tax rate   calculation under Chapter 26, Tax Code, for the 2018 tax year or a   subsequent tax year pertaining to a county that imposes taxes on   property that for the 2017 tax year was located in a county energy   transportation reinvestment zone. Under Section 26.03, Tax Code,   for the duration of the zone, in any tax rate calculation under   Chapter 26 of that code, the portion of the captured appraised value   of property located in the zone that corresponded to the tax   increment of the county from that property that the county agreed to   pay into the tax increment account for the zone was excluded from   the value of property taxable by the county, and the portion of the   tax increment of the county that the county agreed to pay into the   account for the zone was excluded from the amount of taxes imposed   or collected by the county. Because beginning with the 2018 tax   year both that property value and the taxes corresponding to that   property value will be included in the calculation of ad valorem tax   rates of the county under Chapter 26, Tax Code, the amounts of those   tax rates will be unaffected.          SECTION 8.  This Act takes effect December 31, 2017.             ______________________________ ______________________________      President of the Senate Speaker of the House                 I hereby certify that S.B. No. 1305 passed the Senate on   April 4, 2017, by the following vote:  Yeas 31, Nays 0.       ______________________________   Secretary of the Senate                I hereby certify that S.B. No. 1305 passed the House on   May 17, 2017, by the following vote:  Yeas 140, Nays 1, two   present not voting.       ______________________________   Chief Clerk of the House            Approved:     ______________________________                Date       ______________________________              Governor