| 1 | 1 | | By: Ogden S.B. No. 505 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to authorizing the designation of an area adjacent to a |
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| 7 | 7 | | state highway project as a transportation finance zone, and |
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| 8 | 8 | | authorizing the revenue from the state sales and use taxes imposed |
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| 9 | 9 | | in the zone to be deposited in a revolving fund and used to repay |
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| 10 | 10 | | financial assistance provided from the fund for highway projects. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Subchapter A, Chapter 222, Transportation Code, |
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| 13 | 13 | | is amended by adding Section 222.005 to read as follows: |
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| 14 | 14 | | Sec. 222.005. TRANSPORTATION FINANCE ZONES. (a) The |
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| 15 | 15 | | commission by order or resolution may designate as a transportation |
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| 16 | 16 | | finance zone an area that is adjacent to the right-of-way of an |
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| 17 | 17 | | existing or proposed state highway project and within two miles on |
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| 18 | 18 | | either side of the center line of the state highway. The area |
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| 19 | 19 | | designated as a transportation finance zone may extend more than |
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| 20 | 20 | | two miles on either side of the center line of a state highway if |
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| 21 | 21 | | necessary, as determined by the commission, to avoid the splitting |
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| 22 | 22 | | of a location in which the sale, storage, use, or other consumption |
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| 23 | 23 | | of a taxable item would be consummated. Each transportation |
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| 24 | 24 | | finance zone shall be designated by the commission with a separate |
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| 25 | 25 | | number or name. |
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| 26 | 26 | | (b) The designation of a transportation finance zone is not |
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| 27 | 27 | | effective until the Legislative Budget Board has reviewed and |
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| 28 | 28 | | approved the designation and boundaries of the zone. |
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| 29 | 29 | | (c) Notwithstanding Section 151.801(a), Tax Code, proceeds |
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| 30 | 30 | | from the collection of the taxes imposed by that chapter in |
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| 31 | 31 | | connection with a sale, storage, use, or other consumption that is |
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| 32 | 32 | | consummated in a transportation finance zone shall be deposited in |
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| 33 | 33 | | the Texas Transportation Revolving Fund or similar revolving fund |
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| 34 | 34 | | authorized by law, to be used for the repayment of financial |
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| 35 | 35 | | assistance provided from the revolving fund for highway projects as |
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| 36 | 36 | | provided by law. |
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| 37 | 37 | | (d) The proceeds from the collection of taxes deposited to |
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| 38 | 38 | | the credit of a revolving fund under Subsection (c) may only be used |
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| 39 | 39 | | for the repayment of financial assistance provided to the |
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| 40 | 40 | | department for tolled or nontolled highway projects within the |
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| 41 | 41 | | transportation finance zone in which the taxes were collected, and |
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| 42 | 42 | | may not be used to provide financial assistance for a project |
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| 43 | 43 | | developed, constructed, or operated by a private entity under a |
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| 44 | 44 | | comprehensive development agreement. |
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| 45 | 45 | | (e) In any state fiscal year the comptroller may not deposit |
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| 46 | 46 | | more than $250 million to the credit of a revolving fund under |
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| 47 | 47 | | Subsection (d). |
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| 48 | 48 | | (f) A transportation finance zone terminates on the earlier |
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| 49 | 49 | | of: |
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| 50 | 50 | | (1) the termination date, if any, specified in the |
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| 51 | 51 | | order or resolution designating the zone; or |
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| 52 | 52 | | (2) the date on which the financial assistance secured |
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| 53 | 53 | | by proceeds from the collection of taxes imposed within the zone has |
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| 54 | 54 | | been repaid. |
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| 55 | 55 | | (g) The commission shall adopt rules to implement and |
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| 56 | 56 | | administer this section. |
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| 57 | 57 | | SECTION 2. (a) Except as provided in Subsection (b) of |
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| 58 | 58 | | this section, this Act takes effect January 1, 2010, but only if the |
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| 59 | 59 | | constitutional amendment authorizing the legislature to permit the |
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| 60 | 60 | | Texas Transportation Commission, subject to the review and approval |
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| 61 | 61 | | of the Legislative Budget Board, to designate the area adjacent to a |
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| 62 | 62 | | state highway project as a transportation finance zone and |
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| 63 | 63 | | authorizing the revenue from the state sales and use taxes imposed |
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| 64 | 64 | | in the zone to be deposited in a revolving fund and used to repay |
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| 65 | 65 | | financial assistance provided from the fund for transportation |
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| 66 | 66 | | projects is approved by the voters. If that amendment is not |
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| 67 | 67 | | approved by the voters, this Act has no effect. |
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| 68 | 68 | | (b) The comptroller of public accounts may not deposit any |
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| 69 | 69 | | funds to the credit of a revolving fund under Section 222.005, |
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| 70 | 70 | | Transportation Code, as added by this Act, until September 1, 2012. |
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