85R8184 MTB/CJC-F     By: Darby H.B. No. 2813       A BILL TO BE ENTITLED   AN ACT   relating to the abolishment of the transportation infrastructure   fund and the grant program using money from the 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 designated a county energy   transportation reinvestment zone, money paid into a tax increment   account for the zone 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;]                (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.  The following provisions of the Transportation   Code are repealed:                (1)  Subchapter C, Chapter 256; and                (2)  Sections 222.1071, 222.1072, and 222.110(i).          SECTION 4.  (a) On December 31, 2017, the transportation   infrastructure fund is abolished and the comptroller of public   accounts shall transfer the unencumbered balance of the fund to the   state highway fund for use in accordance with legislative   appropriation.          (b)  The abolishment of the transportation infrastructure   fund and the repeal of Subchapter C, Chapter 256, Transportation   Code, do not affect the validity of any contract or agreement   between the Texas Department of Transportation and a county that is   entered into under that subchapter before December 31, 2017.          SECTION 5.  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 6.  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 7.  This Act takes effect December 31, 2017.